Egypt Plans First 16M-Barrel Strategic Crude Stockpile
Egypt plans to establish a strategic crude-oil stockpile of approximately 16 million barrels using additional supplies from Libya and Iraq, according to an Egyptian government official cited by Asharq Bloomberg.
What Readers Should Know
- Egypt is targeting a strategic crude stockpile of about 16 million barrels by the end of 2026.
- The planned supply mix includes 10 million barrels from Libya and 6 million barrels from Iraq.
- Egypt began receiving crude for the stockpile in August.
- About 3 million Libyan barrels have already been received, according to the source report.
- The reported contract price is about $85 per barrel, valuing the crude at approximately $1.36 billion before transport, storage and insurance costs.
MONTREAL (Oil Monster): Egypt plans to build a strategic crude-oil stockpile of approximately 16 million barrels for the first time, using additional supplies from Libya and Iraq, according to an Egyptian government official cited by Asharq Bloomberg.
Libya to Supply 10 Million Barrels
The planned reserve would include approximately 10 million barrels of Libyan crude and 6 million barrels from Iraq.
The additional barrels are intended specifically for the strategic stockpile and are separate from the Egyptian General Petroleum Corporation’s regular monthly crude supplies, according to the report.
Egypt began receiving crude allocated to the reserve in August and has already taken delivery of approximately 3 million barrels from Libya.
The remaining Libyan volumes are expected to arrive over the coming months as Egypt works toward completing the stockpile before the end of 2026.
Crude Purchases Valued at About $1.36 Billion
The government official said Egypt contracted for the crude from Libya and Iraq at approximately $85 per barrel.
At that price, 16 million barrels would carry a crude value of about $1.36 billion.
The reported figure does not include additional transport, storage and insurance costs.
Stockpile Aims to Protect Refinery Supply
The reserve is intended to give Egyptian refineries a larger supply buffer if international crude shipments are delayed or disrupted.
According to the source reporting, Egypt’s normal monthly crude supplies are approximately 7 million barrels, making the proposed 16 million-barrel reserve substantial relative to routine monthly inflows.
The initiative also diversifies Egypt’s additional supply between two regional producers, with Libya providing the larger share and Iraq supplying the remaining 6 million barrels.
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Why the Reserve Matters
Building a dedicated crude stockpile would give Egypt additional flexibility to maintain refinery feedstock supplies during periods of shipping disruption or market volatility.
The program also comes as oil-importing countries reassess supply security and crude sourcing amid repeated disruptions to Middle Eastern energy infrastructure and shipping routes.
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Courtesy: www.libyaherald.com