Provision of an up to USD 200 million loan to the Suez Oil Processing Company (SOPC) to finance a package of energy efficiency investments and other refurbishments and installations at the Suez refinery. In particular, the Project will focus on the installation of a New Vapour Recovery Unit (VRU), the refurbishment of the old coker unit and a number of energy efficiency investments identified to improve operational performance, environmental footprint and utilisation rate of the refinery.
The Project aims to alleviate some of SOPC's inefficiencies. It will enable SOPC to produce middle distillates in line with Euro 4/5 specifications, which have historically been imported thereby catering better for growing and shifting demand patterns in the country. Energy efficiency investments will lead to positive environmental benefits with greenhouse gas emissions savings estimated around 200 kt CO2 per year thereby enabling SOPC to optimize utilization rates and improve operational performance.
The sources of Transition Impact qualities for the project consist of: (i) Competitive and (ii) Green.
The Project will also enable the Bank to further its policy dialogue initiatives in the oil and gas sector in Egypt, in particular in the context of the Oil & Gas Modernisation Programme launched by Egyptian Ministry of Petroleum.
The loan will be provided on a sovereign basis to the Arab Republic of Egypt. The ultimate beneficiary will be SOPC.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The Project is expected to improve the environmental and social performance of the Suez refinery, including reducing emissions to air and realising energy and resource efficiencies, leading to a reduction in greenhouse gas (GHG) emissions.
Independent environmental and social due diligence ("ESDD") is nearing completion and has included an assessment of the potential benefits and risks associated with the Project; a review of the environmental and social performance of existing operations; a review of the capacity of the Company to manage risks associated with the Project and existing operations; and the identification of investments and actions required to bring the Project and the refinery in line with the EBRD's Performance Requirements ("PRs"). The ESDD also includes the development of a Non-Technical Summary, which will be disclosed, and a stakeholder engagement plan (SEP) to guide future stakeholder engagement and information disclosure activities at the refinery.
Key E&S issues considered in the ESDD included those typically associated with refineries such as energy and water use, emissions to air, waste management, occupational and community health and safety risks, labour issues and contractor management, transport risks, noise, odour and potentially legacy issues such as soil and groundwater contamination and hazardous waste issues. These issues have been reviewed against the PRs and EU standards, such as the Industrial Emissions Directive (including EU Best Available Techniques for the sector), the ATEX Directive and the Seveso Directive.
Noting the age of the refinery, the ESDD has identified a number of areas where improvements are required. These include waste management; reducing and monitoring emissions to air; improving industrial safety provisions and controls; recirculating and reduce cooling water uptake; improving the quality wastewater discharges; general health and safety; and implementation of a ISO alignment systems approach to E&S risk management. The Project, specifically installation of the Vapour Recovery Unit, will substantially reduce flaring on site thereby reducing emissions to air and GHG emissions. Furthermore energy and resource efficiency investments will also reduce overall energy and water demand therefore reducing GHG emissions. An Environmental and Social Action Plan ("ESAP") is currently being developed and agreed with the Company to ensure that the Project is developed in line with the PRs and EU standards and to improve the environmental and social performance of the refinery. Key ESAP actions will address the issues noted above amongst others.
This PSD will be updated once the ESDD is complete.
TC funds consist of EUR 83k for feasibility studies and environmental and social assessement.
Company Contact Information
Eng. Hussein Awad
Inspection General Manager SOPC
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