Egypt and Libya revive plans for Tobruk-Alexandria oil pipeline

Egypt and Libya are reviving plans to construct an 800-kilometer oil pipeline connecting Tobruk in Libya to Alexandria in Egypt. The project aims to transport Libyan crude oil to Egyptian refineries, potentially moving between 150,000 and 250,000 barrels per day.

For Egypt, the pipeline offers a strategic energy corridor that bypasses maritime routes vulnerable to disruptions in the Suez Canal, Bab el-Mandeb, or the Strait of Hormuz. For Libya, it provides an alternative export route as the country seeks to increase production toward a target of 1.5 million barrels per day.

The preliminary cost of the project is estimated to exceed $1 billion. While discussions regarding financing, implementation, and capacity are active between Cairo and Tripoli, several details remain unresolved. There is currently no finalized funding structure or public commitment from international banks or major oil companies. This renewed interest follows recent high-level discussions between Egyptian Prime Minister Mostafa Madbouly and Libyan Prime Minister Abdul Hamid Dbeibeh regarding energy and electrical interconnection.