Egypt eyes 3.1m tonne/year capacity at proposed $7bn petrochemical complex

SINGAPORE (ICIS)–Egypt’s proposed $7 billion petrochemical complex in New Alamein City is slated to produce 3.1 million tonnes/year of “eight specialized” products, according to project leader Shard Capital Partners.

“Using crude oil as its primary feedstock, the facility will include a refinery, and a mixed steam cracker unit designed to achieve one of the highest global conversion rates,” the UK-based wealth and asset manager said in a statement on 21 February.

A consortium comprising Shard and Middle Eastern private investment firms – UAE’s Royal Strategic Partners and Saudi Arabia’s Al-Qahtani Group – signed on 19 February a framework agreement with Egypt’s Ministry of Petroleum and Ministry of Investment on the project.

The petrochemical complex is to be built in northwestern Egypt, but the company did not provide a product breakdown for the complex.

“In addition, Shard Capital is having initial discussions with Orascom Construction for the investment in the construction and operation of the complex outside battery limits on a Build-Own-and-Operate basis,” the UK company said.

Egypt-based Orascom Construction is a global engineering and construction contractor primarily focused on infrastructure, industrial and high-end commercial projects in the Middle East, Africa, and the US.

“This transformative venture will bolster Egypt’s local economy, enhance Egyptian expertise in the petrochemical sector, and strengthen strategic ties between Egypt, the Gulf countries, and the United Kingdom,” Shard Capital said.

“Additionally, it will significantly enhance Egypt’s export capabilities in the petrochemical sector, playing a pivotal role in driving economic growth and strengthening global market position,” it added.

A construction site at the New Alamein City in Egypt on 19 August 2023. (KHALED ELFIQI/EPA-EFE/Shutterstock)