Egyptian Refinery Company is building new hydrocracker and vacuum distillation units at the existing Mostorod refinery.
|Mostorod New Refinery Project Profile|
|Owner||Egyptian Refining Company|
|Contractor(s)||Mitsui & Company|
|GS Engineering & Construction|
|Main contract award||2007|
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Egyptian Refinery Company (ERC) is building new 40,000 barrel-a-day (b/d) hydrocracker and 80,000 b/d vacuum distillation units at the existing Mostorod refinery, 10 kilometres north of Egypts capital.
The new units will share facilities with the existing 142,000 b/d Mostorod refinery, which is operated by Cairo Oil Refining Company (CORC) and has been operational since 1969. The development is part of a broader scheme to increase and update Egypts refining capacity and reduce its fuel import bill. The idea behind the scheme, which will be built out from the site of the existing facility, is to produce lighter refined products, such as diesel, jet fuel, kerosene and naphtha.
The new refinery will produce 2 million tonnes a year (t/y) of high-quality diesel.
Once comissioned, it will have an annual capacity is 4.2 million tonnes of refined products. This includes 2.3 million tonnes a year (t/y) of diesel, 600,000 t/y of gasoline and 700,000 t/y of jet fuel.
Project consultant is Australias WorleyParsons and the engineering, procurement and construction (EPC) contract, worth $1.8bn, was awarded to Japans Mitsui & Co and South Koreas GS Engineering & Construction in August, 2007.
ERC will buy fuel from state-owned Egyptian General Petroleum Corporation(EGPC), but will also sell its refined products back to EGPC at international prices, under a 25-year agreement.
To help attract financing, EGPC entered into a public-private partnership (PPP) agreement with ERC, and it is backed by $1.1bn of equity. The investors that have taken stakes in ERC comprise:
- Egyptian General Petroleum Corporation ($270m invested for 23.8 per cent ownership)
- Qatar Petroleum International ($362m; 27.9 per cent)
- Citadel Capital ($155m; 11.7 per cent)
- International Finance Corporation ($85m; 6.4 per cent)
- Hollands development bank FMO ($29m; 2.2 per cent)
- Germanys investment firm DEG ($26m; 2 per cent)
- The InfraMed Fund ($100m; 7.5 per cent)
- Others (18.5 per cent)
It also has a debt equity package worth $2.6bn, which was secured in August 2010. Of that, $2.35bn is senior debt and $225m subordinated debt. The package was organised by Japans Bank of Tokyo-Mitsubishi, with participating banks including Japan Bank for International Cooperation, Nippon Export and Investment Insurance (both Japan), the Export-Import Bank of Korea (South Korea), the European Investment Bank and the African Development Bank.
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