April 22, 2025 [Egypt Oil and Gas]- An Egyptian-Chinese joint venture (JV) signed a package of contracts to execute the preliminary designs for the first phase of the Red Sea Petrochemicals Complex project at Ain Sokhna.
The agreement was signed between the Red Sea National Petrochemicals Company, China National Chemical Engineering Co. Ltd. (CNCEC), ENPPI, and Petrojet, in the presence of Prime Minister Mostafa Madbouly and the Minister of Petroleum and Mineral Resources, Karim Badawi.
The complex is located in the Suez Canal Economic Zone (SCZone), just 10 kilometers from Ain Sokhna Port. It is designed to produce a range of petrochemical products through an advanced oil refinery and steam cracking units, enabling the production of ethylene and propylene.
Completing the design phase will provide a more accurate estimate of the project’s actual cost–a crucial step in securing the necessary financing and achieving financial closure. This will pave the way for construction to begin in 2026, with commercial operations expected to launch thereafter, the Ministry stated on Thursday.
The project also supports the state’s efforts to drive a green transformation in the petrochemical sector, enhance environmental sustainability, reduce carbon footprint, and promote energy efficiency, all in line with Egypt’s Sustainable Development Strategy and the ‘Egypt Vision 2030’.
It also aligns with the national agenda to localize industry and enhance value-added contributions to the economy, boosting investor and financial institution confidence. This, in turn, helps secure funding for future implementation phases while improving the project’s ability to meet timelines and achieve its strategic goals.
The project involved securing a 5-million-square-meter site, establishing basic infrastructure, and signing crude supply agreements with the Egyptian General Petroleum Company (EGPC) and Saudi Aramco.
Logistics agreements were also signed with the Arab Petroleum Pipelines Company (SUMED) and Sonker Bunkering Company (Sonker) for product handling, along with local and international distribution agreements
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