05 July 2012 04:24 [Source: ICIS news]
SINGAPORE (ICIS)--Shell and Qatar Petroleum (QP) are working on the front-end engineering and design (FEED) phase of their joint venture petrochemical project in ?xml:namespace>
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
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)
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