The company, expected to be completed within the year, will start with a capital of $663 million, according to a Sidpec disclosure on the EGX yesterday
Amid the country’s gas shortage and electricity cuts, Sidi Kerir Petrochemicals (Sidpec), along with partners Egyptian Petrochemicals Holding, Egyptian Ethylene and Derivatives, Egyptian Natural Gas Company, and Gama Construction Company, plan to establish a new company aimed at importing liquefied ethane gas.
The company, expected to be completed within the year, will start with a capital of $663 million, according to a Sidpec disclosure on the EGX yesterday.
The consortium, comprising major players in the chemicals, gas, and construction industries, aims to mitigate the impact of reduced gas supplies which have forced several factories, including fertilizers and chemicals producers, to halt operations.
Sidpec was one of the major industrial players that has to shut down operations due to inadequate gas supplies, which continues to place stress on the local grid amid ongoing heatwaves and increased power consumption.
The new company will be structured with Sidpec holding a 25% stake, Egyptian Ethylene and Derivatives and Gama Construction Company holding 25% stakes each, while Egyptian Petrochemicals Company and Egyptian Natural Gas Company will own 15% and 10% respectively.
According to Reuters, the company’s funding will be with 40% sourced from shareholders and the remaining 60% secured through bank loans spread across multiple phases.
Egypt has been dealing with frequent power outages, exacerbated by recent consecutive heatwaves, leading to the government announcing that the country requires approximately $1.18 billion in natural gas and mazut fuel oil imports to mitigate these challenges and ensure stable electricity supply.
