EGYPT - The Sector.

Egypt's petrochemical plants now are concentrated at Ameriya, 30 km from Alexandria. There plenty of feedstocks are available, with the gas piped mainly from the Western Desert. Private petrochemical plants are operating and under construction in the Suez area and the Nile Delta port of Damietta where free zones provide tax breaks and other incentives.

The petrochemical sector was developed late, relative to the country's extensive capabilities in other industries. Before Echem was created in 2002, this sector used to be of less importance and part of EGPC's domain. The first step towards establishing a petrochemical industry was taken in 1979, with an agreement between EGPC and Montedison of Italy to build a complex at Ameriya. Montedison later pulled out. In 1982 EGPC decided to go ahead with the project on its own. Egyptian Petrochemical Co. (EPC), a fully-owned unit of EGPC, was formed in the same year to undertake the Ameriya project. Now EPC is part of Echem.

The Ameriya Complex: The first phase of EPC's complex at Ameriya came on stream in early 1986. A $700m second phase involving public sector banks and insurance firms as partners of EPC came on stream in 2000. The first phase has the following plants: a 100,000 t/y polyvinyl chloride (PVC) unit brought on stream in mid-1999 to replace an 80,000 t/y plant; a 100,000 t/y vinyl chloride monomer (VCM) unit, which was expanded in mid-1999; a unit to produce 126,000 t/y chlorine and caustic soda; and an 82,000 t/y sodium hydroxide unit added to the complex in 1992 (see background in down3EgyptPetchJan16-06).

Egyptian Arabian Petrochemical Co. (Petropoly) has the country's first polystyrene plant built in the Alexandria refining complex and on stream since 2002 with a capacity of 100,000 t/y. The plant takes its ethylene feedstock from Sidpec and benzene from the refinery.