Trade News

E-Methanex launch a milestone in Canadian investment in Egypt

January 31, 2006

Cairo, Egypt > November 16, 2005, marked a milestone in Egyptian-Canadian commercial and investment relations, when Vancouver-based Methanex and the Egyptian Petrochemical Holding Company held a meeting in Cairo to announce the official launch of a joint venture called E-Methanex.

E-Methanex will build a world-class methanol complex at an estimated cost of $750 million. The complex should be completed and operational by 2008, and will produce some 1.3 million tons of methanol per year, to be sold both locally and internationally.

"Today’s meetings represented an important milestone in the development of this project," said Methanex President and CEO Bruce Aitken. “We believe Egypt offers many of the key factors necessary for a successful methanol project, including competitively priced natural gas, deep water port access and an investment-friendly environment."

Egypt’s Minister of Petroleum, H.E. Sameh Fahmy, confirmed that this joint venture was an important part of Egypt’s overall strategy for the development of its petrochemical industry. “We are committed to aligning with industry leaders such as Methanex to promote the long-term success of our petrochemical industry,” says Fahmy. “The project with Methanex is part of the first phase of Egypt’s petrochemical master plan that was proposed by the Ministry of Petroleum. The plan comprises 14 projects requiring around $11.6 billion to realize by the year 2020."

This project will have a significant impact on Canadian-Egyptian relations in the oil and gas sector. It is also worth noting that a second joint venture with Calgary-based Agrium Inc. is currently under negotiation with the same Egyptian parties, involving similar investments and terms. As such, it is anticipated that Canada will secure a major role in developing the petrochemical industry in Egypt.

Canada is not only as a world class supplier of technology but also a committed partner, a key player, a source of direct foreign investments and a supporter of Egypt’s strategy to enhance its economy.

For more information, contact:
Joseph Tadros
Trade Commissioner
Canadian Embassy in Egypt
Tel.: (011-20-2) 794-3110
Email: joseph.tadros@international.gc.ca