Methanex Egypt Successfully Completes the Pipeline Construction to Facilitate the Delivery of Methanol to Suez Methanol Derivatives Company

Methanex Egypt announces the safe and successful completion of the pipeline construction and installation of a new transfer pump enabling the direct delivery of methanol from its plant to the adjacent Suez Methanol Derivatives Company (SMD) plant in Damietta to fully meet its methanol requirements.

Launched in April 2023, the project spanned 20 months and involved the construction of a 450-meter pipeline, covering all phases from engineering, design, and procurement to fabrication, construction, and installation of protection and monitoring systems. It also included the installation of a new methanol transfer pump and fiscal meters. As part of its agreement with SMD, Methanex will provide maintenance services for the duration of the agreement, alongside the supply of up to 160 tons of methanol per day (58,400 tons of methanol per year).

Ibrahim Mekki, Egyptian Petrochemicals Holding Company (ECHEM) Chairman, said: “Since the beginning of operations in 2011, the Egyptian Petrochemicals Holding Company has successfully achieved local methanol sales of 1.6 million tons. The Suez Methanol Derivatives Project is expected to increase annual methanol sales by approximately 58,000 tons annually, generating added value for all three parties involved. The project is also set to produce 140,000 tons annually of specialized products, supporting the local market demand, enabling the export of surplus quantities, and contributing to foreign currency generation.”

Mohamed Shindy, Methanex Egypt Managing Director, commented: “This project aligns with our commitment to support the Ministry of Petroleum’s vision of maximizing the value of Egypt’s natural gas resources and strengthening the country’s downstream industry. As a long-term partner in Egypt and petrochemical sector, Methanex remains dedicated to driving growth and creating new opportunities that contribute to the sector’s sustainable development.”

Hisham Selim, Suez Methanol Derivatives (SMD) Company CEO & Chairman, said: “Suez Methanol Derivatives is the first company in the petroleum sector dedicated to producing specialized petrochemicals. The project serves as a model of integration with Methanex Egypt and several other industry partners, whether through the exchange of feedstock and products or collaboration on providing utilities and equipment manufacturing. The project’s main products will support a broad range of industries, particularly fertilizers, wood, and concrete. The project will also introduce the production of specialized resins being manufactured in Egypt for the first time. These resins will be used as adhesives in both interior MDF panels and high-durability exterior applications, as well as in thermal insulation solutions. Half of the output will serve the local market, helping reduce imports and ease the foreign currency burden, while the remaining 50% will be exported.”

This project is part of the agreement signed between both parties in 2023. The main consortium leader of the project is “EMC”, with Johnson Matthey as the technology provider of the formaldehyde and UFC-85 plants, and ENPPI serving as the owner’s Project Management Consultant. The SMD project is currently under construction and is expected to start operation in October 2025.