Egypt is set to inject US$4 billion into modernizing and expanding its oil-refining sector, aiming to strengthen energy security, boost domestic value creation, and reduce reliance on imported fuel. The initiative, announced by Minister of Petroleum and Mineral Resources Karim Badawi, encompasses six refinery-upgrade projects designed to enhance national refining capacity and operational efficiency.
The upgrades will target key facilities operated by the Egyptian General Petroleum Corporation (EGPC), including the Mostorod and MIDOR refineries, each with a nominal capacity of 160,000 barrels per day. Current production has been constrained to about 600,000 barrels per day due to aging infrastructure and maintenance limitations, forcing the country to import a significant portion of its fuel.
Discussions with officials from the International Finance Corporation (IFC) have focused on investment and financing opportunities across refining, petrochemicals, and mining, alongside expanding private-sector participation in Egypt’s downstream energy industries. The projects aim to improve equipment, increase yields of high-value products like diesel and gasoline, and alleviate production bottlenecks.
Badawi emphasized that the upgrades will “strengthen the national refining capacity, increase the added value in the region, and reduce fuel import costs.” The Ministry is also implementing reforms with exploration and production partners, encouraging local operators to boost on-site output and ensure steady feedstock supply for the upgraded refineries.
With fuel demand rising due to industrial expansion and transport growth, the refinery projects position Egypt to meet domestic needs while strengthening its role as a regional energy hub in North Africa and the eastern Mediterranean. Complementary efforts include upstream gains such as expansions at the Zohr gas field, subsidy reforms, and fuel-price liberalization under Egypt’s economic-reform program, which collectively aim to attract international capital and technical expertise to the energy sector.
The program also prioritizes environmental performance and energy efficiency, aligning industrial growth with Egypt’s climate-transition commitments. Officials note that these refinery upgrades are pivotal to transforming the country’s energy sector into a driver of sustainable economic recovery, regional competitiveness, and export growth.
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