Carbon Holdings to seek Egypt refinery financing in 2013

25 September 2012

Refinery will be integrated with planned Tahrir petrochemicals complex

Local firm Carbon Holdings will go to market in early 2013 to seek debt financing for the construction of a basic refinery, to be integrated into its planned petrochemical complex at Suez in the north of Egypt.

The company is already in discussions with three engineering, procurement and construction (EPC) firms, according to a source close to the project.

A front-end engineering and design (feed) contract has been awarded to the US’ Lummus Technology.

The 60,000 barrel-a-day (b/d) refinery will use low value crude oil as feedstock and aims to replace half the imported naphtha feedstock for the Tahrir Petrochemicals Company (TPC) complex, approximately 1.8 million tonnes a year (t/y).

There will be no refined product for sale from the refinery. All of the output from the refinery will be fed to the TPC cracker furnaces, the cracker separation train or the complex’s utility systems to be used as fuel.

The refinery will also produce some additional propylene and there is a possibility of additional ammonia product, although its final output is yet to be resolved.

The planned$3.75bn Tahrir complex will include a 3.5 million-t/y naphtha cracker. It will produce 1.35 million t/y of polyethylene, as well as 600,000 t/y of propylene, 210,000 t/y of butadiene and 420,000 t/y of benzene.

Carbon Holdings is currently in talks with financers for the complex. It had planned to break ground in the second or third quarters of 2013 for a 36-month construction period. However, it is now working on a new schedule to claw back lost time, as it was forced to replace its lead EPC contractor.

Germany’s Linde has been appointed to lead the EPC and technology provision for the complex, replacing the US’s Shaw Energy & Chemicals. Linde is in a consortium with South Korea’s SK Engineering & Construction and the UK’s Petrofac. Linde will also provide the cracker and recovery technology.

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