SUMED Signs $100m Loan Contract with National Bank of Egypt
Minister of Petroleum and Mineral Resources Tarek El Molla witnessed the signing of an Egyptian loan contract to fund Phase 1 of the construction of a pier and a center for the trade and storage of oil products in Ain Sokhna between the Arab Petroleum Pipelines Company (SUMED) and the National Bank of Egypt (NBE), the ministry informed in a press release. The loan is worth $100m and Phase 1 is scheduled to be completed by the end of March 2017.
The aim of the project is to build a pier, storage center, and trading center for petroleum products in Ain Sokha, in Suez governorate, according to Zawya. The investment cost for the entire project is approximately $321m.
SUMED Chairman and CEO Mohamed, Abdel Hafez, stated that the project aims at receiving liquefied natural gas (LNG) and pumping it to the national grid for natural gases, as well as receiving, storing, and transporting mazot for the use of the local market or for re-export. It will also receive and store butane gas and pump it to the national grid.
The chairman added that the project will be implemented in two phases. Phase 1 will include the construction of a pier of 2.2 km in length and 19 meters in depth in order to receive oil products tankers and LNG. The second phase includes building a land storage zone with six tanks, three of which will receive, store, and trade butane gas, and another three will receive, store, and trade mazot.