QatarEnergy and Chevron Phillips Chemical sign a $6 billion petrochemicals deal

QatarEnergy and Chevron Phillips Chemical sign a $6 billion petrochemicals deal

QatarEnergy and Chevron Phillips Chemical signed a $6 billion deal to construct an integrated polymers complex in Ras Laffan Industrial City Qatar.

The companies created a joint venture called Ras Laffan Petrochemicals in which QatarEnergy will own a 70% equity share and Chevron Phillips Chemical will own the remaining 30%.

The 435-acre project site will include an ethane cracker with a capacity of 2080 KTA of ethylene which, according to the press statement, is the largest ethane cracker in the Middle East. It will also include two high-density polyethylene derivative units with a total capacity of 1680 KTA.

“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemicals sector and the first direct investment in 12 years. It will double our ethylene production capacity, increase our local polymer production from 2.6 to more than 4 million tons per annum, and place the utmost emphasis on sustainable growth and the environment,” Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy, said.

Chevron Phillips Chemical will provide project management services, the construction began in June 2022, and the operations are expected to start in late 2026. The engineering, procurement, and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering CO and CTCI Corporation. Tecnimont S.p.A. will execute engineering, procurement, and construction for the polyethylene units.

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