The integrated polymers complex will be established by a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy owns a 70% stake and Chevron Phillips owns a 30% stake
Officials from both firms at the signing ceremony in Doha. (Credit: Business Wire)
QatarEnergy and US-based Chevron Phillips Chemical Company have announced their plans to start the construction of a $6bn integrated polymers complex in Ras Laffan Industrial City, Qatar.
The announcement was made after officials from both firms signed the final investment decision at a ceremony in Doha.
The businesses established Ras Laffan Petrochemicals as a joint venture, with QatarEnergy holding a 70% stake and Chevron Phillips Chemical holding a 30% stake.
The 435-acre project site will house the biggest ethane cracker in the Middle East and one of the biggest in the world, with 2,080-kilo tons per annum (KTA) of ethylene capacity, Chevron Phillips claimed.
Additionally, it will have two units that produce high-density polyethylene derivatives, with a combined capacity of 1,680KTA.
Early work on the project started in June 2022, and the start-up is anticipated for late 2026. The project management will be done by Chevron Phillips Chemical.
A joint venture between Samsung Engineering and CTCI Corporation will handle the ethane cracker’s engineering, procurement, and construction. Engineering, procurement, and construction for the polyethylene units will be handled by Tecnimont, the US-based chemical firm said.
The polyethylene units will use the MarTech loop slurry process from Chevron Phillips Chemical to create high-density polyethylene that will be exported from the state of Qatar.
According to Chevron, Polyethylene is used to manufacture durable goods like pipes for natural gas and water delivery and recreational products such as kayaks and coolers. It is also used in packaging applications for food and medical supplies.
Additionally, the plant will be built with energy-efficient technology and employ ethane as feedstock, which is anticipated to result in lower greenhouse gas emissions than comparable global facilities.
Chevron Phillips Chemical president and CEO Bruce Chinn said: “At Chevron Phillips Chemical, we continue to grow our global asset base where there is access to reliable, affordable feedstock. This investment will help meet the global demand for polyethylene products.
“We are excited to expand on the long and successful history we have with QatarEnergy to safely construct and operate world-scale facilities.”