RES E A RC H & A N A LYS I S
SCOPE OUT EGYPT’S
REFINING SECTOR
OVER FYS (2014/15-2018/19)
BY AMINA HUSSEIN, REHAM GAMAL, AND TASNEEM MADI
E
gypt is the second largest oil refining country in Africa, acquiring about 23% of the total domestically-refined crude oil in Africa. There ar operated by the Egyptian General Petroleum Corporation (EGPC), with a total capacity of 795,000 barrels per day (bbl/d) in 2019, accord Review of 2020. The Ministry of Petroleum and Mineral Resources (MoP) has been working on fulfilling self-sufficiency of petroleum produ imports reached 10 million tons (mmt) annually at a cost of $4.5 billion (EGP 75.9 billion), noting that these rates declined during 2020, reach (EGP 25.3 billion). Within the report, all investment costs in dollars and EURs are calculated in their equivalent in EGP on the basis of 2019 average exchange rates.
(EGP billion) Refining GDP
REFINING SECTOR ECONOMIC PERFORMANCE 1. SECTOR’S CONTRIBUTION TO GDP Over the period from fiscal year (FY) 2014/15 to 2018/19, the refining industry contributed a total of EGP 707.4 billion as Gross Domestic Product (GDP). The refining 102.3 activities’ GDP witnessed a continuous increasing trend over the mentioned period113.9 moving consistently with the government’s mega projects targeting increasing petroleum product’s supply. The refining GDP remarkably increased by 85.6% 11% from EGP 102.3 billion in FY 2014/15 to EGP 189.9 billion in FY 2018/19, according to data published by the Ministry of Planning and Economic Development (MPED). 2014/15
2015/16
189.9
167.3 134.1
18%
25%
13%
FY 2016/17
2017/18
2018/19
Despite the increasing value of the refining sector GDP, the sector’s share in the annual total GDP has declined. The share dropped from 4.1% in FY 2014/15On toan 3.7% in FYaverage, refining contributes 30% of petroleum GDP. The h share of refining in petroleum GDP was 39% in FY 2015/16, which happen 2018/19, the lowest over the whole period, according to MPED's data. the crude oil GDP contribution declined, according to MPED's data.
12 EGYPT OIL & GAS NEWSPAPER