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Chevron Phillips Chemical Company LLC and Qatar Petroleum Dedicate World-Scale Chemical Complex in Qatar

Qatar Chemical Company Ltd. (Q-Chem)

Qatar Chemical Company Ltd. (Q-Chem), a joint venture company owned by Chevron Phillips Chemical International Qatar Holdings LLC (Chevron Phillips Chemical Qatar), a subsidiary of Chevron Phillips Chemical Company LLC (49 percent) and Qatar Petroleum (51 percent), announced the inauguration of its world-scale petrochemical complex in Mesaieed, Qatar.

The integrated petrochemical complex includes a 500,000-metric-ton-per-year ethylene cracker, a 453,000-metric-ton-per-year polyethylene (PE) plant, and a 47,000-metric-ton-per-year 1-hexene plant.

"The inauguration of Q-Chem is Chevron Phillips Chemical Company's latest demonstration of our commitment to laying a solid foundation for growth," said Jim Gallogly, president and CEO of Chevron Phillips Chemical Company LLC.  "We are pleased to have reached this milestone and congratulate our partner, Qatar Petroleum and our colleagues. We look forward to operating success that benefits the State of Qatar and our customers around the world," he said.

"The construction and start-up of this plant were made possible through the relentless support of His Highness The Emir, Sheikh Hamad Bin Khalifa Al Thani, Emir of the State of Qatar, whose leadership and vision initiated this industrial renaissance we are witnessing here in Qatar," said H.E. Abdullah Bin Hamad Al Attiyah, Minister of Energy and Industry, Chairman of Qatar Petroleum.

Q-Chem is expected to employ 575 employees and contractors in Mesaieed and Doha, Qatar.  Mesaieed is located 30 miles south of the city of Doha, the capital of The State of Qatar.

Q-Chem is the first of three joint venture projects between QP and Chevron Phillips Chemical Qatar.

The next project, Q-Chem II, is a joint venture between Chevron Phillips Chemical Qatar and Qatar Petroleum that will include new polyethylene and normal alpha olefins (NAO) plants adjacent to the existing Q-Chem complex. Both processes will utilize Chevron Phillips Chemical Company LLC's proprietary technology. 

The third project is the construction of an ethane cracker in Northern Qatar at Ras Laffan Industrial City. The cracker will provide ethylene feedstock to the derivative units in Mesaieed via pipeline. The cracker venture will include Qatar Petroleum and Atofina SA through their new Qatofin joint venture, and Qatar Petroleum and Chevron Phillips Chemical Qatar through their Q-Chem II joint venture. 

The Q-Chem II and ethane cracker projects are expected to begin operation in 2007.