Egypt accelerates USD 128 mn downstream grid expansion targeting early 2027

Egypt is accelerating a USD 128 mn, six-pipeline infrastructure package spanning 317 km to transport crude oil and petroleum products between domestic production zones, refineries, and export terminals across the country, according to an unnamed government official. The full network is slated to come online by early 2027.

The missing link on the Mediterranean: The biggest piece of the package is the USD 52 mn, 135-km pipeline connecting the Midor refinery in Alexandria to the Al Hamra petroleum port in El Alamein, due in November. As we noted back in May, this line is the missing link on the Mediterranean coast. It closes a two-way loop that allows Egypt to import crude, refine it domestically at Midor, and pump the higher-value finished products back to Al Hamra for re-export.

Two lines are landing within months: A 52 km, 16-inch line from Khorshid (east of Alexandria) to Damanhur, the capital of Beheira governorate, starts operating this month at a cost of USD 21 mn. The first phase of the Tebbin-Assiut line — running 75 km from south of Cairo into Upper Egypt — enters service by year-end at a cost of around USD 13 mn. A 16 km, 36-inch line serving Assiut Oil Refining Company in the south follows in December at roughly USD 31 mn.

What else is in store? A 20 km line from Mostorod, in Shubra El-Kheima north of Cairo, to west Shubra is under construction and due in early 2027 at around USD 6 mn. Separately, Egypt is realigning the route of an existing mazut line between Mostorod and Tebbin, south of the capital — 19 km at roughly USD 4.2 mn.

The bigger picture: The pipeline buildout arrives amid a broader upswing in Egypt's petroleum sector. Shipments hit 2.3 mn tonnes in the first half of 2026 — matching all of 2025's volume in six months — worth around USD 2.3 bn and including jet fuel, naphtha, wax, and vacuum distillates. Egypt expects 2H exports to climb further, to 2.5 mn tonnes. Refinery utilization is running around 80% this year on higher crude supply, with domestic crude output at its highest level in about two years. The pipelines sit alongside a USD 4.5 bn refinery upgrade package aimed at lifting domestic output, cutting the fuel import bill, and growing exports further.