China’s SinoHydro signed a $1.99 billion contract with Sokhna Refinery and Petrochemicals Company for the construction of an oil refinery with a capacity of 155,000 barrels per day, Amwal Al Ghad reports.

Under the terms of the contract, SinoHydro will complete the refinery in less than four years. The company will be responsible for the design, procurement, and construction of the refinery’s facilities.

SinoHydro is a state-owned company and is a subsidiary of Power Construction Corporation of China (PowerChina).

At present, Egypt’s refining capacity is unable to keep up with domestic demand. Egyptian refineries meet approximately 65% of the country’s daily demands for petroleum products, the Head of the Egyptian General Petroleum Corporation (EGPC), Abed Ezz El Regal, noted in early in August, according to Amwal Al Ghad.