Proposals in for Q-Chem II advisory post

26 October 2001

Selected international banks were due to make presentations in London in the week starting 12 November for the post of financial adviser on the proposed Q-Chem II project at Ras Laffan. The client, a joint venture of Qatar Petroleum (QP)and Chevron Phillips Chemical Company, is expected to make a selection by early December (MEED 19:10:01).

Estimated to cost $1,800 million, the grassroots project is expected to be financed by a 70:30 debt/equity package. The plant will initially comprise a 1 million tonne-a-year (t/y) ethane cracker and a polyethylene plant with capacity of 500,000-750,000 t/y. At a later date, the cracker will be expanded to 1.5 million t/y. Excess ethylene from the complex will be transported to Mesaieed via a new pipeline, where it will be used as feedstock for new polyethylene capacity.

Qatar Petrochemical Company (Qapco)and France's Atofinasigned in early October a memorandum of understanding with QP and Chevron Philllips to participate as equity partners in the ethane cracker element of the Ras Laffan project. The two companies are due to sign a final contract by the end of the year. QP and Chevron Phillips are the equity partners in Qatar Chemical Company (Q-Chem), which is due to complete construction of its $1,100 million plant at Mesaieed project next year. The financial adviser for the Mesaieed is Royal Bank of Scotland, formerly Greenwich NatWest.

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