Qatar Petroleum and Chevron Phillips Chemical have signed an agreement to jointly build a new petrochemicals complex in Qatar.
Image: Officials from Qatar Petroleum and Chevron Phillips Chemical during agreement signing ceremony. Photo: courtesy of Chevron Phillips Chemical Company.
The joint venture will be 70% owned by Qatar Petroleum, while Chevron Phillips Chemical owns the remaining 30% stake.
Qatar Minister of State for Energy Affairs and Qatar Petroleum CEO and president Saad Sherida Al-Kaabi said: “The conclusion of these agreements constitutes an important milestone for Qatar Petroleum as petrochemicals represent a major pillar of our growth strategy to achieve our vision of becoming one of the best national oil and gas companies in the world.”
Planned to be built in Ras Laffan Industrial City, the petrochemicals complex will be equipped to produce ethylene and high-density polyethylene (HDPE), which is typically used in for the manufacturing of plastic bottles, corrosion-resistant piping, geomembranes and plastic lumber.
The Ras Laffan Petrochemicals Project will have a 1,900 kilo tons per annum (KTA) ethane cracker as well as two high-density polyethylene derivative units with a combined capacity of 1,680KTA.
As part of the agreement, Chevron Phillips Chemical will license its MarTECH loop slurry process for manufacturing HDPE as well as provide project management, engineering and construction services to develop the project.
Chevron Phillips Chemical president and CEO Lashier said: “Developing this project is a tremendous opportunity for our company to expand on our highly-successful joint ventures with the State of Qatar to meet the growing global demand for petrochemical products that enrich lives around the world.
“Qatar is one of the world’s leading producers of the natural gas liquids that will fuel these world-scale assets. This project fits perfectly with our global strategy to build petrochemical assets in regions of the world where feedstock options are abundant and competitively-priced.”
The partners plan to shortly commence engineering design phase of the project with start-up scheduled in late 2025.