USTDA advances petrochemicals development in Egypt

The US Trade and Development Agency (USTDA) has awarded a feasibility study grant to Egyptian Petrochemicals Holding Co. (ECHEM) for what will be Egypt’s first polyoxymethylene (POM) plant.

USTDA’s study will provide expert analysis as ECHEM identifies the design, capital requirements, and technical specifications necessary to develop the POM plant, which will produce a recyclable thermoplastic for industrial and consumer products, USTDA said.

The project will also drive local economic growth and provide a domestic supply of an important engineering plastic, according to USTDA.

“We are committed to the revitalization of Egypt’s petroleum sector and the development of Egypt as a regional energy hub,” said Todd Abrajano, USTDA’s acting deputy director.

Egypt is a cornerstone of USTDA’s program in North Africa and the Middle East. Since its founding in 1992, USTDA has funded more than 50 projects in the country, promoting sustained economic growth in Egypt and generating US exports and stronger business partnerships between companies of both nations.

“[Signing of the agreement] is an excellent example of the strategic partnership between Egypt and US on many different levels in the oil and gas sector. This clearly reflects the confidence in the reforms and success stories carried out by the Egyptian oil and gas sector,” added H.E. Tarek El-Molla, Egypt’s minister of petroleum.

ECHEM will select an American firm to conduct the study for the proposed POM plant, USTDA said. A timeframe for the project, however, was not disclosed.

Consisting of nine operating companies, ECHEM was established in 2002 to execute Egypt’s 20-years petrochemical master plan, which aims to optimize value of the country’s natural resources.

Currently, ECHEM subsidiary Sidi Kerir Petrochemicals Co. (SKPC) is executing a project to add 450,000 tonnes/year of polypropylene production, based on the quantities of propane feedstock, at its petrochemical complex in the El-Amerya—El-Nahda Territory of Alexandria, which also produces 300,000 tpy of ethylene, 225,000 tpy of polyethylene, 50,000 tpy of LPG, and 10,000 tpy of butene-1, according to SKPC’s website.

SKPC’s polypropylene project is scheduled for start-up in first-quarter 2022.