Egypt and Libya are moving closer to a bilateral agreement to construct a major oil pipeline infrastructure project, according to reporting from OilPrice. The proposed 800-kilometer pipeline would establish a direct conduit from the Libyan port city of Tobruk to Alexandria in Egypt, enabling Libyan crude supplies to flow directly into Egyptian refineries. The initiative reflects growing interest in diversifying Egypt's energy sourcing as regional supply disruptions affect traditional Gulf imports.
The planned pipeline is estimated to exceed $1 billion in total cost, according to an unnamed government official cited in regional media. The two nations are currently in discussions regarding project financing mechanisms, implementation timelines, and the pipeline's ultimate throughput capacity, which will be calibrated based on Libya's production capabilities and Egypt's refining demand.
The project underscores the strategic importance of regional energy infrastructure development in North Africa as both countries seek to maximize hydrocarbon resources and strengthen cross-border economic ties. Successful completion of the pipeline would position Egypt as a regional energy hub while providing Libya improved export pathways for its crude reserves.