Petrochemicals producer and distributor Sidi Kerir Petrochemicals Company (SIDPEC) announced that it will form a consortium to import US shale gas to Egypt.
SIDPEC will hold a 25% stake in the $663-million consortium, to be established later this year. According to the announcement, 40% of the financing for the initiative will be sourced by shareholders within the consortium, while 60% will be financed through bank loans.
The consortium will also include joint stock company the Egyptian Ethylene and Derivatives Company (25%) and construction contractor Gama Construction Company (25%), along with refining company Egyptian Petrochemicals Company (15%) and Egypt’s state-owned Egyptian Natural Gas Company (10%).
The initiative was formed in response to Egypt’s dwindling natural gas supplies, with estimates suggesting that the country requires roughly $1.18 billion worth of natural gas imports to end persistent power cuts.
