Ras Laffan Petrochemicals

History

2023: Building a Company

On January 8, 2023, Qatar Energy and Chevron Phillips Chemical signed agreements for $6 billion to develop a joint oil and gas chemical project in the city of Ras Laffan, which will become the largest of its kind in the Middle East. The project will optimize the utilization of ethane manufactured at the liquefied natural gas plant. The new company was named Ras Laffan Petrochemicals.

The Ras Laffan complex includes an ethane cracking unit with a capacity of 2.1 million tons of ethylene per year. Under the agreement, state-owned Qatar Energy will hold a 70% stake in Ras Laffan Petrochemicals, while Chevron Phillips Chemicals will hold a 30% stake.

QatarEnergy and Chevron Phillips create $6 billion petrochemical joint venture

The integrated complex will also include two high density polyethylene derivatives plants with a total production capacity of 1.7 million tonnes per year, Qatar Energy chief Saad al-Kaabi said.

The city of Ras Laffan will liquefy gas produced at the North Field, the Qatari part of the giant gas field, the Iranian part of which is called South Pars. By organizing the production of polyethylene brands in demand on the market, Qatar expects to strengthen its position in the global oil and gas chemical market.

The production of high-density polyethylene will be organized using the licensed technology Chevron Phillips Chemical - MarTECH loop slurry. In addition, the company will provide project management, engineering and construction services.

Originally announced in 2019, the project highlights how Middle Eastern oil producers are expanding their activities in petrochemicals used in plastics and packaging materials to enter new markets and find new sources of revenue beyond crude oil and natural gas exports. According to media reports, gas will flow to the terminal for receiving liquefied natural gas in Brunsbüttel.

In Qatar, which is one of the world's leaders in liquefied natural gas producers for 2023, thanks to the complex being built, ethylene production capacity will double. Local polymer production will also increase from 2.6 million to 4 million tons per year.^[1]

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