The Egyptian Refining Company (ERC), has announced that production will commence at its $3.7 billion oil refinery in Q1 of 2017.

According to the company’s managing director, Mohammed Saad, the refinery which is the biggest in Egypt with a capacity to produce 4.2 million tonnes of refined products yearly, is to commence trial production by the end of 2016.

"We have completed so far 80 per cent of the construction work and we will complete the rest in November then start trial operations before we start production in the first quarter of 2017. The production from the plant will cover 50 per cent of Egypt's diesel deficit," he said.

ERC is a subsidiary of one of Egypt's largest investment companies Qalaa Holdings. Qalaa holds 19% of the Company’s interest.

However, it is the responsibility of ERC to convert low value oil into middle and light distillates needed for domestic consumption. It is set to produce 2.3 million tonnes of diesel, 800 thousand tonnes of high-octane gasoline and 60 thousand tonnes of jet fuel as well as undisclosed amounts of butane gas and other products, Trade Arabia reports.

Anita Fatunji