Egypt plans to invest US $2.5 bln in 5 new refineries during the next decade

04-May-06

Egypt's refining capacity, which is the largest in Africa, has been stagnant for the last few years at around 725,000 bpd. However, Egypt now has plans to use output from this new capacity to maintain export market share, meet growing domestic demand and provide feedstock for the government's ambitious plans to create a large-scale petrochemical production sector. The Egyptian General Petroleum Corporation (EGPC), which operates majority of the country's refining capacity, plans to build five new refineries at a total cost of US $2.5 billion during the next decade. In January this year, EGPC unveiled plans a 130,500 bpd plant at an investment outlay of US$1 billion. The next new refinery under consideration is at Port Said with a capacity of up to 300,000 bpd as part of an integrated petrochemical complex. If built, it will be an export-oriented facility and will supply feedstock to the petrochemical complex to produce linear alkyl benzene (Lab), propylene, ethylene, styrene/polystyrene and methanol as well as acrylic fibres, PVC, polyester and ammonia/urea. Construction of the $196 million, 80,000 tpa LAB plant is expected to begin in the second half of this year. The third new refinery under consideration would have a capacity of 500,000 bpd - making it one of the largest in the world, with investments from the Arab nations. Indian oil majors are interested in investing up to US$1 billion in a new refinery as part of a larger investment in Egyptian oil and gas concessions.