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
  • Bidders await NWC decision on sewage contract

    17 February 2026

     

    Saudi Arabia’s National Water Company (NWC) is evaluating five bids for package 12 of its long-term operations and maintenance (LTOM12) sewage treatment programme.

    Known as the North Western B Cluster, LTOM12 forms part of the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    The contract covers the construction and upgrade of seven sewage treatment plants with a combined capacity of about 162,000 cubic metres a day (cm/d).

    As MEED understands, the companies that have submitted proposals include:

    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • Civil Works Company (Saudi Arabia)
    • Miahona (Saudi Arabia)
    • Beijing Enterprises Water Group – BEWG (Hong Kong)
    • Al-Yamama (Saudi Arabia)

    Earlier this month, MEED exclusively reported that six contractors are competing for the North Western A Cluster Sewage Treatment Plants Package 11 (LTOM11), which has an estimated value of about $211m.

    The project involves the construction and upgrade of two sewage treatment plants with a combined capacity of about 440,000 cm/d.

    The scheme is being procured on an engineering, procurement and construction (EPC) basis with a long-term operations component. 

    It is understood that contracts for LTOM11 and LTOM12 will be awarded in May.

    In January, a consortium of United Water (China), Prosus Energy (UAE) and Armada Holding (Saudi Arabia) won the main contract for the Northern Cluster Sewage Treatment Plants Package 10 (LTOM10).

    This contract was the first to be awarded under the second phase of NWC’s rehabilitation of sewage treatment plants programme.

    NWC previously awarded $2.7bn-worth of contracts for the first phase of its LTOM programme. This comprises nine packages covering the treatment of 4.6 million cm/d of sewage water for the next 15 years.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15670141/main.jpg
    Mark Dowdall
  • Dubai tenders Al-Maktoum airport superstructure

    17 February 2026

     

    Dubai Aviation Engineering Projects (DAEP) has tendered three packages covering superstructure works for the first phase of the expansion of Al-Maktoum International airport.

    Interested bidders have until 23 March to submit their proposals.

    MEED understands that the selected contractor will undertake superstructure works on three packages:

    • West Terminal and concourse one
    • Concourse two
    • Concourse three

    Construction on these packages began in November last year, when DAEP formally selected a contractor to deliver the substructure works.

    According to an official description on DAEP’s website, the expanded airport’s West Terminal will be a seven-level, 800,000-square-metre facility with an annual capacity of 45 million passengers.

    It will be the second of three terminals at Al-Maktoum International airport, linked to the airside by a 14-station automated people-mover (APM) system.

    In August, MEED exclusively reported that DAEP had received bids from firms to build the APM at the airport. 

    The system will run under the apron of the entire airfield and the airport’s terminals. It will consist of several tracks, taking passengers from the terminals to the concourses.

    Four underground stations will be built as part of the first phase. The overall plan includes 14 stations across the airport.

    The airport’s construction is planned to be undertaken in three phases. The airport will cover an area of 70 square kilometres (sq km) south of Dubai and will have five parallel runways, five terminal buildings and 400 aircraft gates.

    It will be five times the size of the existing Dubai International airport and will have the world’s largest passenger-handling capacity of 260 million passengers a year. For cargo, it will have the capacity to handle 12 million tonnes a year.

    Construction progress

    Construction on the first phase has already begun. In May last year, MEED exclusively reported that DAEP had awarded a AED1bn ($272m) deal to UAE firm Binladin Contracting Group to construct the second runway at the airport.

    The enabling works on the terminal are also ongoing and are being undertaken by Abu Dhabi-based Tristar E&C.

    Construction on the project’s first phase is expected to be completed by 2032.

    The government approved the updated designs and timelines for its largest construction project in April 2024.

    In a statement, the authorities said the plan is for all operations from Dubai International airport to be transferred to Al-Maktoum International within 10 years.

    The statement added that the project will create housing demand for 1 million people around the airport.

    In September 2024, MEED exclusively reported that a team comprising Austria’s Coop Himmelb(l)au and Lebanon’s Dar Al-Handasah had been confirmed as the lead masterplanning and design consultants on the expansion of Al-Maktoum airport.

    Project history

    The expansion of Al-Maktoum International, also known as Dubai World Central (DWC), is a long-standing project. It was officially launched in 2014, with a different design from the one approved in April 2024. At that time, it involved building the biggest airport in the world by 2050, with the capacity to handle 255 million passengers a year.

    An initial phase, due to be completed in 2030, involved increasing the airport’s capacity to 130 million passengers a year. The development was to cover an area of 56 sq km.

    Progress on the project slipped as the region grappled with the impact of lower oil prices and Dubai focused on developing the Expo 2020 site. Tendering for work on the project then stalled with the onset of the Covid-19 pandemic in early 2020.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15669879/main.jpg
    Yasir Iqbal
  • Contractors submit revised prices for Habshan 7 project

    17 February 2026

     

    Adnoc Gas has received revised commercial proposals from contractors for engineering, procurement and construction (EPC) works on a major project to add a new gas processing train at its Habshan complex in Abu Dhabi.

    Adnoc Gas, the natural gas processing business of Abu Dhabi National Oil Company (Adnoc Group), processes about 10 billion standard cubic feet a day (cf/d) of gas across several sites, including its Asab, Bab, Bu Hasa and Habshan facilities, as well as a natural gas liquids (NGL) fractionation plant at Ruwais.

    The Habshan complex is one of the largest gas processing facilities in the UAE and across the Middle East and North Africa. Its output capacity is 6.1 billion cf/d. The complex comprises five trains and 14 processing units that receive gas feedstock from onshore and offshore fields in Abu Dhabi.

    With Adnoc Group pressing ahead with its P5 programme to raise oil production potential to 5 million barrels a day by 2027, high volumes of associated gas are set to enter the grid.

    The new train at the Habshan complex, which Adnoc Gas expects to commission in 2029, will play a key role in handling these additional gas volumes.

    MEED previously reported that contractors had submitted commercial bids for the new Habshan 7 gas train project to Adnoc Gas by the deadline of 10 December.

    Following an initial evaluation of commercial bids received, Adnoc Gas sought “best offers” from contractors for the project. Bidders submitted their revised prices by 6 February, according to sources.

    The following contractors are understood to be competing for the Habshan 7 project’s main EPC contract, as per sources:

    • Enppi (Egypt) / Petrojet (Egypt)
    • Jereh (China)
    • Larsen & Toubro Energy Hydrocarbon (India)
    • Petrofac (UK)
    • Sinopec (China)
    • Wison Engineering (China)

    MEED previously reported that contractors submitted technical bids for the project to Adnoc Gas by the deadline of 6 October.

    Adnoc Gas intends to install the Habshan 7 train adjacent to the Habshan 5 train. This will enable the new train to utilise the ullage in the Habshan 5 sulphur recovery and tail gas treatment units and optimise operations.

    The scope of work on the Habshan 7 gas train project covers the EPC of the following units:

    • New high-pressure pipeline from the main Habshan complex to the new gas train
    • Separation and condensate stabiliser unit
    • Acid gas removal unit
    • Mercury removal unit
    • Deep NGL recovery unit
    • Sales gas and residue gas compressor
    • NGL product storage and transfer pump, as well as metering skid
    • Utility units (IA, N2, PW, FW, steam generation, DM)
    • Flare unit, to be located in Habshan 5 on common derrick
    • Flare gas recovery package
    • Water treatment package
    • Non-process buildings, to be located outside the Habshan 5 train
    • Power generation system
    • NGL pipeline from Habshan 5 to Ruwais, based on an existing pipeline assessment
    • Sales gas pipeline from Habshan 5 to sales gas network.

    UK-headquartered Wood Group has performed the concept study and initial engineering design for the project.

    The Habshan 7 gas train project represents the third phase of Adnoc Gas’ Rich Gas Development programme and is estimated to be valued at $3.5bn-$4bn, according to the company’s chief financial officer, Peter Van Driel.

    In a recent call with journalists to discuss Adnoc Gas’ financial results for the full year and fourth quarter of 2025, Van Driel said Adnoc Gas expects to achieve a final investment decision on the Habshan 7 gas train project, which is designed to increase the company’s production of high-value liquids such as liquefied petroleum gas, naphtha and condensates, in the first quarter of 2026.

    Adnoc Gas issued the main EPC tender for the new Habshan 7 gas train project to contractors between 5 and 8 August, MEED previously reported. It later extended the initial technical bid submission deadline from mid‑September to 6 October.

    In April, MEED reported that Adnoc Gas had started an early engagement process with contractors for the EPC tendering phase of the Habshan 7 gas train project.

    Prior to that, Adnoc Gas issued an expression of interest (EoI) document for the project in March, to which contractors submitted responses by 8 April.

    Separately, Adnoc Gas also completed the EoI exercise for early civil and site preparation works on the Habshan 7 project in June, and is understood to have issued the main tender in the third quarter.

    ALSO READ: Adnoc Gas stalls decision on Ruwais NGL project

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15663150/main5247.jpg
    Indrajit Sen
  • Dubai seeks contractors for Jebel Ali STP expansion

    16 February 2026

    Dubai Municipality has invited contractors to prequalify for a contract covering the expansion of the Jebel Ali sewage treatment plant (STP) phases one and two.

    The upgraded facility will be capable of treating an additional sewage flow of 100,000 cubic metres a day (cm/d).

    The scope includes the design, construction and commissioning of infrastructure and systems required to support the increased capacity.

    The bid submission deadline is 2 April.

    Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.

    As MEED understands, the project is part of long-term plans to treat about 1.05 million cm/d a day once all future phases are completed.

    The main element of the expansion, which is estimated to cost $300m, involves modifications to the secondary treatment process at Jebel Ali STP phase two.

    This includes conversion to Moving Bed Biofilm Reactor or Integrated Fixed-Film Activated Sludge systems.

    The project also includes decommissioning existing surface aerators. New blowers and associated works will be installed as part of the upgrade.

    UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15661388/main.jpg
    Mark Dowdall
  • AD Ports to develop Douala port in Cameroon

    16 February 2026

    Abu Dhabi’s AD Ports Group and Africa Ports Development (APD) have signed an agreement to design, build and operate a new dry bulk terminal at the Port of Douala in Cameroon.

    AD Ports Group will invest about AED320m ($87m) in the development of the terminal’s first phase, which will comprise two berths and more than 450 metres of quay wall, with an annual handling capacity of about 4 million tonnes of dry bulk cargo.

    Construction is expected to begin this year, and the first phase is slated for completion in 2028.

    The concession period is 30 years.

    AD Ports Group has committed to long-term investments and operations across Africa, including in Egypt, Morocco, Tunisia, Kenya, Tanzania, Angola and the Republic of the Congo.

    The latest announcement comes shortly after it signed an agreement with Jordan’s Aqaba Development Corporation (ADC) to manage and operate the Aqaba multipurpose port.

    AD Ports will manage and operate the port under a 30-year concession agreement.

    In December last year, AD Ports Group signed a shareholder agreement with Tajikistan’s private industrial firm Avesto Group to establish a new joint venture that will provide integrated logistics and freight forwarding services across Tajikistan.

    Under the agreement, the joint venture will initially operate as an asset-light freight forwarder. It will have exclusive rights to consolidate and manage all freight and logistics activities across Avesto Group’s subsidiaries, while also offering services to third-party customers in the wider market.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15661385/main.jpg
    Yasir Iqbal