Encouraged by a substantial increase in exports and elevated crude oil prices, the Egyptian government has decided to set up new petroleum refining and petrochemical projects with an investment worth US$9 billion. The new projects will expand Egypt’s existing capability in the global crude oil context and strengthen its position in the export market. Recently, Egypt’s Ministry of Petroleum and Mineral Resources announced the study and implementation of 11 new petrochemical projects between 2020 and 2035, with a cumulative investment worth nearly US$19 billion.
According to the Egyptian Minister of Petroleum and Mineral Resources, the government is working on launching new refining projects valued at US$7.5 billion. These projects include the expansion of the Midor refinery in Alexandria, Egypt, which has completed its first and second phases and has started experimental operations, as well as the diesel production complex project at Asyut’s ANOPC. The Egyptian government is also working on launching new refining projects with a cumulative investment of US$9 billion.
Eng. Tarek El-Molla, the Egyptian Minister of Petroleum and Mineral Resources, stated, “The petroleum sector is implementing several strategic projects in the fields of refining and petrochemicals. With these ventures, Egypt is maximizing its production capacity of petroleum products, expanding value-adding industries, and efficiently utilizing the country’s natural resources, all while working on reducing the carbon footprint of this sector.”
| Year-wise changes in Egypt’s crude oil reserves |
| Calendar year | Estimated volume of reserves (billion barrels) |
| 2014 | 4.4 |
| 2015 | 4.4 |
| 2016 | 4.4 |
| 2017 | 4.4 |
| 2018 | 3.57 |
| 2019 | 3.30 |
| 2020 | 3.30 |
| 2021 | 3.30 |
Source: The United States Energy Information Administration (EIA)
The proposed projects also include the coking complex and diesel production at the Suez Petroleum Processing Company, the condensate distillation project at Nasr Petroleum Company in Suez, and the air distillation project at the Asyut oil refinery. Additionally, new greenfield projects are underway, while a cost of US$1.4 billion. These projects include a medium-density wood panels production facility in Idku, in Beheira Governorate, as well as complexes for the production of soda ash ‘sodium carbonate’ and silicon and their derivatives in El Alamein, and methanol derivatives in bioethanol projects in Damietta.
Petrochemicals sector in EgyptThe Egyptian government adopted a new strategy in 2026 to reduce dependence on imports and encourage domestic production of commodities, including essential products such as crude oil and petrochemicals. Since the launch of the new strategy, the Egyptian government has successfully implemented eight new projects in oil refining, with a cumulative investment of US$5 billion. The strategy aims to develop the petroleum refining industry and increase its production capabilities to reduce imports.
The success of the Egyptian government’s strategy is evident in the doubling of domestic production of petrochemical materials to over 4.3 million tonnes annually by the end of 2021-22, compared to 2.1 million tonnes reported in 2015-16. This expansion required a total investment of US$4 billion. Currently, the Egyptian government is operating eight new petroleum refining and processing projects, in addition to expansions, totaling more than US$5 billion. The growth of the petrochemical industry also supports numerous units in allied sectors.
Surging exportsThe Chemicals and Fertilizers Export Council, an apex industry body affiliated with the Egyptian Ministry of Trade and Industry, recently announced that exports of petrochemical products increased by 23 percent to US$8.63 billion in 2022 compared to US$7.03 billion reported in 2021. The petroleum sector in Egypt is implementing several strategic projects in the field of crude oil exploration, refining, and petrochemicals. Egypt is maximizing its production capacity for petroleum production and expanding value-added industries.
Ahmed Moharram, Founder and Managing Director of Anchorage Investments Ltd, stated in a report, “The Egyptian petrochemicals, chemicals, and fertilizers industries are expected to witness significant development throughout the upcoming years. This would be positively reflected in exports which increased throughout recent years, said the latest report on the Egyptian petrochemical sector.
Egypt is expected to experience future growth in the sector, capitalizing on its overall direction to reduce dependence on imports and promote domestic production. This aligns with the government’s efforts to support the private sector and petrochemical projects. Additionally, Anchor Benitoite, a petrochemical complex, implemented by Average Investments in the Suez Economic Zone (SCZone) is projected to achieve exports exceeding US$1 billion in its first year of operation.
The government’s implementation of the Anchorage Investments complex in the Suez Canal Economic Zone (SCZone) will contribute to foreign direct investments in the country, with a total investment cost amounting to US$2.5 billion. According to Moharram, Anchor Benitoite’s complex will include cutting-edge production units for propylene and various petrochemical derivatives and specialized chemicals, increasing the value-added to its feedstock of natural gas derivatives. Projected expansion is also foreseen in the near future to further produce a range of integrated downstream products.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
