2 of Africa’s oil-producing nations fast-track their alignment on a $1 billion oil pipeline agreement

Two North African oil-producing nations in Africa, Libya and Egypt, are close to finalizing their joint $1 billion oil pipeline project.

The oil pipeline, intended to stretch 800 kilometers from the Libyan city of Tobruk to Egypt’s Alexandria, would create a route for Libyan oil to reach Egyptian refineries on the Mediterranean coast.

Government officials who spoke to Bloomberg, as seen on the Libyan Observer, revealed that the project would cost around $1 billion.

According to an informed source who spoke to Asharq Bloomberg, Cairo and Tripoli are currently deliberating on the project's financing options and execution details, as well as determining the pipeline's ultimate capacity and volumes in accordance with Libya's export capacity and the capabilities of Egyptian refineries.

The project comes at a time when Egypt’s energy market has been strained significantly by the closure of the Strait of Hormuz, leaving the Northern African country at the hands of alternate energy routes.