Only 10% of Q-Chem’s output to be sold locally, balance to be exported

06-Apr-10

By mid 2010, Qatar Chemical Co (Q-Chem) expects to start up the new HDPE and alpha olefins plants in Qatar, each with a capacity of 350,000 tpa. Only 10% of output from Q-Chem’s high density polyethylene (HDPE) plant in Mesaieed will find its way into the domestic market, the balance will be exported. About 35% of the HDPE output will be shipped to Europe and Africa and 55% to Asia, as per ICIS. Q-Chem is a joint venture between US major Chevron Phillips Chemical and state-owned Qatar Petroleum. Alpha olefins are used in the production of polymers, including polyethylene. The plants will source ethylene feedstock from the recently started cracker at Ras Laffan, Qatar. The 1.3 mln tpa cracker, also known as the Ras Laffan Olefins Co, is jointly owned by Q-Chem (53%) and Qatofin (46%). Qatar Petroleum also owns the remaining 1% stake directly.