{"id":258263,"date":"2026-08-18T19:13:36","date_gmt":"2026-08-18T17:13:36","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=258263"},"modified":"2026-08-18T19:13:40","modified_gmt":"2026-08-18T17:13:40","slug":"oilprice-libyas-upcoming-oil-pipeline-could-become-a-geopolitical-game-changer","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/oilprice-libyas-upcoming-oil-pipeline-could-become-a-geopolitical-game-changer\/","title":{"rendered":"OilPrice: Libya\u2019s Upcoming Oil Pipeline Could Become a Geopolitical Game-Changer"},"content":{"rendered":"\n

OilPrice.com reported, in an article by Cyril Widdershoven, that Libya\u2019s upcoming oil pipeline could become a factor that reshapes the geopolitical equation.<\/p>\n\n\n\n

Libya and Egypt are working to revive a project to build an oil pipeline approximately 800 kilometers long, linking the Tobruk and Al-Hariga area in eastern Libya with Alexandria, Egypt. According to current estimates, the pipeline is expected to initially have a capacity of 150,000 to 250,000 barrels per day, with the potential to increase this later to 300,000\u2013400,000 barrels per day if Libyan production growth allows.<\/p>\n\n\n\n

The project is not entirely new. In 2002, the two countries explored the construction of oil and gas pipelines between Tobruk and Alexandria through a joint venture equally owned by Libya\u2019s National Oil Corporation and the relevant Egyptian authorities. At the time, the project was approximately 620 kilometers long, with an initial capacity of 150,000 barrels per day. The current project is therefore essentially a revival and major expansion of an earlier idea.<\/p>\n\n\n\n

Cost and Financing<\/h3>\n\n\n\n

The initial official cost estimate exceeds $1 billion, while Blue Water Strategy estimates the realistic cost at between $1.3 billion and $2.2 billion. It could rise to around $2.5 billion if the project includes storage facilities, pumping stations, and refinery-related modifications.<\/p>\n\n\n\n

However, there is still no final investment decision, and the design capacity and financing structure have yet to be finalized. No international bank, sovereign wealth fund, or international oil company has so far announced a formal commitment to finance the project.<\/p>\n\n\n\n

2027 may be the earliest realistic date for a final investment decision, with construction taking place during 2028\u20132029 and operations likely beginning around 2030.<\/p>\n\n\n\n

Why Is the Project Important for Egypt?<\/h3>\n\n\n\n

The report argues that geopolitical developments in 2026 have strengthened the project\u2019s economic rationale, as Egypt faces greater risks of disruptions to maritime supplies from the Middle East, particularly amid instability surrounding the Strait of Hormuz.<\/p>\n\n\n\n

Libyan oil reaching Alexandria directly by land would avoid passing through:<\/p>\n\n\n\n