Egypt-Libya Pipeline Gains Momentum as Both Countries Seek to Stabilize Oil Supply Chains

The proposed pipeline between Egypt and Libya is gaining momentum as both countries seek to stabilize their oil supply chains. The 800km pipeline would transport approximately 150,000 barrels of Libyan crude per day from Tobruk in eastern Libya to Alexandria on Egypt's Mediterranean coast.

A joint venture entity called the Arab Company for Oil and Gas Lines (Altube) was established to develop this framework years ago, providing a crucial institutional foundation for the project. Altube's existence means that governance architecture is already in place, addressing some of the common challenges faced by cross-border infrastructure projects.

The pipeline would directly address Libya's production recovery and Egypt's import crisis. With Libya producing over 1.43 million barrels per day of crude oil, it has a reliable upstream source to feed into the pipeline. Meanwhile, Egypt is struggling with a minimum 1 million barrels of Libyan crude per month due to disruptions in Strait of Hormuz shipping routes.

The capital cost estimate for this project exceeds $1 billion USD, which includes civil engineering expenses across two national jurisdictions and varied terrain. However, it does not capture associated costs such as security infrastructure, metering facilities, or long-term operational overheads.