Arab Petroleum Pipelines Company (SUMED)

Arab Petroleum Pipelines Company (SUMED)

Arab Petroleum Pipelines Company (SUMED), established in 1974, is an Egyptian oil and gas service provider that owns and operates pipelines and associated storage facilities connecting the Red Sea and the Mediterranean. Almost 70% of the oil shipped from the Arabian Gulf to Europe passes through the SUMED pipelines.

Arab Petroleum Pipelines Company (SUMED)

The company has its Headquarters in Alexandria and is an Egyptian joint stock company of $400 million paid-in capital. 50% of the company is held by Egyptian General Petroleum Corporation (EGPC), while Mubadala, Saudi Aramco, and Kuwait Investment Authority all hold a 15% stake each. The remaining 5% is owned by Qatar Petroleum.

SUMED owns and operates 2 parallel pipelines, 42 inches in diameter and 320km in length, linking Ain Sukhna (Gulf of Suez) to Sidi Kerir (on the Mediterranean).In addition, SUMED owns and operates the Ain Sukhna Products Hub (ASPH) for the handling, transfer and storage of various petroleum products at Ain Sukhna terminal.

SUMED is currently handling Gasoil, LPG, LNG and Fuel Oil at Ain Sukhna in addition to Euro Diesel at Sidi Kerir with plans to further expand in the oil products sector especially at its strategic Ain Sukhna location.

With a capacity of 20 million barrels of crude oil tank capacity at each terminal (Ain Sukhna and Sidi Kerir), the business provides a large crude oil storage and trading Hub.

Being only a few days away from refining centers in Europe, utilizing SUMED saves refineries the capital cost of building storage tanks or maintaining high inventories to guarantee smooth operations. SUMED has built two large storage tank farms, one at each terminal, for handling various types of crudes transported, while maintaining proper segregation. The storage service covers international oil companies' needs for logistics, trading (Physical and futures), operational and strategic requirements.

SUMED provides the most reliable, secure and economic route for Arab Gulf crude oil movements to the consuming refining centers in the West. Over the years, it has gained market share to the point today where almost 70% of the oil shipped from the Arabian Gulf to Europe passes through the pipelines, with major oil companies using SUMED as their sole route to Europe.

SUMED also plays a strategic role in supplying Egyptian refineries with their crude oil feedstock as it is linked to the Egyptian national crude oil grid via its link to the State owned "Petroleum Pipelines Co" at each terminal.

Crude oil is transported through the two pipelines, starting from the Ain Sukhna terminal to the Sidi Kerir terminal, crossing the River Nile south of Cairo where a pressure relief station preserves the pipelines from any over-pressure. The oil is dispatched by two pumping stations consisting of 10 electrically driven eight-megawatt centrifugal pumps, each capable of pumping oil at a flow rate of up to 9,300 m3/hr per pipeline. The crude continues streaming through the Dahshour intermediate boosting station which consists of six pumps, each driven by a 26-megawatt gas turbine.

The pipeline is automatically and remotely controlled from the dispatching centre located at Dahshour station through a state-of-the-art SCADA system connected to all sites via a dedicated digital microwave link, with a hot stand-by from Ain Sukhna terminal. All parameters of the pipeline are also monitored from SUMED headquarters at Alexandria, where the batching operation schedule is coordinated with pipeline users.

In 2020 alone, SUMED's net income was US$166 million.

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