Egyptian consortium to launch US shale gas import company
(MENAFN) In response to a shortage of local gas supplies that recently caused factory shutdowns and prolonged power outages across residential areas in Egypt, an Egyptian consortium comprising petrochemical firms is set to establish a new company this year aimed at importing American shale gas. Sidi Kerir Petrochemicals Company disclosed in a statement to the Egyptian Stock Exchange on Monday its plans to form the new venture in collaboration with several partners.
The alliance includes Egyptian Petrochemicals Holding Company (ECHEM) with a 15 percent stake, Sidi Kerir Petrochemicals Company (Sidpec) with 25 percent, Egyptian Ethylene and Derivatives Company (ETHYDCO) with another 25 percent, Egyptian Natural Gas Company (GASCO) contributing 10 percent, and Gamma Construction Company with the remaining 25 percent. The total capital for the project is estimated at USD663 million, to be raised in three stages.
According to the disclosure, 40 percent of the company's capital will be financed through shareholders, while the remaining 60 percent will be sourced from bank loans. The initiative aims to secure liquid ethane gas imports, specifically American shale gas, to alleviate the current gas supply constraints in Egypt, which have adversely affected industrial operations and residential electricity stability.
This strategic move underscores Egypt's efforts to diversify its energy sources and mitigate dependency on local gas reserves amid fluctuating domestic supply conditions. By forming this consortium and pursuing the establishment of a dedicated import company, Egypt seeks to enhance energy security and support sustainable economic growth by ensuring reliable gas supply for industrial and residential needs across the country.
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