QPI to invest US$3.61 billion in Egyptian refinery

QP refineryQatar Petroleum International (QPI) has announced that it will invest US$3.61bn to build an oil refinery in Egypt in partnership with Orient Company and the Egyptian General Petroleum Corporation (EGPC)

The announcement was made at a joint press conference addressed by the minister of energy and industry, Dr Mohammed bin Saleh Al Sada, and Egyptian minister of petroleum and mineral resources, Osama Kamal.

Dr Al Sada, who is also the board chairman of QPI, said, "This investment would further enhance QPI's strategy to develop and update the three pillars upon which the company is based; namely exploration, developing and producing oil, petrochemicals, refining and gas and energy amid the company's vision."

Kamal said that once the proposed refinery in the outskirts of Cairo (Mastard area) is complete, it will annually produce about 4.2 mt of environment-friendly petrol and other petroleum products, including more than 2.3 mt of environment-friendly diesel, which will reduce Egypt's import of diesel by up to 50 per cent.

The environment-friendly diesel is expected to improve air quality in the Greater Cairo area and help reduce Egypt's annual subsidy bill.

The refinery at Mastard, which is scheduled to start operations in 2016, will contribute about US$300mn in direct benefits to Egypt and create several thousand jobs.

Al Sada said that Qatar was ready to extend further cooperation by investing in other viable projects.

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