The Egyptian Minister of Petroleum and Mineral Resources, Tarek El Molla, witnessed signing two urea selling and supplying contracts for Suez for Methanol Derivatives project, as well as two supply commercial propane supply contracts for Sidi Kerir Petrochemicals (Sidpec)’s Polypropylene new project, Egypt Oil & gas reports.

The methanol derivatives contract was signed by Head of Suez Petroleum Services Company (SUPSC), Gawdat Al Sadeq, Head of Abu Qir Fertilizers Company, Saad Abu El Maaty, and Head of Misr Fertilizers Production Company (MOPCO), Mohamed Abady.

“The project is seen as a new leap in the Egyptian petrochemical industry as it is the first of a kind to produce methanol products used in making fertilizers, ready mix concrete, and adhensives,” El Molla pointed out. The project represents an example of integration between the oil and gas sector’s companies.

The project’s investments reach around $50 million and aim at producing 18,000 tons of urea-formaldehyde concentrate (UFC), 85, 43,000 tons of UFC 65, and 26,000 tons of sulphonated naphthalene formaldehyde per annum.

Meanwhile, Sidpec’s project was signed by Mohamed Abady, Head of Sidpec, Hesham Radwanm, Head of the Egyptian Natural Gas Company (Gasco), and Abdel Megeed Hegazy, Head of the Egyptian Ethylene and Derivatives Company (ETHYDCO).

The project comes as a part of the national petrochemical strategy, with designed capacity of around 450,000 tons of polypropylene and investments exceeding $1 billion. Polypropylene derivates are used in several economic industries.

Sidpec’s project shows the integration between the sector’s firms as it receives propane from Gasco and electricity from ETHYDCO.