Libya’s state-owned National Oil Corporation (NOC) has outlined plans to nearly double the country’s oil refining capacity as part of a broader effort to curb costly fuel imports and support a recovery in crude production after years of disruption.
NOC Chairman Masoud Suleiman said the company aims to raise Libya’s refining capacity to about 660,000 barrels per day (bpd), up from a current nominal capacity of around 380,000 bpd, according to remarks reported by local media.
Despite having five refineries on paper, Libya produces far less refined fuel than its installed capacity would suggest. Actual output of petroleum products is estimated at about 180,000 bpd, constrained by ageing infrastructure, technical failures and the prolonged shutdown of key facilities.
One of the most significant bottlenecks is the Ras Lanouf refinery, once among the country’s largest, which has been offline since 2013 following damage and security disruptions linked to Libya’s civil conflict.
To meet its new refining target, the NOC plans a combination of upgrades to existing facilities and the construction of new refineries. Suleiman said several of Libya’s refineries are partially obsolete and require modernisation to improve efficiency and reliability.
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The strategy also includes plans for at least one large new refinery, alongside a separate project in southern Libya, a region that has long struggled with fuel shortages despite being close to major oil-producing areas.
Cutting fuel imports
Boosting domestic refining capacity is a central element of Libya’s effort to reduce dependence on imported fuel, which has become increasingly costly for the state.
According to a report by investigative group The Sentry, Libya’s fuel imports rose to more than 41 million litres per day by the end of 2024, more than double the roughly 20.4 million litres imported daily in 2021.
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The financial burden has grown sharply. Figures from the Libyan Audit Bureau show that the cost of fuel imports, which are heavily subsidised by the government, increased from an average of about $3 billion per year between 2016 and 2019 to roughly $9 billion in 2024.
Fuel subsidies have long been a strain on Libya’s public finances and have also been linked to widespread smuggling, as cheap fuel is diverted across borders to neighbouring countries.
Officials say increasing domestic refining would help stabilise supply, reduce import bills and limit opportunities for illicit trade, while ensuring more reliable access to fuel for households and industry.
Supporting oil sector recovery
The refining expansion plan comes as Libya seeks to revive its broader oil and gas sector, which has been repeatedly disrupted by political instability, armed conflict and disputes over control of energy revenues.
In October 2025, Libyan authorities said they were targeting crude oil production of 1.6 million bpd by the end of 2026, up from current levels of about 1.3 to 1.4 million bpd.
Production has recovered in recent years from the lows seen during periods of blockade and conflict, but output remains vulnerable to renewed shutdowns, particularly at export terminals and major oilfields.
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Officials say stronger refining capacity would complement efforts to boost upstream production by improving the overall resilience of the energy system and increasing value added within the country.
However, analysts caution that ambitious plans face significant hurdles. Political divisions between rival administrations, fragmented decision-making and legal uncertainty continue to complicate large-scale investment in Libya’s energy infrastructure.
Security risks and questions over contract enforcement have also deterred some foreign companies from committing capital, despite Libya holding Africa’s largest proven oil reserves.
While the NOC remains one of Libya’s most functional national institutions, its ability to deliver major projects will depend on sustained political support and improved stability.
For now, the refining plan signals a renewed push by Libya’s oil authorities to move beyond crude exports and address chronic weaknesses in downstream capacity, even as the country continues to navigate an uncertain political landscape.
