QatarEnergy and Chevron Phillips Sign $6 Billion Agreement with Ras Laffan Petrochemicals
QatarEnergy announced on Sunday the decision to make a final investment in the Ras Laffan Petrochemicals Complex for $6 billion with partner Chevron Pillips Chemical. which is expected to be the largest in the Middle East
The complex, which is expected to start production in 2026, includes an ethane cracker with an ethylene capacity of 2.1 million tonnes per year.
The integrated complex will include two high-density polyethylene derivative units with a total capacity of 1.7 million tonnes per year, said Saad al-Kaabi Kaabi, head of QatarEnergy’s energy division.
Originally announced in 2019, the program highlights how Middle Eastern oil producers are expanding into petrochemicals. It is used in the manufacture of plastics and packaging materials. to move into new markets and find new sources of income besides crude oil and natural gas exports
State-run QatarEnergy will hold a 70 percent stake in a joint venture with Chevron Phillips Chemicals, which holds a 30 percent stake, under the deal signed on Sunday.
“This is QatarEnergy’s largest investment in Qatar’s petrochemical sector,” Kaabi said.
The complex, located in the industrial city of Ras Laffan, is a “key milestone” in Qatar’s downstream expansion strategy, he said.
Qatar, one of the world’s leading producers of liquefied natural gas (LNG), will see a doubling of ethylene capacity in the back of the new complex. Local polymer production will increase from 2.6 million to 4 million tons per year.
The Gulf state, one of the most influential global players in the world’s LNG market, is expanding its North Field gas field, which will increase its liquid capacity from 77 million tonnes per year to 126 million tonnes by 2027.
