Monday July 22nd, 2024
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Consortium Formed to Import US Shale Gas in Egypt

Led by Sidi Kerir Petrochemicals Company (SIDPEC), the consortium will be valued at USD 663 million and will be established later this year.

Cairo Scene

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.

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