Italy and Libya discuss strengthening energy ties
Finance

Italy and Libya discuss strengthening energy ties

Published by Global Banking & Finance Review

Posted on May 7, 2026

2 min read

· Last updated: May 7, 2026

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Italy, Libya Eye Stronger Energy Partnership as Imports, Exports Shift

Italy and Libya's Evolving Energy Relationship

By Angelo Amante and Francesca Landini

Background: Diversification Amid Global Turmoil

ROME, May 7 (Reuters) - Italian Prime Minister Giorgia Meloni and Libyan counterpart Abdulhamid Dbeibah discussed on Thursday strengthening energy cooperation at a time when Italy is looking to diversify energy supplies due to the turmoil in the Gulf.

Italy, highly dependent on imported energy, is particularly exposed to the surge in global fuel prices triggered by the U.S.-Israeli war on Iran.

High-Level Talks and Bilateral Cooperation

"(The leaders) discussed ways to further strengthen the already solid bilateral cooperation, with particular reference to economic relations and investment in the energy sector," Meloni's office said after the talks in Rome.

"The two leaders then reaffirmed their shared commitment to managing migration."

Libya's Role in Italy's Energy Supply

Libya is Rome's biggest supplier of crude oil, accounting for nearly a fifth of Rome's total crude oil imports. However, Libya’s gas exports to Italy dropped to around 1 billion cubic metres in 2025, from 1.4 bcm in 2024. 

Challenges Facing Libyan Gas Exports

The drop was largely the result of supply-side constraints in Libya - including rising domestic demand, repeated disruptions to infrastructure and political instability - which kept the Greenstream pipeline to Italy running well below capacity.

Efforts to Boost Investment and Production

Members of Italy's influential parliamentary security committee visited Libya in late April, and discussed with Dbeibah the importance of "increased investment to allow a significant rise in Libyan gas production and, consequently, exports to Italy", according to a statement.  

Eni's Ongoing Projects in Libya

Italian state-controlled Eni has been present in Libya since 1959 and is the country's leading international operator, with an equity production of approximately 162,000 barrels of oil equivalent per day in 2025 and three development projects currently in execution, two of which will start up in 2026.

(Reporting by Angelo Amante and Francesca Landini; Editing by Alvise Armellini and Alison Williams)

Key Takeaways

  • Italy is highly energy‑import‑dependent—oil dependency at about 93.7% and gas at 95.6%—prompting the push to broaden suppliers. (indicatoriambientali.isprambiente.it)
  • Libya already emerged in 2025 as Italy’s top crude oil supplier, providing nearly 25% of its total imports. (libyareview.com)
  • Italian energy major Eni leads operations in Libya, producing ~162,000 barrels oil equivalent per day and recently awarded a new offshore exploration license (O1) in Sirte basin. (eni.com)

References

Frequently Asked Questions

Why are Italy and Libya discussing stronger energy cooperation?
Italy is seeking to diversify its energy supplies due to geopolitical turmoil and rising global fuel prices, making Libya an important partner.
How much crude oil does Libya supply to Italy?
Libya accounts for nearly a fifth of Italy's total crude oil imports, making it Rome's biggest crude supplier.
Why have Libya’s gas exports to Italy dropped recently?
Libya's gas exports to Italy declined due to supply-side constraints, higher domestic demand, infrastructure disruptions, and political instability.
What is the role of Eni in Libya's energy sector?
Eni is the leading international operator in Libya, with significant oil and gas production and multiple new development projects.
What challenges are facing energy exports from Libya to Italy?
Challenges include supply disruptions, rising local demand, political issues, and underutilized infrastructure like the Greenstream pipeline.

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