Qatar Petroleum, QAPCO to build $5.5bn Ras Laffan petchem complex

14 February 2012 10:58  [Source: ICIS news]

SINGAPORE (ICIS)--State-owned Qatar Petroleum and Qatar Petrochemical Company (QAPCO) will jointly develop a new petrochemical complex at Ras Laffan Industrial City, a source from Qatar Petroleum said on Tuesday.

The new complex will include a 1.4m tonne/year steam cracker that will obtain feedstock from natural gas plants at the site, as well as downstream units, the source said.

The project is expected to produce 850,000 tonnes/year of high-density polyethylene (HDPE), 430,000 tonnes/year of linear low density polyethylene (LLDPE), 760,000 tonnes/year of polypropylene (PP) and 83,000 tonnes/year of butadiene.

"The complex will be built at an estimated total investment cost of $5.5bn (€4.2bn) and is scheduled for completion in 2018,” the source said.

Qatar Petroleum will have 80% equity interest in the project, with QAPCO taking up the remaining 20% stake, the companies said in a joint statement issued on Monday.

Output from the new complex will be sold primarily in high-growth markets in Asia, Africa and Latin America, according to the two companies.

“The petrochemical complex will provide Qatar with the required solid foundation to extract optimal value from its abundant natural gas resources,” said QAPCO Hamad Rashid Al-Mohannadi in the statement.

QAPCO is 80% owned by Industries Qatar, with the remaining 20% held by France’s Total.

($1 = €0.76)

By: Nurluqman Suratman

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