Red Sea Petrochemicals Project Concept Note - Rev-01

Red Sea National
Petrochemicals Company
Red Sea National

“Suez Canal Corridor Petrochemical Project”

Concept Note
ISSUED FOR
1 08/12/2021 A. Hassnien H. HAROUN Eng. Mohamed Abady
PROPOSAL
ISSUED FOR
0 01/03/2021 A. Ghanem H. HAROUN Eng. Mohamed Abady
PROPOSAL
APPROVED/
Rev. DATE STATUS WITTEN BY CHECKED BY
AUTHORIZED BY
DOCUMENT REVISIONS
1
Red Sea National Refining & Petrochemicals Company
Red Sea National
Contents
I Egypt’s Petrochemical Strategy ............................... 3
II Company shareholders ............................................. 4
III Project Brief .............................................................. 5
IV Project Location........................................................ 5
V Project Status ............................................................ 6
VI Project Data Summary ............................................. 9
2
Red Sea National
I - Egypt’s Petrochemical Strategy

The Egyptian government continues to work with the private sector to expand business
opportunities in the petrochemical sector through public private partnerships (PPP).
The national petrochemical Master Plan presents a vision and creates a living blueprint, over
a period of 20 years (2002 - 2022), for the development of a robust, internationally
competitive petrochemical industry in Egypt with an estimated investment finance of USD
20 billion. Since the market demand has changed towards specialty products, ECHEM
decided to update its original master plan to develop a wide range of different portfolio of
products within project complexes to meet dynamic local and international markets together
with technological updates in the field of petrochemicals industry.
In this regard, Echem developed its own methodology for this process starting from market
analysis for different products reaching the last step of complexes formulation (value chains)
for the period of (2020-2035).
The updated master plan resulted in 30 petrochemicals products (with wide range of
specialty products and high market demand), which were used to formulate nine
configurations to be executed through the period of (2020-2035).
In this regards, Red Sea National Refining and Petrochemical Company, upgraded the
project scheme as to accommodate and fulfill such strategic vision by proceeding in Suez
Canal Corridor Petro-refinery Project.
3
Red Sea National
Refining & Petrochemicals Company
II -Company shareholders
The company has been established and been registered in all Egyptian authorities and the
constituent assembly has been established on 5-September-2019, the shareholders structure
is as follows:
5%
5%
5%
5%
40%
10%
10%
20%
NSPO EGPC GASCO Echem ELAB SIDPEC ENPPI PETROJET
NSPO http://www.nspo.com.eg/nspo/index.html
Petroleum Sector Companies

EGPC http://www.egpc.com.eg/
GASCO https://www.gasco.com.eg/
Echem http://echem-eg.com/
ELAB https://www.elab-eg.com/
SIDPEC https://www.sidpec.com/
ENNPI https://www.enppi.com/ar/
PETROJET https://www.petrojet.com.eg/
4
Red Sea National
III - Project Brief

The Petro-Refinery Complex will process 4000 KTPA of Arab Extra Light crude oil (as
abase case with other two alternatives of crude for operation flexibility) and will include grass
roots Refinery and Petrochemical Units which will be integrated to produce the following
products according to the schematic configuration below:38
IV – Project Location
- The project is planned to be executed in the Suez Canal Corridor - Industrial zone in the
northwest of the Suez Gulf. The project location is on the Cairo – Sokhna highway with
distance about 10 km from Sokhna port with approximate estimated plot area 5,000,000 m2.
The project site is enjoyed by tax and custom duties exemption.
- A preliminary acceptance from the SC-Zone granting the land use.
- The significance of the project site location is based on the close access to ports (SUMED,
and SONKAR) that will facilitate a flexibility in importing and exporting the feedstock and
products, through new pipelines to such facility(ies)
- An early site activities are currently performed by Enppi/Petrojet
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Red Sea National
V -Project Status
The following activities had been performed:
o Signing a HOA with Bechtel as an EPC contractor and support project finance
o The feasibility study for the project has been done by Wood PLC.
o Signing and performed an Early Work Agreement with Bechtel for early
engineering activities
o Finalizing the financial advisor(s) selection
o Finalizing the award with international Project Management Consultant PMC

through direct negotiation with Worely and Wood as to get the best offer
o Bechtel sent a LOI for project finance from USEXIM Bank and the project will
be financed by multiple Export Credit Agencies (ECAs), Development Finance
Institutions (DFIs), and local and international banks
- An optimization study in currently on going in collaboration with Licensors as to

enhance theproductivity and the economics of the project. The final products yield and
economic indicators will be consolidated with the PMC and the financial advisor.
- Pre-FEED activities being performed by Bechtel, expected to be finalized by June 2021.

- FEED Contract has been signed between Red Sea Company and the consortium led by Bechtel and
including Enppi and Petrojet.
6
Red Sea National
- Feedstock / Product Off-take
o Negotiation with the EGPC and ADNOC as to secure the project feedstock of the
base case through Murban crude as well as two (2) alternative crudes for the sake
of operational flexibility
o For local consumption, will be handle by ECHEM (for petrochemical products)

and EGPC (for refinery products)
o Multiple LOIs were received by international traders for the complex products
- Suez Petrochemical Project licensed Units Overview

Recommended /
Serial Unit Unit Description Nominated
Licensor
1 RHC Residue Hydro-Cracker Axens
2 DHT Distillate Hydro treating Unit Axens

Naphtha Hydro-treatment /
3 NHT / NS Axens
Naphtha Splitter
4 CCR Catalytic Reformer Unit Axens
Aromatics (Benzene , Toluene&
5 BTX Axens
Xylene)
Steam Cracking (included off-gas
Steam Cracker Linde
6 recovery unit)
7 PP Polypropylene Grace
8 HDPE / LLDPE"PE" High Density Polyethylene Univation
9 MEG Mono Ethylene Glycol Shell
10 PTA Purified Terephthalic Acid Invista
11 PET Poly Ethylene Terephthlate Chemtex

Kerosene Treatment with Caustic Soda(Jet
12 Sweetening Production Unit) Axens
13 SRU Sulphur Recover Unit Axens

Pressure Swing Adsorption /
14 PSA / HMU Linde
Hydrogen Manufacturing Unit
15 Hexene-1 Hexene-1 Axens
16 Butene-1 Butene-1 Axens
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Red Sea National
VI – Project Data Summary

Project Name Suez Canal Corridor Petrochemical Complex
Project Purpose Establishing of an advanced Petrochemical

depending on imported crude (Arab Extra
Light crude) for producing specialized
petrochemicals products and high-quality fuels
such as Very Low Sulphur Fuel Oil (VLSFO).
Design Feed Capacity 4 MM Ton/Year of crude oil
8

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Red Sea National

Red Sea National

“Suez Canal Corridor Petrochemical Project”

I - Egypt’s Petrochemical Strategy

NSPO EGPC GASCO Echem ELAB SIDPEC ENPPI PETROJET

Petroleum Sector Companies

III - Project Brief

- A preliminary acceptance from the SC-Zone granting the land use.

- An early site activities are currently performed by Enppi/Petrojet

o Finalizing the financial advisor(s) selection

o Finalizing the award with international Project Management Consultant PMC

- An optimization study in currently on going in collaboration with Licensors as to

- Pre-FEED activities being performed by Bechtel, expected to be finalized by June 2021.

o For local consumption, will be handle by ECHEM (for petrochemical products)

- Suez Petrochemical Project licensed Units Overview

2 DHT Distillate Hydro treating Unit Axens

8 HDPE / LLDPE"PE" High Density Polyethylene Univation

9 MEG Mono Ethylene Glycol Shell

10 PTA Purified Terephthalic Acid Invista

11 PET Poly Ethylene Terephthlate Chemtex

13 SRU Sulphur Recover Unit Axens

15 Hexene-1 Hexene-1 Axens

16 Butene-1 Butene-1 Axens

VI – Project Data Summary

Project Purpose Establishing of an advanced Petrochemical

Design Feed Capacity 4 MM Ton/Year of crude oil

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