Egypt in talks to revive $2 bln aromatics project: report

State-owned Egyptian Petrochemicals Holding Company (ECHEM) is discussing plans to revive its $2 billion aromatic petrochemical complex project in Alexandria, MEED reported on Wednesday, citing sources familiar with the matter.

While talks are underway, nothing official is expected to be announced until next year, a source said.

The company had planned to set up the complex to produce 400,000 tons of benzene and 600,000 tons of paraxylene a year.

The project, which was first announced in 2005, has been delayed several times due to financing issues and concerns over feedstock supply.

A pre-feasibility study conducted by US-based KBR in 2012 showed there was not enough local feedstock to supply the facility, while imported feedstock would make the project unviable.

Since then however, market dynamics have changed in the region, with large gas reserves discovered in Egyptian waters and global oil prices plunging significantly.

The project is part of Egypt’s 20-year, $10 billion Petrochemical Master Plan (PMP) designed to increase the production of petrochemicals to 15 million tons per year.