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in Fossil Energy

South Refinery: key works for economic recovery in Libya

energynewsbyenergynews
29/03/2023
Reading Time: 1 min read
National Oil Corp's subsidiary in Libya signs contract with Honeywell for the South Refinery.
South Refinery: key works for economic recovery in Libya
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Libya’s National Oil Corp (NOC) subsidiary, Zallaf For Oil And Gas Co, has signed a contract with Honeywell, a U.S. company, for engineering work on the South Refinery project.

The South Refinery: a key project in the revival of the Libyan energy sector”.

According to a statement from Zallaf For Oil And Gas Co, the project, estimated to cost between $500 million and $600 million, will be completed in two phases. The South Refinery is expected to produce cooking gas, jet fuel, gasoline and diesel, with a daily production of 1.4 million liters of gasoline and 1.1 million liters of diesel.

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The decision comes as Libya seeks to attract foreign investment to revitalize its energy sector after years of conflict. With increased demand for oil and gas due to supply concerns in Europe resulting from the war in Ukraine, Libya hopes to take advantage of this opportunity. Last month, the Tripoli-based government agreed to pursue an offshore gas project in partnership with Eni, an Italian company.

Political stability is essential for its success

Despite a plan for national elections, the political situation in Libya remains fragile, and armed factions have repeatedly disrupted production, even since the ceasefire in October 2020. The success of the South Refinery project and other energy investments in Libya will depend on stability and security in the country.

In summary, NOC’s subsidiary Zallaf For Oil And Gas Co has signed a contract with Honeywell for the South Refinery project, which is part of Libya’s efforts to attract foreign investment in its energy sector. While the country hopes to benefit from increased demand for oil and gas, the success of these investments will depend on stability and security in Libya.

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