The Egyptian General Petroleum Corporation (EGPC) is studying refining Iraqi crude oil that will be imported from Basra in February and March 2017 in Middle East Oil Refinery (MIDOR) as it works with a higher capacity than other refineries, reported Al Mal News.

Sources stated that although MIDOR is working with full capacity, EGPC is considering using it in refining the Iraqi oil in case the international oil companies (IOCs)’ oil decreased. They added that EGPC puts other refineries, including Alexandria and Al Amerya, as a second priority.

Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, and his Iraqi Counterpart, Jabar Al Luaiby, had agreed on importing crude oil from Al Basra, whereas refining process will take place in Egypt as a means to facilitate payments.

Sources expected that the imported Iraqi oil will save between 9% and 10% of the petroleum derivatives monthly imports as the agreement states that Egypt will import only 1m b/m of crude oil.

The Iraqi crude will be used in producing around 50% to 55% of diesel, 22% of benzene, 12% of naphtha, 2.5% to 3% of butane and the remaining production is coal and sulfur.

Local market’s average consumption is estimated at 6.5m t/m of petroleum derivatives and gas. Thus, Egypt imports around 1.5m tons of derivatives per month in order to cover local market’s demands.