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A new ethane pipeline for Egypt: 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 a station at Alexandria’s Dekheila Port to Sidi Kerir Petrochemicals (Sidpec) and the Egyptian Ethylene and Derivatives Company (Ethydco), a source from the government told EnterpriseAM.
More about the station: 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.
The details: The project will feature two 400-meter-long sea berths with up to 20 meters of sea depth and a 400k sqm yard that will house storage warehouses, gasification units, and logistics services, according to a statement. The project will accommodate large tankers with a capacity of up to 300k tons and handle up to 5 mn tons per year. The facility also aims to facilitate the state’s plan to import 1.1 mn tons of liquefied ethane gas per year. Sidpec and Ethydco will be responsible for tendering and contracting global gas suppliers once construction is complete, the official said.
More about the pipeline: 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.
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.
Remember: Sidpec and Abu Qir fertilizers announced a total shutdown of operations at theirplants 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.”
