January 9, 2022 [Gulf Times] – QatarEnergy announced the Final Investment Decision (FID) with Chevron Phillips Chemical Company (CPChem) to build the Ras Laffan Petrochemicals complex – a $6bn integrated olefins and polyethylene facility- the largest ethane cracker in the Middle East and one of the largest in the world.
An agreement was signed by QatarEnergy and Chevron Phillips Chemical Company to set up a joint venture company to implement the project, in which QatarEnergy will own a 70% equity share, and CPChem will own a 30% share.
The agreement was signed at the QatarEnergy headquarters Sunday by HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy and Bruce Chinn, president and CEO of Chevron Phillips Chemical.
The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1mn tons of ethylene per year, making it the largest in the Middle East and one of the largest in the world. It also includes two polyethylene trains with a combined output of 1.7mn tons per year of high-density polyethylene (HDPE) polymer products, raising Qatar’s overall petrochemical production capacity to almost 14mn tons per year.
The signing ceremony was attended by Mark Lashier, President and CEO of Phillips 66, and senior executives from QatarEnergy and CPChem.
The integrated olefins and polyethylene facility at Ras Laffan marks QatarEnergy’s largest investment ever in the country’s petrochemical sector and the first direct investment in 12 years.
QatarEnergy also announced the award of the engineering, procurement, and construction (EPC) contract for the ethylene plant to SCJV, a joint venture company between Samsung Engineering Company of South Korea and CTCI of Taiwan.
The EPC contract for the polyethylene plant was awarded to Maire Tecnimont of Italy, while Emerson of the USA was awarded the main automation contract.
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