Qatar s Petrochemical Expansion Plans On Target

Doha, February 11 (QNA) - Qatar, which has become the world's biggest liquefied natural gas (LNG) exporter over the last decade, will invest $25bn to expand and develop its domestic petrochemical and chemical industry over the next decade. As part of the expansive economic strategy set in Qatar's National Vision 2030 and the National Development Strategy 2011-2016, the Qatari economy seeks to further develop the petrochemical sector, consolidating Qatar's position as a major force in the industry. The expansion is expected to improve the country's petrochemical production capacity to 23 million tonnes by 2020 from the current 9.2 million tonnes. Qatar is enhancing its position on the world map in the field of petrochemicals production, particularly the polyethylene. Qatar, in cooperation with its partners, exports its products to various regions of the world and specifically to the 85 countries. One of the partnerships Qatari companies managed in 2011 is QP agreement with Royal Dutch Shell to establish a petrochemicals complex in Ras Laffan Industrial City (RLC). The project, worth $6.4bn, includes a world-scale steam cracker with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant with annual production capacity of up to 1.5mn tonnes and 300 kilotons per annum of linear alpha olefins and another olefin derivative. QP agreements with China National Petroleum Corp (CNPC) and Royal Dutch Shell to build a refining and petrochemical complex in Taizhou, China stand out as a remarkable partnership. Economic feasibility studies started for the agreement that was signed in October. Qatar has become the world s biggest LNG exporter over the last decade but has imposed a moratorium on further export development of Qatar s huge North Field, the source of its massive gas reserves, until 2014. LNG output is largely fixed at 77 million tonnes per annum until 2015 at the earliest. According to statements by the Minister of Energy and Industry HE Dr. Mohammed bin Saleh Al Sada last month, Qatar plans to more than double its annual petrochemical production capacity by 2020. The first significant step in Qatar's industrial diversification programme to utilize it abundant natural gas resources and to develop the petrochemical industry in Qatar started way back in 1969 with the establishment of Qatar Fertilizer Company, QAFCO. After its recent 5th expansion program, QAFCO has now enhanced its production capacity to produce 3.8 Million tons per annum of ammonia and 4.3 million tons per annum of urea. making it the world's largest single-site producer of both ammonia and urea. This year, QAFCO will further consolidate its position in the global fe4tilier industry by commissioning its 6th plant which would increase its total capacity to 5.7 mi9llion tons per annum, said Dr. Al Sada. In 1974 Qatar Petrochemical Company, QAPCO was established to produce ethylene. Today, QAPCO is one of the leading producers of ethylene and polyethylene in the Gulf region, he added. In 1997 Qatar Chemical Company, Q-chem, was launched as a world-class integrated petrochemical plant producing high-density, medium density polyethylene and 1Hexene. QAPCO will operate its Polyethylene 3 Plant in the second quarter of 2012, the company s General Manager and Board Director Dr. Mohammad al-Mulla has said. The new low-density polyethylene (LDPE) plant, known as LDPE-3, is expected to produces around 300.000MT per year, thus raising the overall production capacity of the company to 720.000 MT per year of low-density polyethylene. Speaking to Qatar News Agency (QNA), Dr. Mohammad al-Mulla said the total cost of the LDPE-3 plant is up to nearly two billion and 200 million Qatari Riyals. By operating this project, the State of Qatar will be a pioneer in the production of this material among the GCC countries, Dr. al-Mulla noted. (QNA)