Egypt and Libya are on the verge of a massive oil pipeline project costing over $1 billion

Egypt and Libya are nearing the launch of a joint strategic energy project aimed at extending an 800-kilometer crude oil pipeline.

The new pipeline connects the Libyan city of Tobruk with the Egyptian city of Alexandria, to supply Egyptian refineries overlooking the Mediterranean Sea.

Media outlets quoted a government official detailing the project, whose initial cost is estimated at more than $1 billion, explaining that the pipeline will transport Libyan crude oil for refining mainly in Egyptian refineries in Alexandria.

He added that the Egyptian and Libyan sides are currently holding intensive talks to discuss financing methods, implementation aspects, in addition to determining the total capacity and final quantities of the pipeline, in accordance with Libya’s export capabilities and the capacity of refineries in Egypt.

This move comes just days after high-level meetings between Egyptian Prime Minister Mostafa Madbouly and Libyan Government of National Unity Prime Minister Abdel Hamid Dbeibah, during which the focus was on strengthening bilateral cooperation in the energy sector, particularly natural gas and petroleum refining, as well as developing the electricity grid between the two countries.

Through these steps, Egypt seeks to strengthen its oil supplies and import about one million barrels of Libyan crude oil per month to secure the needs of the local market and benefit from the advanced infrastructure of its refining sector.

It is worth noting that Libya's oil production has seen a significant increase, reaching approximately 1.43 million barrels per day of crude oil, in addition to about 49,000 barrels of condensate, bringing the total production to approximately 1.48 million barrels per day. These levels are the highest recorded by the country since 2013, amidst ongoing efforts by the National Oil Corporation to reach production rates of 1.5 million barrels per day.