Back to the complete issue
Wednesday, 25 August 2021

Look out Methanex

The Oil Ministry has formed a new state-owned petrochemicals company that will join Methanex in producing methanol in Egypt. A shareholder agreement has been signed establishing Misr Methanol and Petrochemicals, which will manufacture methanol, ammonia, and other petrochemicals, the Oil Ministry announced today in a statement.

Around USD 1.6 bn will be invested in the first phase of Misr Methanol’s plant, the statement said, adding that the project is planned to be established in the SCZone’s Ain Sokhna site. It aims to produce 1 mn tonnes of methanol and 400,000 tons of ammonia annually, a portion of which will be exported.

The new company will be jointly owned by Abu Qir Fertilizers, Helwan Fertilizers, and Al Ahly Capital Holding, where Abu Qir and Helwan will each hold a 35% stake, and Al Ahly Capital will hold the remaining 30% stake.

Two’s company: The new entrant to Egypt’s petrochemicals industry will presumably be competing for market share with Methanex, which for a decade has been Egypt’s only methanol producer. The Vancouver-based Methanex Corporation holds a 50% stake in its Egyptian affiliate, with the remaining shares split between Egyptian Petrochemical Holding Company (ECHEM), Egyptian Natural Gas Holding Company (EGAS), Egyptian National Gas Company (GASCO), and Arab Petroleum Investments Corporation (APICORP). The company has a production capacity of 1.3 mn tonnes of methanol annually.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt.