Qatar Petroleum and Shell advance world-class petrochemicals complex

Qatar Petroleum (QP) and Shell have agreed to initiate the next project definition phase of Front End Engineering and Design (FEED) for a world-scale petrochemicals project in Ras Laffan Industrial City.

This follows the Heads of Agreement signed by His Excellency Dr Mohamed bin Saleh Al-Sada Minister of Energy and Industry and Peter Voser, CEO of Royal Dutch Shell, in December 2011 to set the scope and commercial principles for the development of this facility.

Commenting on this progress, H.E. Minister Al-Sada said: “I am pleased that QP and Shell have progressed this world-class project into the FEED stage. This is a key milestone in the journey to enhance Qatar’s growing chemicals industry delivering another viable option to generate optimal value from its natural gas resources, in line with the directives of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al Thani. I am looking forward to the completion of the design and engineering work to reach a Final Investment Decision leading up to project execution.”

Executive Vice President of Qatar Shell, Wael Sawan said: “The advancement of this petrochemicals complex consolidates Shell’s strong partnership with QP across the full spectrum of hydrocarbon development. I am very proud that we have been selected to partner QP in this venture which should give Shell the opportunity to deploy the company’s innovative solutions to demonstrate our competitiveness.”

The chairman of the project’s Executive Committee Mohammed Al-Hajri said: “QP and Shell have worked successfully together to reach this milestone. I look forward to the teams to build on this solid foundation and jointly work towards a positive final investment decision”. 

The scope under consideration includes a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant of up to 1.5 million tons per annum using Shell’s proprietary OMEGA (Only MEG Advantaged) technology; 300 kilo tons per annum of linear alpha olefins using Shell’s proprietary SHOP (Shell Higher Olefin Process); and a 250 kilo tons per annum OXO Alcohols unit.

The Petrochemicals Complex will produce cost-competitive products to be marketed worldwide. Qatar is well located for investments in petrochemical derivatives manufacturing facilities due to its proximity to growth markets, particularly Asia, in combination with access to ethane feed stocks. The project is consistent with QP’s strategic plan to grow its Petrochemicals industry and footprint, and Shell’s aim to grow its presence in the Asia-Pacific and Middle East region.

Qatar Petroleum would have an 80% equity interest in the project and Shell 20%.

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