Qatar Petroleum and Chevron Phillips Chemical plan new world-scale ethane cracker in Qatar

Qatar Petroleum today announced the selection of Chevron Phillips Chemical Company as its partner for a new ethylene and derivatives complex, which will be constructed in Ras Laffan Industrial City, Qatar. Commenting, Patrick Kirby, Wood Mackenzie Chemicals Principal Analyst, said:

"The project centres around a 1.9 Mtpa 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, 3 operational assets contribute over 2.7 Mtpa of ethylene capacity and the new project will increase this by almost 70%.

"The 1.9 Mtpa nameplate capacity ethylene facility has been increased from earlier announcements of 1.6 Mtpa. The new ethylene plant will be integrated into 2 world-scale HDPE units, with a combined capacity of 1.68 Mtpa.

"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."