Japan firm proposes $2.5bn Egypt ethylene plant

02 January 2008 10:00  [Source: ICIS news]

DUBAI (ICIS News)--An unnamed Japanese company has proposed to the Egyptian Ministry of Oil an offer to build a $2.5bn ethylene cracker in the Doumyat area on the country’s east coast, a ministerial source said.  

 

A delegation from the Japanese company would arrive in Egypt on 15 January for negotiations, the source added late on Tuesday.

 

A Kuwaiti company had also proposed to the ministry a similar project and would provide a feasibility study, the source said.  

 

Meanwhile, the Egyptian Petrochemicals Holding Company (ECHEM) has recently received the front-end engineering design (FEED) studies to facilitate an increase in ethylene production capacity at the Sidi Krir company from 300,000 tonnes/year to 600,000 tonnes/year.

 

The expansion at Sidi Krir was mooted after moves to sell a stake in the company failed because potential investors had demanded the government sign a 30-year contract to provide it with feedstock.

By: Abdelghani Henni
65 6780 4359

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