The Egyptian Refining Company

Transaction Description

ERC 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.


Investment Rationale

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.