UN Libya Mission Warns Prolonged Pipeline Shutdown Could Deepen Economic Strain

The UN Support Mission in Libya has sounded an alarm about the prolonged closure of the Sharara-Zawiya pipeline, warning that it could deepen economic strain on the country. The pipeline's shutdown has reduced oil production at the Sharara field, which is Libya's largest, and threatens to halt exports and fuel supplies.

The disruption began after an armed group closed Valve 7 on the pipeline, according to the National Oil Corporation (NOC). This has led to a substantial fall in production, with lost crude output reaching more than 720,000 barrels per day. The NOC estimates that direct financial losses have exceeded $75 million by September 24.

The UN mission's warning highlights the broader impact of the dispute beyond the oil sector. Libya relies heavily on hydrocarbon income to fund public spending, imports, and basic services. A prolonged interruption could lower export earnings while increasing the cost of importing fuel if operations at the Zawiya refinery are suspended.