Methanex Egypt and Suez Methanol Derivatives Partner Up for Pipeline Construction and Maintenance
Methanex Egypt and Suez Methanol Derivatives Partner Up for Pipeline Construction and Maintenance

Methanex Egypt and Suez Methanol Derivatives Partner Up for Pipeline Construction and Maintenance

  • 02-May-2023 6:46 PM
  • Journalist: Sasha Fernandes

Egypt: An infrastructure development agreement has been signed between Methanex Egypt and Suez Methanol Derivatives (SMD) Company to provide Methanol supply from Methanex Egypt’s plant to the SMD project located in Damietta.

This partnership strengthens Methanex Egypt's role in supporting the growth of the Egyptian petrochemicals industry. As the sole producer of Methanol in Egypt, the company plays a critical role in supplying local industries with Methanol to maximize the value of the country’s oil and gas resources, as envisioned by the Ministry of Petroleum and Mineral Resources.

This agreement takes the commitment to this vision even further as Methanex Egypt undertakes construction and maintenance of a dedicated pipeline, setting up a unique integrated petrochemicals hub in Damietta Port.

The SMD project breaks ground as the first of its kind in Egypt's oil, gas, and petrochemicals sector. Its objective is to produce highly value-added specialty chemicals using locally sourced petrochemicals. As a result, SMD has successfully achieved full integration between various Egyptian petrochemical companies.

SMD has secured agreements with Methanex Egypt, ECHEM, MOPCO, Abu Qir, and EPC for both feedstock supply and product off-take, in addition to their agreement with Methanex Egypt. The Methanol pipeline established as a part of this project will ensure a safe, efficient, and sustainable solution for securing Methanol supply throughout the lifespan of the SMD project.

In 2018, Methanex and the SMD plant signed a Memorandum of Understanding (MoU) to explore potential support for providing utilities and Methanol. Now, an agreement has been reached to move forward with a $120 million Methanol and Formaldehyde derivatives plant in Damietta. This plant will have the capacity to produce 140 KTA of main products, including Urea Formaldehyde Concentrate 85% (UFC-85), Urea Formaldehyde Resins, Sulphonated Naphthalene Formaldehyde (SNF), and there are 42 KTA of special UF resins available for use in various applications.

EMC, Johnson Matthey, and ENPPI are partnering with Methanex as the EPC consortium leader, technology provider, and owner's PMC, respectively. Construction is currently in progress and the commencement of operations is anticipated for October 2024.

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