Eni asks Mellitah Company to increase Libyan gas supplies to Italy

Fawasel news platform cited sources as saying that Italy’s oil giant, Eni, has asked Mellitah Oil and Gas Company to increase current natural gas supplies to Italy by 20%, as winter approaches and the Italian market seeks to bolster its gas reserves.

In a letter addressed to Mellitah CEO Bashir Al-Zantani, Eni said current supplies stand at around 1.4 billion cubic meters annually, averaging 3.84 million cubic meters per day.

The company aims to raise supplies to approximately 1.68 billion cubic meters annually, equivalent to 4.6 million cubic meters per day, and called for an assessment of whether the increase could be implemented as soon as possible.

The request comes after an agreement signed between Libya’s National Oil Corporation (NOC) and Eni in January 2023, under which partnership stakes in several offshore gas projects were adjusted in favor of the Italian company, increasing its share by 9%.

The agreement included a joint investment commitment of around $8 billion, with each party contributing $4 billion, to develop several offshore fields. The project is to be implemented through Mellitah Oil and Gas Company.

However, the increase in Eni’s stake in the gas projects has renewed questions in economic circles over the balance of the partnership, particularly amid the failure to implement the agreed development projects.