Shell/Qatar Petroleum petrochemical joint venture in FEED phase

05 July 2012 04:24  [Source: ICIS news]

Shell/Qatar Petroleum petrochemical joint venture on FEED phaseSINGAPORE (ICIS)--Shell and Qatar Petroleum (QP) are working on the front-end engineering and design (FEED) phase of their joint venture petrochemical project in Ras Laffan, Qatar, a spokesperson from the Anglo-Dutch oil major said late on Wednesday.

The two companies signed in December last year a heads of agreement on the proposed world-scale petrochemical complex that is estimated to cost $6.4bn (€5.1bn), in which Qatar Petroleum would hold an 80% stake and Shell would take up the remaining 20%.

“The joint QP/ Shell Excom [executive committee] has approved the workplan and budget covering the whole phase of project definition of front-end engineering and design that should bring us to a final investment decision [FID],” said Nureddin Wefati, head of media relations for Middle East and North Africa at Shell, in an e-mailed statement to ICIS.

The project is expected to include a world-scale steam cracker that will derive feedstock from natural gas projects in  Qatar, a monoethylene glycol (MEG) plant with a capacity of up to 1.5m tonnes/year, a 300 kilotonnes/year of linear alpha olefins and another olefin derivative, according to Shell’s announcement late last year.

Output from the project is expected to cater primarily to the Asian markets.

Wefati refrained from providing specific timelines on project stages. “We do not publicly disclose dates for FID. It will take several years to build the facility once FID is taken,” the spokesperson said.

($1 = €0.80)

By: Pearl Bantillo
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index