Egypt signs $2B refinery deal with China

CAIRO (AP) - Egypt's oil ministry says it has signed a memorandum of understanding with two Chinese companies to build a $2 billion refinery that would be the largest such plant in the Arab nation.

The statement reviewed Monday on the ministry's Web site said the refinery would have an initial capacity of 15 million tons per year, to be expanded by another 15 million tons in the second phase of the project. It provided no date for when the project would begin.

Under the terms of the deal, China's Rongsheng Holding Group and China National Chemical Engineering Co. Ltd., would retain ownership of the plant for 25 years.

The new plant will produce refined products for the domestic market, as well as export to China.

The deal was signed in Beijing.