Egypt is moving ahead with plans to build a large petroleum products storage and handling hub at Alexandria Port, as part of its push to strengthen its role as a regional energy and logistics centre.

The proposed project will begin with an initial investment of more than $600 million and will cover roughly 300,000 square metres within the northern port area. A 900-metre berth is included in the first phase of the port’s broader expansion programme.

According to reports citing a government official, the facility is designed to support the country’s strategy of leveraging its geographic position and maritime infrastructure to serve regional energy markets more efficiently.

Egypt’s ministries of oil and transport are currently finalising contractual arrangements for the project. Discussions include how the development will be financed and how land use rights will be structured with the port authority that oversees the site.

Current estimates place petroleum storage capacity across Egypt’s main ports at about 29 million barrels. The country operates 19 commercial ports, with 14 undergoing various stages of development and modernisation.
Beyond port capacity, Egypt has also expanded its inland storage network.

Between 2014 and 2023, around 79 petroleum storage facilities were either built or upgraded to strengthen strategic reserves, with investments running into billions of Egyptian pounds.

Earlier this year, Cairo was reported to have offered several crude oil and petroleum product storage sites for lease at Ain Sokhna Port and Ras Badran Port on the Red Sea coast.

Authorities are also said to be reviewing a proposal from AD Ports Group to lease storage infrastructure in the same region, with negotiations expected to conclude in the coming months.

The planned Alexandria facility is seen as another step in Egypt’s broader effort to improve energy logistics, expand storage capacity, and attract regional partnerships in the petroleum sector.