Egypt makes steady progress on Assiut refinery
2 June 2023
Egypt is making steady progress on the $2bn hydrocracking complex package that forms part of the wider Assuit oil refinery upgrade project, according to industry sources.
Assiut Oil Refining Company (ASORC), a subsidiary of state-owned Egyptian General Petroleum Corporation (EGPC), is the project operator.
“Work on the main units is continuing with no significant issues,” said one source.
During 2021, the project faced disruption due to issues related to the Covid-19 pandemic.
In 2023, many projects in Egypt’s oil and gas sector have been disrupted by currency issues due to the declining value of the Egyptian pound.
Most of the projects that the currency issues have significantly impacted have been in their early stages, with the problems related to the procurement of materials and equipment.
France’s Technip Energies is the main contractor performing engineering, procurement and construction (EPC) works on the Assiut hydrocracking complex, as part of a $2bn contract it was awarded by ASORC in February 2020.
In April 2021, Switzerland-based Burckhardt Compression announced being selected by Technip Energies as the gas compressor supplier for the hydrocracker package.
ASORC held a kick-off meeting for the project in September 2020.
Egyptian contractors Enppi and Petrojet are supporting Technip Energies on the project. Enppi has undertaken the engineering work, while Petrojet is carrying out construction work.
In 2021, contractors completed the construction of a $450m high-octane gasoline complex in the Assiut governorate as part of the broader $3.8bn Assuit oil refinery upgrade project.
Assiut refinery
The Assiut hydrocracking complex will be one of Egypt’s major strategic refineries, and will help meet growing local demand for cleaner products.
The project will also become the largest oil refining facility to be implemented in Upper Egypt so far.
Once completed, the project will transform lower-value petroleum by-products, such as mazut, into cleaner, higher-value products.
It is expected to have an output of about 2.8 million tonnes a year of Euro-5 diesel, in addition to other petroleum products.
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