Qatar Petroleum International (QPI), the overseas arm of the state-run energy company, is buying a stake in two petrochemicals joint ventures in Singapore with the UK/Dutch Shell Chemicals.
MEED revealed in May that QPI was planning to conclude a deal in the petrochemicals sector by the end of 2009 (MEED 22:5:09). It is the company’s first downstream acquisition and will be completed by December.
Shell will sell its existing shareholdings in two companies to a new joint venture called QPI and Shell Petrochemicals (QSPS).
QSPS will own 50 per cent of the Petrochemical Corporation of Singapore and 30 per cent of the Polyolefin Company.
In June 2007, QPI signed a memorandum of understanding with Shell aimed at identifying and developing “international projects of mutual interest”.
Shell says it will continue to develop a proposal to build a world scale petrochemicals complex in Qatar with Qatar Petroleum (QP).
Shell signed a letter of intent with QP in early 2005 for the development of an ethane cracker and derivatives complex in Ras Laffan (MEED 16:11:07).
Shell plans to take gas liquids, in particular ethane, from its Pearl gas-to-liquids development to support petrochemicals production.