Chevron Phillips Chemical Company has signed an agreement with Qatar Petroleum (QP) to jointly pursue the development, construction and operation of a petrochemicals complex in Ras Laffan region of Qatar.
As per the deal, Qatar Petroleum will own a 70 per cent stake in the joint venture facility that will produce ethylene and high-density polyethylene (HDPE).
In addition to the exclusive licensing of its MarTech loop slurry process for manufacturing HDPE, Chevron Phillips Chemical will provide project management, engineering and construction services to develop the project.
As part of the development phase, the companies will study the potential efficiencies that could be realised by harnessing the existing capabilities of the Qatar Chemical Company (Q-Chem) joint ventures to provide overall operational management of the facility once complete.
The engineering design phase of the project is likely to start soon, leading to a planned start-up in late 2025.
Once completed, the petchem complex will boast a 1,900 KTA ethane cracker and two high-density polyethylene derivative units with a combined capacity of 1,680 KTA, revealed Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President & CEO of Qatar Petroleum, after signing the deal with Mark E. Lashier, President & CEO of Chevron Phillips Chemical.
"The conclusion of these agreements constitutes an important milestone for Qatar Petroleum as petrochemicals represent a major pillar of our growth strategy to achieve our vision of becoming one of the best national oil and gas companies in the world," stated Al Kaabi.
On the joint venture, Lashier said: "Developing this project is a tremendous opportunity for our company to expand on our highly-successful joint ventures with Qatar to meet the growing global demand for petrochemical products that enrich lives around the world."
"Qatar is one of the world’s leading producers of the natural gas liquids that will fuel these world-scale assets. This project fits perfectly with our global strategy to build petrochemical assets in regions of the world where feedstock options are abundant and competitively-priced," stated Lashier.
“We look forward to building on our strong relationship with Qatar Petroleum and believe that these new world-scale assets will deliver exceptional value,” he added.-TradeArabia News Service
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