Shell and Qatar Petroleum have inked a Heads of Agreement, which has set the commercial values and scope for the development of an international-scale petrochemicals complex located in the Ras Laffan Industrial City, Qatar.
This contract follows the joint feasibility study’s conclusion performed by the partners, shell and Qatar Petroleum.
The scope has contained a first class steam cracker, together with feedstock from Qatar’s natural gas projects, a mono-ethylene glycol plant producing up to 1.5 Mt annually by means of Shell’s own OMEGA technology, 300 kt of linear alpha olefins annually with Shell’s own Shell Higher Olefin Process (SHOP) and other derivatives of olefin. The complex will manufacture inexpensive petrochemical products that have to be initially marketed in the Asian markets. Qatar Petroleum and Shell will possess an 80% and 20% equity interest in the project, respectively.
Minister of Energy and Industry of the State of Qatar, His Excellency Dr Mohammed bin Saleh Al-Sada, stated that this significant petrochemicals project corresponds with the strategy of Qatar to make it stronger and additionally expand its emerging chemicals industry and marks a significant milestone to develop into a large global producer of petrochemicals. According to the directions of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al Thani, this huge facility for petrochemicals will supply another feasible option to take out the most favorable value from the natural gas resources to Qatar.
Shell’s CEO, Peter Voser, commented that this contract has made the commencement of partnership with Qatar Petroleum in order to develop a high-class petrochemicals project, Qatar. Shell has valued this opportunity to bring the technology and knowledge of Qatar essential to supply a petrochemicals project of this size.
Shell and Qatar Petroleum have supplied Qatargas 4 and Pearl Gas-to-Liquids (GTL), which are the two largest projects in the world, constructed in Ras Laffan Industrial City.