QP , QAPCO Sign Heads of Agreement for a New Petrochemical Complex in Ras Laffan

Doha, February 13 (QNA) HE Minister of Energy & Industry Dr. Mohammed bin Saleh Al-Sada, who is also Chairman and Managing Director of Qatar Petroleum (QP), on Monday signed a Heads of Agreement (HOA) with Qatar Petrochemical Company (QAPCO) for the development of a new, mega-petrochemical complex in Ras Laffan Industrial City. HE Dr. Al-Sada said in a press conference he held on the occasion , "This mega-project is yet another major step in our progress towards sustainable development of Qatar s vast hydrocarbon resources as envisioned by HH the Emir Sheikh Hamad bin Khalifa Al Thani." "It is an important milestone in the industrial development of the State of Qatar, especially for its petrochemical industry," said HE the minister . The complex includes a world-scale steam cracker, with the feedstock coming from natural gas plants in Ras Laffan. The project is scheduled for completion in 2018. Qatar Petroleum (QP) has an 80% equity interest in the project, with QAPCO taking up the remaining 20% stake. QP and QAPCO will jointly develop the petrochemical complex. QP and QAPCO have been working together for the past few months to plan the development of the project, which will contribute in meeting the continuously growing global demand for various petrochemical products. The plant will produce 1.4 million metric tons per annum (MMTA) of ethylene, 850 thousand metric tons per annum (KMTA) of high-density polyethylene (HDPE), 430 KMTA of linear low-density polyethylene, 760 KMTA of polypropylene, 83 KMTA of butadiene. These products will be marketed primarily in high-growth markets in Asia, Africa and Latin America. Addressing his press conference, HE Al Sada said,'' Today is an important day for the State of Qatar, especially for the country s petrochemical industry.... Through the strong guidance and wise leadership of HH the Emir Sheikh Hamad bin Khalifa Al Thani, our country is now poised to reach even greater heights in the hydrocarbon sector. The State of Qatar has earned the reputation of being one of the fastest growing economies in the world in terms of its annual GDP growth, and HH the Emir has always envisioned highly ambitious programs aimed towards the optimum utilization and sustainable development of Qatar s vast hydrocarbon resources,HE the Minister of Energy and Industry said. The development of Qatar s petrochemical industry started over 50 years ago, and two companies Qatar Petroleum and Qatar Petrochemical Company -- have played a vital role since their inception in 1974 in promoting the continued growth of the industry. Today, the State of Qatar produces over 9.5 million tons per year of various chemicals and petrochemicals. The industry is witnessing unprecedented growth and we expect to increase our production to over 23 million tons per annum by the year 2020. It gives me great pleasure to state that both QP and QAPCO would play an even more important role in the foreseeable future. Both companies are currently working together to diversify the use of Qatar s natural gas reserves, such as through the expansion of existing polyethylene facilities, and both have strengthened their partnership over the years, HE Al Sada told reporters. ''I am thus highly pleased to formally announce that QAPCO has won the bid for the development of a Mega-Petrochemical Complex in Ras Laffan, and this major projectwill be jointly owned and managed by both QP and QAPCO''. This unique project includes a large-scale steam cracker, with the feedstock coming from natural gas projects located in Ras Laffan. The scope of outputs will include: 1.40 MMTA of ethylene, 850 KMTA of HDPE, 430 KMTA of LLDPE, 760 KMTA of polypropylene, 83 KMTA of butadiene and 125 KMTA of pyrolysis gasoline. The complex will produce cost-competitive petrochemicals products and these would be marketed in high-growth and emerging markets, primarily in the Asia, Africa and Latin America. Qatar Petroleum will have an 80% equity interest in the project, and QAPCO will take up the remaining 20% stake. The complex will be built at an estimated total investment cost of Qatari Rials (QAR) 20.10 billion and is scheduled for completion in 2018. This new project agreement represents a vital step to achieve the vision of HH the Emir Sheikh Hamad Bin Khalifa Al-Thani, for a systematic and well-planned utilization of the country s natural resources. This collaborative effort highly values the opportunity to bring to the State of Qatar the expertise and latest technology necessary to deliver a petrochemicals project of this scale, and I look forward to its successful delivery in 2018. '' I congratulate QP and QAPCO for taking the country s petrochemical sector to a newer horizon, towards a brighter future and wish them all the best as they undertake this major project''', the minister concluded. For his part, Chairman of QAPCO Hamad Rashid Al-Mohannadi, said, "This new project is a great example of implementing Qatar s long-term strategy. It is definitely a key milestone in our long journey to become a significant global petrochemicals producer from the GCC region," "In line with the directives of HH the Emir Sheikh Hamad Bin Khalifa Al Thani, the petrochemical complex will provide Qatar with the required solid foundation to extract optimal value from its abundant natural gas resources." As the State of Qatar continues to build upon its successes and further consolidates its position as the hydrocarbons hub of the region, the new petrochemical complex is expected to serve as an important milestone in integrating the country s petrochemicals industry. It is worth mentioning that Qatar Petroleum (QP), formerly Qatar General Petroleum Corporation, is a state-owned corporation established by Emiri Decree No. 10 in 1974. It is responsible for all phases of the oil and gas industry in the State of Qatar. The principal activities of QP and its subsidiaries and joint ventures cover the exploration, drilling and production, transport, storage, marketing and sale of crude oil, as well as natural gas liquids, liquefied natural gas, refined products, petrochemicals and fertilizers. Thriving on a spirit of enterprise, each of our joint ventures is underpinned by transparency, innovation and determination to achieve unparalleled standards of both quality and service. Whereas QAPCO , namely Qatar Petrochemical Company was established in 1974 as a joint multinational venture to utilize the associated and non-associated Ethane gas from petroleum production in line with the industrialization plan of the State of Qatar. QAPCO is jointly owned by Industries Qatar (IQ) having 80% share and TOTAL PETROCHEMICALS of France having 20% share. QAPCO has today grown to be recognized as one of the largest producers of Low Density Polyethylene (LDPE) from the Middle East region. The company produces a wide range of LDPE grades suitable to all thermoplastics processing techniques with applications such as - packaging films, agricultural film, extrusion & coating lamination film, high clarity film, injection molding, foamed and other products having wide usage all over the world. QAPCO s LDPE is marketed under the trademark Lotrene. (QNA)