ERC Receives Renewal of Government of Egypt Comfort Letter



Financial backers and debt providers of Core Citadel Capital platform company Egyptian Refining Company have received a renewal of its comfort letter from the Government of Egypt, signaling unwavering state backing for the strategic US$ 3.7 billion greenfield refining project

Egyptian Refining Company (ERC), a core platform company of Citadel Capital (CCAP.CA on the Egyptian Exchange), the leading investment company in Africa and the Middle East with US$ 9.5 billion in investments under control, has received official renewal of the Government of Egypt’s comfort letter for the strategic national project.

“ERC is a strategic national project that has enjoyed the unwavering support of successive Egyptian administrations since it was merely an idea on the drawing board in 2007.” said Ahmed Heikal, Founder and Chairman of Citadel Capital. “I am very pleased to report receipt of the renewal of our comfort letter from the Government of Egypt. We remain on track for our planned 2016 commissioning of the refinery, which will reduce Egypt’s present-day diesel imports by approximately 60% while simultaneously reducing sulfur dioxide emissions by nearly one-third.”

ERC is building a US$ 3.7 billion greenfield petroleum refinery in the Greater Cairo Area and is widely recognized as a cornerstone of Egypt’s energy security.

The state-of-the-art facility will call on the most advanced advanced and environmentally stringent technologies from Conoco Philips / Bechtel, Axens and KTI to produce over 4.1 million tons of refined products and high-quality oil derivatives per year, including more than 2.3 million tons of Euro V diesel (the cleanest-burning diesel fuel in the world).

Citadel Capital presently holds an 11.7% stake in Egyptian Refining Company, alongside the Egyptian General Petroleum Corporation and leading international, Gulf and Egyptian investors.

ERC is scheduled to begin operations before the end of 2016.