Qatar Petroleum, Shell plan $6.4bn petrochemical project by 2017
Dr. Mohammed bin Saleh Al-Sada, minister of energy and industry in Qatar, and Shell CEO Peter Voser each signed an agreement Monday to develop a world-scale petrochemicals complex in Ras Laffan Industrial City in Qatar.
This agreement follows the conclusion of a joint feasibility study conducted by the partners, Qatar Petroleum and Shell.
Project officials estimated at a press conference that the project will cost $6.4 billion, with operations starting up in 2017.
The scope under consideration includes a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant of up to 1.5 million tpy using Shell’s proprietary OMEGA (only MEG advantaged) technology; 300 kilotonnes per year of linear alpha olefins using Shell’s proprietary SHOP (Shell higher olefin process); and another olefin derivative.
The complex will produce cost-competitive petrochemicals products to be marketed primarily into Asian growth markets, project officials said. Qatar Petroleum will have an 80% equity interest in the project and Shell 20%.
Minister Al-Sada said: “This critical petrochemicals project fits well with Qatar’s strategy to strengthen and further diversify its growing chemicals industry and represents an important milestone on our journey to become a significant global petrochemicals producer.
“In line with directives of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al Thani, this large petrochemicals complex will provide Qatar with another viable option to extract optimal value from its natural gas resources.”
Peter Voser added: “This agreement marks the beginning of another partnership with Qatar Petroleum for the development of a world-scale petrochemicals project in Qatar.
“Coming on the heels of the inauguration of Pearl GTL, this new venture demonstrates the commitment of both parties to deepen our relationship even further. Shell values the opportunity to bring to Qatar the expertise and technology necessary to deliver a petrochemicals project of this scale and looks forward to its successful delivery.”
Qatar Petroleum and Shell have delivered Pearl gas-to-liquids (GTL) and Qatargas 4 this year, each of which among the largest projects built in Ras Laffan Industrial City.
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