Molla announces $8B plan to develop Egyptian refineries

CAIRO – 9 July 2017: Egypt drafts $8 billion strategy to develop refineries, with the aim of securing petroleum quantities and export crude oil, Minister of Petroleum Tarek El-Molla said Sunday.

In statements to On Live newscast, Molla noted that Egypt imports 30-35 percent of its petroleum needs because refineries capacities are unable to meet domestic needs.

Once a net gas exporter, Egypt has been suffering from a severe shortage in natural gas after production from gas fields declined following 2011 uprising. After that time, Cairo started to issue tenders to import liquefied natural gas (LNG) to meet its growing consumption.

The gas sector is expected to recover as a major gas field, Zohr, was discovered in the Shorouk concession that is developed by Italy’s Eni. The field is yet to start production in December 2017 at one billion cubic feet per day.

Molla’s announcement came during his visit to LNG pier at Ain Sokhna and its surrounding facilities Sunday, which is owned by the Arab Petroleum Pipelines Company (SUMED).

Trial operations of the $415 million have commenced, the minister said.

In August 2016, SUMED signed $350 million contract with Egyptian and Belgian consortium BESIX-Orascom Construction to build the pier, which will include bunkering infrastructure for LNG bunkers.