The EU Reporter website reported on Saturday that Italy has expressed significant interest in signing new contracts with Libya, aligning their interests not only in the oil and gas sectors but also in combating illegal migration.
According to the site, in 2023, the Italian energy company Eni and Libya’s National Oil Corporation signed an $8 billion gas production deal aimed at boosting energy supplies to Europe. Since then, the two Mediterranean countries have strengthened their ties, with Italian Prime Minister Giorgia Meloni visiting Libya an unprecedented four times since taking office, reaffirming Italy’s commitment to expanding partnerships across multiple sectors.
However, experts caution that Italy’s attempt to become a European gas hub overlooks the risks associated with investing in Libya. According to the latest report by the British geopolitical and security intelligence agency Dragonfly, there are growing concerns about the potential for a resurgence of armed conflict in Libya over the next year.
Alessandro Bertoldi, CEO of the Italian branch of the Milton Friedman Institute, noted that oil and gas production in Libya is frequently disrupted by the country’s instability and political factionalism. The recent oil shutdown, stemming from disputes over control of the Central Bank, is just one example of how the fuel and energy markets are manipulated for political interests.
The report concluded by stating that Italy is unlikely to risk a long-term economic project without thoroughly assessing the region’s situation.
