QP expands olefins ambitions

22 February 2002

Qatar Petroleum (QP)is considering building two grassroots olefins complexes with foreign partners, rather than just one, as a result of the projected increase in ethane feedstock from upstream gas projects planned for the North field. QP had originally proposed the construction of a 1.2 million-tonne-a-year (t/y) ethane cracker, known as Q-Chem II, at Ras Laffan. However, with both the Dolphin gas project and the enhanced gas utilisation scheme set to proceed, there will be sufficient ethane feedstock to support two 1.1 million-t/y plants (MEED 6:7:02).

'The groundwork is now being prepared for the two crackers,' says a QP official. 'The driver is the future availability of ethane and the fact that there is a willingness from our current partners to proceed with the projects.'

QP signed in June a joint venture agreement with the US' Chevron Phillips Chemical Companyfor the Q-Chem II project. The two partners then signed in early October a memorandum of understanding with Qatar Petrochemical Company (Qapco)and France's Atofina, which allowed for the companies to join the project as equity partners in the ethane cracker. At the time, QP said the new cracker would supply feedstock to a 750,000-t/y polyethylene plant, planned as part of the Q-Chem II project, with the remaining ethylene being delivered through a purpose-built pipeline to Mesaieed for additional petrochemical capacity (MEED 19:10:01).

QP says that it is looking to have the first cracker, Q-Chem II, commissioned in late 2006. The other, known as Qatarfin, will be built by QP and Atofina, a subsidiary of TotalFinaElf, and is due to be completed two years later. It is also expected to be located at Ras Laffan.

Industry sources say that on the more advanced Q-Chem II project, QP and its partner are finalising the scope of the ethylene derivatives. Some of the cracker's output may still be delivered by pipeline to Mesaieed to support new downstream capacity there, they add.

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