English investment firm Shard Capital has unveiled plans to develop a $7 billion petrochemical complex in Egypt’s New Alamein Industrial Zone, according to a statement from the Ministry of Petroleum and Mineral Resources on August 1.
Petrochemical complex
The announcement followed a high-level meeting this month, which included Karim Badawi, Egypt’s Minister of Petroleum and Mineral Resources; a delegation from Shard Capital; Gehan Saleh, Prime Minister’s Advisor for Economic Affairs; and Ibrahim Mekki, President and Chairman of the Egyptian Petrochemicals Holding Company (ECHEM).
This project is a cornerstone of ECHEM’s strategy to enhance the nation’s petrochemical industry. During the meeting, Minister Badawi underscored the Ministry’s commitment to supporting ventures that add value to Egypt’s oil and gas resources, with a specific focus on the petrochemical sector. He emphasized efforts to attract significant investment to maximize the utility of Egypt’s existing infrastructure, aiming to boost domestic production, reduce imports, and increase export opportunities.
Badawi also highlighted the necessity of aligning these projects with Egypt’s broader infrastructure and resource capabilities, ensuring a supply of raw materials and production inputs while targeting foreign markets for part of the output.
The Ministry is also investing in other key projects in the New Alamein area, including the proposed petrochemical complex, a soda ash production facility, and a silicon production complex, all of which are currently under development. These initiatives are integral to Egypt’s strategy to expand and diversify its petrochemical production capacity.
UK investments
The UK has a notable presence in the petrochemical sector in Egypt, driven by both direct investments and collaborations between UK companies and Egyptian entities.
BP is a major player in Egypt’s oil and gas sector, which includes petrochemical activities. Although primarily known for its oil and gas exploration and production, BP’s activities in Egypt contribute indirectly to the petrochemical industry.
Moreover, BP has significant investments in Egypt, including a stake in the development of the North Alexandria and West Mediterranean Deepwater fields. These activities support the supply chain for the petrochemical industry.
Saudi Saudi Basic Industries Corporation (SABIC) has strong partnerships with UK firms and operates in the Egyptian petrochemical market. SABIC has invested in Egypt’s petrochemical sector, including joint ventures and collaborations that often involve UK-based firms.
Shell is another British energy company with operations in Egypt. It has a presence in various sectors, including petrochemicals. Shell’s investments in Egypt encompass exploration and production that support the petrochemical value chain.
