An unbinding framework agreement was signed in the Chinese capital, Beijing, between the Red Sea National Petrochemicals Company and the China National Chemical Engineering Company (CNCEC), for the implementation of the Red Sea Petrochemical Project in the Suez Canal Economic Zone (SCZONE).
The agreement was signed at the CNCEC headquarters in the presence of a high-level delegation from both the Egyptian and Chinese sides. It underscores the strategic importance of the project—one of Egypt’s most prominent future projects in the chemical industries sector, according to a press release by the Ministry of Petroleum and Mineral Resources.
During his speech, Ibrahim Mekki, Chairman of the Egyptian Petrochemicals Holding Company (ECHEM), expressed his appreciation for the Chinese reception. He noted that the agreement represents a significant milestone on the path to implementing a project that can enhance Egypt’s export capacity and create extensive development opportunities.
Mekki said that CNCEC expressed its readiness for a potential contribution to the project’s capital, in addition to the possibility of supporting financing that could cover up to 85% of the value of the Engineering, Procurement, and Construction (EPC) contract.
He explained that the Red Sea Project boasts significant competitive advantages, most notably its strategic location near the Suez Canal, the availability of production unit licenses, and the readiness of its implementation plan. Giving it high investment appeal, these factors help it stand out amid the increasing global demand for products such as polyethylene and polypropylene.
Mekki added that cooperation with CNCEC is rapidly evolving. This year alone, three major contracts worth nearly $1 billion have been signed with China TianChen Engineering Corporation (TCC), a subsidiary of CNCEC. These projects include the production of soda ash, metallic silicon, and bioethanol, all part of Egypt’s efforts to reduce reliance on imports and localize strategic industries.
In April 2025, Prime Minister Mostafa Madbouly oversaw the signing of contracts for the basic design works of the first phase of the Red Sea Petrochemicals Complex in Ain Sokhna. The agreement involved the Red Sea National Petrochemicals Company, CNCEC, the Engineering for the Petroleum and Process Industries (ENPPI), and the Petroleum Projects and Technical Consultations Company (Petrojet).
Located just 10 kilometers from Sokhna Port, the complex produces a variety of petrochemical products using an advanced oil refinery and steam cracking units to generate ethylene and propylene.
CNCEC is a large Chinese state-owned enterprise specializing in engineering and construction, particularly within the chemical industry.
