DAMMAM, 1 December — The Arab Petroleum Investment Corporation (APICORP) has signed a loan agreement worth $104 million with Egyptian Gas Company (Gasco). As per the accord APICORP will arrange the loan in coordination with local, regional and international financial organizations.
Gasco authorized the Dammam-based corporation to arrange the loan in June to finance a project aimed at producing liquefied petroleum gas, which is one of the major projects in Egypt.
"The project aims at extracting products having high added value like liquefied petroleum gas and propane," a press statement issued on the occasion said.
It said the project, to be established in Port Said on the Red Sea coast, will reduce the country’s dependence on LPG imports.
This is the first time Gasco is seeking a loan. The loan agreement with APICORP was signed last Wednesday in the presence of Egyptian petroleum industry officials.
APICORP, established in 1975 to support and finance petroleum and energy projects in the Arab states, is an affiliate of the Organization of Arab Petroleum Exporting Countries (OAPEC), grouping Algeria, Bahrain, Egypt, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, Syria and the United Arab Emirates.
Earlier this month, it had signed another loan agreement worth $50 million with the Algerian National Oil Company.
