Noozz

CAIRO: Three Egyptian companies plan to speed up their involvement in a joint-venture to produce methanol with the Canadian Methanex Corporation and the Arab Petroleum Investments Corporation (APICORP), Sameh Fahmy, the Egyptian Minister of Petroleum, said.

During a general meeting of Methanex Egypt, the minister said the project aims to produce 1.3 million tons of methanol under the free zones arrangements, using natural gas as a main input.

The joint-venture will sell a $50 million (LE 287 million) worth of its production in the domestic market and $350 million (approximately LE 2 billion) worth in the international market.

Production is due to start in the final quarter of 2009 and the total investments in the project amount to $750 million (about LE 4.3 billion) according to estimates from the Egyptian Ministry of Petroleum.

Contribution of Canada’s Methanex Corp amounts to 60 percent. Other shareholders include the Egyptian Holding Company for Natural Gases (EGAS) with 12 percent, the Egyptian Natural Gas Company (GASCO) with 9 percent and APICORP with 7 per cent.

Sherif Ismail, chairman of Methanex Egypt, said the joint-venture will create a total of 2,500 new direct and indirect jobs in addition to the high revenues of sales in the international markets.