Project builds on long-established relationships and highly-successful existing joint ventures
Qatar Petroleum to have 70 percent majority ownership, Chevron Phillips Chemical to own 30 percent stake
Chevron Phillips Chemical Company LLC and Qatar Petroleum (QP) today announced the signing of an agreement to pursue the development, construction and operation of a petrochemicals complex in Qatar to produce ethylene and high-density polyethylene (HDPE). The facility will be developed and constructed in Ras Laffan Industrial City and is expected to have a 1,900 KTA ethane cracker and two high-density polyethylene derivative units with a combined capacity of 1,680 KTA.
Signing of the project agreement documents occurred earlier this morning in Doha by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President & CEO of Qatar Petroleum, and Mark E. Lashier, President & CEO of Chevron Phillips Chemical.
Speaking at a press conference held on the sidelines of the signing ceremony, His Excellency Mr. Saad Sherida Al-Kaabi said, "The conclusion of these agreements constitutes an important milestone for Qatar Petroleum as petrochemicals represent a major pillar of our growth strategy to achieve our vision of becoming one of the best national oil and gas companies in the world."
Qatar Petroleum will own a 70 percent majority share of the joint venture and Chevron Phillips Chemical will own the remaining 30 percent.
In addition to the exclusive licensing of its MarTECH loop slurry process for manufacturing HDPE, Chevron Phillips Chemical will provide project management, engineering and construction services to develop the project. As part of the development phase, the companies will study the potential efficiencies that could be realized by harnessing the existing capabilities of the Qatar Chemical Company (Q-Chem) joint ventures to provide overall operational management of the facility once complete.
"Developing this project is a tremendous opportunity for our company to expand on our highly-successful joint ventures with the State of Qatar to meet the growing global demand for petrochemical products that enrich lives around the world," said Lashier. "Qatar is one of the world's leading producers of the natural gas liquids that will fuel these world-scale assets. This project fits perfectly with our global strategy to build petrochemical assets in regions of the world where feedstock options are abundant and competitively-priced.
"We look forward to building on our strong relationship with Qatar Petroleum and believe that these new world-scale assets will deliver exceptional value," concluded Lashier.
The engineering design phase of the project should commence shortly, leading to a planned start-up in late 2025.