Egypt, Bechtel ink agreement to develop grassroots refining complex

Egyptian Petrochemicals Holding Co. (ECHEM) has signed a heads of agreement (HOA) with Bechtel Corp. for execution of engineering, procurement, and construction (EPC) on a proposed integrated refining and petrochemicals complex to be built in the Suez Canal Economic Zone (SCZone).

As part of the HOA signed on Feb. 11 by ECHEM and Bechtel’s Chief Executive Officer Brendan Bechtel, Bechtel also will assist in facilitating financing for the project from financial institutions, a Bechtel spokesperson told OGJ on Feb. 14.

While local Egyptian media reported an overall cost of the proposed project at $6.7 billion, project documents from Egypt’s Ministry of Petroleum & Mineral Resources (MOPMR) dated January 2020 indicate an overall project investment cost of $6.2 billion.

Designed to help meet increased demand for transportation fuels and petrochemical products on Egypt’s domestic market as well as create opportunity for possible exports abroad, the integrated refining complex—if realized—would be equipped to process between 2.7-3.2 million tonnes/year of crude oil to produce 900,000 tpy of petroleum products and 1.2-1.9 million tpy of petrochemical products, according to MOPMR.

While MOPMR said the project comes as part of the Egyptian government’s plan to develop the SCZone, further details regarding a precise location of the proposed complex and a timeline for its development have yet to be officially disclosed.