Egypt signs contracts for Phase One of Red Sea Petrochemicals Project
Published by Oliver Kleinschmidt,
Assistant Editor
Hydrocarbon Engineering,
Prime Minister Mostafa Madbouli witnessed the signing of critical contracts for phase one of the Red Sea Petrochemicals Complex, marking a major step forward in Egypt’s industrial transformation.
The agreements were awarded to the Egyptian-Chinese joint venture responsible for executing the basic design work of the massive project located in Ain Sokhna.
The deal brings together major stakeholders, including the Red Sea National Petrochemicals Company, China National Chemical Engineering Co., Ltd (CNCEC), ENPPI, and Petrojet. These entities will collaborate on developing the initial design blueprint for the complex, laying the groundwork for the project’s next phases.
The facility sits just 10 km from Sokhna Port. It will feature advanced oil refining and steam cracking units. These units are designed to produce high-value petrochemical products, including ethylene and propylene. The project aims to position Egypt as a regional hub for petrochemical production.
The initiative supports Egypt’s broader push toward green industrial development. The complex incorporates environmentally friendly technologies and improves energy efficiency. These efforts align with national goals to reduce carbon emissions and promote sustainable growth. These are core objectives of Egypt Vision 2030 and the country’s Sustainable Development Strategy.
The project supports more than just environmental goals. It also plays a key role in localising industrial production and boosting value-added outputs in the economy. These efforts are expected to strengthen investor confidence and attract financial institutions. This, in turn, will help secure funding for future construction phases.
Finalising the design phase will provide a clearer estimate of the project’s total cost – an essential milestone in achieving financial closure. Egypt’s State information Service reports that with design plans in place, construction will begin in 2026, paving the way for commercial operations shortly thereafter.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/22042025/egypt-signs-contracts-for-phase-one-of-red-sea-petrochemicals-project/
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