Egypt’s government reportedly plans to invest approximately $4.5 billion in fiscal year 2026/27 to modernize and expand its state-owned refining sector, aiming to reduce dependence on imported fuel. The investment plan was announced by Egypt’s Ministry of Petroleum and Mineral Resources, though specific individual refineries and contractors have not yet been disclosed.
The plan involves modernizing aging equipment at existing refineries and adding new processing units to raise domestic refining capacity and utilization rates. The specific process technology or foreign licensor to be applied has not been disclosed.
The investment is reportedly valued at approximately $4.5 billion for fiscal year 2026/27. Egypt’s refinery utilization rate has reportedly risen to 80%, up from 66% two years ago, while the fuel import budget for the same fiscal year is reportedly up about 40% year-on-year. The government has fully settled roughly $6.1 billion in debt tied to the state refining sector as of June 2024, after which exploration and production activity reportedly increased by about 20%.
Egypt is reportedly moving to expand domestic refining capacity to ease the growing burden of fuel imports and reduce foreign currency outflows.
As energy-import-dependent countries increase investment in modernizing their domestic refining facilities, this trend is seen as a potential source of new opportunities in the related refinery EPC and equipment supply market.
Attention is on which specific refineries and equipment upgrades this investment plan will translate into, and when related EPC contracts will be awarded.