QatarEnergy signs $6bn petrochemicals deal with Chevron Phillips Chemical

By Shilpa Annie Joseph, Official Reporter
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QatarEnergy-CPChem Partnership
Officials during the signing ceremony.

Qatari state-owned petroleum company, QatarEnergy has signed an agreement with Chevron Phillips Chemical Company (CPChem) in order to build the Ras Laffan Petrochemicals complex, a $6 billion worth integrated olefins, and polyethylene facility.

The Ras Laffan Petrochemicals complex, expected to begin production in 2026, consists of an ethane cracker with a capacity of 2.1 million tons of ethylene per year, making it the largest in the Middle East and one of the largest in the world.

Under the agreement, the companies also created a joint venture, Ras Laffan Petrochemicals, in which QatarEnergy will hold a 70 percent share and Chevron Phillips Chemical 30 percent.

The integrated olefins and polyethylene facility at Ras Laffan marks QatarEnergy’s largest investment ever in the country’s petrochemical sector and the first direct investment in 12 years.

The integrated complex will also include two high-density polyethylene derivative units with a total production capacity of 1.7 million tons per year.

According to the reports, Chevron Phillips Chemical will provide project management services. Construction began with early works at the site in June, and start-up is expected in late 2026.

Mr. Saad Al Kaabi, the Qatari Minister of State for Energy Affairs, the president and chief executive of QatarEnergy, said that “There is no doubt that this cornerstone investment in Ras Laffan Industrial City marks an important milestone in QatarEnergy’s downstream expansion strategy. It will not only facilitate further expansion in the downstream and petrochemical sectors in Qatar, but will also reinforce our integrated position as a major global player in the upstream, LNG, and downstream sectors.”

The engineering, procurement, and construction of the ethane cracker will be executed by a joint venture between Samsung Engineering and CTCI Corporation. Tecnimont will execute engineering, procurement, and construction for the polyethylene units, the statement said.

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