Egypt’s Qalaa Holdings said, in a statement to the stock market on Thursday that declining oil prices were positive for its operations.
Qalaa said Egyptian Refining Company (ERS) earnings before interest, taxes, depreciation, and amortization is associated with the price difference between Mazut, diesel, and Jet fuel. The difference was $200 when the project was started, and reached $250-300, after it reached $300-350, Qalaa added.
Egyptian Refining Company is expected to achieve $700 million in EBITDA in the first year after the project is completed in 2017, according to Qalaa.
ERS is a $3.7 billion oil refinery, one of Africa's largest project finance deals, Qalaa Holding said on its website.
Qalaa also said TAQA Arabia will offer a competitive price of 11 cents per kilowatt hour and building large power plants, after Mazut reached $8 per million BTUs, The same price for liquefied natural gas.
Qalaa expected Mazut to be available after the oil price decline, which will enable the Egyptian government to import more Mazut and LNG.
ASEC Cement MINYA production is expected to reach 1.8 million tons in 2014, while Misr Qena Cement is expected to achieve 2 million tons production, Qalaa said.

Photo Credit: Arabianeye-Reuters