A new report by the U.S.-based platform Energy Capital & Power says Libya is making serious progress in capturing and utilizing large quantities of associated gas that was previously wasted through flaring. The shift comes as the country benefits from new discoveries and broader efforts to rehabilitate damaged energy infrastructure.
According to the report, the recent oil and gas discovery announced this month by OMV in the Sirte Basin—producing around 2.6 million cubic feet of gas—marks a significant step in the National Oil Corporation’s strategy to maximise the use of associated gas and integrate it into the domestic energy system.
The report highlights renewed activity by Zallaf Oil & Gas, which reactivated the Al-Shadar field earlier this year. Production of associated gas has now reached approximately 7.5 million cubic feet per day, supported by work to bring idle wells back into operation. This alone has created an additional output of around two million cubic feet per day.
The Sirte Basin—home to about 95% of Libya’s oil reserves—is now the central focus of the country’s new strategy for processing and reusing associated gas. Major fields such as Sarir, Waha and Jalu have become key investment zones, both for oil production and for expanding gas-fired power generation projects.
The report notes that international companies are cautiously increasing their presence in Libya once again. OMV’s new find and renewed exploration plans by other operators demonstrate growing confidence in the sector and signal the possibility of more gas-related investments in the near future.
