Overview
| . | 2007 | 2008 | 2009 (estimated) |
|---|---|---|---|
| Total Market Size | 3,000 | 4,000 | 4,788 |
| Total Local Production | 0 | 0 | 0 |
| Total Exports | 0 | 0 | 0 |
| Total Imports | 3,000 | 4,000 | 4,788 |
| Imports from the U.S. | 450 | 621 | 782 |
(Exchange rate used: 1 USD = LE 5.50. Values are in
millions of U.S. Dollars. Figures listed are unofficial
estimates.)
Egypt's petrochemical industry is growing at a ten-fold pace,
having increased from $328 million in 2004 to approximately $3
billion in 2007. Currently, four projects are in progress and are
expected to produce 2.6 billion tons of petrochemicals in 2008
and 2009. The two projects to produce polypropylene and
polystyrene are now under construction and are expected to cost
$800 million.
This is part of the Government's 20-year ambitious master plan to
produce petrochemicals for export, in addition to covering the
demands of the local market. The master plan will be
executed in three phases, at an estimated overall cost of $10
billion. The first phase will cost $3.8 billion and was
completed in 2008, with phase two running from 2009-2015, and
phase three from 2016-2022. U.S. technology is in great demand,
the majority of the existing petrochemical plants are producing
under-license from U.S. companies. The U.S. market share is
approximately 26%. Market demand for petrochemicals in
Egypt is estimated at 6% annually.
Best Products/Services
The petrochemical industry is in an excellent position to accept feasibility studies, technology transfers, project and equity participation, and investment opportunities. Equipment for petrochemical factories have historically been imported primarily from the UK, US, Italy, and the Far East, often depending highly upon feasibility study requirements and/or recommendations. With the Egyptian Government hoping especially to increase exports, the petrochemical industry's long-term goal is to produce quality products with 75% going to export markets, and the remainder to the increasing local demand.
Opportunities
Egypt’s Ministry of Investment has several major projects it is currently seeking financing for, including the following:
• Methanol: Production of 1.3 million tpa of methanol for
use as automotive fuel, together with the production of essential
petrochemicals and chemicals products. Cost: $650 million.
• PVC: Raising output by 60,000 tpa for ECHEM. Cost: $250
million.
• Polystyrene: Production of 200,000 tpa for use in plastics
industry. Cost: $150 million.
• Benzene/Toluene/Xylene: Production of 450,000 tpa, 450,000
tpa and 530,000 tpa respectively. Cost: $1billion.
•
Additionally, the Egyptian General Authority for Investment and
Free Zones (GAFI) invited foreign investment in four
petrochemical projects worth about $500 million:
• 120,000 tpa of PVC, costing $200 million and located in
the Nahda district in Alexandria;
200,000 tpa of PS, costing $150 million and located in
Alexandria;
• $100 million project to increase naphtha and solar oil at
a delayed coking unit at Suez Company for Oil
Manufacturing;
• $50 million on Amria Petroleum Refining Co in Alexandria.
Resources
Commercial Service in Egypt: http://www.buyusa.gov/egypt/en/
U.S. Embassy: http://usembassy.egnet.net
USAID: http://www.usaid-eg.org/
World Bank: http://www.worldbank.org/
American Chamber of Commerce in Egypt: http://www.amcham.org.eg
Egyptian Government Web Portal: http://www.egypt.gov.eg/english/
Echem: http://www.echem-eg.com/
Contact for the Commercial Specialist in charge of the
Petrochemicals Sector:
Heba Abdel-Aziz, heba.abdel-aziz@mail.doc.gov