Qatar Petroleum and Shell to begin next phase of petrochemicals complex


QP

Qatar Petroleum (QP) and Shell have signed an agreement to start the next phase of Front End Engineering and Design (FEED) work on a large-scale petrochemicals complex in Ras Laffan Industrial City, Qatar.

The agreement follows the heads of agreement signed by the Qatari Government and Royal Dutch Shell in December 2011 to set the scope and commercial principles for the development of the complex.

"Qatar Petroleum will hold an 80% stake in the petrochemicals project, while the remaining stake will be held by Shell."

Mohamed bin Saleh Al-Sada, Qatar Minister of Energy and Industry, said of the announcement: "This is a key milestone in the journey to enhance Qatar's growing chemicals industry delivering another viable option to generate optimal value from its natural gas resources, in line with the directives of His Highness, the Emir, Sheikh Hamad bin Khalifa Al Thani."

As part of the agreement, a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar, and a mono-ethylene glycol plant of up to 1.5mtpa using Shell's proprietary Only MEG Advantaged (OMEGA) technology will be installed at the facility.

The complex will also produce 300ktpa of linear alpha olefins using the Shell Higher Olefin Process (SHOP) and 250ktpa of OXO Alcohols.

Qatar Petroleum will hold an 80% stake in the petrochemicals project, while the remaining stake will be held by Shell.

Wael Sawan, Qatar Shell executive vice president, said the completion of the design and engineering work is the next step to reaching a final investment decision leading up to project execution.

"The advancement of this petrochemicals complex consolidates Shell's strong partnership with QP across the full spectrum of hydrocarbon development," Sawan said.


Image: The heads of agreement for the project, signed by Royal Dutch Shell CEO Peter Voser and Qatar's Minister of Energy and Industry Mohammed bin Saleh Al-Sada in December 2011. Photo courtesy of: Shell.