Egypt Plans $4 Billion Refinery Investment to Raise Fuel Output

Egypt plans to invest $4 billion in six modernisation and development projects to raise output at its existing oil refineries, Petroleum and Mineral Resources.

Speaking at a meeting with Ethiopis Tafara, IFC vice president for Africa, and Cheick-Oumar Sylla, Minister Karim Badawi announced that the government has developed a strategy to increase the value added of existing oil refineries by implementing six projects investment of $4 billion to boost production capacity and reduce the fuel import bill.

Speaking further, he added that officials from the World Bank Group’s private sector arm discussed investment and financing opportunities in oil refining, petrochemicals, and value-added industries, as well as in the mining sector, while exploring potential cooperation to help finance higher utilization of the country’s refining infrastructure.

Egypt has the largest facilities at Mostorod, with a capacity of 161,000 bpd, and MIDOR, with 160,000 bpd. Most refineries are not operating at full capacity, partly due to inadequate maintenance and modernization.

In addition, the country also has a nominal refining capacity of 840,000 barrels per day (bpd) across a dozen refineries, most of which are operated by the state oil company Egyptian General Petroleum Corporation (EGPC).

In the future, consumption of refined petroleum products in Egypt is expected to rise, despite recent cuts to state fuel subsidies introduced as part of an economic reform program backed by the International Monetary Fund (IMF).