HUGE POTENTIAL IN PETROCHEMICALS

Gas is the primary feedstock for petrochemical plants, so Egypt’s vast reserves give it the potential to turn itself into a major producer and exporter of high-demand petrochemical products.

At present, Egypt has five petrochemical plants producing around 750,000 tons annually—insufficient to meet national needs, requiring imports from countries with more developed petrochemical industries.
This is set to change, however, with the launch of a 20-year plan to propel Egypt into the ranks of major global petrochemical producers. By 2020, the government hopes to achieve annual revenues of $7 billion from petrochemical products, including $3 billion from exports, and the creation of 100,000 new jobs.

Approximately 345 million square feet of prime real estate have been designated solely for petrochemical projects. The three-stage plan envisages the building of 14 new complexes, located at sites around Alexandria, Port Said, and Suez, to facilitate exports.

An integrated, full-service economic zone is planned for each area, complete with infrastructure, utilities, and off-site services.

The target is to increase Egypt’s petrochemical production to 15 million tons a year by 2020. The complexes will produce products such as polypropylene, linear alkyl benzene, ethylene, polyethylene, and polystyrene. Downstream projects will be established for the manufacture of vinyls, polyester, acrylics, aromatics, styrenics, and detergents.

International petrochemical companies are invited to participate in the building of the industry, with the Ministry of Petroleum aiming to attract $10 billion in investments.

The task of developing and managing the industry and of attracting foreign investment falls to the Egyptian Petrochemicals Holding Company (ECHEM). The company’s mission is to establish a strong and reliable petrochemical industry in Egypt based on state-of-the-art technology.

Established in 2002, ECHEM operates as a one-stop shop designed to help investors obtain approvals, clearances, and land, steering them through evaluation and feasibility studies.

“We have the systems, procedures, and organization in place to guide investors from the early stages of project evaluation, feasibility studies and environmental impact assessment to financing, construction, management, and product marketing,” says a company spokesman.