Egypt's Air Supply Group announced on Monday that it has signed an offtake agreement with nitrogen-based fertiliser manufacturer, Egyptian Chemical Industries (KIMA), for industrial gases project.
Under the agreement, Air Supply will build, own and operate air separation units for producing industrial and medical gases at KIMA's plant site in Aswan.
Ahmed Mostafa, Chairman of Air Supply Group told Zawya Projects that the estimated 250-million-Egyptian-pound ($16 million) project is the first partnership of its kind between the state-owned KIMA, and the private sector.
He said: "The air separation units from Italian gas technology provider SIAD Macchine Impianti will have a production capacity of 170 tonnes per day, amounting to 50 million litres per year. We expect to start production in the fourth quarter."
Air Supply said in a related press statement that the company would supply KIMA with industrial gases for the production of ammonium nitrate and other petrochemical products. Additionally, the project will also serve upper Egypt’s industrial and healthcare sectors and augment the country’s production and strategic stock of medical oxygen to meet the needs of COVID-19 patients.
In September, Zawya had reported that KIMA is restructuring an outstanding $292 million and 1.92 billion Egyptian pounds ($122 million) syndicated facility agreement with a group of Egyptian banks. The facility was raised to finance KIMA’s ammonia and urea industrial complex in Aswan.
(1 US Dollar = 15.71 Egyptian Pounds)
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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