It’s not just natural gas and mazut that Egypt wants to import: Four state-owned firms are set to launch a company alongside Triangle Group’s Gama Construction in a project to import liquified ethane gas derived from US shale gas, Al Arabiya Business reports, citing an unnamed government official. The consortium — which is set to launch this month — includes Egyptian Petrochemicals Holding Company (ECHEM), Sidi Kerir Petrochemicals (Sidpec), Egyptian Ethylene and Derivatives Company (Ethydco), and the Egyptian Natural Gas Company (GASCO) will invest USD 600 mn into the new company, the source said.

Why ethane? Ethane is one of the main hydrocarbons used to make ethylene which in turn is a key ingredient in the production of plastics, chemicals, and plant growth regulators to improve agricultural yields.

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The details: The plan is for 40% of the project’s USD 600 mn capital to be provided by the company’s shareholders, while the remaining 60% will be secured through bank loans, the official said. The capital will be paid across three phases, with the companies having allocated some USD 340 mn for the project’s first phase, which is set to commence by the end of June, the source added.

Who owns what: Sidpec, Ethydco, and Gama Construction will each own a 25% share in the new company, while ECHEM will hold 15%, and GASCO will get the remaining 10%.

Ethane shipments are set to be delivered to the port of Dekheila in Alexandria, where they will be directed to Sidpec and Ethydco to allow them to meet 100% of their production capacities, the source added.

What’s next: Sidpec and Ethydco are set to issue international tenders for the shipments once the project’s infrastructure is complete, the source adds.

Remember: Sidpec and Abu Qir fertilizers announced on Tuesday a total shutdown of operations in its plants due to a “lack of feed gasses,” as high temperatures, increasing electricity consumption prices, and cuts to the regional gas supply have been particularly detrimental to the operations of companies in the highly energy-intensive fertilizer industry.

Other fertilizer companies are also powering down factories: Misr Fertilizer Production Company (Mopco) and Kima have also ceased their natural gas supplies to their plants due to the continued heat wave causing “an unprecedented increase in energy consumption rates,” as well as the “halt in some regional gas supply sources,” Mopco (pdf) and Kima said in separate disclosures to the EGX (here (pdf) and here (pdf)).

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