Monday, Dec 05, 2011
DUBAI (Zawya Dow Jones)--Qatar Petroleum, or QP, and Royal Dutch Shell PLC (RDSA.LN) have signed a Heads of Agreement to develop a large-scale petrochemical complex in Ras Laffan industrial city aimed at helping the gas-rich Gulf Arab state diversify its chemical industry.
State-run QP and Shell, in a joint statement Sunday, said the complex will produce cost-competitive petrochemicals products to be marketed primarily into Asian growth markets. QP will hold an 80% equity stake in the complex, with Shell to own the remainder.
The HoA announcement comes after the two companies said in December 2010 that they had signed a memorandum of understanding to build the $6 billion petrochemical complex.
"This critical petrochemicals project fits well with Qatar's strategy to strengthen and further diversify its growing chemicals industry and represents an important milestone on our journey to become a significant global petrochemicals producer," Qatar's Energy and Industry Minister Mohammed bin Saleh Al Sada said in the statement.
International oil and chemical firms have boosted their investments in the Gulf region in recent years, driven by the wide availability of cheap gas--commonly used in the production of plastics and chemicals--as well as buoyant demand from Asian countries, which import petrochemical intermediate products from the region to turn them into plastic consumer goods.
The new QP/Shell complex will include a world-scale steam cracker using feedstock to be supplied from natural gas projects in Qatar; a mono-ethylene glycol plant of up to 1.5 million tons per annum; a linear alpha olefins unit with capacity of 300 kilotons annually; and another olefin derivatives unit.
The companies didn't say when the complex was scheduled to start operations.
-By Oliver Klaus, Dow Jones Newswires; +9714 446-1693; oliver.klaus@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
05-12-11 0639GMT
