Qatar Petroleum has inked an agreement with Chevron Phillips Chemical for the construction of a new petrochemicals unit, in keeping with its plans to widen its energy offerings. Qatar Petroleum, a leading exporter of liquefied natural gas (LNG), is one of the key players in the industry with an annual production of more than 70 million tons. The company is expected to grow nearly 40 percent by the year 2024 with the simultaneous expansion to the northern region of the country, the world’s largest natural gas field that it shares with Iran. Saad al-Kaabi, CEO, Qatar Petroleum, mentioned that the petrochemical facility will be situated in the Ras Laffan Industrial City and will begin operations from 2025, and will be able to leverage the increased North Field production if feedstock.
Chevron Phillips Chemical, the joint venture of Chevron Corp and Phillips 66, will have 30 percent ownership in the facility, while Qatar Petroleum will own the rest of the stakes. Qatar Petroleum was boycotted by Egypt, Saudi Arabia, Bahrain, and the United Arab Emirates back in 2017, on the grounds of its alleged associations with militants. Qatar Petroleum has since started operating independently in the region, after exiting OPEC last year and striking new trade deals, while focusing its attention on its strength in energy with QP’s North Field expansion and acquisitions of energy assets aboard. Saad al-Kaabi mentioned that the company’s decision was built on the ongoing development of the expansion project of the North Field, which will produce massive quantities of ethane that will be utilized as feedstock.
The new complex will house an annual ethylene capacity of nearly two million tons, becoming the largest and one of the most significant facilities of its kind in the Middle East. The plant will increase the company’s polyethylene production capacity by 82 percent. Qatar Petroleum currently manufactures nearly 2,300 tons of polyethylene every year, and the new facility will increase the output to almost 4,300 tons.