Eni Asks Mellitah to Increase Libyan Gas Supplies to Italy by 20%
Italy’s Eni has asked Mellitah Oil & Gas Company to increase natural gas supplies to Italy by 20% as the Italian market prepares for higher winter demand, according to sources cited by Libya Observer. The request would raise annual supplies from about 1.4 billion cubic meters to roughly 1.68 billion cubic meters. Daily flows would increase from about 3.84 million cubic meters to 4.6 million cubic meters.
Eni has asked Mellitah to assess whether the additional volumes can be supplied as soon as possible.
Italy Seeks More Gas
The request comes as Italy looks to secure gas supplies ahead of winter. European gas markets remain sensitive to disruptions in major supply routes, while Italy has continued to diversify its sources of natural gas. Libyan gas reaches Italy through the Greenstream pipeline, which connects the Mellitah complex on Libya’s western coast with Sicily. Eni operates in Libya through its partnership with the National Oil Corporation (NOC), including the Mellitah joint venture.
This new request also comes at a time when Libya is trying to increase gas production while meeting rising domestic demand. Most of the country’s gas production is consumed locally, particularly by power plants. In July, the NOC said gas exports to Italy through Greenstream accounted for no more than 10% of Eni’s partner share, with much of that share being purchased by the NOC and redirected to the domestic market. These results leave Libya with a difficult challenge: increasing exports to an important European customer while ensuring enough gas reaches its own electricity sector.
More Production Is Needed
The ability to increase exports will depend on Libya’s capacity to produce and process additional gas. In June, Eni and the NOC started the Sabratha Compression Project, designed to support production from the offshore Bahr Essalam gas field. Eni said the project could add about 800 million cubic meters of gas per year, with the additional production supporting both domestic consumption and exports to Italy.
The companies are also working on the Structures A&E project, which involves developing two offshore gas fields. Eni previously said the project is expected to reach production of 750 million standard cubic feet per day at its plateau. These projects are important because Libya cannot sustainably increase exports simply by redirecting larger volumes away from the domestic market. Additional production capacity will be needed if the country wants to supply Italy while also reducing pressure on its electricity system.
The Partnership Faces Pressure
The latest request also puts greater attention on the broader Eni-NOC partnership. Under an agreement signed in January 2023, Eni and the NOC committed around $8 billion to develop offshore gas resources, with the projects to be implemented through Mellitah Oil & Gas. The agreement increased Eni’s share in several offshore gas projects by 9%. The projects were designed to increase Libyan gas production for both domestic use and European exports, and have been closely watched by both sides as Italy seeks more supply and Libya seeks investment to expand production.
For Eni, additional Libyan gas would strengthen a supply route into Italy at a time when European energy security remains a priority. For Libya, higher exports could generate additional foreign-currency revenue, but only if the country can raise production without worsening domestic gas shortages. The immediate question is whether Mellitah can add the requested 280 million cubic meters a year. The answer will depend on available production, processing and pipeline capacity, as well as how much gas Libya needs for its own power generation.
