Key facts
- Egypt and Libya are reportedly close to agreeing on a $1 billion oil pipeline project.
- The proposed 800-kilometer pipeline would link Tobruk, Libya, to Alexandria, Egypt.
- The project aims to provide Egypt with direct access to Libyan crude, bypassing disrupted Gulf supplies.
- Libya's crude production is currently around 1.43 million barrels per day.
- The pipeline would offer Libya an additional export outlet as its production rises.
Egypt and Libya are reportedly nearing a significant agreement to construct an 800-kilometer oil pipeline connecting Tobruk to Alexandria, a project estimated to cost over $1 billion. This initiative aims to establish a direct route for Libyan crude oil to reach Egyptian refineries, addressing Egypt's need for alternative supplies amid disruptions to its traditional sources from the Gulf due to the conflict with Iran.
The proposed pipeline would allow Egypt to import at least 1 million barrels of Libyan crude monthly, replacing suspended Kuwaiti supplies. For Libya, the project offers a crucial new outlet for its increasing crude production, which has reached its highest level in over a decade, currently standing at approximately 1.43 million barrels per day. The two nations are currently evaluating financing, implementation strategies, and the pipeline's final capacity, which will be contingent on Libya's export volumes and Egypt's refining capabilities.
This development follows recent discussions between Egyptian Prime Minister Mostafa Madbouly and Libyan Prime Minister Abdul Hamid Dbeibeh regarding enhanced cooperation in oil refining, natural gas, and electricity sectors. The pipeline would enable Egypt to utilize its Mediterranean refining system more effectively, while Libya could potentially re-export some crude or refine it domestically.