QatarEnergy secures $4.4 billion financing for Ras Laffan petrochemicals project

QatarEnergy and Chevron Phillips Chemical Co. LLC secured $4.4 billion financing for the Ras Laffan petrochemicals project, a world scale integrated polymers complex in Ras Laffan Industrial City, Qatar.

OGJ editors

Oct. 10, 2023

QatarEnergy and Chevron Phillips Chemical Co. LLC (CPChem) have secured $4.4 billion financing for the Ras Laffan petrochemicals project, a world scale integrated polymers complex in Ras Laffan Industrial City, Qatar.

The senior debt financing package is comprised of commercial and Islamic facilities as well as Export Credit Agency (ECA) financing.

The petrochemicals project is a joint venture between QatarEnergy (70%) and CPChem (30%). Final investment decision was taken in January (OGJ Online, Jan. 9, 2023).

The complex, expected to begin production in late 2026, consists of an ethane cracker with a capacity of about 2.1 million tons/year (tpy) of ethylene. It also includes two polyethylene trains—which will use a CPChem loop slurry process—with a combined output of 1.7 million tpy of high-density polyethylene (HDPE) polymer products. The complex is expected to raise Qatar’s overall petrochemical production capacity to almost 14 million tpy.

The two companies also are constructing a joint venture integrated polymers plant on the Texas Gulf Coast, which is expected to be operational in 2026.