Libya's Bouri Gas Project: What 700 Million Cubic Metres Mean for Power and Exports

Libya has completed a significant energy project, with Italy's Eni and the National Oil Corporation (NOC) announcing the completion of the Bouri Gas Utilization Project. This initiative aims to recover approximately 700 million standard cubic metres of associated gas annually (Eni), a move that could reshape Libya's domestic power supply and bolster its role in European energy security.

The project, undertaken by Mellitah Oil & Gas Libyan Branch, an Eni-NOC joint venture, represents a crucial step for the North African nation. For you, this means a more stable energy outlook for Libyan households and businesses, alongside potentially increased gas supply for European markets.

Why this project matters for Libya

Libya has historically faced challenges with gas flaring, the process of burning off natural gas associated with oil extraction, which wastes valuable resources and contributes to greenhouse gas emissions. In 2024, Libya flared around 6.3 billion cubic metres of associated gas (Africa.businessinsider). The following year, flaring increased by 15% due to a rise in oil production, highlighting a persistent issue (Africa.businessinsider).

The Bouri Gas Utilization Project directly addresses this by recovering gas that was previously flared at the Bouri offshore field, which began production in 1988 (Ogj). The project is expected to reduce greenhouse gas emissions by roughly 1.5 million tonnes of CO₂ per year (Oilandgasmiddleeast). This reclaimed gas will be channelled into Libya's domestic market, helping to meet the country's electricity generation demands and improving the reliability of power for homes and industrial zones (Eni). For Libyan public finances, utilising this previously wasted gas will generate new revenue streams through sales.

Bolstering Europe's energy supplies

Beyond domestic benefits, the recovered gas from the Bouri project is also intended to support exports to Europe via the GreenStream pipeline (Eni). This pipeline is a key conduit for Libyan gas to reach European markets, and additional volumes from this project will contribute to Europe's energy supply diversity.

Eni, which has operated in Libya since 1959, is the country's leading international energy operator (Eni). The completion of this project underscores a joint commitment by Eni and NOC to enhance Libya's energy sector through a balance of production growth, operational efficiency, and environmental responsibility (Eni). Such international partnerships are vital for attracting further investment into Libya's energy sector, with Eni's broader investment in the country amounting to approximately $10 billion across various gas developments (Marketscreener).

What's next for Libya's gas ambitions

The Bouri Gas Utilization Project, initially started in 2007 but suspended in 2011, has a total budget of $1.565 billion, with about $928 million spent by December 2025 (Ogj, Meed). Its completion marks a significant milestone in Libya's broader strategy to maximise the value of its gas resources and reduce the emissions intensity of its upstream activities.

This project supports Libya's goal of eliminating routine gas flaring by 2030. While start-up procedures are currently underway, the specific date for full operational commencement has not yet been announced. Looking ahead, other strategic developments are also in progress, such as the A&E Structures Project, designed to bring new offshore gas resources online for both domestic use and export. Plans also include upgrading existing gas infrastructure to optimise production and transportation across the country.

Here are the key figures for the Bouri Gas Utilization Project:

• Gas Recovery: Approximately 700 million standard cubic metres annually (Eni)
• Emissions Reduction: About 1.5 million tonnes of CO₂ per year (Oilandgasmiddleeast)
• EPCIC Contract Value: Roughly $1 billion, awarded to Saipem in August 2023 (Euro-petrole)
• Total Project Budget: $1.565 billion (Meed)

The bottom line

The completion of the Bouri Gas Utilization Project is a win for Libya's environment and economy. It transforms wasted gas into valuable energy for domestic power and export, strengthening Libya's energy sector and its international partnerships. This project represents a concrete step towards a more sustainable and economically robust energy future for the nation.

This article is for information only and is not financial advice.