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METHANEX: EGYPT’S DOMESTIC METHANOL MARKET SUPPLIER W
hen Methanex Egypt started production from its state-of-the-art facility in Damietta almost 10 years ago, the Egyptian domestic methanol market depended solely on imported product to feed the growing demand for methanol, an essential ingredient used to produce hundreds of everyday industrial and consumer items. Today, through a partnership with Egypt’s Petrochemicals Holding Company ECHEM, Methanex, the global leader in methanol production, the world's largest producer and supplier of methanol to major international markets in North America, Asia Pacific, Europe and South America, has successfully satiated the market with locally produced methanol, dispensing with the need for imports, and supporting HE the Minister of Petroleum and Mineral Resources Eng. Tarek El-Molla’s own vision for enriching the value of the country’s resources through a robust and interdependent chain of value-adding industries. In Egypt, Methanex operates its state-of-the-art methanol production facility, situated in Damietta, with a production capacity of 1.3 million tonnes per year. One of the key joint venture success stories within the petrochemicals sector, the Egyptian Methanex Methanol Company S.A.E. is a joint venture of Methanex Corporation which holds a 50% interest, together with the Egyptian government partners: Egyptian Petrochemical Holding Company (ECHEM), which holds 12%, Egyptian Natural Gas Holding Company (EGAS), which holds 12%; Egyptian National Gas Company (GASCO), which holds 9% and the Arab Petroleum Investments Corporation (APICORP), which holds 17%. In addition to the successful JV partnership between ECHEM and Methanex, ECHEM is also the sole marketer of methanol produced by the company. Egypt Oil and Gas sat with Ahmed Saad Kamel, Assistant General Manager, ECHEM, who leads the team responsible for delivering the domestic methanol sales plan. According to Kamel, the goal of ECHEM is to “satisfy the local market demand from methanol to produce related downstream products such as urea-formaldehyde, solvents, coatings, and other applications that use methanol as a feedstock. Also, replacing imported methanol with locally produced with the same specifications and quality and accordingly decreasing pressures on the foreign currency used for importing.” The local market currently consumes up to 15% of Methanex’s Egypt total production. In addition, ECHEM is building a methanol derivatives plant next to Methanex’s plant in Damietta, a direct realization of HE the Minister’s vision for the petrochemicals’
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sector. “The methanol production process in the petrochemical industry is based on using natural gas as a feedstock, which adds value to our natural resources. The government’s vision/goal also aims to establish high-tech projects with the global leaders in each industry to add other values through technology and experience transfer. Methanex is an example of such global leaders,” Kamel explains. According to Kamel, the current success of the methanol sales team comes after years of diligent work, growing trust between partners and the overcoming of a number of challenges. “Methanol local sales started in July 2011 with a small monthly quantity because most of the local consumers of methanol were committed to annual importing contracts with other producers” he explains. The challenges also included two revolutions and gas supply challenges, but these problems were soon overcome, opening the way to a stronger partnership and a robust, growing, healthy domestic market. This is also owed to the creativity of the methanol marketing team. Kamel explains: “ In July 2017 ECHEM started a “loyalty program” to motivate major players in the local market and also give the locally produced methanol a competitive edge,” he says. As a result, in 2018 Methanex and ECHEM celebrated the achievement of 500,000 tonnes of local sales. The occasion was celebrated during the visit of John Floren, Methanex Corporation CEO, and attended by ECHEM and Methanex leadership
