Egyptian petrochemical company Sidi Kerir Petrochemicals (Sidpec) has announced its intention to import US shale gas through a consortium.
The initiative is in response to Egypt’s natural gas supply shortage, which led to temporary shutdowns of chemical factories in June, according to Reuters.
Go deeper with GlobalData
The shortage has been exacerbated by increased power consumption during summer and has resulted in regular blackouts across the country.
In a stock exchange announcement, Sidpec said it will hold a 25% stake in the new $663m (E£31.93bn) entity that will be formed this year by the consortium to import liquefied ethane gas from the US.
The consortium also comprises Egyptian Ethylene and Derivatives Company and Gama Construction, each with a 25% share, while Egyptian Petrochemicals Company will hold 15% and Egyptian Natural Gas Company the remaining 10%.
Financing for the company will be split between 40% shareholder equity and 60% bank loans, spread over three phases.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataEgypt’s growing population and urban development have placed a strain on its electricity generation, which is heavily reliant on natural gas.
With the onset of summer, the increased use of air conditioning has further driven up power consumption, leading to more frequent power outages.
Prime Minister Mostafa Madbouly stated last month that Egypt requires approximately $1.18bn in natural gas and mazut fuel oil imports to mitigate the ongoing power cuts, which have been intensified by heatwaves.
Sidi Kerir, an entity operating in the fertilisers and chemicals industry, had to pause production due to a gas shortage.
Separately, in a move to diversify its energy supply, Abu Qir Fertilizers, another major Egyptian company affected by the gas shortage, announced it would partially transition to hydrogen.
