Egypt expands petrochemical sector with new projects
Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi highlighted the strategic role of new petrochemical projects in strengthening the country’s economy and industrial sector.
Speaking at the general assembly of the Egyptian Petrochemicals Holding Company (ECHEM), the minister emphasised that these projects will not only reduce import dependency but also ease the financial burden on the state. He stressed that expanding local production is crucial for ensuring a steady supply of essential raw materials needed for various industries.
Ten New Projects to Boost Production
ECHEM Chairman Ibrahim Makki announced that ten major projects are currently underway, adding an annual production capacity of seven million tons and introducing 20 new industrial products to the local market. These initiatives are expected to replace imports worth over 8 billion dollars, significantly enhancing Egypt’s self-sufficiency in key materials.
As part of the expansion efforts, ECHEM is also developing existing industrial complexes, including Mopco, ELAB, and the Egyptian Petrochemicals Company. The sector, which produced 4.5 million tons in 2024, aims to increase its contribution to Egypt’s GDP from three per cent to 7.5 per cent by 2030.
Green Energy and Sustainability Initiatives
In addition to expanding production, Minister Badawi stressed the importance of adhering to project timelines, with some expected to commence operations by late 2025 and early 2026. He further underscored the government’s commitment to sustainability by investing in emission-reduction technologies and eco-friendly production methods.
As part of these efforts, Egypt is positioning itself as a regional hub for Sustainable Aviation Fuel (SAF). ECHEM has already started work on the country’s first SAF production project, which will require coordinated efforts between the ministry and other government entities to establish a comprehensive strategy.
New Industrial and Energy Projects
Among the key developments, the Suez Methanol Derivatives Project is set to launch by the end of this year, providing high-value materials for multiple industries, including furniture, construction, and thermal insulation. Meanwhile, the Alamein Metallic Silicon Complex and the Egyptian Soda Ash Plant are being developed to support the solar panel and glass industries, respectively.
Additionally, Sidpec, in Alexandria, is establishing Egypt’s first sodium cyanide production facility in collaboration with Austrian and Czech partners. This project aims to serve the mining industry and other industrial sectors that rely on this critical chemical.
These initiatives collectively reflect Egypt’s commitment to expanding its petrochemical sector while advancing sustainability and industrial development, reinforcing the country’s position as a key player in regional energy and manufacturing markets.
Attribution: Amwal Al Ghad English
Subediting: M. S. Salama