Egypt Invests 128 Million Dollars to Construct Six New Petroleum Product Distribution Pipelines

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Gas pipeline Egypt

Ahmed Kamel – Egypt Daily News

Egypt News

The Government of Egypt is aggressively expanding its midstream logistics infrastructure through a 128 million dollar capital investment program dedicated to building six domestic pipelines. A senior government official speaking to Asharq Business on Monday confirmed that the new infrastructure networks will span a cumulative length of 317 kilometers.

The specialized lines are engineered to transport crude oil and refined petroleum products including gasoline, diesel, and fuel oil between production hubs, refineries, storage terminals, and major commercial shipping ports.

The multi-million-dollar energy initiative is specifically designed to enhance internal product circulation while structurally scaling up Egypt’s petroleum export capacities across international maritime corridors. According to the state brief, the newly constructed networks will enter active commercial service sequentially, with final project phases scheduled to become operational by early 2027.

The expansion follows an exceptional performance by the local energy sector during the first half of 2026, when national petroleum exports surged past 2.3 million tons, matching the total volume exported throughout the entirety of 2025.

Alexandria and El Alamein Logistics Networks Scheduled for Rapid Winter Activation

The Ministry of Petroleum and Mineral Resources has finalized tight construction timelines to activate the high-capacity pipelines over the coming months. Technical teams are scheduled to complete a 135-kilometer, 16-inch product pipeline by November, running from the Middle East Oil Refinery (MIDOR) in Alexandria’s Amreya district directly to the strategic El Hamra Oil Port in El Alamein.

The critical Mediterranean export conduit represents the largest single financial allocation in the program, carrying a total investment cost of 52 million dollars.

Concurrently, a specialized 31 million dollar heavy pipeline project managed for the Assiut Oil Refining Company in Upper Egypt is on track for completion in December. The high-volume connection spans 16 kilometers with an extensive 36-inch diameter to optimize industrial crude processing inputs.

To manage immediate logistics demands across the north Delta region, Egypt will begin active commercial operations this month on a 52-kilometer, 16-inch pipeline linking the Khurshed area east of Alexandria to the city of Damanhur, utilizing a completed investment capital of 21 million dollars.

Upper Egypt and Greater Cairo Fuel Distribution Channels Upgraded to Guarantee Supply Security

State engineers are concurrently prioritizing the construction of extensive fuel corridors to secure Upper Egypt’s long-term energy requirements and insulate metropolitan networks from supply drops. The initial 75-kilometer phase of the major El Tebbin–Assiut product pipeline is officially scheduled to enter service by the end of this year.

Moving southward from Cairo’s El Tebbin industrial sector, the 16-inch transmission line represents a 13 million dollar infrastructure asset focused on securing fuel delivery to southern provinces.

Within the Greater Cairo grid, construction crews are actively executing a six-million-dollar project to build a 20-kilometer fuel oil pipeline connecting Mostorod to West Shubra, which will utilize dual 16-inch and 12-inch diameters when it enters service in early 2027. The ministry is simultaneously spending 4.2 million dollars to completely reroute a critical 19-kilometer, 16-inch fuel oil pipeline operating between Mostorod and El Tebbin.

This comprehensive logistics restructuring ensures that domestic processing facilities maintain maximum operational agility while international commercial oil tankers increasingly shift loading operations to Egypt’s Mediterranean coast to bypass Red Sea maritime threats.

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