Five Egyptian companies plan forming a consortium to import liquefied ethane gas

The consortium includes SIDPEC at 25 percent stake; the Egyptian Ethylene and Derivatives Company (ETHYDCO) at 25 percent; Gama Construction Company at 25 percent; the Egyptian Petrochemicals Holding Company (ECHEM) at 15 percent; and the Egyptian Natural Gas Company (GASCO) with a 10 percent stake.

The company will be formed over three phases with 40 percent financed by the shareholders and 60 percent financed via bank loans after the approval of all parties on the investors' agreement.

Egypt has been struggling to overcome a natural gas shortage that has forced the government to implement power cuts amid increased consumption in recent months.

Last week, the government allocated $1.18 billion in an urgent plan to import the needed quantities of mazut and natural gas to overcome shortages and halt power cuts.