This has a negative effect on prices because there is already excess capacity, and most of that excess capacity is in the Gulf. We will have to wait to see how much Libya expands capacity, and how that will affect things. In due course we will find out, but it is negative for prices. Libya has estimated gas reserves of 13 billion cubic metres. Demand from European markets is huge, and the Gulf's gas industry will struggle to compete with Libya for European custom.
Petrochemicals is another area of concern.
Libya's refineries were hit particularly hard by UN sanctions, which prohibited imports of spare parts for such facilities. Profits at Gulf petrochemical giants such as Saudi Arabia's Sabic have already been slashed by the evaporation of Asian markets. Price pressure is bound to increase if the market becomes more crowded. Certainly, this development presents gilt-edged opportunities for companies willing to finance the investment. But this is almost certain to go to large Western companies, not Gulf-based organisations.