A source in Abu Qir Fertilizers has said that the expansion plans during 2022 will include three projects.
He noted that Abu Qir Fertilizers’ long awaited Methanol project awaits the revised feasibility studies. The company explained that the old feasibility studies were made with a natural gas cost of $4.50/mmbtu (currently $5.75/mmbtu) and methanol process of $300/tonne (currently $500/tonne).
The previous results came with a 21% economic return which is a high return compared to the field. However, the company is now revising the feasibility studies of the project given the changes in natural gas cost and methanol prices.
Abu Qir Fertilizers managed to take 2 million sqm land in the economic zone on which the project will be constructed. The company’s name will be “International Company for Methanol and Its Derivatives”.
The Board of Directors has been formed and held two meetings.
The source noted that they already have government approval with the needed natural gas quantity and will be priced at the official price set by the Ministry of Petroleum.
The company believes that methanol production will have big advantages, with the use of methanol as a clean fuel for shipments. Since the whole world is looking at how to reduce the ships’ fuel emissions, methanol comes as a clean fuel and has a big potential amid the current local and global environmental and climate concerns.
The project will be located near the Suez Canal to facilitate the targeted exports for Southeast Asia that is witnessing a methanol shortage. The timeline of the project is four years as clarified by the management.
The company noted that the project’s financing is already settled with a bank loan from the National Bank of Kuwait, and technical offers are being received by the company. The timeline is estimated to be three years.
Lastly, the source talked about the Rakta land (Calcium ammonium nitrate) project. Abu Qir Fertilizers is renewing the feasibility studies after the recent hike in natural gas cost. The company didn’t decide yet if the project will be feasible or not.