Operations at the Egyptian Refining Company’s (ERC) new refinery will begin next September, the Chairman of ERC, Ahmed Heikal, said, according to Bloomberg.
Construction at the site should be finished in June, he said, allowing operations to begin in September. Heikal added that the plant should be operating at 98% of its capacity by the end of 2018.
The refining facility was originally set to begin operations in the second quarter of 2018, but has experienced several delays, Bloomberg reports.
The plant has a projected production capacity of up to 4.2 million tons of liquid oil products, sufficient to meet approximately 14% of Egypt’s domestic demand, according to Heikal. In addition to butane and naphtha, the plant will have the capacity to process 522,000 tons of gasoline, 600,000 tons of jet fuel, and 2.3 million tons of diesel.
ERC has contracted to sell the refinery’s output to the Egyptian General Petroleum Corporation (EGPC). The liquid oil products will be sold at a 1% discount to international prices, Heikal told Bloomberg. It is expected to save the government approximately $300 million per year.
The project is a $3.7 billion public-private venture. Qalaa Holdings holds a 19% stake in the plant. It has received approximately $2.35 billion in foreign financing, according to Bloomberg.
EGPC is a partial-stakeholder in ERC, owning approximately 24% of the company, the news agency reports.