QATAR – QatarEnergy (QE) and Chevron Phillips Chemical have taken a final investment decision (FID) on the construction of a $6 billion petrochemicals complex at Ras Laffan.
The announcement was made after officials from both firms signed the final investment decision at a ceremony in Doha.
The companies created a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy will hold a 70% share and Chevron Phillips Chemical 30%, under the agreement.
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.
Saad Al Kaabi, the Minister of State for Energy Affairs, the president and chief executive of QatarEnergy said: “This marks QatarEnergy’s largest investment ever in Qatar’s petrochemicals sector and the first direct investment in 12 years.
“It will double our ethylene production capacity and increase our local polymer production from 2.6 to more than 4 million tons per annum and place the utmost emphasis on sustainable growth and the environment.”
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.
Originally announced in 2019, the project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.
“There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy,” added Mr. Al Kaabi.
“It will not only facilitate further expansion in the downstream and petrochemical sectors in Qatar but will also reinforce our integrated position as a major global player in the upstream, LNG, and downstream sectors.”
The engineering, procurement and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering and CTCI Corporation.
Tecnimont will execute engineering, procurement and construction for the polyethylene units, said the companies in a statement.
The polyethylene units will use Chevron Phillips Chemical’s MarTech loop slurry process to produce high-density polyethylene, which will primarily be exported from Qatar.
The facility will be constructed with modern, energy-saving technology and use ethane for feedstock, which along with other measures, is expected to result in lower greenhouse gas emissions than similar global facilities.
In November last year, the two companies collaborated to build a similar integrated polymers facility in Orange, Texas worth US$8.5 billion.
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