QatarEnergy and Chevron Phillips Chemical sign $6bn petrochemicals deal


QatarEnergy has 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 at Ras Laffan Industrial City.

The complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1m tonnes of ethylene per year, making it the largest in the Middle East and one of the largest globally. It also includes two polyethylene trains with a combined output of 1.7 million tonnes per annum (Mtpa) of High-Density Polyethylene (HDPE) polymer products, raising Qatar’s overall petrochemical production capacity to almost 14 Mtpa.

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.

HE Saad Sherida Al-Kaabi, Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Bruce Chinn, President and CEO of Chevron Phillips Chemical, signed the agreement for a joint venture company to implement the project, in which QatarEnergy will own a 70% equity share, and CPChem will own a 30% share.

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