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Egypt and Libya mull $1 billion pipeline to move Libyan crude

The proposed 800-kilometer Tobruk-Alexandria link is designed to let Egypt access up to at least 1 million barrels per month from Libya without relying on tanker shipments.

Reported · Written up by our desk · Energy

Egypt and Libya are reportedly nearing a deal to build an 800-kilometer oil pipeline connecting Tobruk with Alexandria, aiming to create a more direct route for Libyan crude to reach Egyptian refineries. OilPrice reports the project is estimated to cost more than $1 billion, citing an unnamed government official who spoke to Asharq Bloomberg.

The pipeline is expected to be studied for financing, implementation, and final capacity, which would depend on Libya’s available export volumes and Egypt’s refinery processing capacity. The effort comes as Egypt looks to replace crude supplies disrupted by the closure of the Strait of Hormuz, with Cairo seeking imports of at least 1 million barrels of Libyan crude per month after Kuwaiti supplies were suspended, according to OilPrice.

For Libya, the plan would provide another outlet for crude as production rises. OilPrice says Libya is producing about 1.43 million barrels per day of crude plus roughly 49,000 bpd of condensate, totaling around 1.48 million bpd, and Libya’s National Oil Corp. Chairman Masoud Suleman has said the country is pushing toward 1.5 million bpd.

OilPrice also notes that the pipeline concept follows talks involving Egypt’s prime minister, and it frames the project as a way for Egypt to reduce reliance on tanker shipments while tapping growing Libyan volumes.

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