QatarEnergy, Chevron Phillips Chemical to begin construction on integrated polymers complex in Qatar
January 8, 2023 - QatarEnergy and Chevron Phillips Chemical Company LLC announced today they will proceed on construction of a $6 billion integrated polymers complex in Ras Laffan Industrial City, Qatar.
An agreement marking the positive final investment decision for the project was signed by Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and by Bruce Chinn, President and CEO of Chevron Phillips Chemical, at a ceremony in Doha. The companies created a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy owns a 70% equity share and Chevron Phillips Chemical owns 30%.
The 435-acre project site will include an ethane cracker with a capacity of 2080 KTA of ethylene, making it the largest ethane cracker in the Middle East and one of the largest in the world. It will also include two high-density polyethylene derivative units with a total capacity of 1680 KTA.
Chevron Phillips Chemical will provide project management services. Construction began with early works at the site in June 2022, and startup is expected in late 2026. The engineering, procurement and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering CO., Ltd. and CTCI Corporation. Tecnimont S.p.A. will execute engineering, procurement and construction for the polyethylene units.
The polyethylene units will use Chevron Phillips Chemical’s MarTech™ loop slurry process to produce high-density polyethylene, which will primarily be exported from the state of Qatar. Polyethylene is used in the production of durable goods like pipe for natural gas and water delivery and recreational products such as kayaks and coolers. It is also used in packaging applications to protect and preserve food and keep medical supplies sterile.
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.
“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,” Chinn said. “We are excited to expand on the long and successful history we have with QatarEnergy to safely construct and operate world-scale facilities.”
Originally announced in 2019, the project is an example on how Middle East oil producers are moving further into petrochemicals, in order to expand their share in these markets and find new sources of income in addition to exporting crude oil and natural gas.
All Kaabi said that "This marks QatarEnergy's largest investment ever in Qatar's petrochemical sector, an important milestone" in Qatar´s strategy for downstream expansion.
Qatar is one of the world's largest suppliers of liquefied natural gas (LNG), and will have its ethylene production capacity double as a result of the new complex. The country´s polymer production will also expand from 2.6 million to 4 million tonnes/year.
Attending the signing ceremony were senior executives from QatarEnergy, Chevron Phillips Chemical and its owner companies, Chevron U.S.A. Inc. and Phillips 66.
Chevron Phillips Chemical and QatarEnergy operate joint ventures in Qatar and recently announced construction of a similar integrated polymers facility in Orange, Texas.
.Source: Chevron Phillips