Egypt’s consortium to import US shale gas, addressing natural gas shortage

One of Egypt’s largest petrochemicals companies plans within a consortium to import US shale gas to address a shortage in natural gas supplies that forced several chemicals factories to temporarily shut down twice in June.

Sidi Kerir Petrochemicals Co SAE (Sidpec) said in a bourse disclosure on Monday that it will hold a 25% stake in a $663 million company that will be established this year through a consortium to import US shale gas, liquefied ethane gas.

Sidi Kerir is one of several major companies in the fertilisers and chemicals sector that had to halt production after suffering from short gas supplies that coincided with a worsening of regular blackouts that Egyptians have experienced since last year, due to a surge in summer power consumption and the shortage of gas.

The consortium also includes Egyptian Ethylene and Derivatives Co. (ETHYDCO) and Gama Construction Company with a 25 percent stake each, while Egyptian Petrochemicals Company (ECHEM) will hold a 15 percent stake, with Egyptian Natural Gas Company (GASCO) holding the remaining 10 percent.