QP and Qapco sign technology licence deals for Qatar’s petrochemical project

qatar petroleum-roy.luck flickrQatar Petroleum (QP) and Qatar Petrochemical Company Limited (QAPCO) have signed technology license contracts for the Al Sejeel Petrochemical Complex

The companies will jointly develop this petrochemical complex in Ras Laffan with QP and QAPCO holding 80 per cent and 20 per cent equity interest respectively, industry sources have revealed.

The Al Sejeel Petrochemical Project is scheduled for completion in 2018 and it will feature a mixed-feed steam cracker, with the original mixed feedstock of ethane, butane, and naphtha.

With the signing of the technology agreements, the plant will be designed to produce 6.2 million cubic metres per annum of polymers.

Mohammed bin Saleh Al-Sada, Qatar’s minister of Energy and Industry, said, “We firmly believe that the development of the downstream petrochemical sector will create countless opportunities for the production of new intermediate and derivative products.”

The Al Sejeel Petrochemical Project is part of the kingdom’s large-scale expansion of the petrochemicals sector to support diversification and growth of the Qatari economy as the it has announced that it will raise its petrochemical output to 65mn cubic metres per annum by 2020.

The petrochemical complex will produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene, butadiene and py-gasoline.

Hamad Rashid Al Mohannadi, chairman of QAPCO, said, “The Al Sejeel Petrochemical Project represents a pioneering initiative as it is the first time that two Qatari entities will build and develop together a petrochemical complex of this scale.”

The invitation to bid (ITB) for the front end engineering and design (FEED) has been issued and the bidding process is currently in progress, sources said.

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