Consortium Formed to Import US Shale Gas in Egypt

In a bid to address its dwindling natural gas reserves, a consortium will be formed in Egypt to import shale gas from the US. The consortium, led by Sidi Kerir Petrochemicals Company (SIDPEC), will have a total value of USD 663 million and is expected to be established later this year.

SIDPEC will hold a 25% stake in the consortium. Other members include the Egyptian Ethylene and Derivatives Company (25%), Gama Construction Company (25%), the Egyptian Petrochemicals Company (15%), and the Egyptian Natural Gas Company (10%).

The initiative comes as Egypt grapples with a natural gas supply shortage. Estimates suggest the country requires roughly USD 1.18 billion worth of natural gas imports to alleviate persistent power cuts. To finance this endeavor, 40% of the project's capital will be sourced from the consortium's member companies, with the remaining 60% secured through bank loans.