Egypt’s General Authority for Suez Canal Economic Zone (SCZONE) has announced the signing of a contract to build the largest integrated industrial complex for the production of methanol, ammonia, and its derivatives at Ain Sukhna’s industrial zone. 

The deal was inked between SCEZone, Abu Qir Fertilizers and Chemicals Industries Company (ABUK), and Al Ahly Capital Holding.

In a phone call with Al-Monitor, the chairperson of SCEZone, Yehia Zaki, explained that the project falls within the framework of Egypt's plan to increase petrochemical exports. “The first phase is expected to be completed at an investment cost of $ 1.6 billion by 2025," he said. "The second phase, which costs $1 billion, will require three additional years. We announced the project for the first time last August. It aims to produce one million tons of methanol and 400,000 tons of ammonia annually.” 

The project “will turn the zone into the main source of production of several petrochemical and petroleum products,” he said, furthering SCZONE’s strategy to localize the petrochemical industries.