Egypt-Libya Pipeline Deal Worth $1 Billion Nears Completion

Egypt and Libya are on the cusp of a major oil pipeline deal worth over $1 billion, according to an Egyptian government official speaking anonymously. The proposed pipeline would connect Tobruk in Libya with Alexandria in Egypt, creating a direct route for Libyan crude production to reach Egyptian refineries. This move comes as Egypt scrambles to replace supplies disrupted by the closure of the Strait of Hormuz.

The project aims to provide Egypt with access to Libyan barrels without relying on tanker shipments, while also giving Libya another outlet for its growing oil production. Libya is currently producing around 1.43 million barrels per day of crude and another 49,000 bpd of condensate, bringing total liquids production to roughly 1.48 million bpd.

The pipeline plan follows talks between Egyptian Prime Minister Mostafa Madbouly and Libyan Government of National Unity Prime Minister Abdul Hamid Dbeibeh on expanding cooperation in oil refining, natural gas, and electricity. For Libya, the project could provide another market for rising production while allowing some crude to return as refined products for domestic consumption.