State-led JV Alexandria for Supply Chain Company is set to welcome another state entity to the liquefied ethane gas import initiative, with the Transport Ministry’s Holding Company for Maritime and Land Transport (HCMLT) bid to acquire 10% of the company approved by shareholders, Al Arabiya reports, citing an unnamed government official. The Egyptian Ethylene and Derivatives Company (Ethydco) will also join the company as the leading shareholder at a later date, acquiring Egyptian Petrochemicals Holding’s (Echem) entire 37.5% stake, according to the source.

REMEMBER- The Alexandria for Supply Chain Company is a USD 660 mn joint venture aimed at setting up a permanent offshore facility at the Dekheila Port in Alexandria that was launched in August last year. The company 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.

What’s next? A general assembly will be held in the coming days to give the final green light, according to the source.

Who owns what? Assuming HCMLT gets the go-ahead, Echem will hold a 37.5% stake, Sidi Kerir Petrochemicals will own 22.5%, the lone private sector partner Gamma Construction will have 20%, while the Egyptian Natural Gas Company will have 10% alongside HCMLT with 10%.

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