Petrochemical Industries in Egypt

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Reginald Douglas
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1 Federation of Egyptian Industries Chamber of Chemical Industries Petrochemical Industries in Egypt Present and Future Dr. Sherif El-Gabaly Chairman, Chamber of Chemical Industries

Chemical / Petrochemical Production in US$ 2013-2014 Billion US$ Industries Production (Billion US$ Paper & Cardboard Detergents Paints & Resins Diversified Chemicals &

2 Chemical / Petrochemical Production in US$ Billion US$ Industries Production (Billion US$ Paper & Cardboard Detergents Paints & Resins Diversified Chemicals & Fertilizers Plastic, Rubber & Petrochemicals Total $ = 7.6 LE December Source: The Egyptian Industrial Development Authority (IDA), 2014

3 The country is heavily dependent on imports and the ambitious development program is, in part,aimed at balancing the country s trade deficit alongside improving its export performance. The Egyptian government has launched a 20-year plan involving a three-phase US$ 20bn investment program to develop the country s petrochemical sector, helping to maximize the potential of recently discovered gas reserves. The plan should substantially increase the petrochemical industry s output over the coming years, with ethylene capacity forecast to double by

4 Petrochemical Projects newly established or under construction Product Company Capacity Due On Stream Acrylic Fiber Berla Group / Petroleum sector / Private sector / APICORP 18,000 tpa 2007 Polystyrene E-Chem/ Ministry of Finance/ National Investment Bank / Tecnicas Reunidas 200,000 tpa 2013 Propylene, PP Egyptian Co. for Propylene & Polypropylene (E-Chem & OPC) 350,000 tpa of each 2012 PVC E-Chem / Private sector 200,000 tpa 2013 Linear Alkyl Benzene E-LAB 100,000 tpa 2009 Methanol E-Chem / Methanex (60%) 1.3mn tpa 2014 PET E-Chem / Indian company tpa 2014 PET Egy PET tpa

5 Future Petrochemical Projects Product Company Products Capacity (tpa) Due On Stream Ethylene, Polyethylene The Egyptian Ethylene & its Derivatives Co. Ethylene 500,000 Under Construction 2015 / 2016 Polyethylene 400, / 2016 Aromatics P-Xylene 350, Benzene 300, Refining Naphtha and Petrochemicals Complex (From Naphtha to Olefins and Aromatics) Ethylene. Polypropylene. Butadiene. Benzene & Xylene 360, nd Olefins Complex (Ethylene, Mono Ethylene Glycol, PET) 360, Gas to Olefins Polypropylene 600,000 Polyethylene 400,000 The Egyptian Petrochemicals Holding Company (ECHEM) 5 The development of the basic petrochemical industry will lead to a dramatic development of the downstream plastics, fibers and other related industries.

6 Some projects from phase II Project Gas to olefins Capacity 100,000 tpa Aromatic complex 530,000 tpa (Xylene) 540,000 tpa (Toluene) Polyester (PET) 450,000 tpa The development of the basic petrochemical industry will lead to a dramatic development of the downstream plastics, fibers and other related industries. 6

7 Natural Gas

8 Natural gas is considered the basic raw material for several chemical industries (Nitrogenous Fertilizers,Petrochemicals), and it is used as a fuel in many industries (Glass, Sodium Carbonate, Paper and Resins.) Optimistic expectations of natural gas due to much excavation in the led to establishment of industrial projects based on natural gas either as a basic raw material or as a fuel. I addition, the Egyptian government has belt many Electricity Power Station using natural gas as fuel, besides exporting natural gas to some neighboring countries. As a result of the unstable political situation in Egypt since s'dleif sag larutan, % yb desaerced neeb sah ytivitcudorpbecause the government stopped paying the foreign partner's share value. The maintenance of existing fields and delays in new excavation agreements were stopped for five years ahead. In order to overcome the shortage in natural gas supplies, the government has imported natural gas from Algeria and Russia to fill the gap of local consumption of the Electricity Power Stations sector and industry in Egypt. A Norwegian liquid natural gas transformer floating unit will be available in Alexandria on March It is expected that Egypt will suffer from shortage of natural gas supplies till year It is known that domestic consumption, according to estimates by the Ministry of Petroleum is up to 10 million cubic meters, while the current production is about 6.5 million cubic meters. To overcome these problems, Egypt recently has singed 20 agreements with foreign companies to pay some of their share and to excavate new natural gas fields in Egypt, and to upgrade the existing fields.

9 Contacts Chairman of the Chamber: Dr. Eng. Sherif El- Gabaly Chamber's Contact Address: 1195 Nile Cornish St. (Federation of Egyptian Industries Bldg.) Ramlet Boulaq, Cairo, Egypt. Phone: (202) / Fax: (202) / cciegy@yahoo.com info@cci-egy.com Website: 9

VAL QTY QTY SYNTHETIC ACRYLIC FIBRE SYNTHETIC FIBRES

VAL QTY QTY SYNTHETIC ACRYLIC FIBRE SYNTHETIC FIBRES ACRYLIC FIBRE 10579 12600 24522 44634 26383 37398 19258 26183 31562 47385 37420 NYLON FILAMENT YARN 2102 4733 2110 4925 1923 5412 1865 5728 2023 7402 1848 NYLON INDUSTRIAL YARN/TYRE CORD 2208 2783 3976