Libya, a country prominently known for its abundant natural gas reserves, has unfortunately experienced an 8 percent decrease in its natural gas production. This alarming statistic was revealed by the Audit Bureau of Libya in a recent report. The report traces this decline back to the gradual depletion of the existing wells and a concerning lack of new discoveries.

In the year 2022, the total gross gas output of Libya was calculated at 861.96 billion cubic feet (24.40 billion cubic meters), which fell significantly short of the targeted 941.7 billion cubic feet (26.6 billion cubic meters). However, the actual net production is considerably lower due to several contributing factors. These include wasteful combustion of spontaneously released gas during extraction, deficiencies in infrastructure, lack of maintenance, and ongoing political divisions. These factors collectively result in the estimated net production being a mere 12-15 billion cubic meters of gas.

Interestingly, the report also highlights that while Libya theoretically has the capacity to export up to 10 billion cubic meters of gas to Italy annually through the Greenstream gas pipeline, in 2022, the total quantity exported did not exceed 2.48 billion cubic meters. This figure equates to just 10 percent of the total gross production, leaving a vast quantity of potential exports unrealized.

The Audit Bureau's report does not merely present facts but also suggests areas where improvements could be made to reverse this downward trend. The bureau emphasizes the importance of discovering new deposits to increase the supply of natural gas and reduce dependence on depleting sources. It also strongly advocates for a focus on renewable energy sources to meet the domestic electricity demand, which currently relies entirely on fossil fuels. Furthermore, it encourages efforts to reduce waste in the production process, thereby optimizing the use of available resources.

In a more positive development, the Italian company Saipem recently secured a contract worth approximately 1 billion dollars with Mellitah Oil & Gas BV Libyan Branch. This consortium consists of the National Oil Corporation of Libya and Eni North Africa. The contract pertains to the development of the Bouri Gas Utilization Project (BGUP). This ambitious project includes the engineering, procurement, fabrication, installation, and commissioning of an approximately 5,000-tonne gas recovery module (GRM) on the existing DP4 offshore structure. In addition, it also involves the installation of 28 kilometers of pipelines connecting the DP3, DP4, and Sabratha platforms.

In conclusion, while Libya's natural gas production has seen a worrying decline, opportunities for growth and improvement in the sector remain abundant. Through concerted efforts towards the discovery of new reserves, a focused shift towards renewable energy sources, and foreign investments, the country could potentially reverse the downward trend in production. Such developments would not only boost Libya's economy but also contribute significantly to global energy security.