Bids awaited for Q-Chem II study

12 July 2002

International engineering companies are preparing to submit bids in mid July for a feasibility study contract covering new petrochemical capacity planned by the recently formed Q-Chem IIventure. Under the terms of the four-month contract, the successful bidder will provide assistance to Q-Chem II, a 51:49 joint venture between Qatar Petroleum (QP)and the US' ChevronPhillips Chemical Company, in specific areas where the joint venture company requires more expertise. The invitation to bid came two weeks after QP signed definitive agreements with foreign partners to invest $2,000 million in new capacity over the next five years (MEED 21:6:02).

The five companies prequalified for the study contract are ethylene club members ABB Lummus Global, Halliburton KBRand Stone & Webster, all US-based, Paris-based Technip-Coflexip, and Germany's Linde.

The study will cover the 1.3 million-tonne-a-year (t/y) ethylene cracker planned at Ras Laffan by Q-Chem II and the local/French venture, Qatofin; the proposed 120-kilometre pipeline, which will carry ethylene from Ras Laffan to Mesaieed; and the downstream units to be built by Q-Chem II at Mesaieed. These will be located at the existing Qatar Chemical Company (Q-Chem)complex and include new high density polyethylene (HDPE) and alpha olefin plants, each with a capacity of 350,000 t/y.

The Q-Chem II facilities are expected to be commissioned by mid 2007. The schedule implies that the first engineering, procurement and construction (EPC) contracts will be awarded in the second half of 2003. The financial adviser for Q-Chem II is Royal Bank of Scotland.

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