meed-logo

line1 line2 line3
SIGN IN / REGISTER

Libya has potential for energy project surge

6 July 2023

MEED's August 2023 report on Libya also includes:

> Libyan pipeline contract awarded
> Libyan oil company in pipeline procurement talks
> Libya’s Waha Oil plans water plant
> Halliburton in talks for $1bn Libya oil project
> Eni signs gas deal in Libya

 

After a string of major energy project announcements in the country, Libya will likely be on course for a surge in project activity as long as it can maintain political stability and security.

However, the current period of stability is looking increasingly fragile amid threats from the military leader General Khalifa Haftar, who has warned of military action unless oil revenues are divided fairly within the next two months.

Eastern politicians claim the Central Bank distributes the bulk of oil revenues to the rival UN-recognised government based in Tripoli, even though the oil is produced in fields largely based in the east of the country.

The US special envoy to Libya, Richard Norland – eager to keep oil production flowing – had urged the east not to disrupt production.

The heightened political tensions come after a promising period of increased business activity within Libya that many believe could still pave the way for a boom in the country’s energy sector – if conflict can be avoided.

Recent announcements include a partnership between Libya’s National Oil Corporation (NOC) and Italy's Eni to develop two regions containing expected gas reserves of 6 trillion cubic feet.

The upstream Mellitah complex integrated expansion is meanwhile estimated to be worth $8bn. It is anticipated to have a production capacity of 750 million cubic feet a day (cf/d) of gas for a period of 25 years.

The deal between Eni and NPC for the expansion project was announced in January, but in April MEED revealed that the project still needed board approval before tenders for the main contracts could be issued.

It is possible that stakeholders in this project, like many other major projects in the country, are taking their time before finalising the contract to better gauge the political and security environment before they commit to large-scale investment.

Security company licensing system overhauled in Libya

Political instability

Libya has been plagued by frequent outbreaks of conflict for more than a decade since the removal of Muammar Gaddafi during the Arab Spring in 2011.

Since his removal, rival factions have continually vied for power and the country has failed to create a unified government.

At the moment, the country has two rival governments. The Tripoli-based Government of National Unity (GNU) exerts control over territory in the west of the country, and the Tobruk-based House of Representatives controls territory in the east.

Elections planned for 24 December 2021 were expected to unify the country under a single government, but they never occurred and many of the contested issues that derailed the democratic process in 2021 remain unresolved.

Key problematic issues include the eligibility criteria for presidential candidates and how candidates with military affiliations should be treated.

It has been reported that both sides have agreed that candidates with military affiliations must automatically resign from their military posts if they become candidates, but debate remains over whether provisions should be in place to stop them from resuming their positions once the electoral process has concluded.

Additionally, both sides have agreed that dual nationals that want to stand as president should give up the citizenship of the second country, but no mechanism has been decided on to verify compliance.

While it is clear that undisputed elections and the formation of a single unified government are the best-case scenario, it is possible that the country’s business community and energy sector will prosper without this in place.

UK foreign office asked to relax Libya travel advice

Conflict cooldown

Since the June 2020 conclusion of Operation Flood of Dignity, a year-long campaign in which Tobruk-aligned military forces tried to capture Tripoli, Libya has seen a significant improvement in its security situation and an uptick in energy sector activity.

The increase in business activity since then has shown that the country can attract international businesses for multibillion-dollar projects without a single unified government in place.

Other business deals that have been announced include the signing of a contract between NOC and US-based Honeywell for engineering work on the planned South Refinery project in Libya.

The project is expected to be carried out in two phases and is anticipated to cost between $500m and $600m.

Additionally, Libya’s Waha Oil Company is in advanced talks with US-based Halliburton over a $1bn project to rehabilitate the country’s Al-Dhara oil field.

On top of the series of announcements regarding major projects with international companies, there has also been an uptick in small-scale energy project activity, according to contractors active in the country.

All this points to the future looking promising for the country’s energy sector, as long as stability and security can be maintained. However, keeping the peace is unlikely to be easy, given the precarious nature of the political situation.

Sudan situation

The ongoing conflict in Libya’s neighbour, Sudan, has sparked an influx of refugees into Libya and rising uncertainty about future stability.

Analysts have warned that increased arms trafficking could be part of the fallout from the ongoing war in Sudan as control over the country’s arms storage facilities and borders is reduced.

Further flows of arms into the south of Libya could potentially embolden militias in the region and erode security.

Additionally, before the conflict in Sudan, the African Union and Arab League played significant roles in mediating the unresolved issues between Libya’s two rival governments.

Likely, at least some of the resources that would previously have been used to try to strengthen stability in Libya will now have to be used to deal with the escalating crisis in Sudan.

Maintaining peace and finding common ground between Libya’s rival governments is likely to be critical to the future growth of the country’s energy sector and the broader economy.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10983464/main1954.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Aramco issues tender for gas pipeline at Ras Tanura refinery

    19 June 2026

     

    Register for MEED’s 14-day trial access 

    Contractors are preparing bids for a Saudi Aramco tender involving the replacement of a pipeline that is part of the Gas Line Abqaiq – Ras Tanura (GART) transmission network.

    The GART grid transports associated gas and natural gas liquids (NGL) from the Abqaiq oil processing complex as feedstock, northwards to the Ras Tanura refinery in Saudi Arabia’s Eastern Province.

    The aim of the project is to replace the GART-22 pipeline that connects the Juaymah export terminal on the Gulf coast in the Eastern Province to the Ras Tanura refinery, to ensure reliable fuel gas supply and meet ongoing demand.

    The basic scope of work on the project is to install a new, 24-inch pipeline system that will replace the GART-22 line and the abandoned GART-24 line. It will cover a distance of 18 kilometres between Juaymah and the Ras Tanura terminal.

    The scope also includes the installation of associated scraper trap facilities (launcher and receiver), pressure control valves, motor-operated valves and gas detection and sampling systems.

    Aramco issued the tender for the project in May and has set a deadline of 30 June for contractors to submit proposals.

    The following contractors, among others, are understood to be bidding for the project:

    • ACE Pipeline Arabia
    • Combined Group Contracting Company
    • Gas Arabian Services Company
    • Max Streicher Saudi Arabia
    • National Basics Company
    • Saad Ali Alessa Group
    • Sicim
    • Sinopec Engineering Group Saudi
    • Tecton Engineering & Construction
    Ras Tanura refinery complex

    The Ras Tanura refinery is the oldest, and one of the largest, crude oil refineries in Saudi Arabia. The complex has a refining capacity of 550,000 barrels a day (b/d).

    The facility also has a 305,000 b/d NGL processing facility, a 960,000 b/d crude stabilisation facility, combined steam and gas turbine electrical power generation plants with a summer capacity of 145MW and a winter capacity of 158MW, and a combined 150-pound and 600-pound steam capacity of 6,217 million pounds an hour.

    It has 75 crude oil and products storage tanks with a combined capacity of 5.8 million barrels.

    The Ras Tanura refinery’s major facilities include a 325,000 b/d crude distillation unit, a 225,000 b/d gas condensate distillation unit, a 50,000 b/d hydrocracker and 107,000 b/d of catalytic reforming capacity.

    The facility is Aramco’s only refinery to contain a Visbreaker processing unit, which has a 60,000 b/d capacity.

    The Visbreaker reduces the quantity of residual oil produced in the distillation of crude oil and increases the yield of more valuable middle distillates, heating oil and diesel.

    The refinery complex also produces 17,000 b/d of asphalt, more than any other refinery in Saudi Arabia.

    Ras Tanura receives crude feedstock from the Abqaiq, Safaniya and Manifa oil field developments.

    Crude is typically transferred to Ras Tanura through a pipeline and can also be supplied by ship.

    Most of Ras Tanura’s production is transferred to the Dhahran bulk plant for domestic use, while some products are exported from the nearby Ras Tanura shipping terminal.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17332850/main.JPG
    Indrajit Sen
  • Bahrain opens bids for 1.2GW Sitra IWPP

    19 June 2026

    Register for MEED’s 14-day trial access 

    Two developers have submitted bids for the 1.2GW Sitra independent water and power plant (IWPP), according to details published by Bahrain’s Tender Board.

    The offers were made by Abu Dhabi National Energy Company (Taqa) and Saudi Arabia's Acwa. The technical element of the bid was opened on 18 June.

    The Sitra IWPP is a combined-cycle gas turbine plant and is expected to have a generation capacity of about 1,200MW of electricity. The project’s seawater reverse osmosis desalination facility will have a production capacity of 30 million imperial gallons a day. 

    The build, own and operate project is being procured by Bahrain’s Electricity & Water Authority (EWA) under a public-private partnership framework for 20-25 years.

    According to a source, "evaluation will be done on technical bids and put up to a tender board for approval".

    Financials will be opened only after the technical element has been approved.

    Other major IWPP projects in the region have also recorded relatively low bidder particpation in recent weeks, reflecting the level of investment required for such projects.

    Earlier this month, MEED reported that just two bids had been received for the first phase of Kuwait’s Al-Khairan IWPP project.

    Three consortiums and two individual companies had previously prequalified to participate in the tender.

    In 2024, Bahrian's EWA received statements of qualifications from nine firms interested in bidding for the Sitra IWPP. Seven international companies and consortiums were then prequalified to bid last year.

    Sitra grid works

    Meanwhile, firms are still awaiting awards for two separate contracts related to the establishment of new Sitra 400kV grid substations.

    The first contract involves transformer and reactor works for the establishment of the substations.

    Switzerland-headquartered Hitachi Energy submitted the lowest bid of BD17.8m ($47.1m). Germany’s Siemens Energy submitted an offer of BD23.9m ($63.2m).

    The second contract involves 400kV and 220kV feeder cable works for the same Sitra 400kV grid substations. Three South Korean companies previously bid for the contract.

    Bids for both contracts were opened in March.

    In September, Siemens Energy won a contract worth BD48.1m ($127m) to build a 400kV transmission substation in Sitra to provide the transmission link for the planned Sitra IWPP.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17329853/main.jpg
    Mark Dowdall
  • Jordan starts international stadium construction works

    18 June 2026

    Register for MEED’s 14-day trial access 

    Jordan has started preliminary excavation and site preparation work at its Al-Hussein Bin Abdullah II International Stadium, located east of the capital city of Amman.

    The project is part of the first phase of the Amra City development master plan.

    The development is being implemented by Jordan Cities & Facilities Development Company, a Jordan Investment Fund-owned company.

    The main works are expected to begin early next year, with the stadium slated for completion in 2029.

    The project will cover an area of about 1 million square metres and the stadium will have a capacity of 50,000 spectators.

    The stadium is being built within the Amra City development, which is located about 40 kilometres (km) from downtown Amman and 35km from Zarqa City and Queen Alia International airport.

    The project forms part of Jordan's Economic Modernisation Vision (EMV) 2023-25.

    The EMV – Amman’s flagship reform programme – aims to increase real income per capita by an average of 3% annually, create 1 million jobs, and more than double the country’s GDP over the next decade.

    The strategy envisages a leading role for the private sector, which is expected to account for 73% of the estimated $58.8bn investment required.

    To achieve these targets, a substantial pipeline of public-private partnership (PPP) projects is planned in sectors including water desalination, school construction, clean energy, green hydrogen, transport and road infrastructure.

    Last year, the PPP unit at the Investment Ministry said it was targeting seven key PPP projects in 2025.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17325757/main.png
    Yasir Iqbal
  • Chinese firms win $506m Saudi housing project deals

    18 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Municipalities & Housing Ministry has awarded contracts worth over SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    The first contract has been awarded to China Architectural Construction Corporation for the construction of 2,010 housing units at the Al-Ruba residential project in Riyadh. The contract value is SR875m ($233m).

    The other contract has been awarded to China State Construction Engineering Corporation for the Al-Rasha Al-Faisaliah residential project in Dammam. The project comprises 2,426 housing units, and the contract value is over SR1bn ($266m).

    The contracts were announced during the official visit of Majed Al-Hogail, Saudi Municipalities & Housing Minister, to China, where he also signed six memorandums of understanding (MoUs) between Saudi and Chinese firms. The MoUs aim to accelerate housing development, localise advanced construction technologies and enhance public-private sector collaboration.

    MEED reported in 2020 that Riyadh planned to oversee the development of more than 1 million homes by 2025 to meet growing demand in the kingdom.

    By 2030, the Saudi capital aims to more than double its population, from 7-8 million to 15-20 million, and to become one of the 10 wealthiest cities in the world.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17322994/main.png
    Yasir Iqbal
  • Diriyah awards $727m Waldorf Astoria superblock deal

    17 June 2026

     

    Saudi gigaproject developer Diriyah Company has awarded a SR2.7bn ($727m) contract for the main construction works on the development’s Waldorf Astoria superblock.

    The contract was awarded to the joint venture of Hassan Allam Construction Saudi and UCC Saudi, the local branch of Qatar’s Urbacon Holding.

    The Waldorf Astoria superblock is a mixed-use development comprising a Waldorf Astoria hotel, Waldorf Astoria-branded residences, commercial and residential facilities, and office space.

    The Waldorf Astoria hotel will feature 200 keys, while the residential component will comprise 47 branded residences.

    The project is located on the Grand Boulevard South and Northern Arterial Road in the Boulevard Northwestern district at Diriyah Gate 2. 

    Diriyah Company tendered the contract in November last year, with submissions due in January, as MEED reported.

    Diriyah Company Group CEO Jerry Inzerillo said: “We are delighted to announce this latest major construction contract for the Waldorf Astoria superblock as we continue to progress at pace across the Diriyah development area. The Waldorf Astoria will be a world-class addition to our growing portfolio of globally renowned hospitality brands, further strengthening Diriyah’s appeal as a globally significant destination that offers world-class hospitality and lifestyle experiences.

    “Together with our partners, we look forward to delivering another landmark development that supports the kingdom’s Vision 2030 ambitions and contributes to the continued growth and success of Diriyah.”

    Hassan Allam, chairman and CEO of Hassan Allam Holding, said: “We are proud to support the development of one of the kingdom’s most ambitious and transformative destinations and to continue our partnership with Diriyah Company in bringing its vision to life.

    “Drawing on more than 90 years of experience across the Mena region, we remain committed to delivering the highest standards of quality and excellence on landmark projects that are helping shape the kingdom’s future.”

    Ramez Al-Khayyat, UCC Holding president and group CEO, said: “Being awarded this contract by Diriyah Company marks another important milestone in our growing partnership and reinforces our shared commitment to delivering world-class developments across the kingdom. This project builds on our ongoing collaboration in Diriyah, including the delivery of four luxury hotels and the Royal Diriyah Equestrian and Polo Club in Wadi Safar.

    “We value the opportunity to contribute once again to one of Saudi Arabia’s most ambitious and prestigious urban development destinations, supporting the vision of creating a world-class cultural, hospitality and lifestyle hub.”

    The latest award follows Diriyah Company’s award of an estimated SR730m ($195m) construction contract for civic quarter buildings within the Diriyah development to local contractor Al-Rashid Trading & Contracting Company (RTCC).

    In April, Diriyah announced a SR1.84bn ($490m) construction contract to build the Saudi Arabia Museum of Contemporary Art (SAMoCA) within the Diriyah development. The contract was awarded to a consortium of Egyptian contractor Hassan Allam Construction Saudi and Saudi Arabia’s Albawani.

    In March, Diriyah Company awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock in the DG2 area.

    The Pendry superblock includes the construction of the Pendry Hotel alongside residential and commercial assets. The package will cover 75,365 square metres and is located in the northwestern district of the DG2 area.

    The previous month, Diriyah Company also awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan, with a gross floor area of more than 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17287718/main.jpg
    Yasir Iqbal