Egypt signs MOU with China to build US$2 billion refinery

Egypt’s oil ministry said it has signed a memorandum of understanding (MOU) with two Chinese companies for the construction of a US$2 billion, 30 million metric ton per year (MTPY) oil refinery. The refinery, which would be the country’s largest, is to be built in two stages, each with a capacity of 15 million MTPY. Under the terms of the MOU signed in Beijing by Egypt’s Oil Minister Sameh Fahmi, China’s Rongsheng Holding Group and the China National Chemical Engineering Company is responsible for the construction of the refinery under a build, open, operate and transfer agreement. The MOU also stipulates full ownership of the refinery, which will produce LPG, jet fuel, gasoline and diesel fuel for the domestic market, as well as naphtha for both domestic consumption and export to China, which will be transferred to Egypt after 25 years. (May 3, 2010)