Libyan Refinery Halts Unit Over Pipeline Issue

The National Oil Corporation of Libya has temporarily halted one of the units at the Zawia refinery due to the forced closure of the crude oil transfer line from the Sharara field. This closure was carried out by armed groups affiliated with the Petroleum Facilities Guard. The incident has resulted in direct financial losses amounting to $95 million as of September 25, 2026. The measure aims to preserve the operation of the other unit and ensure the continuous supply of fuel to power plants, particularly the West Tripoli and Harsha plants, which require approximately 5,200 cubic meters daily. The ongoing closure of the line threatens to gradually shut down refining units, exacerbating the oil supply shortage, negatively impacting public revenues, and increasing the costs of fuel imports, thereby posing risks to the Libyan economy. The Sharara field produces between 300,000 and 340,000 barrels per day, making it one of Libya’s largest oil fields. Its closure affects the country's overall production and market stability.

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