Libya’s Energy Rebirth: $20B Investment, Gas Growth and Strategic Partnerships

 

Libya’s energy sector is rebounding, attracting global investors and signaling a renewed commitment to production expansion, gas monetization and long-term partnerships. At the Libya Energy&Economic Summit (LEES) 2026 in Tripoli on Saturday, officials outlined a clear roadmap for growth, reform and regional collaboration.

$20 Billion Investment Pipeline

Libya’s oil production reached an average of 1.375 million barrels per day (bpd) in 2025 – the highest in years – and the government aims to reach 2 million bpd by 2030, backed by a $20 billion investment program.

“We witnessed the highest production rate in years, averaging 1.375 million bpd, which is a strong testimony to our recovery and stability,” said Minister of Oil and Gas Dr. Khalifa Abdulsadek. “We have launched a program with 15 companies, and we expect production to rise over the next five years with a $20 billion investment.”

Contract terms have been extended to 25 years, offering predictable, long-term investment conditions and aligning with global practices that support multi-decade upstream development.

Gas as a Growth Engine

Libya is prioritizing gas development to meet domestic power needs and support exports to Europe via the Greenstream pipeline. Gas production is expected to reach 700–750 million standard cubic feet per day in 2026.

“One of Libya’s greatest opportunities lies in its geographical location near one of the largest and most affluent markets in the world,” said Dr. Philip Mshelbila, Secretary General of the Gas Exporting Countries Forum. “With 750 million standard cubic feet per day expected this year, Libya can support domestic power, industry and export through the Greenstream pipeline to Europe.”

Regional and Global Partnerships

Libya is deepening cooperation with Egypt to strengthen North African energy security and resilience, leveraging Egypt’s liquefaction and export capacity alongside Libya’s growing gas output.

The Africa Energy Bank, led by the African Petroleum Producers Organization (APPO) and Afreximbank and ratified by Ghana and Nigeria, aims to bridge financing gaps for capital-intensive energy infrastructure projects, including initiatives like the proposed Libya–Algeria Power Interconnector.

“What applies to Libya and its neighboring countries also applies to any African oil and gas-producing nation – cooperation on transport, joint energy projects and infrastructure development is essential,” said Farid Ghezali, Secretary General, APPO, adding, “The partnership between Libya and Egypt is a strategic move that strengthens regional energy resilience and benefits global markets.”

Libya is also drawing lessons from regional peers such as Namibia, which has built investor confidence through transparent fiscal policies, predictable royalties and strong local content programs, and from Turkey, which is partnering with Libya to expand upstream production.

“Namibia is attractive for investors due to its clear regulatory framework, stable political environment and consistent engagement with the investment community,” said Namibia’s Deputy Minister of Industries, Mines and Energy, Gaudentia Kröhne. “Policies such as a 5% royalty and 35% production allocation to the state provide predictability and help ensure local benefits and skills transfer.”

“Turkey is engaged in Libya pursuing joint efforts and ambitious targets, as part of our broader strategy to become a billion-barrel oil and gas producer,” said Turkey’s Minister of Energy and Natural Resources, Alparslan Bayraktar. “In today’s geopolitical environment, diversification is crucial, and we are navigating these challenges through sustainable energy strategies and strong partnerships.”

African Energy Perspective

From a continental viewpoint, Libya’s recovery reinforces the broader African energy agenda: turning resource potential into projects, investment and industrial growth.

“Libya’s resurgence is a critical turning point for African energy, and it demonstrates how resource potential can be transformed into real projects, jobs, and industrial growth when stability and investment frameworks align. The momentum now must be sustained through partnership, transparency and deliverable-driven development,” said NJ Ayuk, Executive Chairman of the African Energy Chamber.

Distributed by APO Group on behalf of Energy Capital&Power.