Egypt and Kuwait to invest in petrochemical projects

On 15 February 2015, Egypt and Kuwait signed a memorandum of understanding to invest some US$6.8 billion in projects in the petrochemical and phosphate fertiliser sectors. The projects include the construction of propylene and formaldehyde production plants, a petrochemical and refinery facility, and a phosphate and compound fertiliser plant, according to an Egyptian Cabinet statement.

The companies that signed the agreement include Egyptian Petrochemicals Holding Company (ECHEM), Egyptian Phosphate Company, Egyptian-Kuwait Holding, Saudi International Petrochemical Company (SIPCHEM), Bawabet Al-Kuwait Holding Company, and Boubyan Petrochemical Company (BPC).

“The oil sector is one of the sectors that attract investments from the two sides. These projects are, thus, of great importance even if they will need about five to six years to be completed and start production,” said Mohamed Safaan, ECHEM President and Chairman. “We are, however, positive about their outcome and the revenue they would add to investments in such a vital sector.”

“The projects will provide great job opportunities which would amount to 28 000 direct and indirect opportunities,” added Hussein Al-Kharafi, Chairman of Kuwait Industries Union. “They will also boost Egypt’s ability in oil production to meet the needs of the local market and open an export market.”

Edited from various sources by Rosalie Starling

Sources: Daily News Egypt, Customs Today, Plaste Mart

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/17022015/egypt-and-kuwait-to-invest-in-petrochemical-projects-263/