Egypt and Libya are edging closer to a landmark deal that would see an 800-kilometre oil pipeline built between Tobruk and Alexandria, opening a direct route for Libyan crude to reach Egyptian refineries. A government source told Asharq Bloomberg, speaking anonymously, that the project carries a price tag above $1 billion, with both nations now working out financing, construction timelines and final capacity — factors that will hinge on how much crude Libya can spare for export and how much Egyptian refineries can process.
The push comes as Cairo works to diversify away from Gulf crude supplies that have grown less reliable in recent months, with Egypt reportedly targeting at least 1 million barrels of Libyan crude every month after losing access to Kuwaiti shipments. A direct pipeline would let Egypt draw on Libyan barrels without depending on tankers, while giving Libya a fresh outlet as its own output climbs toward the highest levels in over a decade.
Libya is currently pumping around 1.43 million barrels a day of crude, plus another 49,000 barrels a day of condensate — a combined 1.48 million barrels daily that National Oil Corporation chief Masoud Suleman says is headed toward 1.5 million bpd. The pipeline idea follows talks between Egyptian Prime Minister Mostafa Madbouly and Libyan Government of National Unity premier Abdul Hamid Dbeibeh on wider cooperation across refining, gas and electricity.
For Libya, the pipeline would offer a new market for rising production and a chance to bring some crude home as refined fuel. For Egypt, it means fresh feedstock for its Mediterranean refineries at a time when traditional supply routes have grown less predictable. Libya’s National Oil Corporation had not responded to a request for comment as of publication.
Source: oilprice.com
