QatarEnergy and Chevron Phillips Chemical Company (CPChem) have secured $4.4 billion financing for the Ras Laffan Petrochemicals project, a world-scale integrated polymers complex in Ras Laffan Industrial City.
QatarEnergy said in a statement that the senior debt financing package comprises commercial and Islamic facilities as well as Export Credit Agency (ECA) financing.
The Ras Laffan Petrochemicals project is a joint venture between QatarEnergy (70 percent) and CPChem (30 percent) and is considered the largest petrochemical project in Qatar for which the Final Investment Decision was announced in January this year.
In remarks on this occasion, the Minister of State for Energy Affairs HE Saad bin Sherida al-Kaabi, also the President and CEO of QatarEnergy, said that, “This oversubscribed financing package is an important testament to the financial community’s confidence in Qatar and its energy and petrochemical industries.”
“This large-scale cornerstone investment represents a significant achievement and a major milestone for the Ras Laffan Petrochemicals project – the largest in the Middle East and one of the largest in the world. We are very pleased to enter this exciting stage of this project with our long-time partner Chevron Phillips Chemical,” Mr. Al-Kaabi added.
QatarEnergy further noted that the project is expected to generate significant economic benefits for the country, including increased tax revenue and foreign investment.
The complex, which is expected to begin production in late 2026, consists of an ethane cracker with a capacity of about 2.1mn tons of ethylene per year. It also includes two polyethylene trains with a combined output of 1.7mn tons per annum of High-Density Polyethylene (HDPE) polymer products, which are used in a wide range of applications, including packaging, construction, and consumer goods. This complex will raise Qatar’s overall petrochemical production capacity to almost 14mn tons per year.