The Egyptian Petrochemicals Holding Company (ECHEM) has contributed 4 million tons per year (mt/y) to the overall output of the domestic petrochemicals industry during the 2024/2025,  helping to meet local demand and enhance export opportunities, said Chairman Ibrahim Mekki during the company’s general assembly meeting.

Mekki said that investments during the year amounted to EGP 8.7 billion, while applying energy efficiency measures generated financial savings of around EGP 30 million.

During the meeting, Karim Badawi, Minister of Petroleum and Mineral Resources, emphasized the role of petrochemicals as a key foundation for maximizing value-added from natural resources and strengthening Egypt’s position as a regional hub for energy and downstream industries.

He pointed out that new ongoing projects will create a qualitative leap in the petrochemicals sector, a feat that will be further supported by an expected increase in the supply of natural gas, which is the primary feedstock for the petrochemical industry.

The government is adopting a multi-track plan to secure the supply of natural gas to meet the increasing summer demand, especially in light of the decline in production in Zohr, Egypt’s largest gas field. The plan includes increasing production through finalizing new exploration deals, providing foreign investors with incentives, on top of which is gradually repaying their arrears, as well as renting and operating three Floating Storage and Regasification Units(FSRU)  with the regasified gas being pumped into the national grid.

During the meeting, Mekki reviewed the progress of some petrochemical projects, including  the Suez Methanol Derivatives Company (SMD), a three-plant complex stretching over an  area of  45,000 square meters; the petrochemicals complex in the Suez Canal Economic Zone, with massive investments and a refining capacity of about 4 mt/y; and the ethane supply chain project to secure feedstock for factories and push exports to $4 billion annually by 2030

He also touched on green projects, including sustainable aviation fuel (SAF), bioethanol, green ammonia, and medium-density fiberboard (MDF) production from rice straw. Furthermore, Mekki also reviewed New Alamein City projects, including soda ash production, metallic silicon and its derivatives.