https://arab.news/pkutq
CAIRO: Egypt and Libya are nearing the launch of a joint project to build an 800-kilometer oil pipeline linking the Libyan city of Tobruk with Alexandria, transporting Libyan crude to Egyptian refineries on the Mediterranean coast. The project’s preliminary cost is estimated at more than $1 billion, according to a government official who spoke to Asharq Bloomberg on condition of anonymity.
Refining Libyan oil in Egypt
The official added that the pipeline will transport Libyan crude primarily for refining at facilities in Alexandria. Egypt and Libya are currently exploring financing options for the pipeline, as well as implementation details, volumes and the pipeline’s final overall capacity, in a way that aligns with Libya’s export capacity and the capabilities of Egyptian refineries, according to the official.
The development comes just days after Egyptian Prime Minister Mostafa Madbouly held talks with Abdul Hamid Dbeibeh, prime minister of Libya’s Government of National Unity, to strengthen energy cooperation between the two countries, particularly in natural gas, petroleum refining and electricity interconnection.
Libya’s National Oil Corp. did not respond to requests from Asharq Bloomberg for comment.
Libya’s oil production reached around 1.43 million barrels per day, in addition to approximately 49,000 bpd of condensates, bringing total output to nearly 1.48 million bpd. This is the country’s highest production level since 2013, as the government seeks to reach the 1.5 million-bpd threshold, according to National Oil Corp. Chairman Masoud Suleman.
Mutual benefits for Egypt and Libya
The government official told Asharq Bloomberg that both Egypt and Libya stand to benefit significantly from the project. Refining Libyan crude would help supply petroleum products to Egypt’s domestic market, while allowing Libya to benefit from increased domestic crude production, whether by securing a share of fuel products for local consumption or exporting the surplus, while also strengthening cooperation with Egypt.
Egypt is seeking to import at least 1 million barrels of Libyan oil per month to compensate for the suspension of Kuwaiti crude supplies, amid disruptions to shipping through the Strait of Hormuz resulting from military escalation in the region, according to a government official who previously spoke to Asharq Bloomberg.
Egypt’s move to strengthen energy cooperation with Libya comes amid growing concerns over broader disruptions to global oil and gas supplies as regional tensions escalate, with some production already halted following attacks on key infrastructure.