Cairo – The Egyptian petroleum ministry on Tuesday announced that Sidi Kerir Petrochemicals (Sidpec) will sign a licence contract with GRACE company to begin the production of polypropylene project in early 2022.

Feasibility studies of the propylene and polypropylene production project were conducted, the ministry said in a statement.

Egypt's largest producer of petrochemicals has signed a contract with Egyptian Natural Gas Company (GASCO) to supply it with the main feeder for the project, the ministry said, adding that Sidpec has signed another contract with the Egyptian Ethylene and Derivatives Company (ETHYDCO) to supply it with electricity.

A tender for the selection of the two plants’ licenses was launched and US-based Honeywell UOP was selected for the license of the propylene plant. A contract was signed by both sides in this matter, the minister indicated.

The new expansions at the propylene and polypropylene complex will be established with $1.2 billion in investments, with a production capacity of 500,000 tonnes of propylene per annum and 450,000 tonnes of polypropylene per annum, the ministry highlighted.

In 2017, Sidpec’s profits fell by 21% to EGP 1.13 billion, versus EGP 1.42 billion in 2016.

The state-run petrochemical company is targeting investments worth EGP 1.03 billion in 2018, according to its investment scheme.

Source: Mubasher

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