US$ 70 mln pipeline to pump ethylene from Ras Laffan to Mesaieed

24-Apr-06

A US$70 mln pipeline to pump ethylene from Ras Laffan to Mesaieed is scheduled to be complete in early 2008. Ethane, a byproduct of petroleum refining, and a feedstock for ethylene production will be sourced from the Dolphin Project and Al Khaleej Gas 2 (AKG 2); and pumped to Ras Laffan Cracker for processing. The ethylene would form feedstock for Mesaieed-based petrochemical projects - Qapco, QChem 2 and Qatofin. * 6 months after completion of the Ras Laffan-Mesaieed ethylene pipeline, the Ras Laffan Cracker one of the world's largest ethane cracker plants, is to commence. Ras Laffan Cracker is a joint venture by Qatofin, QP and Q-ChemII. * Qatofin, a joint venture of Qapco, QP and Total Petrochemicals, with a capacity of 450,000mn tpa of LLDPE (Linear Low Density Polyethylene) is slated for completion by end of 2008. Qapco is to invest US$2bn to boost its ethylene and low-density polyethylene (LDPE) capacity in the next five years, boosting production of ethylene to 1.3 mln tpa and Low-Density Polyethylene (LDPE) to 1.2 mln tpa. Qapco has also launched a major expansion at Mesaieed - dubbed EP2, to enhance existing ethylene capacity to 720,000 mln tpa from 525,000 mln tpa. EP2 completion is scheduled for Q2-2007.