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.

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