Libya raised gas exports to Italy, National Oil says

[tolibya]

Libya, Africa's fourth-largest natural-gas producer, increased exports of the fuel to Italy because of higher demand and prices, Libya's state-owned National Oil Corp. said.
The North African nation exported 1 billion cubic feet a day of gas through a sub-sea pipeline to Italy „this winter,” 20% more than the previous winter season, National Oil Corp. said on its Web site. The statement cited Fuad Krekshi, the chairman of Eni North Africa BV, a joint venture between Italy's Eni Spa and National Oil that operates the pipeline called Greenstream, which began sending gas to Italy in 2004.

Italy, Europe's third-largest gas market, is seeking to increase imports of the fuel from Africa and the Caspian Sea region to reduce dependence on supplies from Russia. Deliveries to Italy dropped in early 2006, when Russia temporarily halted supplies to Ukraine because of a gas-price dispute. Most Russian gas to Europe is sent via pipelines through Ukraine. Eni North Africa BV is in the process of changing its name to Mellitah Gas, Krekshi said on National Oil's Web site. Libya's government demands that companies operating in the North African state take Libyan names to reflect Libyan ownership.


Libya holds Africa's largest crude-oil reserves. Libya's gas reserves of 52 trillion cubic feet are the fourth-largest in Africa, after Nigeria, Algeria and Egypt, according to BP Plc. It produces about 12 billion cubic meters of gas a year, 8 billion of which are exported to Italy. Less than 1 billion cubic meters are liquefied and shipped to Spain on tankers and the rest is consumed locally.


Libya is the fourth-largest producer of gas in Africa behind Algeria, Egypt and Nigeria. It is planning to auction exploration rights in 20 plots of land located in gas-prone areas this year, as part of a plan to increase output of the fuel, National Oil Corp. Chairman Shokri Ghanem said in an interview last week. (Bloomberg)