Qatar petrochemical project awards imminent

06 January 2023
The Ras Laffan petrochemicals project, which will feature the region’s largest ethane cracker, is being built by QatarEnergy and Chevron Phillips Chemical

The joint venture of QatarEnergy and US-based Chevron Phillips Chemical is ready to award the main contracts for its large-scale petrochemicals project, planned to be built in Qatar’s Ras Laffan Industrial City (RLIC).

According to sources, QatarEnergy/Chevron Phillips Chemical will host an official contract signing ceremony on 8 January 2023.

MEED previously named frontrunners for the two main engineering, procurement and construction (EPC) packages of the Ras Laffan petrochemical project.

South Korean contractor Samsung Engineering is understood to be in the lead for the first package, which covers building the central ethane cracker.

Italy-headquartered Tecnimont is understood to be in pole position for the second package, which involves building two high-density polyethylene (HDPE) units, with capacities of 1 million tonnes a year (t/y) and 680,000 t/y.

“The two main EPC packages are set to be awarded in January,” according to a source. “Final negotiations between the client and contractors are under way, and other steps leading up to the contract award are being taken.”

Contractors submitted commercial bids for the estimated $5bn project by 7 August. Technical bids were submitted on 5 May.

Following receipt of bids, QatarEnergy/Chevron Phillips Chemical engaged in technical clarifications and commercial discussions with contractors, as MEED reported.

In June, the QatarEnergy/Chevron Phillips Chemical JV awarded a package relating to early site works on the project to Consolidated Contractors Company (CCC).

QatarEnergy issued main tenders for the ethane cracker and HDPE unit EPC packages in October last year.

Japan-headquartered JGC Corporation and South Korea’s Daelim have performed the front-end engineering and design (feed) works on the Ras Laffan petrochemicals scheme as part of contracts they were awarded in 2020 by the QatarEnergy/Chevron Phillips Chemical JV.

Giant petrochemicals scheme

QatarEnergy owns a 70 per cent stake in the JV that is leading the development of the petrochemicals project. Chevron Phillips Chemical – which is 50:50 owned by the US’ Chevron and Phillips 66 – holds the remaining 30 per cent.

The planned petrochemicals facility will feature the region’s biggest ethane cracker, with a capacity to produce 2.080 million t/y of ethylene.

The ethane cracker will increase Qatar’s overall ethylene production by nearly 70 per cent.

The complex will also house two large-scale HDPE units using Chevron Phillips Chemical’s Martech proprietary technology to produce a total of 1.68 million t/y, raising Qatar’s total polyethylene production by about 82 per cent.

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