QP, Shell Launch Engineering and Design Study for Petrochemicals Complex

Doha, July 02 (QNA) - Qatar Petroleum (QP) and Shell said they have agreed to launch the next phase of the engineering and design study to develop a World-scale Petrochemicals Complex in Ras Laffan Industrial City (RLC). The new phase is implemented within the framework of the Heads of Agreement signed here in December 4, 2011 by Dr. Mohammed bin Saleh Al-Sada, Minister of Energy and Industry and Chairman and Managing Director of QP, and Peter Voser, Chief Executive Officer of Shell setting the scope and commercial principles for the development of this petrochemicals complex, QP and Shell said in a press release. Speaking on the occasion, Dr. Al-Sada expressed delight over the progress made by QP and Shell in this in project aimed at promoting the chemical industry in Qatar by providing alternative energy sources in addition to bringing an added value to Qatar's production of natural gas. For his part, Shell in Qatar Chief Executive Officer Wael Sawan said the establishment of the petrochemical complex is designed to enhance the existing solid partnership between Shell and QP to ensure optimum utilization of Qatar's hydrocarbon resources. The scope under consideration includes a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant of up to 1.5 million tonnes per annum using Shell s proprietary OMEGA (Only MEG Advantaged) technology; 300 kilotonnes per annum of linear alpha olefins using Shell s proprietary SHOP (Shell Higher Olefin Process); and another olefin derivative. The complex will produce cost-competitive petrochemicals products to be marketed primarily into Asian growth markets. Qatar Petroleum will have an 80% equity interest in the project and Shell 20%. (QNA)