QatarEnergy, one of the world’s largest LNG exporters, has decided to proceed with the $6 billion petrochemicals joint venture with US partner Chevron Phillips Chemicals near the LNG liquefaction plant at Ras Laffan.
An agreement marking the final investment decision for the project was signed in Doha by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and who is also President and Chief Executive of QatarEnergy and Bruce Chinn, President and CEO of Chevron Phillips Chemical.
The companies created a joint venture under the agreement signed on January 8 called Ras Laffan Petrochemicals.
The deal sees QatarEnergy holding a 70 percent share and Chevron Phillips Chemical 30 percent.
“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemicals sector and the first direct investment in 12 years,” explained Al-Kaabi.
“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,” he added.
QatarEnergy said the Ras Laffan complex is expected to begin production in 2026, includes an ethane cracker with a capacity of 2.1 million tonnes per annum, making it the largest ethane cracker in the Middle East and one of the largest in the world.
The integrated complex will also include two high density polyethylene derivative units with a total production capacity of 1.7 million tonnes per annum.
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.
“There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy,” said Al-Kaabi.
