RAS LAFFAN INDUSTRIAL CITY, QATAR - Qatari state officials, along with representatives from Qatar Petroleum, Qatofin, Chevron Phillips Chemical and Total, held a ceremony today to inaugurate Ras Laffan Olefins Company (RLOC) at the new plant's site in Ras Laffan Industrial City. The new RLOC facility features a world-scale ethylene cracker that will deliver ethylene feedstock to the company's Q-Chem II facility. The launch ceremony was attended by His Highness Sheikh Tamim Bin Hamad Al-Thani, the Heir Apparent, and His Excellency Abdullah bin Hamad Al-Attiyah, Deputy Prime Minister and Minister of Energy and Industry. Chevron Phillips Chemical President and CEO Greg Garland attended the event with several Chevron Phillips Chemical leadership team members, as well as other Qatari dignitaries and foreign press.
Natural gas mined in the fields of Qatar is a steady source of ethane, which is used to manufacture a number of industrial and household products. However, raw ethane is not directly usable in many downstream manufacturing processes. As a result, the Ras Laffan Olefins Company plant was designed to "crack" or convert, ethane into ethylene to supply the company's manufacturing facilities in Mesaieed. Ethylene sent to Messaieed will be used as feedstock in the manufacture of additional Q-Chem and Chevron Phillips Chemical products.
The ethylene produced at RLOC is shipped from Ras Laffan to Mesaieed via a purpose-built 133 km pipeline. In a future second phase, the capacity of the plant will be increased, making it the largest facility of its kind in the world.
"The Ras Laffan Olefins Company is a critical step toward consolidating Qatar's position as one of the leading suppliers of polyethylene in the world" Al-Attiyah said.
Ras Laffan Olefins Company is jointly owned by Q-Chem II and Qatofin. Q-Chem II, a joint venture between Qatar Petroleum and a subsidiary of Chevron Phillips Chemical Company, produces high density polyethylene, which uses a steady supply of ethylene during the manufacturing process. The RLOC plant itself will be managed and operated by Q-Chem II under contract from RLOC. Q-Chem II will also begin producing a full line of normal alpha olefins (NAO) products for the first time in the region. NAOs are used to produce plastics, lubricants, detergents, drilling fluids and a number of specialty products.
"The startup of the RLOC plant marks an important milestone for Q-Chem's strategic goal to boost its production capacity. With an increase of 350,000 mtpa of HDPE and 350,000 mtpa of normal alpha olefins from Q-Chem II, our position as leading player in the high-quality polyethylene market will be further strengthened" said Ahmed Al-Emadi, Q-Chem General Manager.
Like all new industrial projects in Qatar, care has been taken to ensure a minimal environmental footprint during construction and operation of the RLOC plant. The facility will be operated to benchmark environmental standards. In addition, the pipeline from Ras Laffan to Mesaieed has been laid parallel to existing pipelines to reduce environmental impact.
About Chevron Phillips Chemical Company LLC
Chevron Phillips Chemical is one of the world's top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, plastic piping and polymer resins. The LLC and its affiliates own over $7 billion in assets and employ 4,600 people at 35 manufacturing and research facilities in nine countries. Chevron Phillips Chemical Company LLC is equally owned by Chevron Corporation and ConocoPhillips, and is headquartered in The Woodlands, Texas. For more information about Chevron Phillips Chemical, visit www.cpchem.com.