An agreement was signed by QatarEnergy and Chevron Phillips Chemical Company to set up a joint venture company to implement the project, in which QatarEnergy will own a 70% equity share, and CPChem will own a 30% share.
The agreement was signed at the QatarEnergy headquarters Sunday by HE the Minister of State for Energy Affairs Saad Sherida al-Kaabi, also the President and CEO of QatarEnergy and Bruce Chinn, president and CEO of Chevron Phillips Chemical.
The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1mn tons of ethylene per year, 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 1.7mn tons per year of high-density polyethylene (HDPE) polymer products, raising Qatar’s overall petrochemical production capacity to almost 14mn tons per year.
The signing ceremony was attended by Mark Lashier, President and CEO of Phillips 66, and senior executives from QatarEnergy and CPChem.
The integrated olefins and polyethylene facility at Ras Laffan marks QatarEnergy’s largest investment ever in the country’s petrochemical sector and the first direct investment in 12 years.
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.
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- Ras Laffan polyethylene units to use Chevron Phillips Chemical’s MarTech loop slurry process: Chinn
- $6bn ethane cracker QatarEnergy’s largest investment ever in country's petrochemical sector
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The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1mn tons of ethylene per year, 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 1.7mn tons per year of high-density polyethylene (HDPE) polymer products, raising Qatar’s overall petrochemical production capacity to almost 14mn tons per year.
Addressing the event, 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 2.6mn to more than 4mn tons per year, 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” al-Kaabi noted.
Minister Al-Kaabi concluded his remarks by saying: “We are delighted to enter into this exciting new venture with Chevron Phillips Chemical – a leading and highly respected international petrochemicals company, and a long-term partner with whom we have achieved many successes together building and operating plants safely and efficiently for more than 20 years. Together, our 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. I would like to thank everyone who has worked to reach this milestone. We are also grateful to the leadership and guidance of His Highness the Amir Sheikh Tamim bin Hamad al-Thani, for his unwavering support to Qatar’s energy sector.”
The final investment decision on the Ras Laffan Petrochemicals complex comes less than two months after QatarEnergy and Chevron Phillips Chemical took the Final Investment Decision to execute the $8.5bn Golden Triangle Polymers Plant on the US Gulf Coast in Texas.
