$1 Billion Oil Pipeline Project Gains Momentum Between Libya and Egypt
Libya and Egypt are moving forward on a $1 billion oil pipeline project to transport Libyan oil to Egyptian refineries. The 800-kilometer pipeline would stretch from Tobruk, Libya to Alexandria, Egypt.
The project aims to create an alternative route for Libyan oil exports following the closure of the Strait of Hormuz, which has strained Egypt's energy market. According to a source, Cairo and Tripoli are deliberating on financing options and execution details.
Libya holds Africa's largest proven oil reserves, estimated at 48 billion barrels, while Egypt is North Africa's third-largest oil producer. Libya's National Oil Corp. Chairman Masoud Suleman noted that the country has seen an uptick in production levels since 2013, with output reaching around 1.394 million barrels per day in June.
The project is a result of high-level meetings between Egyptian Prime Minister Mostafa Madbouly and Libyan Prime Minister Abdul Hamid Dbeibeh to enhance energy cooperation between the two nations.