- Corporate News
Chevron Phillips and QatarEnergy announce FID for polymer complex
QatarEnergy and Chevron Phillips Chemical Company LLC will proceed with the construction of the largest ethane cracker in the Middle East and one of the largest in the world.
An agreement marking the final investment decision (FID) for the USD6 billion integrated polymers complex in Ras Laffan Industrial City, Qatar, was signed by Qatari Minister of State for Energy Affairs, Saad Sherida Al-Kaabi, who is also the president and CEO of QatarEnergy, and by Bruce Chinn, president and CEO of Chevron Phillips Chemical, at a ceremony in Doha.
The two companies created a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy owns a 70% equity share and Chevron Phillips Chemical owns 30%.
The 435-acre project site will include an ethane cracker with a capacity of 2,080 kilotons per annum (KTA) of ethylene and will also include two high-density polyethylene (HDPE) derivative units with a total capacity of 1,680 KTA.
Chevron Phillips Chemical will provide project management services. Construction began with early works at the site in June 2022, and startup is expected in late 2026.
The engineering, procurement and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering CO., Ltd. and CTCI Corporation. Tecnimont S.p.A. will execute engineering, procurement and construction for the polyethylene units. The polyethylene units will use Chevron Phillips Chemical’s MarTech™ loop slurry process to produce high-density polyethylene, which will primarily be exported from the state of Qatar.
The facility will be constructed with modern, energy-saving technology and use ethane for feedstock, which along with other measures, is expected to result in lower greenhouse gas emissions than similar global facilities.
“At Chevron Phillips Chemical, we continue to grow our global asset base where there is access to reliable, affordable feedstock. This investment will help meet global demand for polyethylene products,” Chinn said. “We are excited to expand on the long and successful history we have with QatarEnergy to safely construct and operate world-scale facilities.”
Attending the signing ceremony were senior executives from QatarEnergy, Chevron Phillips Chemical and its owner companies, Chevron U.S.A. Inc. and Phillips 66.
Chevron Phillips Chemical and QatarEnergy operate joint ventures in Qatar and recently announced construction of a similar integrated polymers facility in Orange, Texas, U.S.A.