Egypt signs $1.5B financing contracts for diesel production complex in Assiut

CAIRO  16 February 2022:The activities of the Egypt International Petroleum Conference and Exhibition (EGYPS 2022) witnessed the signing of contracts to finance the project of a diesel production complex (hydrogen cracking of mazut) in Assiut at a value of $1.5 billion from 6 international banks and financial institutions.

 

 

According to a petroleum statement, issued today, Wednesday, the contract was signed with the Italian CDP, Credit Agricole for Investment and Finance, UniCredit Italy, HSBC Middle East, BNP Paribas France and Societe Generale France, and the Italian Export Development Corporation Sacchi guaranty.

 

For his part, Tarek El-Molla confirmed that the project of the diesel production complex in Assiut is one of the most important projects of the strategic plan of the Ministry of Petroleum and Mineral Resources, to modernize the refining sector in order to achieve self-sufficiency and adherence to international environmental standards.

 

He explained that the complex is working to convert the diesel produced from the refining operations at the Assiut Petroleum Refining Company - which is a low-value product into petroleum products of high economic value and with international environmental specifications, such as diesel with European specifications (Euro 5) and butane in quantities that achieve self-sufficiency in Upper Egypt from petroleum products, especially the diesel.

 

The minister said that it will have a great impact in reducing the bill for importing petroleum products, as the value of the products manufactured in the complex, which are currently imported from abroad, amount to more than $1.5 billion annually, in addition to reducing logistical expenses as the product is manufactured in the same geographical scope of the target market.

 

The project is part of the Ministry of Petroleum's strategic plan to modernize the refining sector to achieve self-sufficiency and adhere to international environmental standards.

 

The mazut hydrocracking complex works to convert the mazut produced from refining operations at the Assiut Petroleum Refining Company plant - which is a low-value product into high economic value petroleum products with international environmental specifications such as diesel with European specifications (Euro 5) and  butane in quantities that achieve self-sufficiency in Upper Egypt from petroleum products, especially the diesel.

 

 

It will have a great impact in reducing the bill for importing petroleum products, as the value of the products manufactured in the complex, which are currently imported from abroad, amount to more than $1.5 billion annually, in addition to reducing logistical expenses as the product is manufactured in the same geographical scope of the target market. 

 

The project uses the latest technical technologies in the construction of the complex in addition to a zero-discharge system for liquids, and is characterized by environmental compatibility. It also commits and contributes to developing the local community and opening new horizons for development in Upper Egypt.

 

The contract for the general contractor for the project was signed during the EGYPS 2020 conference, and the project works are underway, and the construction work is planned to be completed during the last quarter of 2023.