Al-Shalawi: Transferring the General Company for Gas Transportation and Distribution to the National Oil Corporation — A Step Toward Unifying the Management of Libya’s Gas Value Chain

Oil and economic expert Abdelmonsef Al-Shalawi wrote:

The completion of procedures to transfer the General Company for Gas Transportation and Distribution under the authority of the National Oil Corporation, in implementation of Council of Ministers Resolution No. (268) of 2026, represents an institutional step with strategic implications. It goes beyond the mere reorganization of administrative responsibilities, laying the foundation for a more integrated approach to managing Libya’s gas system.

Natural gas is no longer merely a hydrocarbon resource. Today, it has become a key pillar of energy security and the most influential factor in the future of the electricity sector, industry, and economic competitiveness. It is also one of the most important sources of growth in the coming decades, amid global transformations in energy markets.

From this perspective, consolidating responsibility for managing the various stages of the gas value chain under the umbrella of the National Oil Corporation is consistent with best institutional practices. It enables a shift from fragmented sector management to an integrated approach that connects exploration, production, processing, transportation, and distribution under a unified vision and common priorities.

Technically, the decision will enhance the efficiency of planning for the development of the gas transportation network, facilitate the connection of new discoveries to existing infrastructure, improve operational reliability, increase network readiness, and standardize maintenance and operating procedures. This will reduce operational bottlenecks and improve the efficiency of utilizing production.

Economically, integration between production and transportation will help maximize the added value of gas, reduce the cost of supplying power plants with fuel, limit reliance on more expensive liquid fuels, reduce operating expenses, and support the competitiveness of gas-dependent industries. This, in turn, will have a positive impact on public finances and the national economy.

Administratively, the decision strengthens institutional governance, unifies technical oversight, reduces overlapping responsibilities, improves decision-making efficiency, enhances asset management, and strengthens the National Oil Corporation’s ability to develop integrated investment plans aligned with national priorities rather than temporary solutions.

Strategically, this step gives Libya an opportunity to reshape its gas policy in a more integrated manner. Gas should not be viewed merely as fuel for electricity generation or as a commodity for export, but as a versatile economic resource that can serve as a foundation for expanding the petrochemical, fertilizer, and energy-intensive industries. This would increase domestic value creation within the national economy.

The unification of the management of the gas system also contributes to better planning for projects aimed at reducing gas flaring and putting flared gas to productive use, while linking these projects to production expansion plans. This would achieve both economic and environmental objectives and strengthen Libya’s position in emissions-reduction programs and the optimal utilization of its gas resources.

International experience has demonstrated that countries that have successfully developed their gas sectors have not relied solely on increasing production. Rather, they have focused on integrating all stages of the value chain, establishing a unified institutional vision, and clearly defining responsibilities. This has enabled them to improve operational efficiency, maximize economic returns, and ensure security of supply.

In my view, the success of this decision should not be measured by the administrative transfer of the company alone, but by its ability to bring about a genuine transformation in the management of the gas sector. This requires developing infrastructure, accelerating project implementation, adopting modern technologies, and building an integrated digital system for managing and operating transportation and distribution networks.

I believe the time has come for Libya to adopt a National Gas Strategy through 2050, making gas a pillar of energy security, a driver of economic diversification, and a tool for enhancing value creation—not merely a resource for export or fuel for operating power plants.

I conclude by saying that oil will remain the backbone of the Libyan economy for many years to come. However, natural gas will be the key to the next phase. Therefore, every step that enhances the efficiency of managing and utilizing gas represents a direct investment in the future of the Libyan economy, its energy security, and its ability to keep pace with global transformations in the energy sector.