Egypt Petrochemicals Industry Update Quarter 3 2012

  • May 2014
  • -
  • Business Monitor International
  • -
  • 100 pages

Includes 3 FREE quarterly updates

Petrochemicals investors have not been deterred by Egypt’s revolution and the subsequent election of a civilian government, with BMI’s latest Egypt Petrochemicals report anticipating ethylene capacity of 1.66mn tonnes per year (tpa) by 2016.
A number of new projects have been announced since Hosni Mubarak’s regime was overthrown, indicative of confidence in Egypt’s potential. Nevertheless, the country’s turbulent environment is having a direct impact on some parts of the Egyptian petrochemicals market . In addition, Egypt's near-term growth outlook remains weak and political uncertainty will undermine fixed investment and the global economic downturn will weigh on exports, but household and government spending are expected to outperform, helping to sustain domestic petrochemicals consumption.
Aside from the country’s political risks, over the long term, BMI believes that Egypt is ripe for investment in petrochemicals, due to the potential inherent in the domestic industry, the country’s trade relations with other industry s in Africa, the Middle East and southern Europe and the scale of its upstream resources. Egypt’s polypropylene (PP) industry was estimated at 400,000 tonnes in 2011, with domestic production meeting less than half of demand. BMI projections 5-7% growth per year between 2011 and 2016, pushing demand up to 550,000 tonnes by the end of the period. However, planned capacity increases will be insufficient to cover domestic demand and at least half Egypt’s PP requirement will have to be imported.
Other projects include the Egyptian Ethylene and Derivatives Firms (Ethydco) with capacities of 460,000tpa ethylene and 20,000tpa butadiene which is scheduled for start-up in 2015. Sidi Kerir Petrochemicals (Sidpec) is planning to build a 460,000tpa ethylene plant in Egypt, which will take three years to complete. In 2015, Carbon Holdings is planning to bring onstream a polyethylene (PE) complex – with capacities of 900,000tpa ethylene, 400,000tpa propylene – and three PE plants, each designed for 450,000tpa – one high density polyethylene (HDPE) and the other two will be HDPE/ linear low density polyethylene (LLDPE) swing units. Other areas of expansion in Egypt include styrenics, polyester, polyethylene, methanol and fertilisers.
In the Middle East and Africa Petrochemicals Risk/Reward Ratings (RRRs), Egypt is ranked ninth with 44.5 points. It lies 4.0 points behind Turkey and 5.3 points ahead of Algeria. The score has downside risks, owing to the uncertain political environment following the overthrow of Hosni Mubarak. Protests have temporarily closed petrochemicals facilities and continued uncertainty could put potential investment at risk, as well as growth in output. However, growth in capacity should remain stable, making Egypt more self-sufficient in petrochemicals and turning it into a net exporter in some sectors .

Table Of Contents

BMI Market View 5
Industry SWOT Analysis 6
Egypt Petrochemicals Industry Environment and Risk Analysis ... 6
Egypt Political Environment and Risk Analysis 7
Egypt Economic Environment and Risk Analysis .. 8
Egypt Business Environment SWOT ... 9
World Petrochemicals Overview . 10
Petrochemicals Industry Overview 10
Data : World Ethylene Production By Country, 2011 And 2016 (‘000 tonnes capacity) . 10
Financial Results . 14
Data : Financial Results Of Major Petrochemicals Firms, 2011 . 14
World Oil Products Price Outlook .. 15
Data : BMI's Refined Products Projections, from 2010 to 2016 . 15
Africa Regional Overview . 24
Data : Africa’s Gas Reserves, 2011 (bcm) ... 24
Data : Africa’s Oil Reserves, 2011 (bn bbl) . 24
Data : Africa’s Cracker Capacity, from 2010 to 2016 (’000 tpa) 27
Egypt Industry Overview . 28
Industry Trends And Developments 30
Upstream . 32
Projects And News ... 32
Fertiliser .. 35
Petrochemicals Risk/Reward Ratings . 36
Egypt Petrochemicals Risk/Reward Ratings 36
Data : Middle East And Africa Petrochemicals Risk/Reward Ratings . 36

Market Projection Scenario .. 39
Data : Egypt Petrochemicals Segment, from 2009 to 2016 (‘000tpa unless otherwise stated) 41

Macroeconomic Data ... 42
Data : Egypt - Economic Activity 44
Company Profiles .. 45
EChem . 45
Sidi Kerir Petrochemicals (Sidpec) .. 46
Glossary Of Terms . 47
Data : Glossary Of Petrochemicals Terms .. 47
BMI Methodology ... 48
How We Generate Our Market Projections .. 48
Chemicals And Petrochemicals Market .. 48
Cross Checks ... 49

Environment Overview Ratings . 50
Data : Petrochemicals Business Environment Indicators And Rationale . 50
Data : Weighting Of Indicators 51

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