On Wednesday, Libya’s National Oil Corporation (NOC), confirmed that the continued closure of oil ports and facilities, is mainly behind the continued power outages and the rise in loads in the east of the country.
The NOC also reiterated its warning of the halt of natural gas production, supplying Zueitina, and North Benghazi power plants. It stated that its condensate storage capacities are close to being filled. This is a result of the continued closure of the oil ports in the Gulf of Sirte. It added that no more natural gas can be produced during the coming period, adding that this gas is used to supply the power plants of the eastern region. The Corporation noted that the closure of the oil ports, has led to the loss of 250 million cubic feet of natural gas, on a daily basis.
The NOC is facing a severe financial crisis, as it has been forced to allocate funds for fuel imports to compensate for the consumption of natural gas used by power plants. It has also had to cover the domestic market’s needs of oil by-products that were previously produced in local refineries. These are currently suspended due to the force majeure on the country’s oil fields.
The ongoing conflict is between the Tripoli-based Government of National Accord (GNA), which is supported by Turkey and Qatar, and the Libyan National Army (LNA) backed by Russia, Egypt, and the United Arab Emirates. The blockade linked to this conflict has caused Libya’s oil production to plummet to around 70,000 bpd in recent months, from over 1.2 million bpd late last year.