ERC www.ercegypt.com is a 4.7 million tonne (c. 88,000 barrels per day) high technology refinery facility that converts heavy fuel oil known as Atmospheric Residue into light distillate products, predominantly diesel. ERC’s investment cost is $4.8bn. InfraMed invested $100m equity in the project. Other key co-investors include Qalaa Holdings, Qatar Petroleum International, the IFC of the World Bank group, German DEG and Dutch FMO. The facility is fully operational since September 2019.
Egypt is a diesel-thirsty market with a growing demand. Despite local oil production, with aging refineries, the country is a net importer of diesel. ERC’s technical and competitive advantages contribute to address this significant market need. Its output allows for a c. 30-40% reduction of the imports, translating into a $600-$1,000m reduction of Egypt’s annual import bill. By using modern technologies, ERC also helps substantially lower Egypt’s carbon and sulfur dioxide emissions.