The Egypt Petroleum Show “EGYPS 2022” saw on Wednesday the signing of contracts to finance the diesel production complex project (hydrogen cracking of mazut complex) in Assiut at about US$1.5 billion.
Six banks and international financial institutions will finance the deal namely the Italian investment bank Cassa Depositi e Prestiti (CDP), Credit Agricole, UniCredit Italy, HSBC Middle East, BNP Paribas, and Societe Generale, and with the guarantee of Italian Export Credit Agency (SACE).
The diesel production complex project in Assiut is one of the most important projects of the strategic plan of the Ministry of Petroleum and Mineral Resources, to modernize the refining sector with the aim of achieving self-sufficiency and adhering to international environmental standards, Petroleum Minister Tarek al-Molla said on Wednesday.
The mazut hydrocracking complex works to convert the mazut produced from the refining operations of the Assiut Oil Refining Company plant to high-value products.
These are achieved with international environmental specifications such as diesel with European specifications, and gas in quantities that achieve self-sufficiency in Upper Egypt from these products, especially diesel, which will have a significant impact on reducing the import bill.
The value of the complex’s manufactured products, which are currently imported from abroad, amount to more than US $1.5 billion annually.
According to Molla, the project also aims to reduce logistical expenses as the product is manufactured in the same geographical scope of the target market.
The complex employs the latest technologies during construction, including the Zero liquid discharge (ZLD).
The general contractor contract for the project was signed during the EGYPS 2020 conference, and the project construction work is planned to be completed during the last quarter of 2023.