The Egyptian Ministry of Petroleum and Mineral Resources is considering the implementation of 11 new petrochemical projects at a total value of around $19 billion, Minister of Petroleum and Mineral Resources Tarek El-Mulla said on Monday.
This comes within an updated version of the National Plan for Petrochemical Industries taking place between 2020 and 2035.
The minister stated that the strategy aims to raise the added value of petrochemical activities in the country, meet the local demand for intermediate and final petrochemical products, and improve the national trade balance.
The new projects include two mega refining and petrochemicals production complexes in SCzone and New Alamein City. The SCzone complex costs $7.5 million, and has an annual production capacity of 202 tons of petrochemicals and 650,000 tons of petroleum products.
An initial agreement has been signed with Pectel as a feasibility study has been carried out by John Wood Group PLC. Financing will be offered by USDFC and US EXIM Bank.
Regarding the complex to be established in New Alamein City, its costs are worth $8.5 billion, and its annual production capacity is 1 million tons of petrochemicals and 850,000 tons of petroleum products. The land on which the complex will be established was delivered to the ministry.
An initial agreement was signed with a coalition encompassing PSW Group and another UK company. ENPI will invite a tender soon to establish a complex of petrochemical SMEs, which will reply on the output of the complex. The company already studies an offer by a British-Chinese coalition to construct the project.
As for introducing the production of polybutadiene at Ethydco Ethylene Plant in Alexandria with an annual capacity of 36,000 tons, the construction contract was signed with a coalition having Petrojet and SAIPEM. Also, an initial agreement was signed with banks that would finance the project worth $183 million.
The engineering designs of the prospective methanol derivatives production plant in Damietta were finalized as the construction contract was signed with a coalition comprising Sun Egypt Group, Wadi El Nil Developments, and Zafcomm.
The consultancy contract was signed with ENPI. Construction works in the project worth $117 million and having an annual capacity of 110,000 tons have begun.
The MDF production project in Beheira is worth €217 million and its annual production capacity is 250,000 cubic meters. The designing contract was signed with Simple Camp, and a construction contract was signed with Petrojet. The project will be financed by a number of Egyptian banks.
Asharq Al-Awsat
26/05/2020
