Qatar Energy and Chevron Phillips Chemical Company awarded today, Wednesday, the site preparation contract for the Ras Laffan Petrochemical Project to Consolidated Contractors Company (CCC).

Consolidated Contractors Company was selected as a contractor for the initial works on the basis of a lump-sum contract to prepare the site, on which the new petrochemical project will be built in Ras Laffan Industrial City.

Work under the contract will start this June, and upon its expiry, an engineering, procurement and construction contract for this project will be awarded.

Saad bin Sherida Al-Kaabi, Minister of State for Energy Affairs, Managing Director and CEO of Qatar Energy, said, "The award of this contract marks the beginning of the implementation of the Ras Laffan Petrochemical Project, which is a major milestone in Qatar Energy's efforts to expand and diversify its business portfolio and develop giant petrochemical projects. ".

"This project will increase our polyethylene production capacity in Qatar by about 64%," he added.

Qatar Energy awards site preparation contract for Ras Laffan Petrochemical Project.

# Qena https://t.co/5WXOcTfxAg pic.twitter.com/SfSK2U6TLu

— Qatar News Agency (@QatarNewsAgency) June 8, 2022

Ras Laffan Petrochemicals Project Details

The Ras Laffan Petrochemical Project is:

  • A joint venture between Qatar Energy and Chevron Phillips Chemical Company.

  • The project includes an ethane cracker with a capacity of 2,080,000 tons per year, making it the largest unit of its kind in the Middle East, and one of the largest in the world.

  • The project includes two units for the production of "High Density Polyethylene" (HDPE), which will greatly contribute to raising the current production capacity of the State of Qatar from this material.

  • The basic engineering design phase was completed in 2021, and the project entered the bidding phase.

  • When the tendering processes are completed and the final investment decision has been made, the project will progress to the engineering, procurement and construction phase.

  • The project is expected to start production in 2026.

A multi-billion dollar project to boost Qatar's gas exports

In a related matter, “Bloomberg” agency quoted informed sources as saying that “Total Energy” and “Exxon Mobil” have become among a group of Western energy companies eligible to win stakes in a multi-billion-dollar project to boost Qatar’s gas exports.

The agency indicated that Qatar Energy Company may announce its decision within days.

Bloomberg reported that many other companies, including Shell, submitted bids to be part of this project.

The Qatar project is one of the largest in the natural gas sector, at a time when Europe is rushing to distance itself from Russian supplies in the wake of Russia's war on Ukraine.