geopolitics-00242.jpg
An oil pump jack in an oil field near the city of Almetyevsk. (Photo Credit: Yegor Aleyev/TASS)

In an effort to increase oil processing capacity, Egypt has announced the opening of a major refinery at a cost of 4.3 billion dollars in the Mostorod region. This inauguration will bring the country closer to self-sufficiency in refined fuels.

According to a press release issued on September 27th by the Egyptian Ministry of Petroleum and Mineral Resources, President Abdel Fattah Al-Sissi inaugurated an oil refinery valued at 4.3 billion dollars in Mostorod, east of Cairo.

The project is part of an ongoing government program to increase the country’s oil production and achieve self-sufficiency through the establishment of more modern refining plants. The said project is led by the Egyptian Refining Company (ERC) and will produce around 4.7 million tonnes of oil per year.

Tarek El Molla, Minister of Petroleum and Mineral Resources, said Mostorod region provides 22 % of Egypt’s refining capacity. Another refinery is also under construction not far from Mostorod, the Citadelle refinery.

Since the establishment of this program by Egypt, oil imports have decreased to around 6.5 million tonnes at a cost of 1.5 billion dollars in 2020 compared to 2016, year during which the level of imports was 10 million tonnes for 4.5 billions.

Source : Ecofin Agency.