QP and QAPCO sign the technology selection agreements for Al Sejeel Petrochemical Complex

Under the patronage of His Excellency Dr. Mohammed bin Saleh Al-Sada, Minister of Energy and Industry, Qatar Petroleum (QP) and Qatar Petrochemical Company Limited (QAPCO) have signed the technology license contracts for the Al Sejeel Petrochemical Complex, which will be built in Ras Laffan Industrial City. Technology Licensing Agreements have been signed with Univation Technologies for the polyethylene technology and The Dow Chemical Company for the polypropylene technology. The selection of the licensors is a highly strategic landmark and highlights the evolution of the project. With the signing of the technology agreements, the Al Sejeel plants will be designed to produce 2.2 million MTPA of polymers, including PE and PP resins. The Al Sejeel Petrochemical Project is part of Qatar's large-scale expansion of the petrochemicals sector to support diversification and growth of the Qatari economy as the State has announced that it will raise its petrochemical output to 23 million MTPA by 2020. The petrochemical complex will produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene, butadiene and py-gasoline. QP and QAPCO signed in February 2012 the Heads of Agreement (HoA) to jointly develop this mega-petrochemical complex in Ras Laffan, with QP and QAPCO holding 80% and 20% equity interest, respectively. The Al Sejeel Petrochemical Project is scheduled for completion in 2018 and it will feature a world-scale mixed-feed steam cracker, with the original mixed feedstock of ethane, butane, and naphtha, thus allowing extra flexibility and diversity in terms of products. "The Al Sejeel Petrochemical Project represents a pioneering initiative as it is the first time that two Qatari entities will build and develop together a petrochemical complex of this scale. Over the past years, Qatar and the country's petrochemical sector in particular have built tremendous capabilities, developed a talented national workforce, and acquired strong technical and operational expertise to develop and implement strategic projects such as Al Sejeel," said Eng Hamad Rashid Al Mohannadi, Chairman of QAPCO. The development of the Al Sejeel Petrochemical Complex is moving ahead. Following the signing of the Heads of Agreement in 2012, a Project Executive Committee (EXCOM) was formed consisting of representatives from both QP and QAPCO to oversee and direct the advancement of activities of the project. Over the course of one year and under the leadership and guidance of H.E. Dr. Al-Sada, the EXCOM has achieved significant progress within the established timeframe and budget as the Feasibility Study was already completed and the Project Management Contract (PMC) had been awarded to Bechtel. Since then, the PMC team has been mobilized and related work has been started on the 1st of May 2013. In addition, the Invitation to Bid (ITB) for the Front End Engineering and Design (FEED) had already been issued and the bidding process is currently in progress. The FEED is moving forward with the completion of Phase 2and the project is now entering its Phase 3