WATCH: QP partners with Chevron Phillips to build region's largest ethane processing plant
In a move that underlines Qatar’s leading role in the global energy sector, Qatar Petroleum (QP) has inked a deal with Chevron Phillips Chemical Co to build the largest ethane cracker in the Middle East.
The agreement will boost Qatar's polyethylene production to as much as 1.9 million tonnes a year, His Excellency the Minister of State for Energy Affairs, and CEO of QP, Saad Sherida Al-Kaabi said at a press conference earlier today.
Qatar Petroleum partners with Chevron Phillips to build the largest ethane cracker in the Middle East raising Qatar’s Polyethylene production capacity by 82%#QP #Qatar #QatarPetroleumhttps://t.co/488qgZQQ4B pic.twitter.com/6NU9QGx4F7
— Qatar Petroleum (@qatarpetroleum) June 24, 2019
The region's biggest ethane processing plant will be embedded within a massive petrochemical complex set to be constructed in Qatar’s Ras Laffan Industrial area.
Qatar Petroleum announces the selection of Chevron Phillips Chemical Company LLC as a partner in the construction and development of a new Petrochemicals Complex at Ras Laffan Industrial City. #QNA pic.twitter.com/v35jRgVE1V
— Qatar News Agency (@QNAEnglish) June 24, 2019
Petrochemicals are the building blocks for some of the most important daily use items. When “cracked” or processed they produce certain chemicals such as ethylene, which is used to make polyethylene, the most commonly used plastic.
Under the joint venture, QP will have 70 percent ownership of the plant while Chevron Phillips will own the remaining 30 percent.
“The conclusion of these agreements constitutes an important milestone for Qatar Petroleum as petrochemicals represent a major pillar of our growth strategy to achieve our vision of becoming one of the best national oil and gas companies in the world,” Al Kaabi said, according to Business Wire.
The plant is expected to be operational by 2025.
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Source: Bloomberg
Cover Image: photo is for illustrative purposes only
