Petrochemical and Refining Projects
Ministry of Petroleum has given great importance to the petrochemical industry
as one of the most important strategic industries on which many complementary
industries are based on in the country in order to meet the growing needs of
petrochemical products in different fields. In addition, it has a direct impact
on supporting the national economy.
Petrochemicals are used in the
production of various products such as paints, rubber, plastics, detergents,
dyes, fertilizers, pestisidestisides, textiles,
solvents, cosmetics, medicines, pipes and other materials
During the period from 2014/2015
to date, the two largest projects in the petrochemical industry have been
operated with a total investment of about $ 4 billion. His Excelency, the
President of Egypt has launched them during the year 2016 as follows:
Mopco Expansion Project (Damietta)
The President of Egypt inaugurated the project in 22 May 2016. The
project aims to produce urea with production capacity 1.38 million tons/year in order to satisfy the market needs
of the nitrogenous fertilizers, and to export the surplus at an investment cost
of about 1.96 billion dollars.
Production of Ethylene and its derivatives in Alexandria
The President of Egypt inaugurated the project in August 2016 with a production capacity of 460 thousand tons/year of ethylene, which is used in the production of 400 thousand tons/year of polyethylene, in addition to 20 thousand tons/year butadiene .. The project provides the low and high density polyethylene which is the main product used in the plastic packaging & construction materials in order to satisfy the local market needs and accordingly decreasing imports. The investment cost of the project is about $ 1.93 billion.
Power Station at Ethedco company (Phase 1&2)
The station aims to produce the needed electric power for the project of Producing Ethylene and its derivatives. In the first phase, three turbines were constructed with a capacity of 100 MW. The second phase includes the construction of a transformer station to connect to the national electricity network. The surplus is exported or used to cover the deficit in the case of turbine failure. The total cost of the two phases is about 150 million dollars. The first phase was run in April 2017, and the second phase in March 2019
The Egyptian Petroleum Holding Company is currently developing a number of promising new projects aimed at maximizing the value added and will have a positive impact on the national economy. The total estimated investment cost of these projects is about 2 Billion dollar.
Ongoing and Planned projects
Polypropylene production project(SIDPEC)
The project aims to produce polypropylene with a capacity of 450 thousand tons / year to cover local demand and export the surplus. The project depends on the utilization of the available propane quantities with the facilities of GASCO in Alexandria instead of exporting them. The investment cost of the project is $ 1.6 billion (phase 1) and it is expected to start at the end of the first quarter of 2022
Polypbutadiene production project (ETHYDCO)
The project aims to produce 36,000 tons per year of Poly Butadiene at Ethydco company based on 20 thousand tons per year of Butadiene produced from Ethydco and SIDPEC companies to maximize the added value, cover part of domestic demand and export the surplus. The investment cost of the project is $ 180 million. It is expected to start at the fourth quarter of 2021
Resin glue and MDF production project
The project aims at producing 205,000 cubic meters per year of medium density fiberboard (MDF) panels based on 245,000 tons per year of Egyptian rice straw as a main raw material for the project to meet part of the growing needs of local market as well as to contribute in reducing the environmental pollution resulting from burning straw Rice. The investment cost of the project is 210 million Euros and is planned for completion in the fourth quarter of 2021.
Methanol derivatives Production project(SMD)
Suez Methanol Derivatives Co. aims to start the project to maximize the added value of methanol produced by Emethanex, the urea produced by MOPCO and the caustic soda produced by the Egyptian petrochemical company in order to produce 52 thousand tons per year of formaldehyde urea and 26 thousand tons per year of the formalized form of Naphthalene. The investment cost of the project is about $ 50 million and it is planned for completion in the second quarter of 2021.
- Projects under study:
Refining and Petrochemicals Complex
The project aims to establish a new modern refinery producing a full range of high quality fuels integrated with Petrochemicals complex at the the new Alamein area. The project capacity is about 2.5 million tons per year of crude oil and condensates, using the existing facilities of the port of Hamra and depending on the quantities of crude produced in the Western Desert with the possibility of importing the rest of the quantity from abroad. The products will be used to satisfy the needs of the local market from these products and exporting the surplus. Its estimated investment cost is about 8.5 billion dollars and it is planned to be completed by the end of 2024.