Strategic Partnership Announcement
Mr. George Matharu, President of Elite Capital & Co. Limited (ECC), the financial lead arranger for the Soukhna Refinery project, alongside His Excellency Eng. Sameh Fahmy, Chairman of the Egyptian Petroleum Investments Corporation (EPI Corp.), has revealed that the Arab Petroleum Pipelines Company (SUMED) has formalised an agreement with the Soukhna Refinery and Petrochemical Company (SRPC) through the signing of a crucial Term Sheet. This agreement outlines SUMED’s role in the handling, storing, and transferring crude oil feedstock and petroleum products for the SRPC.
Impact on Project Capital and Investment Outlook
The signing of this agreement marks a major milestone in the development of the Soukhna Refinery, as it is expected to reduce the refinery’s construction cost by USD 700 million. This will bring the total project cost down to USD 4.7 billion, a positive shift that will stimulate investor interest and reduce future financing challenges. Mr. George Matharu stated that SUMED’s participation will significantly improve the financial viability of the project, increasing its appeal to potential investors and streamlining the financing process.
About the SUMED Pipeline and Strategic Significance
The SUMED pipeline, also known as the Suez-Mediterranean Pipeline, is one of the most significant oil pipelines in Egypt, running from the Ain Sokhna terminal in the Gulf of Suez to the Sidi Kerir port in Alexandria on the Mediterranean Sea. This pipeline provides an alternative to the Suez Canal for transporting oil from the Arabian Gulf to the Mediterranean, making it a crucial artery for global energy trade.
SUMED is a joint venture with several key stakeholders: the Egyptian General Petroleum Corporation (EGPC) (50%), Saudi Aramco (15%), Mubadala Investment Company (15%), Kuwait Investment Authority (15%), and QatarEnergy (5%).
Soukhna Refinery: A Key Project for Global Energy Markets
His Excellency Eng. Sameh Fahmy, Chairman of EPI Corp. and former Minister of Petroleum, highlighted the significance of the Soukhna Refinery project, stating, “SRPC is poised to become one of the most important petroleum and petrochemical ventures globally. Located in a strategic position to serve four major markets—Europe, Asia, the Middle East, and Africa—its success is all but guaranteed.”
The project, located in the Suez Canal Economic Zone in Ain Sokhna, will include an oil refinery, petrochemical technologies, a mini hospital, and a petroleum studies institute. With a refining capacity of 208,000 barrels per day, it will play a crucial role in the global oil derivative and petrochemical markets.
Contributing to Egypt’s Economic Growth
The implementation of the SRPC project is expected to significantly contribute to Egypt’s economic growth, which has witnessed impressive development across all sectors during the administration of President Abdel Fattah El-Sisi. Eng. Sameh Fahmy emphasized that the project aligns with Egypt’s broader economic strategy, reinforcing the country’s position in the global energy landscape.
Elite Capital & Co.’s Role in Project Management and Financing
Elite Capital & Co. Limited provides expert financial management, consultancy, and funding services for large-scale infrastructure and commercial projects. The company is also the exclusive manager of the Government Future Financing 2030 Program®.
“We are in preliminary talks with international sovereign entities to enter the project as key partners,” Mr. George Matharu concluded. “This will ensure a steady crude oil supply to the refinery, which will pave the way for subsequent financing processes.”
