Egypt’s Anchorage Investments will soon issue a tender to select the main contractor for a new $2 billion petrochemicals project in the Suez Canal Economic Zone.

The Anchor Benitoite project in Ain Sokhna will comprise a number of units to produce a range of derivatives and petrochemical products to meet demand regional and global demand, Anchorage Investments said in a statement on Wednesday.

“The project will enhance the economic value of its feedstock of natural gas derivatives, contribute to the growth of Egypt’s GDP [gross domestic product], boost the country’s petrochemical exports and stimulate further foreign direct investment inflows from foreign and Arab countries,” the statement said.

Petrochemicals are products derived from crude that are processed in a refinery and used as feedstock for polymers, which, in turn, find varied uses in the plastics industry. They form the basic building blocks for many everyday goods — from sneakers to tyres.

Anchorage Investments will issue the pre-qualification requirements prospectus in mid-March as the first stage of the engineering, procurement and construction (EPC) tendering process, according to the company.

A shortlist of the world's top EPC contractors specialising in propane dehydrogenation and propylene production will be selected following the process.

The EPC contractor selected will be responsible for executing the procedures required for the front-end engineering design phase “based on an open book cost estimate subject to conversion to a lump sum turnkey contract”.

Its contract will comprise site preparation, engineering, procurement and construction works, Anchorage Investments said.

The project is expected to be completed within three years of the finalisation of the engineering and design phase.

“More than 20 international companies with high credit ratings will participate in the Anchor Benitoite project including pioneering technology licensors, project management firms, feedstock suppliers, products’ off-takers, the operation and maintenance company, reliable foreign financial institutions and commercial banks,” Ahmed Moharram, founder and managing director of Anchorage Investments said.

Several agreements in the petrochemical sector have been recently announced in the Suez Canal Economic Zone involving local, Arab and foreign companies with a total investment volume of more than $10bn, the company said.

In 2020, Egypt led the region in petrochemical sector investment, followed by Iran and Saudi Arabia, according to a report by the Arab Petroleum Investment Corporation.

Egypt has more than $35bn worth of projects planned over the next five years, Apicorp said.