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ConflictLibya protesters enter Mellitah oil and gas complex, threaten to halt gas exports to Italy
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Anti-government protests in Libya over power outages and high electricity bills escalated on Tuesday, with protesters entering the Mellitah Oil and Gas complex and threatening to cut off gas and fuel supplies to both domestic and international markets. The protests, centered in Tripoli, target the Government of National Unity led by Abdul Hamid Dbeibah. Demonstrators blocked streets and roads earlier this week to protest frequent power cuts and high electricity rates. The unrest has spread to the Mellitah Gas processing plant, where protesters aim to halt natural gas exports to Italy via pipeline to increase economic pressure on the government. As of Tuesday morning, it was unclear if any supply had been halted. A further escalation would be a major blow to Libya's hydrocarbon revival, which had recently shown progress with the Essar oil discovery declared commercially viable by NOC and OMV. Global oil and gas markets, already reeling from Middle East supply disruptions, would also be affected.
Source report
Anti-government protests in Libya over power cuts and high electricity bills escalated on Tuesday, as demonstrators entered the Mellitah Oil and Gas complex and threatened to halt gas and fuel supplies to both domestic and international markets.
Protests Spread Across Tripoli and Beyond
Libya's capital, Tripoli, has been the main stage for protests against the Government of National Unity, led by Abdul Hamid Dbeibah. Earlier this week, protesters blocked streets and roads out of the capital to demonstrate against frequent and widespread power cuts and high electricity rates.
The demonstrations have since spread to the Mellitah Gas processing plant, where protesters are reportedly attempting to stop natural gas exports to Italy via a pipeline, aiming to address Libya's gas and power shortage.
Economic Pressure on the Government
According to sources among protesters speaking to Middle East Online on Tuesday, the protests are expanding to the Mellitah Oil and Gas complex with the goal of halting gas exports to Italy. This move is intended to increase economic pressure on the Government of National Unity and force its resignation.
As of Tuesday morning local time, it remained unclear whether the protesters had succeeded in halting any gas or oil supply.
Potential Blow to Libya's Hydrocarbon Revival
Further escalation of protests and a potential halt to some oil and gas activities would be a major setback for Libya's hydrocarbon revival. The sector had just begun to recover under relatively safer conditions after years of civil war.
Earlier this month, Libya's National Oil Corporation (NOC) and Austrian energy firm OMV declared the Essar oil discovery commercially viable. As OPEC's second-largest African producer, Libya has been pushing to revive its industry through partnerships with international oil majors.
Global Market Implications
Fresh disruptions to Libya's oil and gas supply recovery would also impact global oil and gas markets, which are already reeling from the shock loss of crude, fuels, and LNG supply from the Middle East.
By Charles Kennedy for Oilprice.com
Source
OilPrice.com Daily News UpdateWestern
Part of this Story
Libya Protests Escalate, Threaten Oil and Gas Exports from Mellitah Complex