- Implementing MIDOR Expansion plan came as a ring in the chain of restructuring Oil production industry in Egypt, and forming Egypt as Energy Center in the MENA Region after the new discovery of Zohr gas field and the other recent gas fields discoveries, to fully satisfy local market demand...show more
- Implementing MIDOR Expansion plan came as a ring in the chain of restructuring Oil production industry in Egypt, and forming Egypt as Energy Center in the MENA Region after the new discovery of Zohr gas field and the other recent gas fields discoveries, to fully satisfy local market demand and increase Egypt’s exports of oil products globally which would benefit Egypt’s positioning in the MENA region and relax the pressure on the Egyptian Pound, the new strategy would not just decrease demand on foreign currency in Egypt but it will also be a source of foreign currency mainly US Dollar which would be directed to other development projects in Egypt.
- MIDOR expansions project aims to boost operational capacity of one of the largest state owned oil refineries in Egypt to reach 160 thousand barrels per day from the existing 100 thousand barrels per day; by maximizing utilization and operational capacity of current units hence, producing high quality petroleum products in accordance with future international specifications EURO 5 to meet domestic needs and maximizing middle distillates specially LPG, diesel and gasoline, and to be able to maintain its exports to the European Markets under the required qualifications of Euro 5.
- MIDOR’s refinery is responsible for providing around 24% of current Local market’s demand of oil products which will increase after implementing the expansion project to cover around 40% of Local market demand, one of the main goals of MIDOR’s expansion project is to reduce Egypt’s dependence on imported refined oil products and increase refinery exports and to open new foreign markets for Egyptian oil products – helping to ease pressure on foreign currencies, and to help Egypt’s plan in expansion in energy products and refinery oil, gas and petrochemical products, which will increase the annual production capacity as following:
· Liquefied Petroleum Gas (LPG) to 280,000 tons with 107% increase.
· High-octane gasoline by 1.6 million tons.
· Jet fuel by 2.2 million tons with 145% increase.
· Diesel by 3.4 million tons with 45% increase.
- Making it one of the largest refineries in Egypt and transferring MIDOR refinery from 3rd to 4th generation technologically, A new pre-flash tower is being installed at the existing CDU / VDU unit, which will increase the unit’s capacity by approximately 115% while processing the existing designed crude types and by 100% while processing lighter crude oils.
- The refinery is also implementing a two-phased wastewater treatment project to retrieve industrial wastewater for re-use at the refinery, with the ultimate aim of achieving a zero liquid discharge. The first phase of the project came online in July 2014. Phase II, involving the installation of a new treatment unit to recycle the wastewater for steam production, is currently in progress.
- The new project will support Egypt at this transformation phase by employing more local staff that will be responsible for the new production lines which would directly help in decreasing the unemployment rate, and avoiding EGPC the alternative of importing oil products to fulfill the deficit between consumption and production of oil industry.
The Project will have a total value of USD 2.3 bn and will be partially financed by the Lenders with an ECA Facility Agreement valued at USD 1.2 bn, backed by a Sovereign Guarantee issued by the MoF in favor of SACE (the “Guarantee”). The MIDOR refinery was created by TPIT in 2001 with the aim of ensuring the stable supply of refined products for the domestic market. The EPC contract was awarded by private treaty following an intergovernmental agreement signed between the Govern of Egypt and Italy in 2015.show less