QatarEnergy, Chevron Phillips to Build Middle East’s Largest Petrochemical Complex
- January 9, 2023
- Posted by: Quatro Strategies
- Category: Energy
Qatar’s state-owned QatarEnergy announced a final investment decision to build the $6 billion petrochemicals complex in Ras Laffan industrial city in partnership with U.S. based Chevron Phillips Chemical The complex is expected to be the largest of its kind in the Middle East. The facility will include an ethane cracker with a capacity of 2.1 million tonnes of ethylene per year and two high density polyethylene derivative units with a total production capacity of 1.7 million tonnes per year. It is expected to begin production in 2026.
The plans were originally announced in 2019, and underlines how the Middle Eastern nations try to expand further into petrochemicals in order to create new sources of income beyond the export of crude oil and natural gas.
State-run QatarEnergy will hold a 70% stake in the venture with Chevron Phillips Chemicals holding 30% under the agreement signed on Sunday.
“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemical sector,” Qatari Energy Minister and CEO of QatarEnergy Kaabi said.
The complex, located in Ras Laffan industrial city, is an “important milestone” in Qatar’s downstream expansion strategy, he added.
Qatar, one of the world’s top producers of LNG, will see its ethylene production capacity double on the back of the new complex. Local polymer production will also increase from 2.6 million to 4 million tonnes per annum.
The Gulf state, one of the most influential global players in the world’s LNG markets, is expanding its North Field gas field that will see its liquefaction capacity increase from 77 million tonnes per annum to 126 million tonnes by 2027.
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