The Egyptian Refining Company’s (ERC) Managing Director, Mohamed Saad, stated that the ERC will begin paying off the first installment of external loans for the company’s refining project at Mostorod starting 2018, immediately following the project’s launch, reported Al Mal News.

The total cost of the project is estimated at $3.4b, 87% of which were from foreign banks and the remaining 13% were provided by local investors. The project incurred a total of $2.6b in loans, to be paid over a 17-year period.

The projects at  Mostorod aims to produce 5000 tons divided into 82% butane, benzine, kerosene, diesel, and fuel oil along with 12% sulfur and coal. Saad, added that ERC has finished 90% of the construction, with the connection of pipelines remaining to complete the project.

Egypt Oil&Gas reported earlier that ERC’s aimed to complete the Mostorod project within the first quarter of 2017, with the objective of addressing supply gaps in the petroleum derivatives market. It is noted that the Egyptian General Petroleum Corporation (EGPC) owns 24% of the venture.