QH REVIEWS THE SIGNIFICANCE OF RAS LAFFAN PETROCHEMICAL COMPLEX AND ITS LEADING EDGE IN THE REGION AND GLOBALLY
“The (project) will not only facilitate further expansion in the downstream and petrochemical sectors in Qatar, but will also reinforce our integrated position as a major global player in the upstream, LNG, and downstream sectors”
— Engineer Saad bin Sherida Al Kaabi, HE Minister of State for Energy Affairs
QatarEnergy and Chevron Phillips last month announced a joint venture to build a $6 billion petrochemicals complex in the Ras Laffan industrial city. The complex is set to be the largest of its kind in the region and will raise the country’s overall petrochemical production capacity to nearly 14 million tonnes per annum.
HE Minister of State for Energy Affairs, President and CEO of QatarEnergy Engineer Saad bin Sherida Al Kaabi and CEO of Chevron Phillips Chemical (CPChem) Bruce Chinn signed the Final Investment Decision (FID) deal to build the facility.
The largest investment ever in Qatar’s petrochemical sector will see QatarEnergy holding a 70% stake in the venture with CPChem sharing 30% under the agreement.
The project underpins how the region’s oil producers are expanding further into petrochemicals to move into new markets and find new sources of income beyond exporting crude oil and natural gas.
The Ras Laffan Petrochemicals Complex will comprise of two separate plants, each producing petrochemicals such as ethylene, propylene, and polyethylene. The two plants will also be equipped with a range of advanced technologies and processes that are designed to maximise energy efficiency and minimise environmental impact.
Notably, the complex will have an ethane cracker with a capacity of 2.1 million tonnes of ethylene per annum, making it the largest in the Middle East and one of the largest globally.
The project is a major investment for both QatarEnergy and Chevron Phillips and it will help to drive economic growth in the region. It is expected to create thousands of new jobs in Qatar and help diversify the country’s economy. It will also provide a boost to the local manufacturing industry as the petrochemicals produced by the complex will be used in a wide range of products.
Engineer Saad bin Sherida Al Kaabi said: “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 and 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.”
“There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy. It will not only facilitate further expansion in the downstream and petrochemical sectors in Qatar, but will also reinforce our integrated position as a major global player in the upstream, LNG, and downstream sectors,” the minister noted.
Kaabi felt this would be further enhanced once the new world-scale petrochemical project in Orange, Texas, in the US comes online in partnership with CPChem, executed by their joint venture Golden Triangle Polymers Company.
Qatar’s new joint venture with CPChem reinforces a nearly two decade long association with the company capping many successes building and operating plants safely and efficiently.
The minister felt that their large and diverse portfolio will not just help meet the world’s growing needs for advanced plastics and petrochemicals, but will also enable balanced growth and facilitate human development in a responsible and sustainable manner.
The project is expected to be operational by late 2026 after work on the site began in June last year. This is an ambitious timeline, but both QatarEnergy and CPChem are confident that the project will be successful.
The joint venture demonstrates the importance of collaboration in the petrochemicals industry. By pooling resources and expertise, the two companies have been able to take on a major project that will benefit the entire region — a sentiment echoed by CPChem CEO Bruce Chinn.
“The building of the project would be carried out using modern energy-saving technology while using ethane as a raw material, which is expected, in addition to other measures, to lead to decreasing greenhouse gas emissions compared to similar global facilities,” Chinn pointed out.
In addition to helping drive economic growth in Qatar, the complex will also provide a boost to the global petrochemicals industry. By providing a reliable source of petrochemicals, the complex will help ensure the industry remains competitive in the years ahead.
The joint venture between QatarEnergy and CPChem comes on the heels of their decision to implement the $8.5 billion Golden Triangle Polymers Plant on the US Gulf Coast in Texas. The two already collaborate on other ventures in Qatar.
Qatar which ranks as one of the most influential global players in the world’s LNG markets is expanding its North Field gas that will see its liquefaction capacity increase from 77 million tonnes per annum to 126 million tonnes by 2027.
