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Chinese Companies to Build $2 bn Egypt Refinery.

Source: Bloomberg 5/2/2010, Location: Africa

Egypt’s government signed an agreement with two Chinese companies to build and operate a $2 billion refinery in the North African nation, the Oil Ministry said.

The companies are the Rongsheng Holding Group and the China National Chemical Engineering Co. Ltd., the ministry said in a faxed statement.

The refinery, which will be Egypt’s largest, will produce as much as 30 million metric tons of refined products a year, the ministry said. Under the terms of the contract, ownership of the facility will be transferred to Egypt 25 years after its start-up date.

Amongst other products, the refinery will produce jet fuel and diesel for the domestic market and naphtha for export to China, the ministry said.

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