Qatar begins construction of mega petrochemical complex in Ras Laffan

A new mega petrochemical complex will soon rise in Ras Laffan Industrial City in Qatar, following the signing of a Heads of Agreement which provides for the construction of a complex that will include a world-scale steam cracker. The agreement was signed Mohammed bin Saleh Al Sada, minister of Energy & Industry and chairman and managing director of Qatar Petroleum, and Qatar Petrochemical Company (QAPCO). “This mega-project is yet another major step in our progress towards sustainable development of Qatar’s vast hydrocarbon resources as envisioned by His Highness the Emir Sheikh Hamad bin Khalifa Al Thani. It is an important milestone in the industrial development of the State of Qatar, especially for its petrochemical industry,” Al Sada said. Qatar Petroleum has 80% equity in the project and QAPCO owns 20%. The two companies will jointly develop the petrochemical complex which is scheduled to be operational by 2018. The facility is expected to produce 1.4 million tons per annum (MMTA) of ethylene, 850 thousand tons per annum (KMTA) of high density polyethylene, 430 KMTA of linear low density polyethylene, 760 KMTA of polypropylene and 83 KMTA of butadiene. The products will be exported to emerging markets in Asia, Africa and Latin America. “This new project is a great example of implementing Qatar’s long-term strategy. It is definitely a key milestone in our long journey to become a significant global petrochemicals producer from the GCC region,” said Hamad Rashid Al-Mohannadi, chairman of QAPCO. (February 17, 2012)