Egyptian consortium to set up $300M gasification unit for shale gas imports
Updated 1/18/2024 7:43:00 AM
Arab Finance: An alliance of four Egyptian firms intends to establish a gasification unit for shale gas imported from abroad at the Dekheila Port during 2024 and 2025, with investments worth $300 million, Al Arabiya reported, citing an unnamed source familiar with the matter.
The consortium comprises Sidi Kerir Petrochemicals (Sidpec), Egyptian Ethylene and Derivatives Company (ETHYDCO), Egyptian Natural Gas Company (GASCO) and Egyptian Petrochemicals Holding Co (ECHEM).
Liquid ethane gas, known as American shale gas, will be imported by the end of 2025 or early 2026, and then it will be returned to the gaseous state by the Dekheila gasification unit.
The targeted import quantities will range between 600,000 to 1 million tons annually.
The project will be financed through bank loans, with construction works set to kick off by the end of 2024.
The American shale gas will be obtained through international gas suppliers who will be contacted after the completion of the construction of the gasification station, the source said.
The project investments will be shared equally with the foreign partner, with each injecting $10 million into the project, he added.
It is anticipated that the project will produce one million cylinders annually after approximately a year and a half.
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