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- Gas production in Egypt has gone up to almost 7.2 billion cubic feet a day.
- Investors include major players from US and Gulf countries
The petrochemical sector of Egypt has witnessed a sharp surge in investments from international players after it recorded a series of gas discoveries the past five years. Gas production in Egypt has gone up to almost 7.2 billion cubic feet a day, enabling the country to reach self-sufficiency for natural gas.
Investors include major players from the US and Gulf countries. US company Bechtel US and the Egyptian Ministry of Petroleum and Mineral Resources have signed a deal for the construction of a refining and petrochemical complex in the Suez Canal economic zone with an estimated investment of $6.7 billion.
Chevron, another US giant in the sector has a cooperation agreement with the Egyptian General Petroleum Corporation in petrochemicals including refining, transportation and distribution of petroleum products and crude oil. Besides that, Chevron is also collaborating with Alexandria Mineral Oils Company in ports and terminal management, refinery operations and supplying marine vessels with fuel.
A consortium of investors from Saudi Arabia, the United Arab Emirates and Kuwait announced four projects with an approximate $6.8 billion investment. The partners include the Egyptian-Kuwaiti Holding Company, Saudi International Petrochemical Company, Bawabet Al-Kuwait Holding Company and Boubyan Petrochemical Company, also from Kuwait.
Recently an agreement was also signed with the British BSW Group to establish a refining and petrochemical complex in El Alamein on the Mediterranean coast. The project plans to maximise the value addition of crude oil from the Western Desert fields and produce specialised petrochemical products at a capacity of about 1.5 million tonnes annually.
Natural gas, is a key base material for the petrochemical and fertiliser industries with growing global demand. Egypt has implemented more than 30 projects the past five years in the natural gas industry, with investments amounting to $21.4 billion. Egypt is also hoping for more discoveries of gas in its territorial waters in the Red Sea. It has dedicated a huge zone for the petrochemical industry in the economic zone along the Suez Canal to attract foreign investment from where Companies can easily re-export and also take advantage of Egyptian trade agreements with various international blocs.
