Air Supply Group‘s Chairman Ahmed Refaat announced that his firm had inked a gas-off take agreement with the Egyptian Chemical Industries Company (KIMA), the first deal of its type between KIMA and the private sector.
Speaking on the sidelines of the signing ceremony at Semiramis Hotel in Cairo, Refaat said the medical oxygen production project with KIMA is one of the most important national projects in Upper Egypt, covering industrial, medical, and environmental dimensions.
Refaat noted the project embodies the implementation of President Abdel Fattah El Sisi’s directives to boost cooperation between the public business sector and private sector.
On the other hand, Karim Sadek, General Director of Air Supply Group and Director of the project, revealed that an Air Separation Unit which will be established in Aswan will produce 170 TPD ( Tonnes Per Day) Oxygen and Nitrogen.
Sadek also pointed out that KIMA would provide Air Supply with a plot of land to build, own, and operate the factory in accordance with good and safe industry practices and appliable law.
“The project will be the biggest gas plant in Upper Egypt, a matter that qualifies Air Supply to be the exclusive supplier in Upper Egypt,” Sadek said.
Moreover, he mentioned that the project’s erection and commission will be supervised by Italy’s SIAD Macchine Impianti, adding the supply of gas will start within eight or nine months.
“KIMA is expected to use from 3,000 to 4,000 Normal Meter Cubed per Hour (NM3/hr) within four years,” Sadek noted.
“The new project aims to supply KIMA with its needs of industrial gases at a rate of 40-50% of the production capacity.”
“The surplus of the produced gas (estimated 100,000 tons) will be provided to Upper Egypt hospitals and the industrial sector,” he added.
On his part, Managing Director of KIMA Mohamed Hussein Radwan said his company aims to reach a loan restructuring agreement with a consortium of six banks in February.
In the same context, Radwan noted the deal targets to reduce the percentage of the company’s interest rate payable to be 4.6% for the dollar loan instead of 6% and 1.75% for the Egyptian pound loan instead of 3%.
The consortium includes the National Bank of Egypt, Banque Misr, Arab African International Bank, Banque Du Caire, Bloom Egypt Bank, and Egyptian Arab Land Bank.
Founded in 2011, Air Supply Group is a leading gas services providers group operating in Egypt and MENA region that offers services in industrial and specialty gases, dry ice, chemicals, equipment, engineering, and logistics solutions.