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Egypt to invest $4bn in refinery expansion

23 February 2026

Egypt is implementing six petroleum refinery development projects with total investments exceeding $4bn, according to Karim Badawi, the North African country’s Petroleum & Mineral Resources Minister.

The plan aims to modernise key facilities operated by state-owned Egyptian General Petroleum Corporation (EGPC), including the Mostorod and Midor refineries.

The projects are designed to increase domestic production, boost added value and reduce the country’s fuel import bill, Badawi said in a statement following a meeting with Ethiopis Tafara, vice president for Africa at the International Finance Corporation (IFC).

The IFC is the private-sector arm of the World Bank Group. It finances and advises private companies and financial institutions in developing countries.

The IFC’s regional director, Cheick-Oumar Sylla, also attended the meeting.

Badawi and officials from the IFC discussed investment and financing opportunities in oil refining, petrochemicals and the mining sector.

The two sides explored potential cooperation to provide financing aimed at accelerating the utilisation of Egypt’s refining infrastructure, according to the statement.

During the meeting, Badawi detailed reforms implemented over the past 18 months to improve the investment climate in the oil and gas sector.

These measures include a commitment to settling dues to exploration and production partners and the introduction of incentive packages to bolster local fossil fuel production.

In the mining sector, Badawi highlighted reforms intended to attract investment in gold and mineral exploration.

He said that the ministry is working to facilitate partnerships for industrial projects based on Egyptian raw materials, to increase the sector’s contribution to GDP.

Tafara praised the ministry’s recent reforms and reaffirmed the IFC’s commitment to its partnership with Egypt.

He said that the mining sector is a priority for the corporation in Africa, with a focus on maximising the value of mineral resources.

The two parties agreed to hold joint meetings between specialists in the near future to determine cooperation priorities.

The meeting was also attended by EGPC's CEO, Salah Abdel Karim; Amal Tantawy, EGPC's vice president for finance and economic affairs; ministry undersecretary for projects, Wael Lotfy; and Mohamed El-Bagoury, supervisor of the ministry’s central department of legal affairs.

Egypt operates about 840,000 barrels a day (b/d) of nameplate refining capacity across 12 facilities, most run by EGPC.

However, aging infrastructure and maintenance issues have limited output to about 600,000 b/d, forcing Egypt increase costly fuel imports.

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Wil Crisp

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