Egypt and Libya are advancing an 800-kilometre crude oil pipeline linking Tobruk to Alexandria, a project estimated to cost more than $1 billion that would create a dedicated cross-border supply route and reduce Cairo’s exposure to Gulf supply shocks.
The pipeline would carry Libyan crude directly to Egyptian refineries, primarily in Alexandria, following the suspension of Kuwaiti crude imports and growing instability around the Strait of Hormuz — the narrow waterway through which a significant share of global oil trade passes.
Egypt is seeking to import at least one million barrels of Libyan crude per month to offset the shortfall.
Officials are currently studying financing options, implementation arrangements, and the pipeline’s final capacity, calibrated against Libya’s export volumes and Egypt’s refining requirements. No financing structure has been confirmed.
The project follows talks between Egyptian Prime Minister Mostafa Madbouly and Libyan Prime Minister Abdul Hamid Dbeibeh on deepening energy cooperation. Those discussions covered oil refining, natural gas, and electricity interconnection, with the pipeline emerging as the centrepiece of expanded bilateral energy ties.
Libya’s National Oil Corporation (NOC) — the state entity that manages the country’s upstream sector — currently produces around 1.43 million barrels per day (bpd) of crude and 49,000 bpd of condensates, bringing total liquids output to approximately 1.48 million bpd, according to NOC Chairman Masoud Suleman. The country is targeting crude production of 1.5 million bpd as investment and development activity accelerates.
Beyond securing Egyptian supply, the arrangement could benefit Libya by providing a dedicated outlet for rising production volumes. The source material also notes that the pipeline structure could allow Libya to receive refined products from Egyptian refineries for domestic consumption or export — a potential two-way flow that would deepen the economic logic of the project for both sides.
The pipeline would also reduce Egypt’s reliance on tanker shipments, which carry both cost and logistical risk, particularly when Gulf routes face disruption.
For Libya, a stable, land-based export corridor to a neighbouring refining hub would complement its existing Mediterranean export infrastructure.
For North Africa more broadly, the project signals a shift toward intra-regional energy integration as countries seek to insulate themselves from volatility in Gulf supply chains.
If completed, the Tobruk–Alexandria corridor would represent one of the most significant pieces of cross-border energy infrastructure on the continent.
