(Ecofin Agency) - The Arab Petroleum Pipelines Company (SUMED) has signed a contract with the National Bank of Egypt to acquire loan worth $100 million to fund the Phase 1 of the construction of a pier and a center for the trade and storage of oil products in Ain Sokhna.

According to SUMED Chairman and CEO Mohamed Abdel Hafez, the aim of the project is to receive, store and transport fuel oil (mazot) for domestic use and also to re-export.The project also involves the acquisition of liquefied natural gas (LNG) and pumping it to the national grid for natural gases. It will also receive and store butane gas and pump it to the national grid.

Hafez added that the project will be carried out in two phases. The Phase 1 is to include the building of a pier which will be 2.2 km in length and has a depth of 19 meters so as to receive oil products tankers and LNG while the Phase 2 will involve the construction of a storage zone comprising of six tanks. Three out of the six tanks will receive, store and trade butane gas and the remaining three will receive, store and trade fuel oil.

The Phase 1 of the project is scheduled to be completed by the end of March 2017, Egypt Oil and Gas news reports.

Anita Fatunji