The Egyptian Petrochemicals Holding Company (ECHEM) is considering the implementation of four projects to produce derivatives of propylene, ammonium, formaldehyde, and medium density fiberboard (MDF) with investments amounting to $5bn.
Business development engineer at the company Nouran Salah said that ECHEM will complete the technical and financial studies for the propylene production projects next month, in cooperation with the consulting firm Technip.
Salah told Daily News Egypt that the investments of the project amount to $2bn and will begin in the second quarter of the current year, as the company is set to begin negotiations with financiers as soon as studies are completed.
She added that the company is now studying the ammonium, formaldehyde, and MDF projects, where it will assign a consulting firm to conduct the technical and financial feasibility studies within 3 months, and will take 12 months to be completed.
She pointed out that the company is negotiating with Alexandria National Refining and Petrochemical Company to buy hydrogen.
ECHEM has implemented seven projects in Suez, Port Said, Damietta, and Alexandria in the framework of the national plan for the petrochemical sector with investments totalling $8bn.
These projects bring back annual revenues of up to $3bn, with a capacity of 5 million tonnes of petrochemicals, which have contributed to meeting the needs of the domestic market and import to bring back hard cash.
Minister of Petroleum Tarek El-Molla had earlier said in remarks that the ministry’s plan for expansion in the petrochemical industry is based on five main points: increase crude oil production and development, secure the country’s needs of petroleum products and natural gas, expand in linking houses and factories to natural gas, transform Egypt into a regional hub for energy, and expand the petrochemical industry to maximise the value added.
El-Molla stressed that the Ministry of Petroleum developed its strategy in order to provide for the raw material needs of the country, encourage investment, create jobs, and activate integration policy between the oil companies.
The Egyptian Ethylene and Derivatives Company (Ethydco) complex in Alexandria is ECHEM’s latest project and one of the most important pillars of the national petrochemical plan with investments of $1.9bn.
The project involves the production of 460,000 tonnes of ethylene per year and 400,000 tonnes of polyethylene to cover the needs of the domestic market, while exporting the surplus.