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Korea’s GS Engineering & Construction and Japan’s Mitsui have started construction of the $3.7bn Egyptian Refining Company (ERC) plant at Musturud, 20km northeast of Cairo.
The plant will be “transformative” for the Egyptian economy, a “key component of Egypt’s energy security going forward,” according to Ahmed Heikal, Chairman of the projects key backer, Egyptian investment firm Citadel Capital.
The plant’s 46,300 b/d diesel output will cut Egypt’s diesel imports by around 50% – equivalent to around $300mn/year: it will supply a total 75,000 b/d of liquid fuels and feedstocks for domestic consumption. ERC awarded the engineering, procurement and construction (EPC) contract to GS and Mitsui in 2007, and at the time expected plant start-up in mid-2011. The project management contract was also awarded to Australia’s WorleyParsons in 2007. However, the project was long delayed by Egypt’s financial woes and political turmoil and it was almost five years after the EPC awards before financing could be secured (MEES, 25 June 2012). (CONTINUED - 468 WORDS)
DATA INSIDE THIS ARTICLE
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