Qatar Petroleum (QP) this week signed an agreement with Chevron Phillips Chemical Company LLC to develop a new world-scale petrochemical project in the Gulf Coast region of the United States.
The signing took place at the White House, in the presence of HH Sheikh Tamim bin Hamad Al Thani, the Amir of the State of Qatar, and the President of the United States, Donald Trump. The agreement was signed by HE Saad Sherida Al Kaabi, Minister of State for Energy Affairs, and President/CEO of Qatar Petroleum, and by Mark E Lashier, President and CEO of Chevron Phillips Chemical.
With an estimated cost of around US$8 billion, the US Gulf Coast II Petrochemical Project (USGC II) will include an ethylene cracker with a capacity of two million tonnes per annum, making it the largest cracker in the world, and two high-density polyethylene units with a capacity of one million tonnes per annum each. The complex will be located in the US Gulf Coast region, where there is direct access to significant ethane quantities produced by US shale basins, including the prolific Permian Basin.
Pursuant to the agreement, Qatar Petroleum will own a 49% share in the USGC II project, while Chevron Phillips Chemical will own the remaining 51% share, provide project management and oversight, and be responsible for the operation and management of the facility.
HE Saad Sherida Al Kaabi said this is the second agreement of its kind in as many weeks, with trusted partner, Chevron Phillips Chemical. He said that the deal further cement the strong partnership between the two companies and complement Qatar Petroleum’s international portfolio in the US.
This important project will help meet increasing global demand for petrochemicals market. It also showcases the momentum of QP’s international growth strategy, which has taken robust steps in various upstream and downstream activities in many parts of the world.’
Mark Lashier said they look forward to expanding their relationship with QP in the United States, as they jointly develop the new petrochemical facility along the US Gulf Coast.
Qatar Petroleum’s financial strength, its commitment to safety as a core value and shared belief in our strategy to build facilities located close to competitive feedstocks makes this an ideal relationship.’
The award of engineering, procurement and construction (EPC) contracts for the USGC II project is currently planned for 2021 with targeted startup of the new facility in 2024.
In June 2019, Qatar Petroleum announced a joint venture with Chevron Phillips Chemical to pursue a world-scale petrochemical plant in Qatar at Ras Laffan Industrial City 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.
For updates and more information about Qatar Petroleum, visit their website at qp.com.qa.