The National Oil Corporation (NOC) announced on Saturday that it plans a new project in the southern region to ensure regular gas supply for Ubari power plant.
Since the middle of June, the NOC has pumped crude oil to Ubari plant for trial operation after an agreement with the General Electricity Company of Libya (GECOL).
Earlier, the NOC have approved Zallaf Oil & Gas Exploration and Production Company’s plans to expedite exploration at the Atshan gas field (NC210 and NC151), with a view to supplying natural gas to the Ubari power plant located some 170 kilometers away.
A feasibility study to further develop the field was presented to the NOC by Khalifa Rajab, chairperson of Zallaf’s management committee. The NOC Board authorized a series of comprehensive reservoir studies and a development plan to determine existing gas reserves, feasible production rates, and associated development and production costs.
The NOC chairperson Mustafa Sanalla last Thursday had discussed the gas link proposal with the Minister of Planning, requesting a budget to fast-track project development to replace crude oil currently used as fuel at the plant.
Libya’s Presidency Council recently issued a resolution ratifying NOC supply of the power plant, while the GECOL has been preparing for the station’s commissioning.
“Supplying natural gas instead of crude oil would increase the efficiency of the Ubari plant and significantly reduce emissions. The switch to gas would also save at-least 15000 barrels per day that could be sold internationally – further increasing Libya’s export capacity and contributing to national revenue growth. We hope the Ministry will approve necessary funding so we are able to progress this strategic project as soon as possible,” said Sanalla.