Egypt signs $6.7B agreement with US Bechtel to implement refining complex

CAIRO – 11 February 2020: The Egyptian Petrochemicals Holding Company (ECHEM) signed a cooperation agreement with the American company, Bechtel Group, with an investment cost of $6.7 billion, the Ministry of Petroleum announced Tuesday.

According to the ministry, this agreement aims to execute a refining and petrochemical complex in the Suez Canal Economic Zone (SCZone).

The agreement was signed by Head of the ECHEM, Saad Helal, and CEO of Bechtel Group, Brendan Bechtel, in the presence of Minister of Petroleum Tarek el-Molla, Governor of the Central Bank of Egypt Tarek Amer, and American Ambassador to Cairo Jonathan Cohen.

The agreement stipulates that ECHEM will start preparing a detailed feasibility study in cooperation with an international consultant, within the framework of the state's efforts to encourage establishing giant projects in Egypt.

"Bechtel Group will provide the necessary funding from banks and international financial institutions," the statement pointed out. It clarified that this project is expected to increase the productivity of petroleum and petrochemical products to cover the local market needs and to export these products.

In the same vein, President Abdel Fatah al-Sisi met with the CEO of Bechtel Group, where Sisi expressed appreciation for the activity of the international company in Egypt.

He also stressed Egypt's keenness to benefit from the company's experiences not only in the oil and gas sector, but also in the field of water treatment and desalination and in the transport and construction sector in light of the major development projects taking place across Egypt.