Egypt DME plant feasibility study under way

17 June 2008 18:20  [Source: ICIS news]

BAHRAIN (ICIS news)--A feasibility study on Egypt’s first dimethyl ether (DME) plant at Damietta is in progress and the project is targeted for completion in 2010, a senior executive from Egyptian Petrochemical Holding (Echem) said on Tuesday.

“The $80m [€52m] project is progressing well and a joint venture agreement has been signed,” said Osama Kamal, vice-chairman for planning and projects and member of the board for EChem, on the sidelines of the Middle East Petrochemicals 2008 conference.

The project is a 60:20:20 joint venture of Echem, Methanex and China’s XinAo.

“The 200,000 tonne/capacity is a proven one as XinAo has built one of a similar size in China,” said Kamal.

Technology for the unit would be supplied by XinAo, he added.

Feedstock methanol would be sourced for a new methanol plant that is being built at the same site, said Kamal.

The DME would be used as a replacement for liquefied petroleum gas (LPG) in the Egyptian market, he said.

The Middle East Petrochemicals 2008 conference concludes on Tuesday.

($1 = €0.65)

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By: Malini Hariharan
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