Petrochemical Industry to expand with 11 new projects with total investments estimated of $19 billion, including two giant refining and petrochemical complexes at the Suez Canal economic zone, according to a press release.
This announcement aligns with the Minister of Petroleum and Mineral Resources Tarek El Molla’s newly announced national plan for the petrochemical industry. The new strategy has been developed and will be implemented during the period of 2020-2035. The final version of the plan is currently being reviewed in preparation for its approval and implementation during the coming period.
In a report that was introduced to El Molla, Saad Helal, the President and Chairman of the Egyptian Petrochemicals Holding Company (ECHEM), addressed the current state of petrochemical projects which aims to increase the local petrochemical production and enhancing the added value.
In the forefront comes the refining and petrochemical complex in the Suez Canal economic zone, which has investments of $7.5 billion and a production capacity of 2.2 million tons of petrochemical products annually and 650,000 tons of petroleum products. Bechtel Company and Wood International signed the deal where Wood will conduct a detailed feasibility study, additionally, institutions such as US International Development Finance Corporation (DFC), US Exim Bank will contribute to the project’s finance.
Another project is the refining and petrochemical complex in El Alamein, which has investments of $8.5 billion and is expected to produce 1 million tons of petrochemical products and 850,000 tons of petroleum products. The project is an agreement between an alliance of PSW and Sherd and Enppi.
Concerning the butadiene project in the Egyptian Ethylene and Derivatives Company (ETHYDCO) complex in Alexandria, the agreement was signed with Petrojet and the Italian Saipem. The project’s investment is estimated at $183 million and will be financed by several banks, it is expected to produce about 36,000 tons. Additionally, a contract between Egyptian Maintenance Company (EMC) Sun Misr, Wadi El-Nile and Zavkom signed an agreement for methanol derivative project in Damietta, where Enppi will work as a consultant on the project. The project investments are estimated at $117 million, and it will produce 110,000 tons annually of urea-formaldehyde products, naphthalene and sulfonal-formaldehyde.
Furthermore, Petrojet and Simple Camp have signed a Medium-density fibreboard (MDF) project in Beheira with investments of EUR 217 million to produce 2.5 thousand square meters of wooden boards. The project will be financed by a number of Egyptian banks. As for the bio-ethanol project, investments of $ 110 million are being poured into it and a feasibility study has been carried out. The shareholders will start procedures for establishing the company and signing memoranda of understanding (MoU) to provide molasses as a feedstock for the project from sugar companies.
Petrochemicals Logistic Service (PLC) plans to establish a maritime platform with an investment of about $350 million on an area of 240,000 square meters.
Helal pointed out that the polyacetal project valued at $400 million is expected to produce 50,000 tons annually of polyacetal products. The melamine production project in Damietta has investments of $260 million and a capacity of 60,000 tons annually of urea.
Helal noted that currently there are projects to develop and increase production capacity, raise efficiency, and develop resources in both ECHEM and Elap for the production of alkylbenzene in Alexandria.