Egypt to Execute 11 Petrochemical Projects Worth $19 Billion

The Egyptian Ministry of Petroleum and Mineral Resources is considering the implementation of 11 new petrochemical projects at a total value of around $19 billion, Minister of Petroleum and Mineral Resources Tarek El-Mulla said on Monday.

This comes within an updated version of the National Plan for Petrochemical Industries taking place between 2020 and 2035.

The minister stated that the strategy aims to raise the added value of petrochemical activities in the country, meet the local demand for intermediate and final petrochemical products, and improve the national trade balance.

The new projects include two mega refining and petrochemicals production complexes in SCzone and New Alamein City. The SCzone complex costs $7.5 million, and has an annual production capacity of 202 tons of petrochemicals and 650,000 tons of petroleum products.

An initial agreement has been signed with Pectel as a feasibility study has been carried out by John Wood Group PLC. Financing will be offered by USDFC and US EXIM Bank.

Regarding the complex to be established in New Alamein City, its costs are worth $8.5 billion, and its annual production capacity is 1 million tons of petrochemicals and 850,000 tons of petroleum products. The land on which the complex will be established was delivered to the ministry.

An initial agreement was signed with a coalition encompassing PSW Group and another UK company. ENPI will invite a tender soon to establish a complex of petrochemical SMEs, which will reply on the output of the complex. The company already studies an offer by a British-Chinese coalition to construct the project.

As for introducing the production of polybutadiene at Ethydco Ethylene Plant in Alexandria with an annual capacity of 36,000 tons, the construction contract was signed with a coalition having Petrojet and SAIPEM. Also, an initial agreement was signed with banks that would finance the project worth $183 million.

The engineering designs of the prospective methanol derivatives production plant in Damietta were finalized as the construction contract was signed with a coalition comprising Sun Egypt Group, Wadi El Nil Developments, and Zafcomm.

The consultancy contract was signed with ENPI. Construction works in the project worth $117 million and having an annual capacity of 110,000 tons have begun.

The MDF production project in Beheira is worth €217 million and its annual production capacity is 250,000 cubic meters. The designing contract was signed with Simple Camp, and a construction contract was signed with Petrojet. The project will be financed by a number of Egyptian banks.

A feasibility study was carried out to launch an ethanol production project worth $110 million. Shareholders have began taking measures to found the company, and MoUs were signed to get molasses from sugar companies as it will be a production input.

A logistics project is planned to take place on 240,000 square kilometers with investments worth $350 million. The project is a marine quay in Alexandria that will be used to export petroleum and petrochemical products.

Two other projects are being studied to take place in Alexandria. One is for the production of propylene, and the other is for the production of polypropylene.

The ministry also plans to establish a plant for the production of polyacetal, and another for the production of melamine in Damietta. The former is worth $400 million and has an annual production of 50,000 tons. The latter is worth $260 million and has an annual capacity of 60,000.

Studies are underway to establish a project producing sodium carbonate in Kafr El Sheikh.

The Iranian rial on Wednesday fell to its lowest level in history, losing more than 10% of value since Donald Trump won the US presidential election in November and signaling new challenges for Tehran as it remains locked in the wars raging in the Middle East.

The rial traded at 777,000 rials to the dollar, traders in Tehran said, down from 703,000 rials on the day Trump won.

Iran’s Central Bank has in the past flooded the market with more hard currencies in an attempt to improve the rate.

In an interview with state television Tuesday night, Central Bank Gov. Mohammad Reza Farzin said that the supply of foreign currency would increase and the exchange rate would be stabilized. He said that $220 million had been injected into the currency market, The AP reported.

The currency plunged as Iran ordered the closure of schools, universities, and government offices on Wednesday due to a worsening energy crisis exacerbated by harsh winter conditions. The crisis follows a summer of blackouts and is now compounded by severe cold, snow and air pollution.

Despite Iran’s vast natural gas and oil reserves, years of underinvestment and sanctions have left the energy sector ill-prepared for seasonal surges, leading to rolling blackouts and gas shortages.

In 2015, during Iran’s nuclear deal with world powers, the rial was at 32,000 to $1. On July 30, the day that Iran’s reformist President Masoud Pezeshkian was sworn in and began his term, the rate was 584,000 to $1.

Trump unilaterally withdrew America from the accord in 2018, sparking years of tensions between the countries that persist today.

Iran’s economy has struggled for years under crippling international sanctions over its rapidly advancing nuclear program, which now enriches uranium at near weapons-grade levels.

Pezeshkian, elected after a helicopter crash killed hard-line President Ebrahim Raisi in May, came to power on a promise to reach a deal to ease Western sanctions.

Tensions still remain high between the nations, 45 years after the 1979 US Embassy takeover and the 444-day hostage crisis that followed. Before the revolution, the rial traded at 70 for $1.

Egypt to Execute 11 Petrochemical Projects Worth $19 Billion