Eni to Boost Libya’s Gas Output by Q1 2026; NOC Commits $2 Billion to Grid Modernisation

Executive Summary

Italian energy major Eni has confirmed it will bring the Bahr Essalam gas compression project online by the end of Q1 2026, a critical move that will add approximately 100 million standard cubic feet per day (mmscfd) to Libya’s domestic gas supply. The announcement, made at the Libya Energy & Economic Summit (LEES) 2026, coincides with a major infrastructure overhaul led by the National Oil Corporation (NOC).

Eni’s Strategic Gas Timeline

Eni’s Upstream Director, Luca Vignati, outlined a two-phase expansion strategy designed to meet local demand and eventually support exports to Europe:

• Phase 1 (Q1 2026): Bahr Essalam compression project comes online, adding ~100 mmscfd.

• Phase 2 (Q3 2026): A second gas utilisation project will launch, delivering an additional 100–120 mmscfd.

• Sustainability: These projects will eliminate flaring across all Eni-operated assets, advancing the company's zero-flaring goal while boosting total production (currently ~800 mmscfd).

NOC Infrastructure Overhaul ($2 Billion)

To support these production gains, the NOC is addressing critical bottlenecks in the national grid. Najib Tantush, Manager of Maintenance & Projects, revealed a $2 billion investment plan focused on replacing ageing pipelines and rerouting networks to improve reliability and evacuation capacity.

Investor Confidence & Market Sentiment

International partners at LEES 2026 echoed the need for infrastructure stability to unlock Libya's reserves:

• OMV: Executive Board member Berislav Gašo highlighted 7–9 billion cubic meters (bcm) of "stranded gas" that could be commercialised with better infrastructure.

• Repsol: Confirmed that the Waha concession re-entry deal (with TotalEnergies/ConocoPhillips) signals a long-term commitment to the market.

• Service Sector: Nabors Industries (Drilling) called for streamlined permitting and 2-3 year operational visibility to allow contractors to mobilise rigs efficiently.

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