LONDON (ICIS)--Chevron Phillips Chemical and Qatar Petroleum have agreed to build a 1.9m tonne/year ethane cracker and 1.68m tonne/year high density polyethylene (HDPE) project at Ras Laffan Industrial City in Qatar, the companies said on Monday.
The project agreement documents were signed earlier in the day in Doha.
Qatar Petroleum will own a 70% majority share of the joint venture and Chevron Phillips Chemical will own the remaining 30%, the companies said.
The project is planned for start-up in 2025.
Chevron Phillips Chemical will provide an exclusive licence of its MarTECH loop slurry process for manufacturing HDPE, project management, engineering and construction services to develop the project.
“As part of the development phase, the companies will study the potential efficiencies that could be realised by harnessing the existing capabilities of the Qatar Chemical Company (Q-Chem) joint ventures to provide overall operational management of the facility once complete,” the companies added.
The project will have two HDPE units.
Qatar Petroleum said just over a year ago that it had asked a group of international companies for proposals for the major petrochemicals project and competition was known to be rife.
“The conclusion of these agreements constitutes an important milestone for Qatar Petroleum as petrochemicals represent a major pillar of our growth strategy to achieve our vision of becoming one of the best national oil and gas companies in the world,” Qatar Petroleum President and CEO and Qatar Minster of State for Energy Affairs, His Excellency Saad Sherida Al-Kaabi, said at a press conference.
Chevron Phillips Chemical would not comment on a 21 June Reuters report of a $15bn bid by the company for Nova Chemicals, owned by Abu Dhabi investment vehicle Mubadala, a spokesperson said on Monday.
Picture: Chevron Phillips Chemical
President and CEO Mark Lashier (left) with His
Excellency Saad Sherida Al-Kaabi, the Minister
of State for Energy Affairs and President &
CEO of Qatar Petroleum
Source: Qatar Petroleum