Egypt, Libya Weigh $1B Tobruk-Alexandria Oil Pipeline

The proposed 800-kilometer line would carry Libyan crude to Egyptian refineries as both countries expand energy cooperation.

MONTREAL (Oil Monster): Egypt and Libya are considering a major oil infrastructure project in a bid to boost energy ties between the two North African neighbors. The proposed pipeline would stretch about 800 kilometers from Tobruk in eastern Libya to Alexandria in Egypt. It will primarily be used for carrying Libyan crude to Egyptian refineries. According to a government official, the project is estimated to cost more than $1 billion.

The initiative follows recent discussions between Egyptian and Libyan officials on expanding cooperation in petroleum, natural gas and electricity.

How the Pipeline Route Would Work

The pipeline's capacity would be aligned with Libya's oil production and export potential, as well as Egypt's refining requirements. Most of the crude moved through the proposed line would be processed at refineries in Alexandria.

Libya's Oil Output Is Near a 13-Year High

Libya's oil output, including condensates, has reached 1.48 million barrels per day — the highest production level in almost 13 years. The country is targeting production of 1.5 million barrels per day.

Why the Project Matters for Egypt and Libya

The pipeline project is expected to give Egypt an additional source of crude for domestic refining and fuel supply, at a time when the country has been affected by oil supply shortages tied in part to regional shipping disruptions. For Libya, the line would offer greater flexibility to monetize rising oil production.