The International Finance Corporation will invest $120 million in Egyptian Refining Company, which will be used to build a $3.7 billion hydro-cracking and coking refinery.
The new refinery will allow Egypt to transform locally available fuel oil into lighter fuel products, such as ultra-low sulfur diesel, for the domestic market, according to an IFC statement.
A member of the World Bank Group, IFC says this investment is the “largest project-financing transaction in Egypt, to promote enhanced environmental standards and cleaner domestic fuel sources.”
The Egyptian Refining Company, a platform company of private equity firm Citadel Capital, will also help upgrade an adjoining state-owned refinery to increase its energy efficiency and environmental performance, resulting in reduced sulfur dioxide emissions.
“IFC is assisting Egyptian Refining Company in designing and implementing a community investment strategy to maximize the positive social impact the company will have on local communities. IFC also is working with the company and other financiers to create a robust environmental monitoring system,” the statement read.
“This project has the potential to optimize the use of Egypt’s petroleum product infrastructure, elevate the environmental and social standards within the refining industry, and create significant employment opportunities,” said Somit Varma, IFC global head of oil, gas, mining and chemicals.
