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DMEA PETROCHEMICALS DMEA
Egypt signs prelim deal on $6.7n petchem hub
EGYPT
The cooperation agreement was signed with US engineering group Bechtel.
STATE-OWNED Egyptian Petrochemicals (ECHEM) has signed a cooperation agreement with US engineering group Bechtel, which Cairo claims will pave the way for construc- tion of a $6.7bn refining and petrochemical complex.
Under the deal, ECHEM will begin preparing a detailed feasibility study for the project with an international consultant, the Egyptian Petro- leum Minister said on February 11. Bechtel will meanwhile approach banks and other financial institutions to assess what funding options are available.
The proposed complex would be built in the Suez Canal Economic Zone (SDZone). Neither Egyptian authorities, ECHEM nor Bechtel have commented on the specifics of the project.
Egypt is looking to advance several major petrochemical investments, in order to curb its reliance on imports. Investors are attracted to the country because of expectations of fast-growing demand for petrochemical products, given the steep rise in its population in recent years, which
just surpassed 100mn.
Still, getting projects off the ground has been
an uphill struggle. Privately-owned Carbon Holdings for instance is still negotiating financ- ing with investors for its $10-11bn Tahrir Petro- chemicals Complex (TPC), after years of limited progress. Investors are reluctant to commit because of volatile conditions on the global pet- rochemical market in recent years, and political risks in Egypt. TPC will host the world’s largest single-train naphtha cracker, capable of produc- ing 1.5mn tonnes of ethylene and 925,000 tonnes of propylene annually.
The agreement between Bechter and ECHEM was among a raft of documents signed at the EGYPS 2020 petroleum conference that began in Cairo on February 11. Among other deals, Egyptian General Petroleum and US oil- field services giant Schlumberger signed a mem- orandum on creating an Egyptian e-portal for oil and gas research. A second memorandum was also signed between Schlumberger and BP on
co-operation in the field
of digitalisation. ™
contribution to the development and sustainability of the Bahraini economy and attraction of foreign investments into the kingdom.
The Minister of Oil also added that the agreement inked with Saipem will enhance GPIC’s ability to increase production, expanding its contribution to the kingdom’s economy.
Global Yatirim Holding’s
Naturelgaz to buy Socar‘s
Turkish LNG unit
Naturelgaz has signed an agreement to purchase 100% of SOCAR Turkey LNG, Global Yatirim Holding announced on February 6.
After the share transfer, Naturelgaz and Azerbaijani state-controlled company SOCAR Turkey LNG will be merged under Naturelgaz, Global Yatirim Holding, parent company to the enterprise set to be acquired, said in a filing with Borsa Istanbul.
Naturelgaz, a 95.5%-owned subsidiary
Bahrain’s GPIC, Italy’s
Saipem to explore
expansion projects
Bahrain-headquartered petrochemical producing company The Gulf Petrochemical Industries Company (GPIC) has inked a deal with Italian oilfield services company Saipem to study the feasibility of various projects in Bahrain.
The deal is in line with GPIC’s strategy to expand operations by reviewing the viability of implementing new projects within its industrial complex at Sitra and leverage the discovery of Bahrain’s largest oil field, which was announced in 2018.
The president of GPIC, Dr Abdulrahman Jawahery, said that the agreement includes studies for three projects, according to the state-run Bahrain News Agency.
The first one relates to the technical
and commercial feasibility of increasing GPIC’s plants daily production of ammonia, urea, and methanol by approximately 15%, through technical solutions that reduce energy consumption and use natural gas.
NEWS IN BRIEF
The estimated cost of this project would be $386.5m (€350m).
The second project includes a pre- feasibility study to build a mega ammonia/ urea plant with a daily production capacity of 2,200MT and 3,400MT of ammonia and urea respectively, which is expected to cost between $1.65bn and $2.2bn (€1.5bn-€2bn),
The third project will look to determine the quality of gas feedstock in the fields discovered in 2018. If proven feasible
and implemented, these gas projects are estimated to cost $1.65bn (€1.5bn).
The Gulf Petrochemical Industry Company (GPIC) has close ties with many Italian companies, having made deals worth more than $15m over the last two years.
The agreement was inked on the sidelines of the official visit of the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister, HRH Prince Salman bin Hamad Al Khalifa, to the Italian Republic.
The Minister of Oil, HE Shaikh Mohammed bin Khalifa Al Khalifa, extended the support of the National Oil and Gas Authority (NOGA) to all its subsidiary companies, noting their
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Week 06 13•February•2020