Qatar's state owned petroleum company, Qatar Petroleum, has entered into a joint venture (JV) agreement with Total, Idemitsu, Cosmo, Marubeni and Mitsui, to build a $1.5bn Laffan Refinery 2 (LR2) in the country.
The LR2 facility will be designed to have a processing capacity of 146,000 barrels per day and treat condensate into 60,000 barrels of naphtha, 53,000 barrels of jet fuel, 24,000 barrels of gasoil, and 9,000 barrels of liquefied petroleum gas.
LR2 plant will be operated by Qatargas Operating Company.
The LR2 refinery will be developed on the similar lines of Laffan Refinery 1 (LR1).
Qatar Petroleum Downstream Ventures director Mohammed Nasser Al-Hajri said the new refinery has been designed to process untreated condensate produced from the country’s North field.
"In addition to the LR2 condensate refinery, the configuration of the new plant includes a gantry for dispatching diesel to the local market by trucks (in operation since last year) and a diesel hydrotreater unit that will be able to process all light gasoil from LR1 and LR2," Al-Hajri added.
"All products from the LR2 complex will be hydrotreated and its sulphur content will meet the most stringent quality specifications."
Laffan Refinery 2 project is expected to be completed and commissioned by the final quarter of 2016.
As per the JV agreement, Qatar Petroleum will hold 84% interest in the project, while Total will hold 10%, Idemitsu and Cosmo each 2%, and Marubeni and Mitsui each own 1%.