Qatar Petroleum (QP) has announced the selection of Chevron Phillips Chemical Company LLC as its partner in a new Petrochemicals Complex which will be developed and constructed in Ras Laffan Industrial City.
The new complex will have an ethane cracker with a nameplate capacity of 1.9 million tonnes of ethylene per annum, making it the largest ethane cracker in the Middle East and one of the largest in the world. It will also include two high-density polyethylene derivative units, which will raise Qatar’s current Polyethylene production capacity by 82% by fourth quarter of 2025.
The project will be built following the highest standards, deploying state of the art technologies and placing utmost importance on safety, reliability and the environment.
The announcement was made during a ceremony held in Doha, where relevant project agreements were signed by HE Saad Sherida Al Kaabi, Minister of State for Energy Affairs and QP President/CEO, and by Mark E Lashier, President and CEO of Chevron Phillips Chemical. The ceremony was also attended by senior executives from Qatar Petroleum, Chevron Corporation, Phillips 66, and Chevron Phillips Chemical Company.
The signed agreements govern the project’s ownership and development through a new joint venture company between QP (with a 70% participating interest) and Chevron Phillips Chemical Company (with a 30% participating interest).
Speaking on the sidelines of the signing ceremony, Al Kaabi said that the conclusion of the agreements constitutes an important milestone for QP as petrochemicals represent a major pillar in the country’s growth strategy and in its vision to be one of the best national oil and gas company in the world.
This project will optimise the utilisation of ethane produced from the North Field LNG expansion project as well as from existing ethane producing projects. It will also consolidate Qatar’s position among the world’s leading petrochemicals producers, and complement our efforts to further expand our footprint in the global petrochemicals markets.
This major project will provide excellent opportunities for Qatar’s private sector to contribute to the development of our oil and gas sector, and will generate significant revenues that will support the further development of our economy and the well-being of all people living in Qatar.’
Al Kaabi concluded his remarks by expressing gratitude to HH Sheikh Tamim Bin Hamad Al Thani, the Amir of the State of Qatar, for his guidance and unwavering support to the energy sector. He also expressed thanks to QP executives and staff for their dedication and commitment, and to all the companies that submitted offers for the project.
Lashier, meanwhile, said that developing the Ras Laffan Petrochemicals Project is a tremendous opportunity for their company.
We look forward to building on our strong relationship with Qatar Petroleum and believe that these new world-scale assets will deliver exceptional value.’
The engineering design of the Ras Laffan Petrochemicals Project should commence shortly, leading to a planned start-up in late 2025.
For updates and more information about Qatar Petroleum, visit their website at qp.com.qa.