Egypt and Libya Explore Plans for a $1 Billion Oil Pipeline

CAIRO — Egypt and Libya are nearing the launch of a joint project to build an 800-kilometer oil pipeline linking the Libyan city of Tobruk with Alexandria, transporting Libyan crude to Egyptian refineries on the Mediterranean coast, according to a government official.

The project’s preliminary cost is estimated at more than $1 billion. The pipeline will transport Libyan crude primarily for refining at facilities in Alexandria. Egypt and Libya are currently exploring financing options, implementation details, volumes, and the pipeline’s final overall capacity in line with Libya’s export capacity and Egyptian refinery capabilities.

The development comes days after Egyptian Prime Minister Mostafa Madbouly held talks with Libya’s Government of National Unity Prime Minister Abdul Hamid Dbeibeh to strengthen energy cooperation, particularly in natural gas, petroleum refining, and electricity interconnection.

Libya’s oil production reached around 1.43 million barrels per day, with condensates adding approximately 49,000 bpd, bringing total output to nearly 1.48 million bpd—the highest since 2013.

Both Egypt and Libya stand to benefit from the project. Refining Libyan crude would help supply petroleum products to Egypt’s domestic market, while Libya would benefit from increased domestic production and strengthened cooperation with Egypt. Egypt is seeking to import at least 1 million barrels of Libyan oil per month to compensate for suspended Kuwaiti crude supplies amid disruptions to shipping through the Strait of Hormuz resulting from military escalation in the region. Libya’s National Oil Corp. has not responded to requests for comment.

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