Egypt announced that it's planning to build an oil refinery with Chinese investment estimated by $2 billion to supply the domestic market as well as export to China, according to the Egyptian Ministry of Petroleum's release to state news agency Mena.
The refinery is said to be Egypt's largest, with output capacity of 15 million tones per year. Later on, a 15 million tone expansion will be added to double the refinery's capacity.
The release added that the build-own-operate-transfer project will be established by Chinese companies including Rongsheng Petrochemical Co. and the state-owned China National Petroleum Corp (CNPC), China's largest oil and gas firm.
It also said that China will operate the refinery for 25 years and then gradually transfer ownership to Egypt.
China will likely add 2.84 million barrels per day of new refining capacity between 2010 and 2015, industry officials and Chinese media have said. The expansion pace, some 475,000 barrels per day (bpd) on an annual average, does not look huge compared with China's annual incremental oil demand growth.