en.Wedoany.com Reported - Egypt and Libya are nearing an agreement to jointly build an oil pipeline connecting Libya's Tobruk with Egypt's Alexandria. The pipeline, spanning approximately 800 kilometers, would deliver Libyan crude directly to Egyptian refineries upon completion. A government official, speaking on condition of anonymity, told Asharq Bloomberg that the project investment will exceed $1 billion, with both countries currently studying financing, implementation methods, and the pipeline's final capacity—the latter to be determined by Libya's exportable volumes and Egyptian refineries' processing capabilities.

The project comes as Egypt scrambles to replace crude supplies disrupted by the closure of the Strait of Hormuz, with its traditional Gulf sources also disrupted by the Iran conflict. Earlier, an Egyptian government official told Asharq Bloomberg that after Kuwaiti supplies were suspended, Cairo sought to import at least 1 million barrels of crude per month from Libya.

For Egypt, a direct pipeline would secure Libyan crude without reliance on tanker shipments; for Libya, it provides a new export outlet at a time when its crude output has climbed to its highest level in over a decade. Libya's current crude production stands at approximately 1.43 million barrels per day, alongside 49,000 barrels per day of condensate, bringing total liquids output to nearly 1.48 million barrels per day. Masoud Suleman, chairman of the National Oil Corp., stated that the country is advancing toward a target of 1.5 million barrels per day.

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 refining, natural gas, and electricity sectors.

Once realized, the project would give Libya another market for its growing output, with some crude returning domestically as refined products after processing; Egypt, in turn, would gain additional feedstock at a time when its Mediterranean refining system faces risks to Gulf supply routes.

Libya's National Oil Corp. did not respond to Asharq Bloomberg's request for comment.