Q-Chem to export 35% HDPE from new plant to Europe, Africa

05 April 2010 07:34  [Source: ICIS news]

SINGAPORE (ICIS news)--Qatar Chemical Co (Q-Chem) plans to export 35% of the output from its new high density polyethylene (HDPE) plant in Mesaieed industrial city to Europe and Africa, and 55% to Asia, a company source said on Monday.

“Only 10% of the output will be sold locally,” the source added.

The company expects to start up the new HDPE and alpha olefins plants in Qatar, each with a capacity of 350,000 tonnes/year, by the middle of 2010, he said.

The HDPE grades produced by the new plant will increasingly focus on segments such as plastic drums and intermediate bulk containers (IBCs). “There is a growing demand for these end use segments,” the source said.

Alpha olefins are used in the production of polymers, including polyethylene.

Q-Chem is a joint venture between US major Chevron Phillips Chemical and state-owned Qatar Petroleum.

Access to Chevron Phillips’ HDPE technology would give Q-Chem an edge in the high end European market, the source said.

The plants will source ethylene feedstock from the recently started cracker at Ras Laffan, Qatar. The 1.3m tonne/year cracker, also known as the Ras Laffan Olefins Co, is jointly owned by Q-Chem (53%) and Qatofin (46%). Qatar Petroleum also owns the remaining 1% stake directly.

Qatofin is a joint venture between France's Total Petrochemical (36%), and state-owned groups Qatar Petrochemical Co (QAPCO) (63%) and Qatar Petroleum (1%).

Q-Chem has an existing 500,000 tonne/year cracker and 450,000 tonne/year HDPE plant at Mesaieed.

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By: Prema Viswanathan
+65 6780 4359

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