LIBYA - The Libyan Energy Base.
The energy market in Libya remains small relative to the size of its petroleum exports, although it is growing at a rapid pace. Local energy consumption in 2007 is to reach about 17.5 million tons/year of oil equivalent (t/yoe), compared to 10.9m t/yoe in 1997 and 9.2m t/yoe in 1990. The state-owned National Oil Co. (NOC) says energy consumption is rising at the average rate of 7% per annum.
Oil consumption in Libya now is averaging about 275,000 b/d. Consumption of natural gas, the only other source of energy for Libya, is this year to average 5 BCM (about 4.5m t/yoe), and this excludes gas reinjected into the oilfields.
In May 2007, it was reported that the US was already helping Tripoli develop a nuclear programme for civilian purposes. US Deputy Secretary of State John Negroponte was in Tripoli in April - the highest-ranking American official to visit Libya since 1953. In mid-April Manpower, Employment Training Secretary (minister) Ma'touq al-Ma'touq said a nuclear power plant would be built to meet local demand for electricity and water desalination. Ma'touq used to be responsible for Libya's nuclear programme in the 1990s. He played a key role in 2003 Libyan negotiations with US and UK officials on Tripoli getting rid of its WMDs (see news24-MEnuclearRaceJun11-07).
Relations between the US and Libya have improved considerably in the past two years. Trade between them now is booming, and US oil majors have returned to Libya with big investment plans (see gmt1LibGeo-Jul2-07). See also the APS Diplomat's News Service of this week in news1Libya-UStradeBoomJuly2-07).
The official JANA news agency on March 12 reported: "The agreement [proposed with the US] aims at establishing a nuclear station in Libya to produce electricity, desalting water, and developing the radiochemistry performance at researches centre". JANA said the draft agreement provided for Libyan students to receive training in nuclear technology in the US and for the establishment in Libya of a regional centre for nuclear medicine.
A switch to natural gas in recent years has curbed the growth of oil consumption, which in the 1970s and the early 1980s was rising rapidly. Oil consumption in the period between the mid-1970s and 1985 rose by an average of 10% per annum. The growth rate has since declined as several power plants have switched from fuel oil to natural gas. Fuel oil consumption has been falling. In the second half of the 1990s the rise in consumption was mainly for gasoline, middle distillates and LPG.
The US lifted sanctions on Libya on Sept. 20, 2004, clearing the way for payment of a major part - more than $1 bn - of the $2.7 bn compensation to the 270 families of those killed when PanAm flight 103 was brought down by Libyan agents in 1988 over Lockerbie, Scotland. President George W. Bush issued executive orders lifting all restrictions on air travel, allowing for free movement of commercial and charter flights between the US and Libya. The US also lifted measures dating back to 1986 which had resulted in the freezing of $1.3 bn in Libyan assets in the US after Libya was implicated in several terrorist attacks in Europe.
The World Trade Organisation (WTO) on July 27, 2004, gave Libya the green light to start membership negotiations, marking another step in Tripoli's march out of decades of isolation. Libya first asked to join the WTO in November 2001 but the application was blocked by the US, which listed Libya among states supporting terrorism. Washington later lifted its WTO veto.
Source:
Entrepreneur.com
