Chinese firms to operate new Egyptian refinery

EGYPT WILL BUILD its biggest oil refinery with Chinese investment worth US$2bn to meet growing domestic demand and boost exports to the Asian country, according to the oil ministry.

China's Rongsheng Holding Group and state-run China National Chemical Engineering Co inked an agreement with the Egyptian oil ministry to build and operate the refinery, which will have an initial capacity of 15mn tons a year, the ministry said in a statement.

Additional capacity of 15mn tons a year will be added to the refinery's capacity at a later stage under an expansion plan. The refinery will also produce jet fuel and diesel for the domestic market and naphtha for export to China, the ministry said.

Under the terms of the contract, the two Chinese companies will operate the refinery for 25 years and then gradually transfer ownership to Egypt.

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