Italy and Libya have agreed to deepen energy cooperation and accelerate joint gas projects, as Rome seeks to secure more stable supplies amid growing volatility in global gas markets, officials said Thursday.
The understanding was reached during talks in Rome between Italian Prime Minister Giorgia Meloni and Libyan Prime Minister Abdulhamid Dbeibah, with both sides pledging to expand investment in Libya’s energy sector and increase production capacity linked to Italy.
The move reflects Italy’s broader strategy to reduce exposure to disruptions in liquefied natural gas (LNG) markets and strengthen pipeline-based imports from nearby Mediterranean suppliers.
Italy, which relies heavily on imported energy, has become increasingly concerned about the stability of global LNG flows following recent disruptions affecting major exporters. In response, Rome is prioritising regional partnerships that can deliver more predictable volumes via existing infrastructure.
Libya, already Italy’s largest crude oil supplier, has re-emerged as a strategic focus. The two countries are connected by the GreenStream pipeline, which transports natural gas from Libya’s Mellitah complex to Sicily. However, utilisation of the pipeline has declined in recent years due to domestic instability, infrastructure constraints and rising internal energy demand in Libya.
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According to industry estimates cited by officials, Libyan gas exports to Italy fell from about 1.4 billion cubic metres in 2024 to roughly 1 billion cubic metres in 2025, leaving significant spare capacity in the system.
To reverse that trend, Rome and Tripoli are planning to accelerate upstream investment and infrastructure upgrades aimed at restoring output and improving export reliability.
Italian energy group Eni is expected to play a central role in the expansion. The company, which has operated in Libya since 1959, remains the country’s largest foreign energy operator and produces an estimated 162,000 barrels of oil equivalent per day.
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A multi-billion-dollar investment programme led by the firm is already underway, valued at nearly $10 billion, according to officials familiar with the plan. It includes several major developments designed to boost both oil and gas production.
Among them are the offshore Sabratha compression project, aimed at improving gas recovery rates; the Bouri Gas Utilisation Project, which targets the capture of associated gas that would otherwise be lost; and the offshore A&E development, described as Libya’s largest energy investment in more than two decades.
Several of these projects are expected to begin contributing to production increases in 2026, potentially raising export volumes to Italy if security and operational conditions remain stable.
Italian policymakers see the partnership as part of a wider shift in energy strategy following years of turbulence in global energy markets. The Mediterranean is increasingly viewed in Rome as a critical corridor for securing supply resilience, particularly as maritime LNG routes face geopolitical and logistical risks.
In parallel with the Libyan push, Italy is also reinforcing ties with Algeria, its largest pipeline gas supplier via the TransMed system, while maintaining discussions with other producers including the United States and Azerbaijan.
Energy analysts say the renewed focus on Libya highlights both opportunity and risk. While the country holds significant untapped gas potential and offers geographic proximity to Europe, chronic political fragmentation and infrastructure degradation continue to limit its reliability as a supplier.
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For Libya’s government, closer cooperation with Italy is seen as a way to attract foreign investment, stabilise production and rebuild a sector that remains central to the country’s economy.
However, officials on both sides acknowledge that the success of the strategy will depend heavily on Libya’s internal stability and its ability to maintain secure operating conditions for international energy companies.
Despite these uncertainties, the latest agreement signals a renewed attempt by Rome and Tripoli to turn long-standing energy ties into a more structured and higher-capacity partnership at a time of increasing global energy competition.
