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HomeBusinessQatarEnergy, CPChem Break Ground with Mega Projects

QatarEnergy, CPChem Break Ground with Mega Projects

From Houston Texas to Rass Laffan Qatar, CPChem and QatarEnergy’s mega-deals have mega goals for the global petrochemical markets.

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From Houston Texas to Rass Laffan Qatar, CPChem and QatarEnergy’s mega-deals have mega goals for the global petrochemical markets.

This 435-acre project is being developed by a joint venture company owned 30% by CPChem and 70% by QatarEnergy. CPChem is providing project management services to oversee the engineering, procurement and construction of the facility. Site preparation began in June 2022, and startup is expected in late 2026.

The site will include an ethane cracker with a capacity of 2,080 KTA of ethylene, making it the largest ethane cracker in the Middle East and one of the largest in the world. It will also include two high-density polyethylene derivative units with a total capacity of 1,680 KTA.

QatarEnergy claims that the facility is designed to use modern, energy-saving technology, which along with other measures, is expected to result in lower greenhouse gas emissions intensity than similar global facilities.

The polyethylene units will use CPChem’s MarTech loop slurry process to produce high-density polyethylene, which will be primarily targeted for export from the State of Qatar. Polyethylene is used in packaging applications for household cleaners, personal care products, food and medical supplies. It is also used in the production of durable goods and recreational products such as kayaks and coolers.

During the groundbreaking event at Ras Laffan this month, His Highness the Amir of the State of Qatar Sheikh Tamim bin Hamad Al Thani laid a ceremonial foundation stone. Executives from QatarEnergy, CPChem and its owner companies, Chevron U.S.A. Inc. and Phillips 66 Company, attended the ceremony.

Commenting on the ceremony, CPChem President and CEO Bruce Chinn says the project is part of a longer-term vision for CPChem.

“This project advances CPChem’s long-held strategy to expand its operations in regions where feedstock is reliable and abundant and will help meet the global demand for polyethylene products.  CPChem and QatarEnergy have a long history of safely building and operating petrochemical facilities, and this celebration represents the next step toward bringing these world-scale assets into our successful portfolio here in Qatar,” says Chinn.

CPChem and QatarEnergy currently operate three joint ventures in Qatar – Qatar Chemical Company Ltd., Qatar Chemical Company II Ltd. and Ras Laffan Olefins Company. The two companies, through their Golden Triangle Polymers joint venture, are also building a similar integrated polymers facility in Orange, Texas.

The Golden Triangle Polymers Plant, which is pegged to be a USD 8.5 billion world-scale integrated polymers facility, is located about 180 kilometers east of Houston. The plant will include an ethylene cracker unit with a capacity of 2.08 million tons per annum, making it the largest in the world, and two high-density polyethylene units with a combined capacity of 2 million tons per annum, also making them the largest derivatives units of their kind in the world. Construction of the plant has already begun, with an expected startup date in 2026.

The plant will be owned by Golden Triangle Polymers Company LLC, a joint venture in which QatarEnergy holds a 49% equity interest with 51% held by CPChem.

Commenting on the JV, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy says the project is poised to meet global demand for polymers.

“We are excited to announce that taking the final investment decision on our largest petrochemical investment ever, highlights QatarEnergy’s integrated position as a major player in the LNG and international exploration sectors, as well as being a global petrochemicals producer. In addition to complementing QatarEnergy’s growing international portfolio, as well as in the United States, this important project will help meet growing global demand for polymers. It also represents a major step in the implementation of our downstream strategy and the next phase of QatarEnergy’s growth, which includes major investments in ethylene, ethylene derivatives and polymers in general,” says HE Al-Kaabi.

The project is expected to create more than 500 full-time jobs and approximately 4,500 construction jobs and is QatarEnergy’s second largest investment in the U.S. after the USD 11 billion investment (100% basis) in the Golden Pass LNG production and export facility, which is currently under construction and is expected to start up in late 2024.

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