QatarEnergy and its partner Chevron Phillips Chemical (CPChem) have taken a final investment decision (FID) to build the $6bn Ras Laffan Petrochemicals complex in Qatar.
The integrated olefins and polyethylene facility will be built in the Ras Laffan Industrial City.
An agreement has been signed by the parties to establish a joint venture company for implementing the petrochemicals project, in which QatarEnergy will hold a 70% stake. CPChem will own the remaining 30% stake.
The Ras Laffan Petrochemicals complex will be built on an area of 435 acres. It is expected to start production in late 2026.
The petrochemicals project will feature an ethane cracker that will produce 2.1 million tons of ethylene per annum. It will also house two high-density polyethylene derivative units with a total capacity of 1.7 million tons per annum.
According to QatarEnergy, the Ras Laffan Petrochemicals complex will boost the overall petrochemical production capacity of Qatar to nearly 14 million tons per annum.
Qatar Minister of State for Energy Affairs and QatarEnergy president and CEO Saad Sherida Al-Kaabi 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.”
“There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy. 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.”
CPChem said that it will be responsible for delivering project management services for the Ras Laffan Petrochemicals complex. The polyethylene units at the project will employ the company’s MarTech loop slurry process for producing high-density polyethylene.
The company revealed that construction on the project commenced with early works at the site in June 2022.
The engineering, procurement, and construction (EPC) of the ethane cracker at the Ras Laffan Petrochemicals complex will be carried out by a joint venture between Samsung Engineering and CTCI.
On the other hand, Tecnimont has been engaged for undertaking the EPC for the polyethylene units.
CPChem 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 global demand for polyethylene products.”
In November 2022, CPChem and QatarEnergy took an FID on the $8.5bn Golden Triangle polymers plant in Orange, Texas.
