Egypt and Libya are advancing plans for an 800-kilometre crude oil pipeline linking Tobruk with Alexandria at an estimated cost above $1 billion, aimed at giving Libyan crude a direct route into Egyptian refineries. Officials are still working through financing options, implementation arrangements and the pipeline’s final capacity, which will depend on Libya’s export volumes and Egypt’s refining needs.
The project comes as Egypt seeks alternatives to disrupted Gulf crude supplies, with Cairo targeting at least 1 million barrels of Libyan crude a month after Kuwaiti shipments were suspended. A direct pipeline would cut Egypt’s reliance on tanker shipments while giving Libya a dedicated outlet for its rising crude output, which National Oil Corporation Chairman Masoud Suleman says has reached about 1.48 million barrels a day combined crude and condensate, with a target of 1.5 million barrels a day as investment accelerates.
The pipeline plan follows talks between Egyptian Prime Minister Mostafa Madbouly and Libyan Prime Minister Abdul Hamid Dbeibeh on wider energy cooperation covering refining, gas and electricity interconnection, with the pipeline emerging as a central piece of expanded bilateral ties.
Source: prospect-intel.com
