$3.7bn Egyptian Refining Company is building a new refinery in Cairo
The Egyptian government has issued a comfort letter to the local Citadel Capital, signalling its continued backing for the $3.7bn greenfield Egyptian Refining Company (ERC) project in the Mostorod district of Greater Cairo.
The project remains on track to meet its 2016 planned commissioning date, according to a 30 September statement by Citadel Capital.
The refinery is expected to reduce Egypts current diesel imports by about 60 per cent, while also reducing sulfur dioxide emissions by nearly a third.
It will produce more than 4.1 million tonnes a year (t/y) of refined products and high-quality oil derivatives, including more than 2.3 million tonness of Euro V diesel.
It achieved financial close in June 2012. The ERC project is a public-private partnership (PPP), with Citadel Capital holding a 11.7 per cent stake, alongside state-owned Egyptian General Petroleum Corporation (EGPC) and private investors.
The refinery will be built in the Mostorod district of Greater Cairo, next to the existing 160,000 barrel-a-day (b/d) refinery operated by the local Cairo Oil Refining Company (CORC), which currently accounts for 20 per cent of Egypts total domestic refining capacity.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.