Egyptian Petrochemicals Holding Company Implements Plan to Substantially Increase Capacity

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Researched by Industrial Info Resources (Sugar Land, Texas)--Egypt's domestic demand for polyethylene, polyvinyl chloride, polystyrene and other plastics has increased sharply. Because of this increase in demand, the following companies and refineries produce petrochemicals in the country:

• El Mex Refinery in Alexandria is operated by the Alexandria Petroleum Company. The facility has a capacity of 100,000 barrels per day (BBL/d) and 22,500 BBL/d of vacuum distillation capacity.
• Cairo Petroleum Refining Company in Mostorod, near Cairo. This refinery has a capacity of 145,000 BBL/d.
• The El-Nasr Petroleum Company near Suez has a capacity of 99,300 BBL/d.
• The Amiriyah Petroleum Refining Company in Alexandria has a capacity of 78,000 BBL/d and a 15,000-BBL/d vacuum distillation unit.
• The Suez Petroleum Processing Company near Suez has a capacity of 66,400 BBL/d, and a 9,500-BBL/d vacuum distillation unit.
The Asyut Petroleum Refining Company near the center of Egypt has a capacity of 47,000 BBL/d.
• The Tanta refinery is operated by the Cairo Petroleum Refining Company and has a capacity of 35,000 BBL/d.
• The El-Nasr Petroleum Company operates the small Wadi Feran refinery on the Red Sea in the Gulf of Suez. The refinery has capacity of 7,000 BBL/d.

In 2002, Egyptian Petrochemicals Holding Company (Echem) instituted a plan to lift Egypt's status as a global petrochemical producer.

The Echem website describes the plan: "The Master Plan outlines a total estimated investment of US$20 billion to cover 14 petrochemical complexes, including 24 projects and 50 production units in the next 20 years. Production will reach 15 million tons annually, with a total value of US$15 billion U.S. to meet local demand and an estimated export value of US$7 billion, generating 100,000 job opportunities in petrochemicals and supporting industries."

Egypt has several favorable qualities that will encourage the success of the country's petrochemical industry:

a stable political, economic and legal environment

investment and tax incentive laws

available infrastructure ( electric power, water drainage, transmission, networks, roads and communications)

relatively low labor costs

minimum trade barriers

relatively high population with higher local demand

strong geographical proximity to the European markets

availability of specialized technical expertise in the refining, fertilizers and petrochemical industries

availability of main feedstocks at competitive prices

partnership agreement and free trade with Europe

Echem is constructing a refinery and petrochemical complex that will use refinery output as feedstock. The facility will contain:

• a single-train crude distillation unit (which will determine the refinery's nameplate capacity)
• a solvent deasphalting plant for the treatment of vacuum-bottom residue
• a thermal coker unit to crack heavier feeds
• fluid catalytic cracker
• hydrotreating units
• hydrocracker
• isomerization
• alkylation units

The petrochemical complex will be fed from a steam cracking plant, and an aromatics complex will produce basic and intermediate downstream derivatives.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project spending opportunity databases, market forecasts, high resolution maps, and daily industry news.