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Fighting halts Libyan subsea gas exports

Offshore staff

MILAN, Italy -- Eni (MI:ENI;NYSE:E) has reportedly suspended gas deliveries from Libya to Italy via the Greenstream pipeline in the Mediterranean Sea.

This follows clashes between rival militias, both looking to defend the associated onshore complex at Mellitah.

According to analysts IHS, the shutdown should have little impact in Italy, which has ample gas storage, but it will further hinder Libya and North Africa's recovery as an investment destination for energy firms.

Greenstream, which lands at Gela in Sicily, can deliver 11 bcm/yr (388.5 bcf/yr) of gas, but sent out just 6.2 bcm (219 bcf) in 2012. IHS expects the line to be reopened for exports shortly.

3/8/2013

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