The National Bank of Egypt (NBE) has announced a long-term financing agreement worth EGP 953 million with EKC Egypt, a company specializing in manufacturing high-pressure vessels. This funding supports the investment required to establish Egypt and Africa’s first factory dedicated to producing compressed natural gas (CNG) cylinders. These cylinders will primarily serve natural gas-powered vehicles and will also include specialized cylinders for medical and industrial applications, Multi-Element Gas Containers (MEGC) for pipeline systems, and high-pressure hydrogen cylinders for storage and fuel cells.

   The financing agreement was signed by Tamer Ahmed, Head of Corporate Financing at NBE, and Pushkar Kumar Khurana, Chairman of EKC Egypt.

   Sherif Riad, CEO of Corporate Banking Credit and Syndicated Loans at NBE, emphasized the bank’s unwavering commitment to supporting the Egyptian economy through financing projects critical for economic stability. These efforts include contributing to the provision of strategic commodities essential to citizens’ daily needs, notably petroleum products vital for various economic sectors. The project aligns with Egypt’s strategy to localize the manufacturing of CNG cylinders, reducing reliance on imports.

   This initiative supports the national vision of converting approximately 1.5 million vehicles to operate on compressed natural gas, thereby significantly reducing fuel consumption, cutting carbon emissions, and improving air quality.

   Tamer Ahmed further highlighted that the borrowing company is part of Everest Kanto Cylinders Ltd (EKC Group), an Indian global leader managing five manufacturing facilities across India, the United States, and the United Arab Emirates. He noted that the financing encompasses constructing the facility on company-owned land within the Suez Canal Economic Zone. Commercial production is expected to commence by the end of this year, catering primarily to local market demands and exporting approximately 40% of the output to international markets.