Refining company saves LE2.1 bn to state budget

The Egyptian Refining Company (ERC), affiliated to Capital Group, said it has received a shipment of equipment and heavy machinery, estimated at US$230 million, required to refining work at al-Adabiya seaport in Suez.
Wael al-Oraby, financial director of the company, said in a press conference on Sunday at the seaport that the company will provide 10,000 direct and indirect jobs during the construction stage, in addition to another 700 jobs by beginning of the first stage of operation. The company is committed to providing of 60 percent of the Egyptian market needs of diesel oil by beginning of production in 2017.
Several foreign companies are participating in the project, he added.
The company, according to Oraby, is committed to handing all of its diesel oil production, which ranges between 100,000-120,000 barrels annually, to the Egyptian General Petroleum Corporation (EGPC) to secure around 60 percent of the local market needs saving around LE2.1 billion to the state budget of importing, transferring and shipping the imported diesel oil.
None of the diesel oil produced within the coming 25 years will be exported, he added. The rest of the company’s products of airplanes fuel, gases and sulfur used in fertilizers and petroleum coke, resulted from refining, will be sold out at local markets. The total costs of the project will exceed LE25 billion.
Governmental authorities ownership rates of the company’s capital reach 50 percent, Oraby said adding that EGPC which engaged in partnership in private and public sectors as well as ERC helped attracting international funding to fulfill needs of refined products like diesel oil.
The company started executive work of the project, he said. Around 36,853 cubic squares has been dug. Of the concrete required for the bases, 1,071 square meters has been finished and 86.13 percent of the underground work has been completed.

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