Doha, September 22 (QNA) – Qatar Petroleum International (QPI) on Saturday announced that it get into a partnership with Egypt’s Orient Company and the Egyptian General Petroleum Corporation (EGPC) to build a new oil refinery in Egypt via Egypt Refining Company (ERC) which has been founded to build such a new refinery at an approximate cost of LE 22 Billion, equal to $ 3.61 Billion.
Qatar’s Minister of Energy and Industry HE Dr. Mohammed bin Saleh Al Sada, who is also board Chairman of QPI , voiced happiness in an address he gave prior to meeting here today with Egyptian Minister of Petroleum and Mineral Resources, Osama Kamal, for supporting and backing such a project which would enhance the refining and petrochemicals in the company.
HE Al Sada further said such an investment would further enhance QPI’s strategy to develop and update the three pillars upon which the company is based on, namely exploration, developing and producing oil, petrochemicals , refining and gas and energy amidst the company’s vision.
In his address HE Al Sada said the investment comes to realize one of the objectives of the recent visit HH the emir sheikh Hamad bin Khalifa al thani paid to Egypt and his meeting with Egyptian president dr. Mohamed Morsi and his statement about Qatar’s role to support Egypt’s economy through launching investments in all available economic areas.
It is to be noted that the ERC project is to produce more than 4.2 million tonnes of refined products and oil derivatives annually, including more than 2.3 million tonnes of high quality and environment -friendly diesel per year. This is expected to cut Egyptian diesel imports by up to 50%.
The ERC said the refinery, on the outskirts of Cairo, will contribute $300 million in direct benefits to the state and create jobs. It is set to start operating in 2016.
“(The project) will reduce present-day diesel import needs by 50 percent, improve air quality in the Greater Cairo Area and help reduce Egypt’s annual subsidy bill,” ERC said in a statement issued in Cairo of late.
It is worth mentioning that Qatar Petroleum International (QPI) is a wholly-owned subsidiary of Qatar Petroleum(QP) and has among its goals to search for investment opportunities outside of the State of Qatar in energy-related fields. (QNA)