Egypt’s Petchems Boosted By New Gas – But Demand Also Rising

As Egypt’s gas production began to fall away in 2012, the country’s gas-based chemicals producers – both petrochemical and fertilizers firms – were first in line for gas feedstock cuts. But now, with the gas beginning to flow again, companies are looking forward to good times.

While Egypt’s power plants are the largest user of locally produced gas, domestic electricity supplies – or blackouts – are a potentially greater political problem for government than lower chemicals output. So when gas supplies are under pressure, petchems and fertilizers firms are among the first to be squeezed.

As of mid-2016 Egyptian state gas supplier EGAS was contracted to supply up to 510mn cfd of gas to fertilizers plants as well as 110mn cfd of natural gas plus 30mn cfd of ethane to petrochemicals plants. The total 620mn cfd of natural gas required was equivalent to 15% of Egypt’s 2016 gas output. (CONTINUED - 636 WORDS)