Saudi Aramco is considering exporting crude oil to Egypt for refining, Reuters reports.
Negotiations between Egypt and the Saudi energy giant for the refining of Saudi crude in Egypt have already begun, the Minister of Petroleum and Mineral Resources, Tarek El Molla, said, according to the news agency.
At present, Egypt’s refineries are only capable of meeting 65% of Egypt’s demand for refined products, but the government has been taking steps to increase Egypt’s domestic refining capacity, Amwal Al Ghad reported in August.
Next September, the new refinery owned by the Egyptian Refining Company (ERC) is projected to begin operations, Bloomberg reported this week. China’s SinoHydro has also signed a contract with the Sokhna Refinery and Petrochemical Company to build an oil refinery. The refinery has a planned capacity of 155,000 barrels per day and is supposed to be completed within four years, Amwal Al Ghad reported.
Expansion projects are currently underway at both the Middle East Oil Refinery (MIDOR) and the Asyut refinery, according to Amwal Al Ghad.
Saudi Aramco currently sells Egypt 700,000 tons of refined products per month, the American news agency reports.