Consortium to construct $7bn petchem complex in Egypt

UK-based wealth and asset manager Shard Capital Partners revealed on February 21 that a proposed $7bn petrochemical complex in Egypt’s New Alamein City was expected to produce 3.1mn tonnes per year (tpy) of eight specialised products.

According to the company, the plant will use crude as its primary feedstock and includes a “refinery and a mixed steam cracker unit designed to achieve one of the highest global conversion rates”.

A Framework Agreement for the project was first signed on 19 February between Shard, Saudi Arabia’s Al-Qahtani Group, UAE-based Royal Strategic Partners and the Egyptian Ministry of Petroleum and Ministry of Investment.

Shard added that it would also be holding initial discussions with Orascom Construction for “investment in the construction and operation of the complex outside battery limits on a build, own and operate [BOO] basis”.

Orascom is an Egyptian global engineering and construction company focused on high-end industrial and commercial infrastructure projects in Africa, the Middle East and the US.

Shard concluded that the new project would “bolster Egypt’s local economy, enhance Egyptian expertise in the petrochemical sector, and strengthen strategic ties between Egypt, the Gulf countries and the United Kingdom,” adding that it would also enhance Egypt’s petrochemical export abilities, helping the country play a “pivotal role in driving economic growth and strengthening [its] global market position”.

Shard’s announcement comes amid a strong push to develop Egypt’s petrochemical capabilities. In September 2024, Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi highlighted the essential role of the petrochemical industry in the country’s national economy, with the sector able to provide a base for reducing imports and promoting local industries – while also saying that the ministry had been pushing to promote investments in oil and gas production to provide the fuel needed to maximise capacity at petrochemical plants.

At the time, Badawi stressed that upcoming petrochemical projects would have a significant impact on reducing imports while reaching a “distinguished environmental return”. Referring to increased environmental concerns, the minister stressed that the environmental aspect of the projects would be adhered to in order “to preserve the safety of the human element”, adding that ensuring the commitment of the petrochemical industry to environmental measures in all projects was important.