Petroleum Minister highlights refining, transport upgrades to secure energy supplies

Minister of Petroleum and Mineral Resources Karim Badawi affirmed that upgrading infrastructure in the petroleum sector represents a key pillar to bolster energy security and support Egyptian economic competitiveness, noting that upgrading refineries, improving crude and petroleum product transport networks, and expanding storage capacities top sector priorities in the coming period.

Badawi spoke during the meetings of the general assembly of the Petroleum Pipelines Company and Assiut Oil Refining Company to approve financial results for fiscal year 2025/2026. The meeting was attended by Minister of Electricity and Renewable Energy Mahmoud Esmat, Minister of Local Development and Environment Manal Awad, Minister of Investment and Foreign Trade Mohamed Farid, and Minister of Industry Khaled Hashem via videoconference, alongside sector officials.

The minister stressed that these efforts maximize the value of Egypt’s petroleum resources, increase added value for crude, and raise distribution efficiency, reinforcing Egypt’s position as a regional energy hub leveraging its prime geography and integrated infrastructure.

Badawi highlighted the coordination between the petroleum and electricity ministries in securing fuel supplies for power stations, which preserved grid stability during peak summer demand.

He noted that both companies play an essential role in securing national energy supplies by refining crude, transporting products nationwide, and fueling power stations to sustain operations.

The minister reaffirmed that enhancing refineries is a strategic priority alongside ongoing expansion projects to optimize growing crude production and produce higher-value petroleum products.

He urged accelerating refinery expansions to supply local markets, narrow the production-consumption gap, and fulfill domestic demand.

Badawi underscored that occupational health and safety is a shared responsibility across all staff and leadership, stressing compliance with safety rules and expanding training programs to protect personnel.

For his part, Minister of Electricity Mahmoud Esmat praised the petroleum sector’s efforts in supplying power generation plants, noting sustained coordination stabilized the grid during peak loads exceeding 40,000 MW.

During the Petroleum Pipelines Company meeting, company Chairman Haggag Rabie Keilany reviewed fiscal year 2025/2026 results, stating the company met Egyptian General Petroleum Corporation transport plans and secured power plant fuel needs.

He noted the firm operates 6,300 km of pipelines that transported over 8.2 billion ton-km, alongside 155 storage depots holding 2.5 million cubic meters.

Keilany added that ongoing strategic projects include expanding the Sokhna terminal over 19 feddans to raise storage capacity from 300,000 to 460,000 cubic meters.

Projects also encompass renewing the 135-km Port Said-Abu Sultan-Suez pipeline and building the 140-km MIDOR-Hamra line to support Hamra port expansions and supply New Alamein refining projects.

Badawi directed company leaders to draft an integrated five-year plan to upgrade crude and product transport infrastructure and maximize operational efficiency.

The minister highlighted leveraging Egypt’s assets to advance its role as a regional trade hub, citing the establishment of Fujairah-Alamein Oil and Gas and SUMED’s expanding operations between the Red Sea and Mediterranean.

At the Assiut Oil Refining Company assembly, Chairman Issa Abdel Aal reported output valued at nearly 3 billion dollars, refining 3.314 million tons of crude with high-value products representing 57% of output.

He explained that building the third distillation unit will double refining capacity from 4.5 to 9.5 million tons annually, securing local fuel supplies and providing mazut for the ANOPC complex.

Abdel Aal indicated that operations maximized middle distillates, with LPG reaching 62,000 tons, 80-octane gasoline at 366,000 tons, 92-octane gasoline at 419,000 tons, jet fuel at 115,000 tons, and diesel rising 20% to 911,000 tons.

Badawi commended the company for employing Upper Egypt residents across 95% of its workforce, emphasizing its role in regional development and local job creation.

On social responsibility, Abdel Aal noted qualifying 400 university students and graduates in Assiut for freelance digital work, alongside equipping a bone marrow transplant unit, blood bank, and physical therapy wing at Sohag Oncology Center.