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Ministry discloses updated Egyptian petrochemicals plan 2020-2035
by Egypt Today staffCAIRO – 25 May 2020: The Ministry of Petroleum, Mining, and Mineral Resources disclosed on Monday the updated version of the National Plan for Petrochemical Industries taking place between 2020 and 2035.
The ministry stated that 11 projects worth $19 billion in the sector are being studied and executed. The ministry also targets to develop existing petrochemical projects, such as the Egyptian Petrochemichal Co. (EPC) and Egyptian Linear Alkyl Benzene (ELAB).
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.
A feasibility study was carried out to launch an ethanol production project worth $110 million. Shareholders have began taking measures to found the company, and MoUs were signed to get molasses from sugar companies as it will be a production input.
A logistics project is planned to take place on 240,000 square kilometers with investments worth $350 million. The project is a marine quay in Alexandria that will be used to export petroleum and petrochemical products.
Two other projects are being studied to take place in Alexandria. One is for the production of propylene, and the other is for the production of polypropylene.
The ministry also plans to establish a plant for the production of polyacetal, and another for the production of melamine in Damietta. The former is worth $400 million and has an annual production of 50,000 tons. The latter is worth $260 million and has an annual capacity of 60,000.
Studies are underway to establish a project producing sodium carbonate in Kafr El Sheikh.