Corrected: Qatar Petroleum, Shell ink deal for $6.4bn petchem complex

05 December 2011 03:22  [Source: ICIS news]

Correction: In the ICIS story headlined "Qatar Petroleum, Shell ink deal for $6.4bn petchem complex" dated 5 December 2011, please read in the fifth paragraph... to produce 300 kilotonnes/year... instead of... to produce 300,000 kilotonnes/year....  A corrected story follows.

SINGAPORE (ICIS)--Qatar Petroleum and Shell have signed a heads of agreement to develop a world-scale petrochemicals complex in Qatar for an estimated cost of $6.4bn (€4.8bn), the two firms said on Sunday.

Qatar Petroleum will have an 80% equity interest in the project and Shell will have the remainder, the two companies said in a statement .

The heads of agreement sets the scope and commercial principles for the development of the complex, which will include a world-scale steam cracker that will use feedstock from natural gas projects in Qatar, the companies said.

A monoethylene glycol (MEG) plant with up to 1.5m tonnes/year of capacity is also under consideration, according to the companies.

The new complex will be able to produce 300 kilotonnes/year of linear alpha olefins, they said.

“The complex will produce cost-competitive petrochemicals products to be marketed primarily into Asian growth markets,” the companies said.

The agreement between the two firms follows the conclusion of a joint feasibility study conducted by Qatar Petroleum and Shell, the statement added.

($1 = €0.75)

For more on Shell, visit ICIS company intelligence

By: Nurluqman Suratman

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