QatarEnergy and CPChem launch $6 billion petrochemicals project in Ras Laffan

QatarEnergy and Chevron Phillips Chemical (CPChem) have officially started the construction of a $6 billion integrated polymers complex in Ras Laffan Industrial City, Qatar. The groundbreaking ceremony was attended by His Highness the Amir of the State of Qatar Sheikh Tamim bin Hamad Al Thani, who laid the ceremonial foundation stone.

The Ras Laffan Petrochemicals project is the largest investment ever made by QatarEnergy in Qatar’s petrochemicals sector and the first direct investment in 12 years. It is also a milestone in QatarEnergy’s downstream expansion strategy, as it will enhance its integrated position as a global energy player and generate significant economic benefits for the country.

The project is being developed by a joint venture company, Ras Laffan Petrochemicals, in which QatarEnergy owns a 70% equity share and CPChem owns 30%. CPChem is providing project management services to oversee the engineering, procurement and construction of the facility. Site preparation began in June 2022, and startup is expected in late 2026.

The 435-acre project site will include an ethane cracker with a capacity of 2,080 KTA of ethylene, making it the largest ethane cracker in the Middle East and one of the largest in the world. It will also include two high-density polyethylene (HDPE) derivative units with a total capacity of 1,680 KTA. The facility will use ethane as feedstock, which along with modern, energy-saving technology and other measures, is expected to result in lower greenhouse gas emissions intensity than similar global facilities.

The polyethylene units will use CPChem’s MarTech™ loop slurry process to produce HDPE, which will primarily be targeted for export from the state of Qatar. HDPE is used in packaging applications for household cleaners, personal care products, food and medical supplies. It is also used in the production of durable goods and recreational products such as kayaks and coolers.

The Ras Laffan Petrochemicals project will increase Qatar’s ethylene production capacity by over 40% and its overall petrochemical production capacity to approximately 14 million tons per annum. It will also create thousands of direct and indirect jobs during the construction and operation phases.

QatarEnergy and CPChem have a long history of successfully building and operating petrochemical facilities in Qatar. They currently operate three joint ventures in Qatar – Qatar Chemical Company Ltd., Qatar Chemical Company II Ltd. and Ras Laffan Olefins Company. The two companies, through their Golden Triangle Polymers joint venture, are also building a similar integrated polymers facility in Orange, Texas, USA.

The following table summarizes some key facts and figures about the Ras Laffan Petrochemicals project:

Parameter Value
Project cost $6 billion
Project location Ras Laffan Industrial City, Qatar
Project ownership QatarEnergy (70%), CPChem (30%)
Project management CPChem
Ethane cracker capacity 2,080 KTA of ethylene
HDPE units capacity 1,680 KTA of HDPE
Feedstock Ethane
Technology CPChem’s MarTech™ loop slurry process
EPC contractors Samsung Engineering and CTCI Corporation (ethane cracker), Tecnimont S.p.A. (HDPE units)
Main automation contractor Emerson
Startup date Late 2026

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