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- Here's the fuel and energy complex: Russian companies are ready to restore energy in Libya
Here's the fuel and energy complex: Russian companies are ready to restore energy in Libya
Russian operators could modernize Libyan power plants, oil terminals and refineries, the Russian Embassy told "Izvestia". The intergovernmental commission, which resumed its work after 25 years, will give impetus to joint projects. Meanwhile, political instability in the North African country is creating an energy collapse. In September, protests began there due to power outages, and demonstrators blocked one of the largest energy complexes.
Energy crisis in Libya
The situation in Libya borders on critical. The country with the largest proven oil reserves in Africa is in a state of systemic crisis. The energy infrastructure is mostly not functioning. And Russia can help the republic to restore the fuel and energy complex.
"Russian operators are ready to participate in the modernization of Libyan power plants, oil terminals and refineries if there is a desire and specific proposals from the Libyan side," the Russian Embassy in Libya told Izvestia.
Recently, the Minister of Investments of the Eastern Administration, Ali al-Saidi al-Gaidi, invited the Russian Federation to participate in the construction of the refinery. Representatives of "Tatneft" company expressed interest in this kind of project.
"Izvestia" also sent a request to the Libyan Embassy in the Russian Federation. Initiatives and proposals may be developed in the near future — in April of this year, Russian Foreign Minister Sergei Lavrov announced the resumption of the work of the intergovernmental commission after 25 years. The first step was a bilateral meeting of the relevant ministers of Russia and Libya.
"Izvestia" has sent inquiries to a number of Russian energy companies that have worked in Libya and may be interested in resuming cooperation.
The Libyan proposal is especially relevant right now, when one of the two largest refineries in the country remains operational, and there are constant long-term interruptions due to armed clashes between groups in the country. In the last three months alone, he was forced to completely stop working twice.
Another plant located on the Mediterranean coast, which alone can meet the fuel needs of the entire country, is simply idle due to the need for repairs and modernization. The Libyan authorities estimated the scale of the work at $60 million. There are only three low-capacity refineries operating on the territory of the country, which cover the country's gasoline and diesel needs by less than half.
Libya is urgently forced to look for investors to rebuild its energy infrastructure. According to the calculations of the head of the National Oil Corporation, the country will need from $30 to $40 billion to make more efficient use of the already explored oil and gas resources and develop another 60 discovered fields.
The Russian Federation occupies a position close to the eastern administration in Benghazi, so its proposal to participate in the construction of energy facilities looks like a logical continuation of cooperation. It is in the east of the country that a significant part of the oil and gas infrastructure is concentrated — from most fields to the largest Libyan refineries.
Russia's interest in participating in projects to rebuild Libya's energy infrastructure appears to be the first step in large-scale cooperation. However, despite the readiness of the Russian Federation, there are difficulties due to the sanctions risks for the Libyan side and the presence of other applicants, predicts HSE expert Alexander Najarov.
In addition to Russia, China, the United States, Great Britain and Italy, Libya's historically key ally, are planning to resume cooperation. Already, the Italian energy giant Eni, together with the Libyan National Oil Corporation, has completed the reconstruction of one of the wells in the east of the country.
The threat of a social explosion in the country
As a result of another attack on the only major operating refinery, Libyan analysts predict an increase in prices not only for fuel, but also for basic necessities, which will inevitably lead to an aggravation of the already difficult situation in the country.
Back in August, residents of Western Libya began to organize protests. The deteriorating economic situation and rising cost of living, declining purchasing power and accelerating inflation have provoked mass protests in the region, which is under the control of the official authorities. Factories are idle without electricity. The shortest and most eloquent slogan was heard on the streets: "Enough is enough!"
The situation in the country is also aggravated by rampant smuggling. Armed gangs that obey no one are in a state of permanent conflict amid a struggle for fuel. The population is forced to buy it on the black market at prices 50 times higher than the official ones.
The September protests became a new round of the crisis, as a result of which the work of the largest oil and gas complex in the country was paralyzed. Rolling power outages that have been going on for many weeks have led to the shutdown of several power plants and caused the collapse of the system in the regions of the country.
The protest explosion is closely related to the most difficult political situation in the country. After the overthrow of Muammar Gaddafi's regime in 2011, civil war and dual rule began. The western administration was recognized by the UN, and the eastern part was taken under control by the Supreme Commander-in-Chief, General Khalifa Haftar. It is also supported by a number of states, including, for example, Russia, Saudi Arabia and the United Arab Emirates.
Over all these years, the political settlement in Libya has not actually progressed, even despite the agreement on elections concluded at the end of August 2026. It is far from the first, international political scientist Elena Suponina draws attention to. Previous similar agreements have repeatedly failed, and the situation in the country remains precarious. Sergey Lavrov noted that in practice, cooperation with Libya is possible only after the situation has stabilized.
According to Alexander Nadzharov, an expert at the Higher School of Economics, as long as two military-political camps remain in control of oil resources and receive their share of rent, a real settlement and stabilization are unlikely. Fundamental political differences prevent the restoration of statehood in the context of a fragile truce between the two governments.
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