Cairo: Prime Minister Mostafa Madbouli attended a significant signing ceremony on Thursday, marking a major milestone in the development of the Red Sea Petrochemicals Complex in Ain Sokhna. The contracts were awarded to an Egyptian-Chinese joint venture responsible for executing the basic design works for the first phase of this ambitious project.

According to State Information Service Egypt, the agreement involves several key players, including the Red Sea National Petrochemicals Company, China National Chemical Engineering Co., Ltd. (CNCEC), ENPPI, and Petrojet. The complex, strategically located 10 kilometers from Sokhna Port, aims to produce a diverse array of petrochemical products. The project will feature an advanced oil refinery and steam cracking units, facilitating the production of essential chemicals such as ethylene and propylene.

The initiative is a crucial part of Egypt’s strategy to transition towards a more sustainable petrochemical sector. It focuses on enhancing environmental sustainability, reducing carbon emissions, and promoting energy efficiency, in alignment with the country’s Sustainable Development Strategy and Egypt Vision 2030.

Additionally, the project supports Egypt’s national agenda of industrial localization and increasing the economy’s value-added contributions. This approach is expected to boost confidence among investors and financial institutions, thereby helping to secure funding for future phases of the project. It will also improve the project’s ability to adhere to timelines and achieve its strategic objectives.

Completing the design phase is critical for accurately estimating the project’s actual costs. This step is essential for securing the required financing and achieving financial closure, setting the stage for construction to commence in 2026 and the subsequent launch of commercial operations.