Total Energies and Libya’s General Electricity Company signed a Memorandum of Understanding (MoU) for the long-term development of solar photovoltaic projects with a total capacity of 500 MW to supply electricity to the national grid. It also includes a $2 billion investment in crude oil and gas extraction. The agreements were made at the Libya Energy & Economy Summit, which was organised by the Government of National Unity and was the first economic conference in Libya in 10 years.
These agreements aim to develop solar projects that will provide electricity to Libyans. Further, investments will be made in projects that will reduce gas flaring in oil fields so that gas can be supplied to power plants, as well as to contribute to the country’s national goal of restoring oil production to 2 million barrels per day.
In September 2021, Total Energies signed a similar agreement with Iraqi authorities, committing to invest in installations to recover gas that is flared on three oil fields, to supply gas for power generation capacity and develop 1 GW of solar power capacity to supply electricity to the Basra regional grid.
REGlobal’s Views: TotalEnergies has been making significant efforts to shift towards clean energy. Its recent agreements with the governments of Libya and Iraq are aimed at increasing its market share in the MENA region, which has historically been dependent on hydrocarbons but has lately been promoting renewable energy investments.