EBRD & EGPC :

Oil Refineries Modernisation and Efficiency

Improvement Study

Introduction to the EBRD

18 February 2016

The EBRD is a triple-A rated* bank with a capital base of €30

billion.

Operating in 35 countries from central Europe to central Asia,

the EBRD:

• Promotes transition to market economies

• Mobilises foreign direct investment

• Improves people’s lives through enhancing municipal

services

• Encourages sustainable development

The EBRD is owned by 65 countries and two inter-

governmental institutions.

The EBRD’s annual business volume

2000-2014

(cumulative, EUR in billion)

Note: Unaudited as at 31 December 2014

2

17 20 22 23 25 30 33

37 43

48

62

71 79

86

95

0

10

20

30

40

50

60

70

80

90

100

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 13 14

EU 27 Countries 63% (1)

EBRD region

excluding EU

7% (2)

Others 11%

USA 10%

Japan 9%

The EBRD’s Energy Efficiency and

Climate Change Team

18 February, 2016 3

Directors

President

Evaluation

Governors

Members

Audit

OCCO

OSG

OCE

Banking

Environment

Finance

Agribusiness

Financial Institutions

General Industry

Natural Resources

Municipal and

Environmental

Infrastructure

Power and Energy

Property and Tourism

Transport

Energy

Efficiency

and

Climate

Change

The E2C2 team is a group of:

• technical experts - engineers

• finance specialists

• marketing experts

• policy experts

Examples of E2C2 team’s work:

• Project identification

• Definition of investment

programmes

• Management of technical

assistance

• Programme implementation

• Facilitation of policy dialogue

on legislations relevant to

energy efficiency, renewable

energy and resource efficiency

SEI in Southern and eastern

Mediterranean (SEMED)

18 February, 2016 4

Investments in 2012 – 2014 (€ in million)

€561 million invested in 23 SEI projects

3.4 million tonnes of CO2 reductions

per year

41%

30%

14%

11% 4%

EE in the energy sector 228

Industrial energy efficiency (EE) 170

Municipal Infrastructure EE 77

Renewable energy 61

Sustainable energy

financing facilities (SEFFs) 25

Total 561

MOROCCO TUNISIA EGYPT JORDAN

SEI 88 0 363 110

ABV 366 139 698 159

SEI projects accounted for

41% in EBRD financing volume

in the SEMED

SEI investments by business area (€ in million)

SEI business areas

18 February, 2016 5

RENEWABLE ENERGY

CORPORATE ENERGY

EFFICIENCY

POWER SECTOR

ENERGY EFFICIENCY

CLIMATE CHANGE ADAPTATION MUNICIPAL

INFRASTRUCTURE

ENERGY EFFICIENCY

SUSTAINABLE ENERGY

FINANCING FACILITIES

Making energy efficiency investments in

energy-intensive industrial processes such

as steel manufacturing, aluminium

smelting, cement and glass production, as

well as major transport investments, such

as in railway operating companies.

Financing facilities through local financial

institutions in countries of operations to

support industrial energy efficiency in small

and medium-sized enterprises, small-scale

renewable energy and building energy

efficiency projects.

Upgrading neglected municipal

infrastructure to provide efficient district

heating, public transport networks and

water supply systems.

Improving energy efficiency of transmission

networks and thermal power stations. The

ageing energy infrastructure includes a

large number of plants with low generation

efficiency, high running costs, and

excessive pollution and carbon emissions.

Supporting the development of renewable

energy sources by providing project finance

and technical assistance to shape the

institutional and regulatory frameworks for

renewable energy investments.

Developing approaches to integrate climate

risk management and adaptation into

project appraisal and development with a

particular focus on the private sector.

CORPORATE ENERGY

EFFICIENCY

ENERGY EFFICIENCY IN THE

ENERGY SECTOR

MUNICIPAL INFRASTRUCTURE

ENERGY EFFICIENCY

SUSTAINABLE ENERGY

FINANCING FACILITIES

EBRD project cycle

18 February, 2016 6

Concept review

Structure review

Final review

Board approval

Signing

Construction completed

Project repaid

Technical assistance

• Feasibility study

• Energy audits

• Investment plan

review

Technical assistance

• Implementation

Stages at which technical

assistance is made

available

Technical assistance

• Validation

Partnership with EGPC

18 February, 2016 7

• Memorandum of Understanding (‘MoU’) signed on 5 March 2015

• Review opportunities to modernise and improve energy efficiency along the oil and gas

value chain in Egypt

• Prepare a sustainable roadmap for the Refinery Sector.

• Understand the competitiveness of the sector within a global context

• Understand the regulatory status and gaps with EU practices/directives

• Understand the market supply/demand imbalances current and future

• Understand investment opportunities to modernize and to decrease GHGs and air

emissions in line with EU directives

• Engagement and cooperation of Egyptian Authorities & Refineries necessary :

• Feedback on opportunities for enhancement of legislation

• Share data/information for each refinery

• Identify possible financing opportunities.

Oil Refineries Modernization Study

Objectives

18 February, 2016 8

• To review and analyse the existing situation and general technical condition of the Oil

Refineries in Egypt;

• To assess at a preliminary level the needs for investment projects for modernisation and

performance improvement including among others to improve energy efficiency and

produce products in compliance with National as well as international standards;

• To undertake a regulatory review of the downstream oil sector and identify gaps with

relevant EU directives;

• To prepare a long list of appropriate modernisation projects and sub-projects that could

be implemented in the oil refineries together with an order of magnitude estimation of

the investment costs;

• To undertake a carbon intensity benchmarking analysis as per the relevant EU-ETS

methodology for the downstream oil refinery sector for the current situation and for the

future identified projects; and

• To disseminate the results of the study through a workshop;

Project Scope

18 February, 2016 9

• Task A: Market Review

• Data Gathering

• Energy/Mass balances

• Market analysis (product supply/demand and specifications)

• Timeline for adjustment to EU standards as a benchmark.

• Task B: Analysis of Investment Needs

• Gap analysis and opportunity identification: modernization of existing units, new Processing Units,

Reconstruction and modernisation of Power and Heat Supply systems, improvement of

Managements Systems, Analysis of the GHG potential in each Energy Efficiency project, etc

• Master Investment Program (MIP) development

• Task C: Results Dissemination

• Material Presentation

• Workshops

Project Execution – Deliverables &

Timeline

Inception Report

Interim Progress Report for tasks A & B

Draft Final Report

Final Report

Workshops

Workshop Report

10

Calgary

Chicago | Houston

Mumbai

Saudi

Madrid

Leiden

London | Manchester | Stockport

China

Bank’s normal procurement policies:

Jacobs Consultancy has been awarded the contract

11

• 1957 established as Pace Consultants Inc.

• 1974 – acquired by Jacobs Engineering

• Worldwide network of 200 consultants

• Experience in areas of:

• Refining

• Natural Gas & LNG

• Chemicals

• Petrochemicals

• GHG Management

• Energy, Power & Utilities

• Asset Management

• Renewables

Drivers Behind Refinery Upgrades

Old and poor performance,owing to:

o High fuel losses

o High Specific Energy Consumption

o Low Nelson Complexity Index

Many Refineries are not provided with the necessary downstream

processes to produce high-value and high-quality refined products

Environmental legislation

12

Investments are therefore required to:

• Replace existing technologies

• Rehabilitate/modernise present units

• Install new processing units

• Improve Energy Efficiency and Performances

• Meet environmental requirements

Process Units Quality-Related

Investments

Utilities Investments

Environmetally-Related

Investments

Energy Sources

FUEL

STEAM

ELECTRICITY

13

Coke from cracking reaction (FCC) and Coking

process (DCU)

Refinery Fuel Gas from light hydrocarbons

Heavy fuel oil (low value liquid products)

Generated in fuel fired boilers or in CHP plants ISBL

Generated in process units from heat recovery from

either fired-heaters flue gases or hot process streams

Imported from OSBL

Produced ISBL through steam turbines (+ gas

turbines in CHP plants) and through power recovery

turbines

Imported from OSBL

Natural gas (purchased OSBL)

Main Energy Consumers

FUEL

STEAM

ELECTRICITY

14

Low pressure steam for continuous heating and

frost protection of piping (steam tracing) etc.

Fired heaters burning liquid or gaseous fuels,

transferring heat to process stream (250 – 500 °C)

High pressure steam (40-100 bar) used for driving

turbines coupled to large rotating machines (e.g.

compressors) and for electricity generation

Motors (inc. Pumps, Fans and

Compressors)

Instrumentation

Lighting

Medium pressure steam (10-40 bar) as heating

medium for e.g. fractionation / separation of

relatively light hydrocarbons mixtures

Operational versus Design

Design

Step change in energy use

through capital investment

• Heat exchange equipment

• Distillation scheme changes

• Motor replacement & VSD

• Cogeneration

Often synergies with other capital

investment projects

Typical savings of 5-10%

Operational

Focus on “low hanging fruit”, “quick

wins”, “good housekeeping”

Checklist review of operating

parameters

“Dynamic” trending of key

performance indicators

Advanced control and optimisation

Typical savings of 2-5%

15

Support Requirements

Support required by EGPC and Egyptian refineries to provide input for the

study areas including:

• Refinery Configurations and material balance

• Utilities

• Management systems

Asset/Turnaround Management, Quality Management, Environmental Health and Safety

• Auxiliary systems features

water treatment, instrumentation and control systems

Jacobs Consultancy to visit specific refineries to collect information and to

work directly with the Refineries

Your support is needed

16

Next Steps- Questions

18 February, 2016 17

Selected visits to be made to key refineries (budgeting based on

6 visits maximum)

Visits intended to enhance information already received, as

opposed purely introductory in nature

• Contacts:

• Dimitris Koufos, Senior Engineer, koufosd@ebrd.com, Tel: +442073387934, Mob: +447540703681

• Gabriel de Lastours, Senior Banker, DELASTOG@EBRD.COM, Mobile: +447921039660

• Ahmed Mortada, Associate Banker, MORTADAA@EBRD.COM, Tel: +201222389135

• Shahir Zaki, Principal Manager, ZAKIS@EBRD.COM