Egypt and Libya Near $1 Billion Oil Pipeline Deal
Egypt and Libya are reportedly nearing a deal to build an 800-kilometer oil pipeline connecting Tobruk with Alexandria, creating a direct route for growing Libyan crude production to reach Egyptian refineries as the war with Iran disrupts Egypt’s traditional Gulf supplies. The proposed pipeline would cost more than $1 billion, according to a government official who spoke to Asharq Bloomberg on…
Egypt and Libya are reportedly close to finalizing a $1 billion deal to construct an 800-kilometer oil pipeline from Tobruk to Alexandria. The connection would facilitate the transportation of Libyan crude directly to Egyptian refineries, a move prompted by the disruption of Egypt's traditional Gulf crude supplies due to the ongoing conflict with Iran.
According to a government source, the pipeline's estimated cost exceeds $1 billion. The next steps involve discussions on financing, construction procedures, and the pipeline's ultimate capacity, which will be influenced by Libya's export volume and Egypt's processing capacity. This initiative comes as Egypt intensifies efforts to secure alternative crude sources, aiming to import at least 1 million barrels of Libyan crude monthly post the suspension of Kuwait's supplies.
The direct pipeline would bypass the need for tanker shipments, offering Egypt access to Libyan barrels while presenting Libya with an additional outlet for its burgeoning crude production, now standing at approximately 1.48 million barrels per day. The project aligns with Egypt's strategic push for bolstering oil refining capabilities in the Mediterranean and reducing reliance on Gulf shipments, which remain vulnerable to geopolitical tensions.
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