MOSCOW (MRC) -- Egyptian Petrochemicals (ECHEM) is planning to complete technical and financial studies of its proposed USD2bn complex to produce propylene and its derivatives, said Chemicals-technology.
The propylene complex will be built on its land in Alexandria. Daily News Egypt cited a senior ECHEM official as saying that the complex will utilise the abundant amount of propane in the region."The purpose is to produce value-added products through different phases to cover local demand and export surplus," the official added.
"The purpose is to produce value-added products through different phases to cover local demand and export surplus."
Alexandria-based Egyptian Natural Gas Company (Gasco) will supply propane to the facility, which is expected to produce 250,000t a year of propylene, which will be processed into intermediate as well as final derivatives.
The propylene complex is planned to be completed by 2020.
ECHEM said it will submit the technical and financial studies results to Boubyan Petrochemicals.
In February, ECHEM and Boubyan Petrochemicals signed a memorandum of understanding to set up petrochemical and phosphate fertiliser projects worth around USD6.8bn.
As part of the partnership, a petrochemical and refinery plant, formaldehyde plant and phosphate and compound fertiliser complex will be built.
The formaldehyde facility in Kafr El-Sheikh will produce 70,000t of urea formaldehyde, polyvinyl acetal, phenol-formaldehyde and melamine-formaldehyde. It will utilise 30,000t of methanol a year.
Planned to be built in Abu Tatur in New Valley, the Phosphate Misr and Abu Qir Fertilizers phosphate and compound fertiliser complex will produce 500,000t of phosphoric acid and phosphate fertilisers.
As MRC reported earlier, last year, Egypt proposed three petrochemical projects to the UAE for a total investment of USD540 mln. The projects included establishing a factory to produce bio-ethanol from molasses, the output of which would reach 100,000 tons of molasses annually, with investment in the project totaling USD250 mln. The project would be implemented in the next fiscal year (FY), according to the ministry’s plan.
MRC