Egypt Launches $10.9 Billion Petchems Project
Egypt’s Carbon Holdings has signed a contract with the Suez Canal Authority to build the long-awaited $10.9 billion Tahrir petrochemicals complex, according to local media reports. The Egyptian Cabinet said the project at the Suez Canal Economic Zone in Ain Sokhna is set to become the biggest petrochemicals complex in the Middle East, creating 48,000 jobs.
The Tahrir project will comprise 11 plants, including a naphtha cracker producing 1.5 million t/y of ethylene and 880,000 t/y of polymer-grade propylene, which will feed three PP and three PE plants. Other derivative units include butadiene, benzene and gasoil. Construction is expected to take around three and a half years.
The complex will be owned and operated by Tahrir Petrochemicals Corporation (TPC), which was established by Carbon Holdings in 2011. Output will be exported as well as supplied domestically to expanding local industries. Carbon Holdings said TPC will create opportunities for further industrial development in downstream sectors such as those producing electronics, cables, high-impact injection-molded products and tires.
Unconfirmed media reports said a project management consultancy contract has been signed with US construction group Bechtel, along with engineering, procurement and construction agreements with Linde, Maire Tecnimont, Hassan Allam Construction, Consolidated Contractors Group and Greek maritime contractor Archirodon. Technology licenses are also reported to have been agreed with Linde, Univation Technologies and Lummus Technology (for Novolen).
Cairo-based Carbon Holdings was established in 2008 to develop, own and operate midstream and downstream petrochemical projects. It already operates plants producing 180,000 t/y PP, 300,000 t/y of nitric acid and 381,000 t/y ammonium nitrate.
According to Egyptian newspaper Al Masry Al Youm, Carbon Holdings is planning to raise up to $250 million from a dual listing on the Egyptian and London stock exchanges by the end of the first half of 2019.