Methanex Egypt has completed the construction of a 450-meter pipeline and installed a new transfer pump for the direct delivery of methanol from its plant to the adjacent Suez Methanol Derivatives Company (SMD) plant in Damietta to fully meet its methanol requirements.
“Since the beginning of operations in 2011, the Egyptian Petrochemicals Holding Company has successfully achieved local methanol sales of 1.6 million tons. The Suez Methanol Derivatives Project is expected to increase annual methanol sales by approximately 58,000 tons annually, generating added value for all three parties involved,” said Ibrahim Mekki, Chairman of Egyptian Petrochemicals Holding Company (ECHEM).
“The project is also set to produce 140,000 tons annually of specialized products, supporting the local market demand, enabling the export of surplus quantities, and contributing to foreign currency generation,” Mekki added.
The project, launched in April 2023, involved all phases from engineering, design, and procurement to fabrication, construction, and installation of protection and monitoring systems. It also included the installation of a new methanol transfer pump and fiscal meters, Methanex said on April 14.
As part of its agreement with SMD, Methanex will provide maintenance services alongside the supply of up to 160 tons of methanol per day (58,400 tons of methanol per year). The operations are expected to start in October 2025.
“This project aligns with our commitment to support the Ministry of Petroleum’s vision of maximizing the value of Egypt’s natural gas resources and strengthening the country’s downstream industry,” said Mohamed Shindy, Methanex Egypt Managing Director.
“As a long-term partner in Egypt and petrochemical sector, Methanex remains dedicated to driving growth and creating new opportunities that contribute to the sector’s sustainable development,” Shindy added.
Meanwhile, Hisham Selim, Suez Methanol Derivatives (SMD) Company CEO & Chairman, said: “The project’s main products will support a broad range of industries, particularly fertilizers, wood, and concrete.”
“The project will also introduce the production of specialized resins being manufactured in Egypt for the first time. These resins will be used as adhesives in both interior MDF panels and high-durability exterior applications, as well as in thermal insulation solutions,” Selim added.
“Half of the output will serve the local market, helping reduce imports and ease the foreign currency burden, while the remaining 50% will be exported,” he continued.
Notably, the project is part of the agreement signed between both parties in 2023. The main consortium leader of the project is EMC, with Johnson Matthey as the technology provider of the formaldehyde and UFC-85 plants, and ENPPI serving as the owner’s Project Management Consultant.
