- Libya has connected the Sirte steam power plant to the national gas grid and plans to begin natural gas deliveries within days.
- The conversion supports Libya’s strategy to reduce costly fuel imports and curb energy subsidy spending, which reached $17 billion in 2024.
- The project also aligns with the country’s effort to better utilize its vast natural gas reserves while reducing gas flaring.
The National Oil Corporation (NOC) announced on Sunday, July 12, that its subsidiary, Sirte Oil Production and Manufacturing Company, had successfully completed the initial tests to connect the power plant to the national gas grid.
The NOC said it expects to complete the remaining tests shortly and to begin the first natural gas deliveries, although it did not disclose the expected supply volumes.
The Sirte steam power plant has an installed capacity of at least 700 megawatts (MW), according to Global Energy Monitor, making it one of Libya’s largest electricity generation facilities and capable of supplying power to hundreds of thousands of households. However, several generating units currently operate below capacity, partly because of fuel supply constraints.
Fuel oil continues to weigh heavily on Libya’s public finances. The International Monetary Fund said in a report published in July 2025 that the country’s total energy subsidy bill reached $17 billion in 2024, equivalent to about one-third of government revenue.
The General Electricity Company of Libya reported that electricity generation alone cost $4.4 billion in 2023, partly because several power plants still rely on imported liquid fuels. According to Pipeline Technology Journal, natural gas already accounts for about 70% of Libya’s electricity generation.
Vast reserves remain underutilized
Libya holds an estimated 80 trillion cubic feet of natural gas reserves, according to statements by Masoud Suleiman cited by Libya Herald. However, the country still underutilizes much of that resource.
Meanwhile, the NOC reduced gas flaring by more than 100 million cubic feet in 2025 and aims to cut an additional 180 million cubic feet by the end of 2026, according to an official NOC statement published earlier this month.
By connecting power plants to the national gas network, Libya can simultaneously reduce resource waste and lower its dependence on imported liquid fuels for electricity generation.
This article was initially published in French by Abdel-Latif Boureima
Adapted in English by Ange J. A de Berry Quenum
