(AFP Photo)
Significantly lower production in Egypt was a main reason contributing to the lower total volume produced by Orascom Construction Industries (OCI) sold during the first quarter (1Q) of 2015.
The lower domestic production saw OCI witness a 23.7% drop compared to the same period last year.
“Ammonia and urea volumes were negatively affected by significantly lower production at our Egyptian operations Egyptian Fertilizers Company (EFC) and Egypt Basic Industries Corporation (EBIC), compared to the first quarter of 2014,” the company said in a statement released Wednesday.
The company highlighted the lower production in Egypt was due to the shortages the country witnessed in natural gas (LNG) supplies.
After the LNG shipment to Egypt in April 2015, the production started to pick up once again, the company noted.
“As of end of April 2015, both production lines at EFC have been running at higher utilization rates than in the first quarter of 2015, while EBIC started receiving gas in May 2015,” OCI said.
The company’s lower production was also a result of the shutdown of OCI’s ammonia and methanol plant in the United States. The facility was closed for two month for upgrade and to complete its planned turnaround.
In November 2014, Orascom announced it will construct a coal-fired power plant in Egypt, which will run at a capacity of between 2,000MW-3,000MW. The plant will be in conjunction the UAE-based company International Petroleum Investment Company (IPIC).
The coal-fired plant is expected to be financed with $3bn. The National Bank of Abu Dhabi is leading a consortium of banks for the construction of a coal-fired plant and is expected to contribute with a $750m investment.
