Egypt and Libya Near $1 Billion Deal for a Tobruk to Alexandria Oil Pipeline

According to Oilprice.com, citing Asharq Bloomberg in a report published Monday, August 10, 2026 (19 Mordad 1405), Egypt and Libya are nearing a deal to build an 800 kilometer oil pipeline between Tobruk and Alexandria, creating a direct route for growing Libyan crude production to reach Egyptian refineries as disruption from the Iran war in the Strait of Hormuz has cut off Egypt's traditional Gulf supplies. The report said the project is estimated to cost more than $1 billion, and the two countries are studying financing, implementation and the pipeline's final capacity. An Egyptian government official previously cited by Asharq Bloomberg said Cairo is seeking to import at least 1 million barrels of Libyan crude a month after Kuwaiti supplies were suspended. Libya currently produces about 1.43 million barrels a day of crude oil and 49,000 barrels a day of condensate, and National Oil Corporation chairman Masoud Suleman has said output is approaching 1.5 million barrels a day. The pipeline plan follows talks between Egypt's prime minister and the head of Libya's Government of National Unity on expanding cooperation in oil refining, natural gas and electricity.