Egypt and Libya plan $1B oil pipeline from Tobruk to Alexandria

Egypt and Libya are negotiating a joint project to construct an 800-kilometer oil pipeline connecting Tobruk in Libya to Alexandria in Egypt. The project, estimated to cost more than $1 billion, aims to transport Libyan crude oil to Egyptian refineries for processing and domestic supply.

The initiative follows high-level discussions between Egyptian Prime Minister Mostafa Madbouly and Libya’s Prime Minister Abdul Hamid Dbeibah regarding expanded energy cooperation, including natural gas, petroleum refining, and electricity interconnection. The pipeline is designed to align with Libya’s increasing crude production, which has reached approximately 1.48 million barrels per day, and Egypt’s refining capacity.

For Egypt, the pipeline serves as a strategic measure to secure oil supplies and offset disruptions in other regional energy flows, such as the suspension of Kuwaiti crude due to shipping hazards in the Strait of Hormuz. For Libya, the project offers a way to increase the value of its oil production through refining and provides additional export outlets. The project is currently in the planning and negotiation stage, with details regarding financing and final capacity yet to be finalized.