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Libya and Egypt weigh talks for new Tobruk to Alexandria oil pipeline

The roughly 800 km project is estimated to cost more than $1 billion, but capacity, financing and an investment decision have not been agreed.

Reported · Written up by our desk · Energy

Libya and Egypt have moved into active discussions over a proposed crude oil pipeline linking Tobruk in eastern Libya to Egypt’s port of Alexandria, aiming to route Libyan crude into Egypt’s Mediterranean refining system, according to OilPrice.

The project is expected to span about 800 kilometers and carry an estimated cost of more than $1 billion, but key commercial terms are still undecided, including final capacity, financing structure, and an investment decision.

OilPrice reports that current analysis suggests the countries are discussing financing mechanisms, implementation arrangements, and final throughput, yet major hurdles remain because no international bank, sovereign wealth fund, or IOC has publicly committed to the project.

The pipeline concept is not entirely new, as both countries examined a similar Tobruk to Alexandria corridor more than two decades ago, when a 2002 effort between Libya’s NOC and Egypt’s EGPC/GASCO envisioned twin pipelines over about 620 km and an initial design for 150,000 bpd.

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