Qatar Petroleum inks agreement with Chevron Phillips to build new petrochemicals complex

25-Jun-19

Qatar Petroleum has signed an agreement with Chevron Phillips Chemical to build a new petrochemicals complex, part of plans by the world’s top liquefied natural gas (LNG) exporter to broaden its energy interests, as per Reuters. The new petrochemical plant will be built north of Doha in Ras Laffan Industrial City and will come online by 2025 and tap the increased North Field production for feedstock. The project highlights how Middle East oil producers are expanding further into petrochemicals, used in the production of plastics and packaging materials, to move into new markets and find new sources of income beyond exporting crude oil and natural gas.

Chevron Phillips Chemical Co will own a 30% stake in the complex, and 70% will be held by Qatar Petroleum. The plant will include an ethane cracker with an annual ethylene capacity of about 1.9 mln tons, making it the Middle East’s largest and one of the biggest in the world. The plant will increase Qatar’s polyethylene output capacity by 82%. Qatar is one of the most influential players in the LNG market due to its annual production of about 77 mln tons, which is expected to grow about 43% by 2024 from a major expansion to the country’s North Field, the world’s largest natural gas field, which it shares with Iran.