The $3.7m Mostorod New Refinery in Egypt is seeing delays to its construction due to problems obtaining building works permits, according to a source close to the project.

“There are problems regarding permitting that has led to some packages falling behind schedule,” says the source. “The permitting issues are unresolved at this moment.”

The work involves the construction of a new hydrocracker and a vacuum distillation unit at the refinery, which is located 10 kilometres north of Cairo.

Land for the project was granted by Egyptian General Petroleum Corporation’s (EGPC) subsidiary, Cairo Oil Refining Company (CORC).

The new hydrocracker is part of a broader scheme to increase the country’s refining capacity. The existing Mostorod facility, operated by CORC, is the largest in the country, with a capacity of 142,000 barrels a day (b/d).

The scheme includes the following new facilities:

• Diesel hydrotreating unit (23,600 b/d)
• Vacuum distillation unit (81,500 b/d)
• Hydrocracker (39,600 b/d)
• Catalyst reforming unit (13,000 b/d)
• Delayed coker (16,700 b/d)

Before the permitting delays occurred, the project was expected to be completed in December 2016.