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A USD 40 mn ethane pipeline: A consortium of state-owned companies plans to construct a USD 40 mn pipeline to transport imported liquified ethane gas derived from US shale gas from Alexandria’s Dekheila Port to Sidi Kerir Petrochemicals (Sidpec) and the Egyptian Ethylene and Derivatives Company (Ethydco), a source from the government told Enterprise.
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ICYMI: State-owned companies Egyptian Petrochemicals Holding, Sidpec, and the Egyptian Natural Gas Company (Gasco) alongside private sector player Gama Construction came together to form a USD 660 mn joint venture — dubbed Alexandria for Supply Chain Company — to set up a permanent offshore facility at the Dekheila Port. The new joint venture aims to import 1.1 mn tons of liquefied ethane gas a year, ensuring a steady supply of raw materials for the petrochemical industry in the region.
In details: The 40-km pipeline will be built by Gasco, which will also finance the project in exchange for a transportation fee of around USD 20 per ton, as well as the right to fully manage and maintain the pipeline.
Remember: Sidpec and Abu Qir fertilizers announced a total shutdown of operations at their plants in June due to a “lack of feed gasses,” as high temperatures, increasing electricity consumption prices, and cuts to the regional gas supply adversely impacted fertilizers companies. Misr Fertilizer Production Company and Kima also ceased natural gas supplies to their plants at the time due to the continued heat wave, which caused “an unprecedented increase in energy consumption rates,” as well as the “halt in some regional gas supply sources.”
What’s next: Gasco will launch a tender for the pipeline’s construction this month, with implementation expected to begin in January for a two-year period.
New berth for gas shipments: A dedicated berth will be constructed to receive imported ethane shipments, the official added. The company that develops the berth will lease it for 25 years under an usufruct contract.
Sidpec and Ethydco to handle gas imports: The two companies will be responsible for tendering and contracting global gas suppliers once construction is complete, the official said.
