Egyptian Chemical Industries (Kima) has awarded a contract for operation and maintenance of its new Ammonia-2 plant in Egypt’s Aswan industrial area to Italy’s Tecnimont SpA, according to a report by the country’s Mubasher information. The value of the contract was not disclosed. However, according to a March 29 stock exchange filing by Kima, cited by the report, the contract consideration amount will be paid after deducting dues owed by the Italian company to Kima.
Kima’s Board of Directors in October 2020 approved a dispute settlement with Tecnimont regarding the KIMA 2 project Lump Sum Turn Key contract. Tecnimont was the ammonia plant’s EPC contractor, as well as that of the urea plant at the site.
According to Egyptian media reports citing a Kima statement at the time, under the settlement reached, Tecnimont has the right to be compensated due to the losses it suffered resulting from the devaluation, while Kima will waive off any amounts, which have been claimed or not, resulting from the contract signed by both companies.
The 1,200 mt/d capacity ammonia plant began production in July 2019, using KBR’s Purifier technology (GM July 12, 2019)
The plant, along with the urea plant at the site, successfully passed the contractors’ performance tests in June last year and was handed over to Kima (GM June 26, 2020).