Egypt seeks $325mn loans for Assiut refinery

Complex has been valued at around $1.6 billion

Egypt is seeking to recover from its biggest energy crisis yet.
Egypt is seeking to recover from its biggest energy crisis yet.

State-run Egyptian General Petroleum Corporation (EGPC) has reportedly received offers from two banks for $325mn to finance a new refinery project in the country.

The first offer was made by a consortium of banks comprising Banque Misr and HSBC, while the National Bank of Egypt (NBE) led the second offer alongside unnamed foreign banks, a source familiar with the matter told Egyptian daily Amwal Al Ghad.

EGPC is expected to accept one of the offers within the first half of 2016, the source added.

The money will be used to build a $1.6bn Assiut refinery complex which will convert low-value mazut into higher-valued refined products for domestic consumption and possibly export.

The project, which is operated by Assiut Oil Refining Company, is set to generate 1.4 million tonnes annually (mta) of diesel, 105,000 mta of butane, 389,000 mta of naphtha, as well as 346,000 mta of coal, and 75,000 of mta sulfur.

EGPC has investments in seven refineries with a combinwith production capacity of 30 million tonnes of petroleum materials.

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