Suez Canal Economic Zone Signs USD 2.6 Billion Methanol Plant Contract

The Suez Canal Economic Zone will establish an international methanol and ammonia production plan in Ain El Sokhna’s port and industrial complex, along the Red Sea’s western shore.

The new project will cost USD 2.6 billion and will be implemented over two phases. The first phase will be completed by 2025 at a cost of USD 1.6 billion. The remaining USD one billion will be poured into the second phase which will take three years to complete.

The first phase will have a production capacity of one million tons of methanol and 400,000 tons of ammonia per year. This new development is aligned with Egypt’s goal of increasing petrochemical product exports. The new complex will generate about 1,200 indirect and direct job opportunities as part of the economic zone’s broader goal of creating one million new jobs by 2030.

At the same time, the Suez Canal authority will decrease rebates on canal tolls for carriers of natural gas during the first half of 2022. The canal is expected to see an 11% spike in revenues during this period thanks to a commercial boom and an ever-increasing demand for the channel.