Egypt plans to build its first strategic crude oil reserve of around 16 million barrels by the end of 2026, securing additional supplies from Libya and Iraq to protect domestic refineries against potential disruptions to global markets and supply chains, a government official told Asharq Bloomberg.

 

The agreements cover around 10 million barrels from Libya and 6 million barrels from Iraq, with the volumes earmarked specifically for the strategic reserve rather than Egypt’s regular monthly crude supplies, the official said.

 

Egypt began receiving Libyan crude for the reserve in August and has so far taken in around 3 million barrels. The remaining Libyan volumes are expected to be delivered over the next three months, with the overall supply program running through December.

 

At a contracted price of around $85 per barrel, the targeted reserve would be worth approximately $1.36 billion, excluding transportation, storage and insurance costs.

 

Egypt’s regular crude supplies average around 7 million barrels per month, meaning the planned reserve would cover roughly 2.3 months of average monthly supply.

 

The reserve is being built as Egypt seeks to secure more crude for its refineries and increase domestic production of petroleum products as part of efforts to reduce fuel import costs and strengthen domestic supply.

 

Egypt had nominal refining capacity of around 829,000 barrels per day at the end of 2025, according to OAPEC data cited by Reuters.

 

The government official said the crude reserve would provide refineries with a buffer if shipments are disrupted or delayed, reducing reliance on regular monthly supplies.

 

Sourcing the reserve from Libya and Iraq would also diversify Egypt’s crude supply base, while Libya’s geographic proximity and the availability of Iraqi crude offer additional supply options, the official said.

 

The move comes amid disruptions across global oil markets, including impacts on crude production, refining operations and tanker traffic. Reuters has estimated that current conflicts have affected around 9 percent of global refining capacity.

 

Egypt has already been working to expand strategic stocks of petroleum products.

 

Building a crude reserve adds another layer of supply security, while the government is also seeking to raise domestic crude production and encourage greater exploration and production activity to reduce reliance on imports.