Saudi Aramco considers using Egypt as refining, storage hub

Saudi Arabian Oil Co. (Saudi Aramco), the world’s largest crude exporter, is looking into refining its crude in Egypt, Egypt’s oil ministry said in a statement citing Aramco Trading Co. CEO Ibrahim Al-Buainain.

The statement came during Al-Buainain’s visit to a number of oil projects in the country.

The Saudi oil giant is mulling storing crude in Egypt, and marketing petroleum products in the country and neighboring states.

In addition, Saudi Arabia will capitalize on opportunities to increase pumping of Saudi crude through the Sumed pipeline, and turn the Sidi Kerir pipeline terminal into a regional hub to market Saudi oil to Europe.

The 320 kilometer-long Sumed pipeline runs from the Red Sea to the Sidi Kerir port, west of Alexandria, on the Mediterranean.

The Kingdom also plans to use extra capacity in Egyptian refineries to refine Saudi crude, the statement said.