QP, Shell sign agreement to develop petrochemical complex

By OGJ editors

Qatar Petroleum and Royal Dutch Shell PLC have signed a heads of agreement that “sets scope and commercial principles” to develop a petrochemicals complex in Ras Laffan Industrial City. The HOA follows the conclusion of a joint feasibility study by the two companies.

The agreement’s scope includes a worldscale steam cracker, with feedstock from natural gas projects in Qatar; a monoethylene glycol plant with a capacity of up to 1.5 million tonnes/year that uses Shell’s OMEGA technology; 300,000 tpy of linear alpha olefins using Shell’s SHOP process; and another olefin derivative, QP and Shell jointly reported.

The complex will produce petrochemicals products to be marketed primarily in Asia. Ownership will be split QP 80% equity interest and Shell 20%.

QP and Shell delivered Pearl GTL and Qatargas 4 earlier this year also in Ras Laffan Industrial City (OGJ Online, June 14, 2011).

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