SINGAPORE (ICIS)–QatarEnergy has made a final investment decision (FID) to build the $6bn Ras Laffan petrochemicals complex with partner Chevron Phillips Chemical (CPChem), the state-run energy firm said on Sunday.
The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1m tonnes/year of ethylene, making it the largest in the Middle East and one of the largest in the world, it said in a statement.
It also includes two polyethylene (PE) trains with a combined output of 1.7m tonnes/year high density polyethylene (HDPE), raising Qatar’s overall petrochemical production capacity to almost 14m tonnes/year.
Output from the plant will primarily be exported, CPChem said.
QatarEnergy will own 70% of the joint venture – Ras Laffan Petrochemicals – that will implement the integrated olefins and polyethylene facility at Ras Laffan Industrial City, while CPChem will own the remaining 30%.
“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemicals sector and the first direct investment in 12 years. It will double our ethylene production capacity, and increase our local polymer production from 2.6 to more than 4m tonnes per annum,” QatarEnergy chief Saad al-Kaabi Kaabi said.
This final decision comes less than two months after QatarEnergy and Chevron Phillips Chemical took the Final Investment Decision to execute the $8.5bn Golden Triangle Polymers plant on the US Gulf Coast in Texas.
“There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy. It will not only facilitate further expansion in the downstream and petrochemical sectors in Qatar, but will also reinforce our integrated position as a major global player in the upstream, LNG, and downstream sectors,” Kaabi said.
Construction for the new complex began with early works at the site in June 2022, according to CPChem.
The engineering, procurement and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering Co. and CTCI Corp.
Tecnimont will execute engineering, procurement and construction for the PE units.
