The Opportunity

Egypt’s rising demand for both Gasoil and liquified petroleum gas (LPG), combined with its limited domestic production capacity and dwindling local reserves, have caused imports of these products to rise to record levels that are expected to continue for some time. Specifically, a population of over 100 million people growing at 2% annually, coupled with GDP growth have now driven Egypt Gasoil and LPG imports to 7.1 and 2.7 million metric tons (MMT) in 2019/20, and expected to grow to 8.2 and 3.3MMT by 2026, respectively. Egypt’s demand for LPG is guaranteed to increase because the population is totally dependent on LPG, especially in the megapolis of greater Cairo and the Delta region, home to 70% of Egyptians.

However, the current facilities for receiving, storing, and delivering Gasoil and LPG to the national pipeline grid are severely under-equipped and capacity-constrained, as well as being cost-inefficient and hazardous. Current operations involve expensive practices, such as double handling imported products, since the nation’s existing port infrastructure is not adequate to cope with the rapidly increasing fuel import volumes.

The Sonker Solution

Sonker Bunkering Company S.A.E. (Sonker) provides a more efficient and high-capacity solution to the current import process by utilizing the deep-water jetty at its brand-new world-class Bulk Liquids Terminal (BLT) in Sokhna Port on the Red Sea trade channel. The jetty is capable of accommodating large vessels, thus creating substantial economies of scale by reducing discharge handling cost and the risk of demurrage. The new storage tanks are directly linked to the national pipeline grid and provide Egypt with essential Gasoil and LPG national strategic operational facilities.

Why Sonker?

• Sonker provides a state-of-the-art facility at a strategic location with a potential to turn Sokhna into a regional hub for storage, bunkering and trading activities.
• Injection of over US$450 Million of FDI.
• Creating over 2400 job opportunities and training for Egyptian labor.
• A 25 year off-take agreement with EGPC, the sole entity assigned to import petroleum products in Egypt with guaranteed 75% of Gasoil and 80% of LPG imports through the Red Sea.
• Expanding consumption patterns will fuel demand for Gasoil in transportation. Slum population growth with limited connectivity to LNG network will drive demand for LPG.
• Existing refining and storage facilities fall far short in terms of capacity and efficiency to fulfill Egypt’s current and future needs.