BEIJING (Commodity Online) : In its quest to ensure enough oil for its vibrant economy, China on Monday signed an MoU with Egypt to build a $2 billion refinery in the Arab nation.

According to sources, two Chinese companies, Rongsheng Holding Group and China National Chemical Engineering Co. Ltd., will build the refinery, the largest such plant in the Arab nation.

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.

Under the terms of the deal, the two Chinese companies 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.