Eni Opens New Tender for Libya’s Major Offshore Gas Development
Eni and Libya’s National Oil Corporation (NOC) are moving ahead with another major procurement stage for the offshore Structures A&E gas development, as their joint venture Mellitah Oil & Gas seeks contractors for subsea production systems at Structure E. The latest process marks further progress on a project that could significantly increase Libya’s gas supply, support electricity generation and strengthen exports to Europe.
According to Upstream, Eni and the NOC are seeking a specialist contractor to deliver the subsea production system for Structure E. The development forms part of a wider offshore investment program that also includes new platforms, pipelines and upgrades to existing gas facilities.
The tender follows earlier procurement activity for the project’s offshore pipelines and subsea infrastructure. Mellitah Oil & Gas has also invited engineering, procurement, installation and commissioning contractors to prequalify for work covering Structure E and the associated carbon capture and storage project.
A major test for Libya’s gas production ambitions
Structures A&E involves the development of two offshore gas fields in Contractual Area D, with production linked to the existing Mellitah processing complex. Rather than build an entirely new onshore processing hub, Eni and the NOC plan to connect offshore production to infrastructure that already serves Libya’s western gas network.
The project has a wider strategic importance. Libya needs more gas to meet domestic demand, particularly from power stations, while maintaining sufficient volumes for export through the Greenstream pipeline to Italy.
Gas shortages have increasingly exposed the limits of Libya’s energy system. The country relies heavily on gas-fired power generation, yet supply constraints and ageing infrastructure continue to put pressure on electricity production. Higher offshore output could help ease that pressure and reduce the need to divert other energy resources towards domestic consumption.
For Europe, additional production could strengthen Italy’s access to Libyan gas. Greenstream provides an existing export route, giving new offshore developments a commercial advantage over projects that would require entirely new transportation infrastructure.
Eni’s March 2026 investor update places Structures A&E among its major future developments, with a planned start-up in 2028. The company’s original project announcement outlined a combined production target of up to 750 million standard cubic feet of gas per day from the two structures.
Execution will matter more than investment announcements
The latest tender represents progress, but Libya still faces a significant challenge: delivering complex offshore projects on schedule.
Structures A&E has a long development history. The project dates back to an agreement between Eni and the NOC in January 2023, and earlier procurement processes have faced delays. The repeated need to advance contractor selection and infrastructure packages highlights how much work remains before the project can generate commercial volumes.
The latest subsea package also illustrates the technical complexity involved. Contractors must deliver specialized equipment and integrate it with offshore platforms, pipelines and existing processing facilities. Delays in any of these areas could affect the wider development schedule.
There are encouraging signs elsewhere in the same gas investment program. In October, Eni announced the completion of the Bouri Gas Utilization Project, which aims to recover gas previously burned off during oil production. The project could add around 700 million cubic meters of gas annually once operations reach the intended level.
Together with the Sabratha compression project, these developments show that Eni and the NOC are pursuing several routes to increase Libya’s gas supply: recovering wasted gas, sustaining output from existing fields and developing new offshore resources.
For Libya, the real test will be whether these investments translate into consistent production. More gas could support electricity generation, strengthen export revenues and improve the country’s position in the Mediterranean energy market. But procurement milestones alone will not deliver those benefits.
The next indicators to watch are contractor awards, offshore construction progress and whether Eni and the NOC can maintain their 2028 start-up target. If they succeed, Structures A&E could become one of Libya’s most important additions to its gas sector in years.
