Thursday 29 October paid holiday for private sector workers in Moulid El-Nabi    Thai Parliament holds special session as protests continue    Kremlin says Joe Biden is wrong that Russia is number one threat    Turkish lira leads EMEA FX losses as geopolitics, virus spike weighs    Live score: Zamalek v Ismaily (Egyptian Premier League)    Juventus shouldn't need a slap to wake up says coach Pirlo    Palestinian teen beaten to death after West Bank chase by Israeli army: Report    Former Brazil star Ronaldinho tests positive for COVID-19    Oxford COVID-19 vaccine trials produce robust immune response in elderly: FT    Egypt reports 143 new coronavirus cases, 12 deaths on Sunday    Polls reopen for second day in Egypt's new House elections    Ethiopia summons US ambassador over Trump comments in dam dispute    UAE merges insurance authority with central bank: Dubai ruler tweet    BREAKING: EU calls for resumption of Ethiopia dam talks    In photos: Egyptian celebrities attend opening of El-Gouna Film Festival's 4th edition    4th El-Gouna Film Festival kicks off despite 'hardships of the cinema industry this year'    Egyptian artefacts among items sprayed with olive oil in several Berlin museums    BREAKING: Egypt's central bank dismisses CIB head Hisham Ezz El-Arab over 'serious violations'    Egyptian insurance companies' premiums 9.6% up in five months    Egypt's President Sisi names new head of anti-corruption watchdog    Egypt's offers 18 bln pounds T-bills on Sunday    EgyptAir offering discounts for some international flights    Egypt records 212 new coronavirus cases, 14 deaths on Saturday    Egypt to require PCR coronavirus tests for airport travelers    Egypt sends 125 tonnes of glass by sea to Beirut    Legend Messi officially wants to leave Barcelona, hands transfer request    Global smartphone sales drop 20% in Q2, yet Apple's iPhone sales steady    Sisi: Egypt keen on establishing development projects with Iraq, Jordan    Egyptian megastar Amr Diab releases new hit music video    Making of Harry Potter will be available for fans at new park in Tokyo    Egypt's Senate elections official results to be announced Wednesday    Netflix Egypt is bringing megastar Amr Diab back with a new original    Egypt reopens Rafah border crossing for first time since April    Egypt's senate elections 2020 trending on social media in few days    African Champions League final will be played on Oct. 16-17, CAF says    No room to delay Egyptian Premier League games – EFA's board member    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

The facts about Mostorod
Published in Ahram Online on 29 - 09 - 2020

What is the Egyptian Refining Company's Mostorod Complex?
The new complex is owned by Al-Qalaa Holding's Egyptian Refining Company (ERC) and represents an estimated investment of $4.4 billion. It is a state-of-the-art greenfield hydrocracking complex and one of the most advanced petroleum refineries at this technological level in Africa.
This largest infrastructure private-public partnership (PPP) project in Egypt was established in cooperation between the public and private sectors, represented by the Egyptian General Petroleum Corporation (EGPC) and Al-Qalaa Holdings. The ERC will convert 3.5 million tons of heavy residue from the refining process at the nearby Cairo Oil Refining Company (CORC) plant to higher-value products like diesel and gasoline and then sell the production to the EGPC.
Al-Qalaa Holdings invested in the project with Gulf and international investors, global export credit agencies, and development finance institutions.
What does the new complex contribute to the local petroleum market?
The ERC converts low-value fuel oil into middle and light distillates to meet domestic consumption needs. It produces about 4.7 million tons of refined products and high-quality oil derivatives per year, including 2.3 million tons of Euro V diesel (30 to 40 per cent of Egypt's current imports) and 600,000 tons of jet fuel.
How did the project start?
According to Al-Qalaa Holdings chairman Ahmed Heikal, planning for the mega-project started over 12 years ago. Heikal explained at the Africa Investment Forum in Johannesburg, South Africa, in 2018 that the ERC had had to overcome several obstacles, such as the global financial crisis in 2008-2009 followed by the 25 January Revolution in Egypt, both of which put significant pressures on the banks and reduced investment appetites, resulting in some interested investors pulling out.
The construction work began in 2014, and all project units have been in operation since September 2019, according to the Al-Qalaa Holdings website.
What is the total investment cost of the ERC?
The investment cost of the greenfield refinery amounts to $4.4 billion, equivalent to LE70 billion. In the light of global and local financial hardships, Heikal said at the Johannesburg Forum, many financial institutions had participated in pumping investments and loans into this huge project, numbering 35 international institutions from Japan, South Korea, the European Union, the African Union, and the Gulf countries in addition to five local institutions.
What is the strategic importance of the ERC?
The project comes within the framework of Ministry of Petroleum plans to increase production and reach self-sufficiency in petroleum products by 2023. Among the ERC's main objectives is to secure stocks of petroleum products, reduce the possibility of fuel crises, and overcome delays in the arrival of imported petroleum products.
According to Heikal, the ERC will reduce Egypt's imports of petroleum products and save $600 million to $1 billion in foreign currency.
Why is the ERC located where it is?
ERC is part of an integration framework being implemented in the Qalioubiya region of Mostorod. Its location puts it near the EGPC's Cairo Oil Refining Company and main distribution companies. The ERC and CORC, which provides feedstock for the ERC, provide some 22 per cent of Egypt's current refining capacity.
What is the social and environmental impact of the ERC?
Heikal said in Johannesburg that the ERC would have positive impacts on the environment of the surrounding area, whether in reducing harmful emissions by converting them into coal and sulphur, by relying on natural gas as fuel, or by converting the CORC to be able to use natural gas instead of diesel as fuel.
In the Mostorod region, the ERC has created more than 18,000 employment opportunities for local people. It has provided scholarships to the best Egyptian universities for students excelling in their studies, and it has raised educational levels in the surrounding region by providing scholarships for the area's teachers to the American University in Cairo in addition to national universities.
The first decision of the company's board of directors was to raise the budget for community services by preparing projects based on improving local incomes and helping families whose breadwinners are women, Heikal said.
*A version of this article appears in print in the 1 October, 2020 edition of Al-Ahram Weekly.

Clic here to read the story from its source.