Egyptian consortium seal $660 mln deal to establish Alexandria Supply Chain Company

Egyptian Petrochemicals Holding Company (ECHEM), Sidi Kerir Petrochemicals Co. (SIDPEC), Egyptian Natural Gas Company (GASCO), and Gama Construction signed on Thursday a shareholders’ agreement to establish the Alexandria Supply Chain Company.

The project will be implemented with 100 percent Egyptian capital with investments reaching $660 million.

According to a statement issued by the Ministry of Petroleum and Mineral Resources, the project aims to establish a permanent marine facilities station in El-Dekheila Port in Alexandria Governorate.

The new company will focus on securing raw material needs for existing petrochemical companies in Alexandria and future projects under the national plan for the petrochemical industry.

The signing ceremony, held at the Ministry's New Alamein office, was attended by Minister of Petroleum and Mineral Resources Karim Badawi, Chairman and CEO of SIDPEC Mohamed Ibrahim, Chairman and Managing Director of Gasco Yasser Salah El Din, President and Chairman of ECHEM Ibrahim Mekki, Executive Vice President for Operations of ECHEM Mohamed Zaki, Chief Executive Officer at Triangle Group Amr El Tawil, Chief Executive Officer of Gama Salah Ghobrial, and others.

Badawi explained that by securing and sustaining raw materials for the industry, the new company represents a significant leap forward in serving the petrochemical industry in Egypt. The company, he added, will import liquefied ethane gas in trading quantities of up to 1.1 million tons annually.

Furthermore, Badawi noted that the station would be built according to the highest standards in quality, environmental sustainability, and occupational health and safety.

For his part, President and Chairman of ECHEM Ibrahim Mekki explained that the station consists of two berths, each 400 metres long, with a sea depth of 20 metres. Mekki added that the station includes an area of ​​400,000 square metres to establish storage warehouses, gasification units, and all services and facilities needed for the station.

This project will significantly enhance the Egyptian petroleum sector's capacity to receive, store, and gasify liquefied ethane gas, thus enabling the industry to accommodate large tankers with capacities of up to 300,000 tons.