Egypt signs USD 7.5 billion petrochemical complex deal in Ain Sokhna

Egypt has signed a USD 7.5 billion deal to construct a petrochemical complex in the Ain Sokhna industrial zone, the government said on Wednesday.
Egyptian Prime Minister Mostafa Madbouly attended the signing ceremony. The Red Sea Refining & Petrochemicals Co.’s managing director Mohamed Ali Abbadi and the Suez Canal Economic Zone’s Abdel Nasser Rafai signed the agreement.
The chairman of the Suez Canal Economic Zone Yehia Zaki and Minister of Petroleum and Mineral Resources Tarek El Molla attended.
The 3.56 million square meter facility is the latest part of the country’s efforts to try to develop an energy hub in the eastern Mediterranean.
The deal, between the Red Sea National Refining and Petrochemicals Company and the Suez Canal Economic Zone’s development company, aims to produce value-added petroleum products in order to fill Egypt’s domestic needs and enable exports.
A statement from Egypt’s government said the complex aimed to produce a range of value-added products, in addition to serving as a refinery. Products should include polyethylene, polypropylene and polyester, in addition to various other feedstocks.
The complex is intended to meet local needs and reduce the need for imports of products. Furthermore, it may offer scope for export opportunities. The plant will cover 3.56 million square metres.
El Molla said the complex would develop the country’s refining and petrochemical industries and was a pillar of the ministry’s plan. Reducing imports, he said, would improve the country’s trade balance and offer new opportunities for direct, and indirect, employment.
Zaki said petrochemicals would create 15,000 jobs for Egyptians.