Exploring Opportunities for Petrochemical Industry Development in Libya

Abstract

The petrochemical business is one of the vital but underdeveloped segments of the energy economy of Libya. Although the country has massive hydrocarbon reserves, the downstream is not diversified, and its industries are still characterized by the exportation of crude oil. The study seeks to determine the potential of implementing petrochemical industries in Libya through economic, environmental, and institutional factors affecting the growth of the sector. A mixed-method design was used, which included quantitative statistics on national energy reports and surveys of 120 industry professionals, as well as the qualitative interviews of key stakeholders in the oil and gas industry. The obtained figures were implemented and evaluated through the application of descriptive and inferential statistics to assess the current challenges and opportunities, and it was found that 68% of the participants perceive the petrochemical industry as one of the primary areas of economic diversification, and 74% support the idea that better governance and foreign investment policies should be implemented. Workforce readiness and environmental sustainability were found as imperative enablers to long-term development. Furthermore, modernization of technologies and the introduction of renewable energy sources were considered as the key to increasing industry competitiveness. The work paper concludes that Libya has a lot of potential in the development of petrochemicals, but a concerted policy reform, infrastructure investment, and human capital development would ensure sustainable growth. On the whole, the study can be of relevance to policymakers and investors who want to further encourage an inclusive and sustainable industrial transition in the Libyan energy industry.