The new venture between QatarEnergy and Chevron Phillips Chemical Company LLC (CPChem) to build an olefins and polyethylene facility at Ras Laffan Industrial City turns a new chapter in the journey of both entities which will result in the exports of products to the rest of the world soon President and CEO of Chevron Phillips Chemical Bruce Chinn told a gathering at the QatarEnergy headquaters in Doha to mark the milestone agreement reached between QatarEnergy and CPChem on Sunday.
The joint venture signifies the long standing relations between QatarEnergy and CPChem whose teams have been working tirelessly since 2019 to bring the project to fruition. We are grateful that the collaboration of the two big families had enabled the celebration of a groundbreaking venture in Qatar, Chinn said.
He said the new venture strengthens our long term strategy in the region with access to clean products. Together our operations at Ras Laffan industrial facility signifies our shared focus for safe, quality and higher standards of polyethylene products.
The project will benefit Ras Laffan Industrial City's transportation, supply chain management and construction.QatarEnergy reached another major milestone this week by entering into an agreement with Chevron Phillips Chemical Company LLC (CPChem) to build the Ras Laffan Petrochemicals complex - a $6bn integrated olefins and polyethylene facility at Ras Laffan Industrial City. The announcement was made in Doha in a ceremony during which Minister of State for Energy Affairs and the President and CEO of QatarEnergy H E Saad Sherida Al Kaabi, and the President and CEO of Chevron Phillips Chemical Bruce Chinn signed the agreement for a joint venture company to implement the project, in which QatarEnergy will own a 70 percent equity share while CPChem will own a 30 percent share. The signing ceremony was also graced by the President and CEO of Phillips 66 Mark Lashier and senior executives from QatarEnergy and CPChem.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 Ltd. 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.
The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1 million tons of ethylene per annum, 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 1.7 million tons per annum of High-Density Polyethylene (HDPE) polymer products, raising Qatar’s overall petrochemical production capacity to almost 14 million tons per annum.
Minister Al Kaabi said: “The landmark agreement 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. This will be further enhanced once the new world-scale petrochemical project in Orange, Texas, in the United States of America comes online in partnership with Chevron Phillips Chemical, executed by our joint venture Golden Triangle Polymers Company” the Minister added.
QatarEnergy is an integrated energy company committed to the sustainable development of cleaner energy resources as part of the energy transition in the State of Qatar and beyond. It is the world leader in Liquefied Natural Gas (LNG) – a cleaner, more flexible, and reliable source of energy, and an integral partner in the global energy transition. Our activities cover the entire spectrum of the oil and gas value chain and include the exploration, production, processing, refining, marketing, trading, and sales of energy products and commodities.
