Industries Qatar (IQ)’s planned 600,000 tpa LDPE plant is estimated to cost QR700 mln more than the original QR1.6 bln estimated in 2008. This translates into a 44% hike in costs to QR2.3 bln for the plant scheduled for completion by 2012.
Construction costs for its other two plants scheduled for start up shortly, have also gone overbudget. A linear low density polyethylene (LLDPE) plant and the associated Ras Laffan Olefins Cracker (RLOC) are expected to cost QR5.1 bln compared with QR4.9 bln reported in 2008. Capacity at the LLDPE plant is planned at 225,000 tons in the first year, to be augmented up to 450,000 tons. Capacity at the RLOC is planned at 650,000 tpa to be doubled subsequently.