EGYPT – The Egyptian Petrochemicals Holding Company (ECHEM) has signed a cooperation agreement with the American company, Bechtel Group, for the construction of a refining and petrochemical complex within the Suez Canal Economic Zone.

According to the Ministry of Petroleum, the proposed refining and petrochemical will be constructed at a cost of US$6.7 billion.

The agreement was signed by Head of the ECHEM, Saad Helal, and CEO of Bechtel Group, Brendan Bechtel during the 2020 Egypt Petroleum show.

Also present were the Minister of Petroleum Tarek el-Molla, Governor of the Central Bank of Egypt Tarek Amer, and American Ambassador to Cairo Jonathan Cohen.

ECHEM has already finalized the refining complex’s preliminary studies, in preparation for a detailed feasibility study for this giant project in cooperation with a global consultant.

The agreement stipulates that ECHEM will prepare a detailed feasibility study in cooperation with an international consultant, within the framework of the state’s efforts to encourage establishing giant projects in Egypt.

“Bechtel Group will provide the necessary funding from banks and international financial institutions,” the statement revealed.

It further clarified that this project is expected to increase the productivity of petroleum and petrochemical products to cover the local market needs and to export these products.

Egypt’s President Abdel Fatah al-Sisi had earlier met with the CEO of Bechtel Group, where Sisi expressed appreciation for the activity of the international company in Egypt.

He also stressed Egypt’s keenness to benefit from the company’s experiences not only in the oil and gas sector, but also in the field of water treatment and desalination.

 Titled “North Africa and the Mediterranean: Meeting tomorrow’s energy needs” the fourth edition of the Egypt Petroleum also saw the signing of an MoU between the General Petroleum Corporation and the Schlumberger company.

According to Egypt Today, the MOU will create an online Egyptian portal for oil research and exploration, supporting Egypt’s aim to digitally transform its oil and gas industry.