The government of Egypt has announced plans to invest more than US $4bn to overhaul and expand six oil refineries as part of a broader strategy to strengthen energy security and reduce reliance on imported fuels.
Petroleum and Mineral Resources Minister Karim Badawi said the initiative will modernize existing facilities, raise production efficiency, and increase the output of higher-value petroleum products such as diesel and gasoline.
The country’s refining system has a nameplate capacity of about 840,000 barrels per day, largely managed by the Egyptian General Petroleum Corporation. However, aging infrastructure and operational constraints have lowered actual throughput, contributing to a significant fuel import bill. By upgrading equipment and removing bottlenecks, the government aims to narrow this gap and maximize the use of domestic crude supplies.
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Economic reform program
Details of the refinery program were discussed during meetings with representatives of the International Finance Corporation (IFC), focusing on financing options and expanding private-sector participation in refining, petrochemicals, and mining. The engagement reflects Egypt’s wider push to attract international capital and technical expertise to its downstream energy sector.
The modernization drive aligns with Egypt’s ongoing economic reform program, which includes subsidy restructuring and fuel price adjustments designed to ease pressure on public finances and create space for new investment. Authorities are also working to settle outstanding payments to foreign energy companies and accelerate upstream activity to ensure steady feedstock for local refineries. Plans are in place to drill 100 exploratory oil and gas wells in 2026 as part of a multi-year development schedule.
With domestic fuel demand rising alongside industrial growth and transportation needs, Cairo intends to increase self-sufficiency while reinforcing its ambition to serve as a regional energy hub for North Africa and the eastern Mediterranean. Cooperation with the IFC is also expected to support improvements in environmental standards and energy efficiency within refinery operations, ensuring that expansion efforts remain aligned with climate and sustainability goals.
