March 18, 2026 [Zawya]- Egypt is working on the financing arrangements for a 3.5 million tonnes per year petrochemicals complex in the Suez Canal Economic Zone (SCZone), according to the Egyptian Petrochemicals Holding Company (ECHEM).

Front-End Engineering Design (FEED) for the first phase and financing arrangement are underway for the project, which will be implemented by Red Sea National Petrochemicals Company.

A Process Design Package (PDP) covering 14 technology licences has been issued, defining the configuration of the complex.

Land agreement for the project has been signed, and major permits and regulatory approvals are being obtained, while the project company has already been established to develop and operate the facility.

Startup is currently targeted for the second quarter of 2030, according to the latest project update.

Covering 3.56 million square metres (sqm), the project integrates both a refinery and a mixed-feed cracker. Phase 1 will produce polyethylene (PE) and polypropylene (PP) while Phase 2 will add polyester production including Benzene, Polyethylene Terephthalate (PET), Paraxylene, Mono Ethylene Glycol (MEG), Di-Ethylene Glycol (DEG) and Purified Terephthalic Acid (PTA).

The crude oil requirement has been estimated at 4 million metric tonnes per annum (MMTPA), according to ECHEM’s website.

In July 2025, Red Sea National Petrochemicals Co. and China National Chemical Engineering Company (CNCEC) had signed a non-binding engineering, procurement, and construction (EPC) framework agreement in Beijing to implement the project.

In a related statement, Egypt’s Ministry of Petroleum and Mineral Resources said CNCEC expressed its willingness to potentially contribute to the project’s equity, as well as the possibility of supporting it in arranging financing covering up to 85 percent of the value of the EPC contract.

The statement added that contracts worth $1 billion were signed with CNCEC’s subsidiary China National Chemical Engineering Third Construction Co., (TCC) for soda ash, mineral silicon, and bioethanol production projects.

In April 2025, a consortium of CNCEC along with Egypt’s Petrojet and ENPPI was awarded the FEED contract for Phase 1, according to the official Weekly Insights newsletter of the Ministry of Petroleum and Mineral Resources. Agreements also included infrastructure, crude supply from Aramco, and product handling by SUMED.

An April 2021 report by UAE-based English language daily The National had put the overall project value at $7.5 billion.