Arab Petroleum Pipelines Company (SUMED) has signed an agreement with Soukhna Refinery and Petrochemical Company (SRPC) to handle, store and transfer crude oil and petroleum products at the upcoming refinery.
This deal reduces the refinery’s construction costs by $700 million, bringing the total investment to $4.7 billion, and is expected to attract new investors while easing financing pressures. Located in the Suez Canal Economic Zone, the Soukhna refinery will have a processing capacity of 208,000 barrels per day and will utilize petrochemical technology to produce oil derivatives.
“We are currently working on preliminary negotiations with international sovereign entities to enter the project as major partners representing the main source of crude oil supply to the refinery. After that, we will move to the potential financing process according to the data that will be available at the time,” said George Matharu, President of Elite Capital & Co., Financial Lead Arranger of the refinery.
SUMED is the owner and operator of the SUMED oil pipeline, which runs from the Gulf of Suez to the Sidi Kerir port in Alexandria and serves as a strategic alternative to the Suez Canal for transporting oil from the Arabian Gulf to the Mediterranean.
