The Assiut Oil Refining Company (ASORC) will establish a $1.85 billion facility for conducting thermal cracking on mazut, Egypt Oil & Gas reports.

The construction of the Assuit Hydrocracking Complex (AHC) will be carried out by ASORC subsidiary the Assiut National Oil Manufacturing Company.

Petroleum minister Tarek El Molla said on July 10 that the newly-established company’s founding assembly has appointed a board to manage the construction of the complex.

The facility will produce around 2.25 million tons of mazut each year, the minister said.

In addition, it will supply 402,000 tons of naphtha and 1.6 million tons of Euro 5 diesel low sulfur fuel each year.

El Molla stated that the new company will use the most updated refining technologies, making it one of the most significant projects in the Egyptian refining sector. He added that the company’s production will cover domestic demands in upper Egypt, reducing the risk and the cost of transporting oil products from northern Egypt to upper Egypt.

El Molla headed the company’s constituent assembly in the attendance of the ministry and the sector officials.