MESAIEED, QATAR (June 8, 2006) - His Highness (HH), Sheikh Tamim Bin Hamad Al-Thani, the Heir Apparent today officially laid the foundation stone for the Q-Chem II complex, in a ceremony held at the site of the major petrochemical facility in Mesaieed, Qatar.  Company officials, dignitaries, visitors, and guests from Qatar and abroad helped celebrate the occasion.

Qatar Chemical Company II Ltd. (Q-Chem II) is executing the Q-Chem II Project. Q-Chem II is a joint venture between Qatar Petroleum (51 percent) and Chevron Phillips Chemical International Qatar Holdings LLC (49 percent), a wholly-owned subsidiary of Chevron Phillips Chemical Company LLC (Chevron Phillips Chemical). 

“The foundation stone laying of Q-Chem II represents another part of the development strategy HH Sheikh Hamad Bin Khalifa Al-Thani, the Emir, had set in the 1990s targeting economic development and modernization and hence diversifying the source of income through laying down competent, strong industrial foundations which ensure the optimal utilization of the country’s oil and gas natural resources,” said His Excellency (HE), Abdullah Bin Hamad Al-Attiyah, Second Deputy Premier, Minister of Energy and Industry of Qatar, and chairman of Qatar Petroleum. HE Al-Attiyah also said that the plan to implement that strategy “was not merely an aspiration, but clear, serious directives accompanied with hard continuous work and ceaseless commitment to make our young generation’s ambition a reality.”

“This stone represents a sturdy foundation for the Q-Chem II complex as well as the strong partnership between the State of Qatar and Chevron Phillips Chemical,” said Ray Wilcox, President and CEO of Chevron Phillips Chemical.  “We are proud to be involved in the development of this world-class facility.”

When operational in late 2008, the Q-Chem II complex will include a 350,000 metric tons per year (770 million pounds per year) polyethylene plant and a 345,000 metric tons per year (760 million pounds per year) normal alpha olefins plant, located on a site adjacent to the existing Q-Chem complex.  Both new plants in the Q-Chem II complex will utilize Chevron Phillips Chemical’s proprietary technologies for the production of polyethylene and normal alpha olefins.

The products manufactured at the Q-Chem II complex will serve customers in the Middle East, Asia, Europe, and other regions for the production of common consumer items.  Polyethylene is typically used to manufacture plastic pipe, merchandise bags, milk jugs, and food and beverage containers, and other consumer items.  Normal alpha olefins are typically used in the production of polyethylene as well as end-uses such as paraffin wax, synthetic motor oils, lubricants, and fuel additives.

The Q-Chem II complex will comply with all environmental standards prescribed by the Supreme Council for Environment and Natural Resources of Qatar as well as applicable World Bank Standards, Equator Principles, and U.S. EPA regulations. 

Tecnimont S.p.A. and Daewoo Engineering & Construction Co., Ltd. were awarded the engineering, procurement, and construction contract for the complex.

Chevron Phillips Chemical Company LLC and its affiliates produce chemicals that are essential to manufacturing over 70,000 consumer and industrial products. This includes olefins and polyolefins, aromatics, alpha olefins, styrenics, specialty chemicals, piping and proprietary plastics. The company has nearly $7 billion in assets, operates 37 manufacturing and research facilities in eight countries, and employs approximately 5,150 persons worldwide. The company is owned equally by Chevron Corporation and ConocoPhillips.