Italian/Korean JV snaps up Q-Chem II

02 December 2005
A joint venture of Italy's Tecnimontand South Korea's Daewoo Engineering & Constructionwas awarded in mid-November the engineering, procurement and construction (EPC) contract for the downstream units on the Qatar Chemical Company II (Q-Chem II)project at Mesaieed. The award coincided with final project approvals and financial close being achieved on the scheme, which also includes Q-Chem II taking a 54 per cent equity stake in the 1.3 million-tonne-a-year (t/y) Ras Laffan ethane cracker (MEED 9:9:05).

Another consortium, of US-based ABB Lummus Globaland South Korea's Daelim Industrial Company, was the original frontrunner for the estimated $700 million-750 million Q-Chem II contract, but withdrew. One other group, South Korea's GS Engineering & Construction, with Spain's Tecnicas Reunidas, was competing for the award.

The contract covers the construction of a 350,000-t /y high-density polyethylene (HDPE) unit and a 345,000-t/y alpha olefins plant. Technology for the two units will be provided by Q-Chem II's foreign shareholder, the US' ChevronPhillips Chemical Company.

The majority shareholder in Q-Chem II is Qatar Petroleum (QP).

The Q-Chem II complex will be provided with ethylene feedstock from the Ras Laffan ethane cracker via a new 128-kilometre pipeline, which will be tendered soon (MEED 28:10:05). The cracker, to be built by Paris-based Technip, will also supply the 450,000-t/y linear low-density polyethylene (LLDPE) plant planned by the local/French Qatofin at Mesaieed and to be constructed by Italy's Snamprogetti.

Start-up of the Ras Laffan ethane cracker and the Q-Chem II and Qatofin units at Mesaieed is scheduled for late 2008.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications