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Feb 13 2012

* Qatar Petroleum, QAPCO Sign Deal To Build $5.5B Petchem Plant By 2018

Monday, Feb 13, 2012

(MORE TO FOLLOW) Dow Jones Newswires

13-02-12 1000GMT

Qatar Petroleum, QAPCO Sign Deal To Build $5.5B Petchem Plant By 2018

Monday, Feb 13, 2012

DOHA (Zawya Dow Jones)--State-controlled Qatar Petroleum and Qatar Petrochemical Co, or QAPCO , signed a heads of agreement Monday to build a $5.5 billion petrochemical plant in the northern industrial city of Ras Laffan by 2018, as the Gulf state steps up investment to utilize its huge gas reserves.

The complex will produce 1.4 million tons of ethylene, which, along with other products such as polyethylene, will be marketed abroad in Asia, Africa and Latin America, Qatar's oil minister Mohammed bin Saleh Al Sada told reporters Monday.

Feedstock will come from natural gas plants in Ras Laffan, he said. QP has an 80% stake in the project, while QAPCO holds the other 20%.

-By Alex Delmar-Morgan, Dow Jones Newswires; +974 6659 9818; alex.delmar-morgan@dowjones.com

Copyright (c) 2011 Dow Jones & Co.

(END) Dow Jones Newswires

13-02-12 1014GMT

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