Egypt on Wednesday signed a package of design contracts for the first phase of a $7.5 billion Red Sea petrochemical complex in Ain Sokhna, advancing one of its largest industrial projects aimed at boosting domestic production and exports. Prime Minister Moustafa Madbouly witnessed the signing between the state-owned Red Sea National Petrochemicals Company and a joint Egyptian-Chinese consortium comprising China National Chemical Engineering Co., Ltd (CNCEC), Enppi, and Petrojet. Petroleum Minister Karim Badawy also attended the ceremony. The Ain Sokhna complex, located within the Suez Canal Economic Zone about 10 km from Sokhna Port, is designed to produce a wide range of petrochemical products, including ethylene and propylene, via a high-capacity oil refinery and steam cracker units. "The project aligns with Egypt's 2030 Vision, aiming to localise industry, maximise value-added output, and attract global investors while reducing the sector's carbon footprint," the government said in a statement. Authorities say the signing marks a critical milestone, helping to finalise the project's actual cost and move forward with securing financial closure. Construction is expected to begin in 2026, with commercial operations to follow. The government highlighted key preparatory steps already completed, including securing a 5 million-square-metre site, arranging basic infrastructure, and signing crude supply agreements with Egypt's EGPC and Saudi Aramco. Logistics deals were also inked with Arab Petroleum Pipelines Company (SUMED) and Sonker Bunkering Company (Sonker) for product handling, alongside local and international distribution agreements. Officials said the Chinese side will play a key role in financing and marketing the project's output globally. Attribution: Amwal Al Ghad English
