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Abu Qir Fertilizers to start feasibility studies on $2.6bn methanol factory  - Daily News Egypt

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Abu Qir Fertilizers to start feasibility studies on $2.6bn methanol factory 

The second phase, which will cost an estimated $1bn, will add new production lines of acetic acid, MTO, and calcium ammonium nitrate.


Abu Qir Fertilizers announced that it is going ahead with feasibility studies to set up a $2.6bn methanol factory in Ain Sokhna.

The factory is expected to be constructed over a 1.6m sqm plot of land within the Suez Canal Economic Zone (SCZone), and would be 70% funded through loans. The project would be implemented over two phases, with the $1.6bn first phase providing an ammonia and methanol capacity of 400ktpa and 1mtpa, respectively.

The second phase, which will cost an estimated $1bn, will add new production lines of acetic acid, MTO, and calcium ammonium nitrate.

Phase 1 will require total equity investment of $480m, all of which would be funded through internally generated cash. While the ownership structure of the project is yet to be announced, it was previously reported that Abu Qir Fertilizers would own 25%, while Helwan Fertilizers would own 25%, and Al Ahli Capital 50%. The timeline of the project is also yet to be determined, although it is expected that it will not be less than 4-5 years

Naeem Research views a positive development in the long-term for Abu Qir Fertilizers, especially given the advantage that the factory is likely to source the natural gas feedstock at a price of less than $4.5/mmbtu.

A similar positive benefit is likely to come from the expansion of the Abu Qir Fertilizers-3 urea production line, which is set to raise the company’s urea production bandwidth by 6%-8% at a cost of $80m-$100m.

Naeem Research added that it continues to recommend a BUY on Abu Qir Fertilizers, with a TP of EGP 26.37/share

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https://dailyfeed.dailynewsegypt.com/2020/10/07/abu-qir-fertilizers-to-start-feasibility-studies-on-2-6bn-methanol-factory/
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