Qatar Energy Company announced the final investment decision in the “Ras Laffan” petrochemical project, which is an integrated complex for the production of olefins and polyethylene in the “Ras Laffan” industrial city, at a cost of about $ 6 billion, in partnership with the “Chevron Phillips” chemicals company. Production is expected to start in 2026.

Under the agreement - which was signed in Doha by the Minister of State for Energy Affairs and CEO of Qatar Energy Saad bin Sherida Al-Kaabi and Bruce Chen, CEO of Chevron Phillips Chemicals - the two sides established a joint company owned by 70% of Qatar Energy and 30% of Chevron. Philips Chemicals, according to a company statement.

Qatar Energy also announced the award of the engineering, procurement and construction contract for the ethylene plant to SCJV, a joint venture between the Korean company Samsung Engineering and the Taiwanese company CTCI, and the award of the engineering, procurement and construction contract for the polycarbonate plant. Ethylene was awarded to the Italian company "Maire Tecnimont", while the main automation contract was awarded to the American company "Emerson".

Saad Al-Kaabi, CEO of Qatar Energy, said that the investment in Ras Laffan is the company's largest ever in the petrochemical sector in Qatar, adding that Qatar Energy has entered into a joint venture with Chevron Phillips of the United States for petrochemicals.

He pointed out that the complex's products will contribute to meeting the growing global demand for plastics and petrochemicals, and that Qatar's total production will rise to about 14 million tons annually of petrochemicals.

Al-Kaabi added, "There is no doubt that this large investment in Ras Laffan Industrial City represents a milestone in Qatar Energy's strategy to expand in the petrochemical sector, and it will enhance our integrated position as a major global player in the fields of exploration and exploration, liquefied natural gas, and petrochemical industries, and our position will be further strengthened." When operating the new global petrochemical project in the Gulf Coast region of the United States of America,” according to a company statement.

# Qatar Energy signs agreements with the Chevron Phillips Chemical Company to establish the Ras Laffan petrochemical complex at a cost of $ 6 billion # Qena pic.twitter.com/MyiQeJFyWp

- Qatar News Agency (@QatarNewsAgency) January 8, 2023

This "global project" consists of:

  • An ethane cracker with a production capacity of 2.1 million tons per year of ethylene, making it the largest unit of its kind in the Middle East and one of the largest in the world.

  • Two lines for the production of "High Density Polyethylene" (HDPE) with a production capacity of 1.7 million tons per year, which will raise Qatar's total production of petrochemicals to approximately 14 million tons per year.

It is noteworthy that this decision comes less than two months after Qatar Energy and Chevron Phillips announced their final decision to invest in the establishment of the "Golden Triangle Polymers plant" in the Gulf Coast region, Texas, in the United States of America, at a cost of about $8.5 billion.

Qatar Energy and Chevron Phillips are building one of the largest ethane crackers in the world.

This is the largest investment in the history of Qatar Energy in the petrochemical sector in Qatar#Qatar_Energy⁣ #Qatar pic.twitter.com/o95bunX27H

— QatarEnergy (@qatarenergy) January 8, 2023