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"Supreme Council for Energy" sets Prices and Quantities of Gas required for "Chima" in Aswan
"Assal" negates the existence of a memorandum that calls for a higher tariff, and the product serves "Toshka"
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THIS ARTICLE
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Date Published:
26 July 2009
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Published in:
Almasry Alyoum Daily Newspaper
Egypt
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Reporter(s):
Mohamed Abd El Aty
Ashraf Fekry
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Original Language:
Arabic
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 View Original
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The Supreme Council for Energy discusses in today's meeting, Sunday, the most recent operations of gas connections to the "Chima" Fertilizer Factory that has been built at the Governorate of Aswan by the government through the Holding Company for Chemical Industries
Members of the Council are ministers of the economic group and a line ministry. It is chaired by Dr. Ahmed Nazif. The Council is expected to set the price of gas that will be obtained by the Chima Factory and the quantities required for operating its production lines that are to produce nitrogenous fertilizers with an investment cost of 3 billion EGP.
"Al Masry Al Yom" has been informed that the Industrial Development Authority has submitted a memorandum to the Supreme Council for Energy requesting that the gas quantities needed for the Chima Factory are to be provided according to the global gas prices, which averages exceed 7 US Dollars. This was negated by Engineer Amr Assal head of the Authority. Assal in a statement to "Al Masry Al Yom" mentioned that the Authority "did not submit any memoranda to the Supreme Council for Energy". He explained that gas will be provided to the new factory according to the current prices that do not exceed 3 US Dollars.
In the project's feasibility study, the Holding Company for Chemical Industries has defined its needs in terms of gas. The feasibility study has been submitted to Supreme Council for Energy and the Industrial Development Authority to define in how far the factory uses the gas. Assal added that this is a national project that represents an added value to the domestic market of fertilizers.
The Egyptian government has previously included the activity of fertilizer production within the intensive energy consuming industries by issuing the law No. 114 of the year 2008, known as the 5th of May Decrees. It specifies 5 activities which are intensive energy consuming activities. Accordingly, 37 projects have been turned over from the free zones to the internal investments.
The production capacity expected for the new line is an annual 400 thousand tons ammonia, 500 thousand tons urea and 300 thousand tons of pure nitrate fertilizers. Expected is the creation of 500 new job opportunities in addition to the 1800 workers that are currently employed by the factory.
The "Chima" issued and paid capital amounts to 40 million EGP distributed as follows: 56% for the Holding Company for Chemical Industries, 38,5% governmental bodies and 5,55 private persons.
Abou El Qassem Hussein, the official spokesman of Chima Aswan Factory, has reiterated that the factory's nitrate production is needed for the agricultural land in Upper Egypt. It is furthermore to serve the needs of agricultural land in Toshka and El Salam Canal that are soon to be part of the National Project offering 220 thousand feddan in Kom Ombo.
Hussein stated that the whole production will be directed towards the domestic market and negated what is currently frequented about the project feasibility study being impacted by a stagnant stock of fertilizers at the factories.
He added that "this stagnant stock is due to inefficient distribution processes".
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