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Egypt unveils $19bn petchem strategy

EGYPT EGYPT has a new strategy targeting the devel- An initial deal is in place with a joint venture
opment of $19bn of new petrochemical projects between PSW Group and another UK firm.
by 2035, Petroleum Minister Tarek El-Mulla said Italy’s Saipem and Egypt’s Petrojet have also
on May 25. bagged a deal to build a 36,000 tpy polybutadi-
The North African country is looking to build ene unit in Alexandria. The project is valued at
up its petrochemicals industry to find more uses $183mn.
for its oil and gas and meet growing domestic Egypt’s Sun Egypt Group and Wadi El
demand for petrochemical products. Nil Developments, and the UAE’s Zafcomm,
The new projects include two large refining have also secured a construction contract for
and petrochemicals complexes in SCzone and a $117mn, 110,000 tpy methanol derivatives
New Alamein City. The SCzone complex is slated plant in Damietta. Petrojet, meanwhile, has
to cost $7.5bn, and will produce 202,000 tonnes been selected for a medium-density fibreboard
per year of petrochemicals and 650,000 tpy of (MDF) plant in Beheira.
petroleum products. An initial agreement has A feasibility study has also been commis-
been signed with the US’ Bechtel on its develop- sioned to erect a $110mn ethanol plant, and pro-
ment. Earlier a feasibility study was carried out jects to produce propylene and polypropylene in
by the UK’s Wood. Alexandria are also being considered.
Financing is expected to come from the Egypt’s petroleum ministry also wants to
US International Development Finance Corp. establish a $400mn facility to produce up to
(USDFC) and US Exim Bank. 50,000 tpy of polyacetal and a $260mn plant to
The complex in New Alamein City is due to produce up to 60,000 tpy of melamine, both in
cost $8.5bn and turn out 1mn tpy of petrochem- Damietta. Studies are underway on producing
icals and 850,000 tpy of petroleum products. sodium carbonate in Kafr El Sheikh. ™

GRID

Egypt wants more information about

EuroAfrica Interconnector

EGYPT EGYPT’S Ministry of Electricity intends to post- is 1,707km long and will need high costs. More-
pone any approval of the EuroAfrica Intercon- over, the cable’s path and landing points also
nector project with Greece- and Cyprus because require security permits.
a number of necessary studies by the Cypriot The project is included in Egypt’s strategic
side not being completed. plan for economic development and energy
The Cypriot developer of the project was security. The project is also set to connect Egypt
notified several times that the studies required to the European electrical grid through Cyprus.
completion for the interconnection project to However, the government wants more infor-
proceed, Daily News Egypt reported. mation about costs, alongside a review of con-
The studies were required as part of com- struction, operation, maintenance, insurance,
pliance measures with the ministry’s strategic and guarantees.
plan for electrical linkage with neighbouring EuroAfrica Interconnector, the project devel-
countries. oper, said on its website that the interconnector is
EuroAfrica Interconnector is a HVDC inter- in the pre-operation phase.
connector between Greek, Cypriot, and Egypt It noted that the Egyptian government had
power grids via submarine power cable. It will agreed on the electrical cable’s path, landing
have a capacity to transmit 2GW of electricity in point, and the converter station location. It did
either direction. not, however, discuss further aspects.
The source added that Cyprus has deter- “The project will turn Egypt into an energy
mined the submarine cable path, with the Egyp- centre and electric carrier in Europe,” the com-
tian Electricity Transmission Company (EETC) pany said.
responsible for determining the submarine It added that the project will contribute to
cable’s landing point in Egypt. a reduction in carbon emissions and provide
EETC wants to receive in-depth and exten- social and economic benefits amounting to
sive studies before it can give its approval to join EUR10bn ($11bn).™
the project, especially since the submarine cable

Week 22 04•June•2020 www. NEWSBASE .com P7