CAIRO: Banque du Caire has signed a LE 200 million agreement with Trans Gas Company to finance delivering natural gas to the Kafr Al Sheikh governorate in Egypt.
Within the last year, the Kafr El Sheikh governorate has become home to some of the biggest natural gas and oil projects in the country, and is set to become the Egyptian hub for the petrochemicals industry, thanks to the construction of the first integrated petrochemicals complex in the governorate.
On April 13, Minister of Petroleum Sameh Fahmy, accompanied by Salah Salama, governor of Kafr El Sheikh, and a number of top brass from the petroleum industry, visited Kafr El Sheikh to view the latest progress made on the constructing of the first integrated petrochemicals and refinement complex (Fourth Generation).
This project, whose investments will surge up to $9.5 billion, will become one of the top 20 facilities in the world upon its completion, placing Kafr El Sheikh on the world map.
The new mega complex will be built in five years and will greatly contribute to the Egyptian economy and industries in terms of providing high quality petroleum, petrochemical products, in addition to aiding the growth of capital markets, providing 100 direct and indirect job opportunities during the implementation period alone.
The complex will be launched courtesy of the petrochemicals holding company, with the government and other private sector companies in refinery, electricity and petrochemicals.
The government is also trying to finance this complex by getting individuals and institutions to financially contribute subcontracting in its capital, according to the ministry.
The complex consists of eight giant projects, including a refinery factory, which will allow five petrochemical projects to produce ethylene, polyethylene, propylene, polypropylene, astern, polyastern, polysetrin and glycol, in addition to a complex to produce zilin and brazilin. An energy generating, steam generating and seawater desalting complex will also be launched, as well as a compound for transportation utilities, shipping and storing.
The Minister also confirmed that the complex’s daily capacity will reach 350 thousand gallons, equivalent to 16.3 million tons annually, which will be made possible through imported raw oil to produce 12 million tons of clean fuel, 6.7 million tons of which will meet European standards, and 3.5 million tons of high quality fuel which will meet U.S. standards.
The complex will also produce 1.2 million tons of high quality plane fuel, 240 thousand tons of gas, in addition to 4 million tons of high quality petrochemical products annually.
“The Ministry of Petroleum’s strategy aims to continue increasing foreign investments to contribute to economic and social development plans, providing new job opportunities, developing exports and transferring advanced technology according to the highest international specifications and standards without causing any financial burdens on the government, stated the Minister of Petroleum in a statement issued by the ministry.
According to the ministry, plans for 10 petrochemical projects are in the making, to be launched within the coming 20 years, with a projected goal of putting out up to 15 million tons of products per year, valued at $7 billion. These ventures will meet all domestic needs, in addition to $3 billion of projected earnings from exports.
In fact, in 2003, the government unveiled a $10 billion investment plan to develop the country s petrochemical sector into a world-scale industry by 2021.
In light of the country’s newly discovered gas reserves, Egypt’s petrochemical industry, which relies on natural gas to manufacture its products, will be able to join the ranks of major global petrochemicals producers.
The Ministry of Petroleum has determined that expanding the Egyptian petrochemical industry and increasing exports of natural gas as its most significant strategic objectives.
Egypt s total market for oil and gas equipment is expected to grow to $1.4 billion by the end of 2003, expanding at around 10 percent annually for the coming three years, according to the study.
Egypt already constitutes one of the largest markets for lubricants in Africa, and is the second most important refining center in the continent.
Thanks to the privatization of two of the country’s biggest petrochemical players; Sidpec and Amoc, the industry is already thriving.
The new complex will aid in this boom by paving the way for further direct foreign investment.
Egypt s petrochemical industry currently generates $7 billion in annual revenues, according to the Ministry of Petroleum s statistics. The government also plans on investing $10 billion into 14 new petrochemical complexes in the governorates of Behira, Kafr Al-Sheikh, Damietta, Daqahlia, Ismailia and Suez over the next two decades.
