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An alternative path to petrochemicals in Qatar?

Published by , Editorial Assistant
Hydrocarbon Engineering,

Wood Mackenzie’s Patrick Kirby has commented on the news that Chevron Phillips and Qatar Petroleum signed an agreement to construct a new ethylene and derivatives complex in Ras Laffan Industrial City, Qatar.

“The project centres around a 1.9 million tpy ethylene plant, which will utilise ethane supplied from the Qatari North Field LNG expansion. Once completed, the ethylene plant will be the largest in the Middle East and one of the largest ethylene assets globally.

“Qatar Petroleum will hold a 70% ownership share in the project, while Chevron Phillips Chemical will hold the remaining 30%. The planned project represents the fourth ethane-based steam cracker in Qatar utilising local ethane supply. Currently, three operational assets contribute over 2.7 million tpy of ethylene capacity and the new project will increase this by almost 70%.

“The 1.9 million tpy nameplate capacity ethylene facility has been increased from earlier announcements of 1.6 million tpy. The new ethylene plant will be integrated into two world-scale HDPE units, with a combined capacity of 1.68 million tpy.

“The announcement builds on a long history of joint ventures between Qatar Petroleum and Chevron Phillips Chemical in Qatar. The addition of this project in the Middle East will accompany other large scale capacity additions taking place, both globally and in the region, through the next decade. The ethane feedstock offers an alternative route to access the petrochemical industry, as opposed to the growing trend of crude-oil-to-chemicals.”

Patrick Kirby is Principal Analyst of EMEARC Olefins at Wood Mackenzie.

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