Egyptian Firms Sign $1.6-Billion Investment Deal to Produce Methanol, Ammonia

Abu Qir Fertilizers and Chemical Industries Company, Helwan Fertilizer Company, and Al Ahly Capital Holding Company signed a shareholder agreement to establish the Misr Methanol and Petrochemical Company to produce methanol, ammonia, petrochemicals and others.

The Egyptian Minister of Petroleum and Mineral Resources, Tarek El-Molla, witnessed the signing of a shareholder agreement for the establishment of the new company.

Abu Qir Fertilizers and Helwan Fertilizer Company will each own 35% of the company, while Al Ahly Capital Holding Company will hold the remaining 30% stake, according to a statement by the Ministry of Petroleum on Tuesday.

The project, planned to be established in the Suez Canal Economic Zone (SCZone) in Ain Sokhna, aims to meet the needs for methanol and its derivatives in the local market and export the surplus abroad.

The investment cost of the first phase of the project amounts to around $1.6 billion, with an annual output capacity of 1 million tonnes of methanol and 400,000 tonnes of ammonia.

In a disclosure to the Egyptian Exchange (EGX) on Wednesday, Abu Qir Fertilizers said that the authorised capital of the company stands at $200 million and its issued capital amounts to $20 million.