Libya launches USD $8 billion gas project with major offshore, pipeline, and carbon capture contracts ahead

Mellitah Oil and Gas, the joint venture between Libya’s National Oil Corporation (NOC) and Italian energy major Eni, has appointed Hill International, Inc. as Project Management Consultant (PMC) for the landmark Structures A & E development. The USD 8 billion megaproject, set to become one of the largest offshore energy initiatives in Libya’s history, will develop two significant gas fields off the country’s northwest coast.
The development aims to deliver two offshore drilling platforms, subsea infrastructure, and export pipelines to transmit harvested gas to the Mellitah Complex — located approximately 100 km west of Tripoli, for processing and distribution. In line with global decarbonization goals, the project will also integrate a state-of-the-art carbon capture and storage (CCS) facility at the Mellitah site.
Once operational in 2026, Structures A & E will add an estimated 750 million cubic feet per day (MMcf/d) of gas production capacity, bolstering domestic supply and significantly increasing export volumes to Europe. This aligns with Libya’s strategy to strengthen its role in regional energy security, diversify gas supply sources for European markets, and stabilize prices for end consumers.
Hill International’s role
Hill International will provide comprehensive project management services, including: Project planning and scheduling; design reviews and coordination; procurement support; estimating and cost control; QA/QC oversight; risk mitigation and change management; claims prevention and closeout.
Hill President for MENA, Waleed Abdel-Fattah, emphasized the strategic importance of the project, noting that the company’s extensive Libyan experience will be leveraged to ensure delivery on time, within budget, and to the highest safety and quality standards. Hill CEO Raouf Ghali added that the assignment underscores Hill’s long-term commitment to building “the infrastructure of change” in Libya.
Major supply chain opportunities
With engineering and project management now underway, the Structures A & E development will create a multi-billion-dollar wave of contracts for the oil and gas supply chain. Industry analysts expect the EPC and services packages to be issued over the next 12–18 months, covering both offshore and onshore scopes.
Key contract opportunities are likely to include:
- EPC for Offshore Platforms & Jackets – Estimated USD 2.5–3 billion (Fabrication and installation of two fixed offshore platforms, topsides, and jackets);
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Subsea Pipelines & Infrastructure – Estimated USD 1.5–2 billion (Laying of subsea pipelines to connect the platforms to the Mellitah Complex; Associated subsea structures, umbilicals, and risers);
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Onshore Gas Processing Expansion – Estimated USD 1–1.2 billion (Modifications and capacity upgrades at the Mellitah Complex; Integration of the CCS facility);
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Carbon Capture & Storage Facility EPC – Estimated USD 800 million–USD 1 billion (Capture units, compression systems, and geological storage infrastructure);
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Drilling & Well Services Contracts – Estimated USD 1–1.5 billion (Drilling of production and injection wells, well completions, and intervention services);
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Logistics, Marine, and Support Services – Estimated USD 500–700 million (Crew transfer, offshore supply vessels, port operations, and material handling).
Economic impact
Beyond boosting Libya’s production and export capacity, the project is expected to generate a significant local economic stimulus, providing opportunities for Libyan contractors, suppliers, and service companies. Fabrication yards, port facilities, and onshore logistics hubs will benefit from increased activity, while specialized subcontractors in welding, coating, inspection, and instrumentation are likely to see a surge in demand.
The development also has the potential to attract foreign direct investment (FDI) into Libya’s oilfield services sector, as international EPC contractors partner with local firms to meet local content requirements.
Looking ahead
The Structures A & E project stands at the intersection of energy security, economic growth, and sustainability. For Mellitah Oil and Gas, it is a flagship investment that reaffirms Libya’s position as a key regional gas supplier. For Hill International, it marks another high-profile assignment in the MENA energy sector. For the global and local supply chain, it represents a rare, large-scale opportunity in the offshore gas market — one that could define contract activity in Libya for the rest of the decade.
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