Egypt’s $120 million methanol derivatives project at Damietta Port has entered the engineering, procurement and construction (EPC) phase, according to project data released by the Egyptian Petrochemicals Holding Company (ECHEM).
The project is being implemented by Suez Methanol Derivatives Company (SMD) on ECHEM-owned industrial land at Damietta Port on the Mediterranean coast.
The facility will use locally available methanol and urea to produce a range of downstream chemical products, ECHEM said.
Planned production capacity includes:
- 87,000 tonnes per year of urea formaldehyde (UFC 85% and UF resins 65%)
- 53,000 tonnes per year of sulphonated naphthalene formaldehyde (SNF)
- 42,000 tonnes per year of specialised urea formaldehyde resins
ECHEM said EPC works are under way following completion of the basic engineering design and signing of the main project contracts.
The main contractor is Egyptian Maintenance Company (EMC) with Zarkom, and Wady El-Nil. The project consultant is ENPPI while local firm UGCE has been awarded the construction supervision mandate.
Major permits and regulatory approvals have been obtained, allowing the project to proceed toward full implementation, while the project company has been established to develop and operate the facility.
In October 2025, a report by local english language newspaper Amwad Al Ghad said the project has reached 71 per cent completion rate, with commercial production targeted by June 2026.
(Writing by Majda Muhsen; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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