The project will offset 289,000 tonnes of carbon dioxide emissions, leading to improved air quality in Egypt
The European Bank for Reconstruction and Development (EBRD) has provided a loan of $50m to Suez Oil Processing Company (SOPC) for the upgrade of its oil refinery in Egypt.
The investment will help in improving the refinery’s operational efficiency and will allow the Egyptian company to bring in cleaner fuel.
The project will offset 289,000 tonnes of carbon dioxide emissions, leading to improved air quality in Egypt.
Egypt has faced challenges in balancing the country’s production, consumption and export of both oil and gas in recent years. The bank’s support to SOPC will assist in realigning the supply and demand of higher value added oil products and lessen the need for imports.
EBRD said in a statement, “The EBRD is one of the first international financial institutions involved in the reform of the Egyptian oil and gas sector and has been supporting the country’s attempts to reduce greenhouse gas emissions and air pollution.
“The bank is also supporting Egypt with the implementation of international best practices and standards, helping to increase the competitiveness of the sector and contributing to the country’s energy security.”
Egypt is a founding member of the EBRD. The bank claims to have invested more than €5.5bn (4.71bn) in 102 projects since the start of its operations in the country in 2012
In 2018, Egypt was the EBRD’s largest economy in which it invests, in terms of new commitments.
EBRD had provided $200m loan for Egypt’s Suez Refinery modernization in May 2018
In May 2018, SOPC had secured a $200m loan from the EBRD to boost energy efficiency and modernization of its Suez Refinery in Egypt.
Located at the entrance of the Suez Canal and near the city of Suez, the Suez Refinery has a capacity of three million tonnes annually or 68,000 barrels of oil per day (BOPD).
EBRD said that its funding is expected to help in modernising the refinery with technical updates, which will boost its operational performance.