DOHA: The Emir H H Sheikh Hamad bin Khalifa Al Thani yesterday formally inaugurated the $1.3bn second plant of Q-Chem in Mesaieed Industrial City.
Q-Chem II will produce 350,000 metric tons of High Density Polyethylene (HDPE) per annum, increasing the total HDPE capacity of Qatar Chemical Company Ltd by more than 75 percent. The plant will also produce 345,000 metric tons of Normal Alpha Olefins (NAO) annually, making it the first facility in the Middle East to produce these compounds. The Q-Chem II HDPE and NAO expansion increases the overall derivatives product capacity at the Mesaieed site by 140 percent.
The inauguration ceremony was held in Mesaieed Industrial City and was attended by the Deputy Premier and Minister of Energy and Industry, H E Abdullah bin Hamad Al Attiyah and other high-level government and corporate leaders.
"The global demand for Q-Chem's high-quality polymer outstripped the capacity of the first plant, hence our decision to set up Q-Chem II," said Al Attiyah, while speaking on the occasion. "The new plant will allow Qatar to fill that supply gap and further consolidate its portfolio of plastic polymers. Normal Alpha Olefins are a new addition to our hydrocarbon offerings and will allow Qatar to tap new opportunities in global markets."
HDPE is a strong plastic polymer used in the manufacture of thousands of items of daily use such as plastic cartons, drums, bottles, pails, plastic film, toys, trash and leaf bags, food packaging containers and plastic pipes. Normal Alpha Olefins are major petrochemical building blocks that are used in the manufacture of common household and personal care consumer goods such as plastics, liquid soaps, sunscreen, detergents, synthetic lubricants, adhesives, drilling fluids, high-quality paper products and many other items.
Both HDPE and NAO will be produced by Q-Chem II using proprietary technologies licensed by Chevron Phillips Chemical Company LP. The HDPE will be marketed under Q-Chem's well-established, popular brand name 'Marlex', while NAO will be produced for the first time under the brand name AlphaPlus.
Like Q-Chem, the Q-Chem II plant is a joint venture between Qatar Petroleum (51 percent) and Chevron Phillips Chemical Company (49 percent). "Q-Chem II marks the continuation of a long and productive business relationship between QP and Chevron Phillips Chemical," said Tim Taylor, Executive Vice President Olefins and Polyolefins of Chevron Phillips Chemical. "I have no doubt our partnership will achieve many more milestones in the years to come."
Ahmed Al Emadi, General Manager of Q-Chem, said it had been less than a decade since Q-Chem's first plant became operational and now with the addition of Q-Chem II the company had grown to become one of the world's largest single site producers of High Density Polyethylene. "This achievement is a testament to the long-term commitment of Qatar's leaders to the country and the effectiveness of the company's operations," he said.
Q-Chem II also owns a majority share in Ras Laffan Olefins Company Ltd (RLOC).
It is in partnership with Qatofin to ensure a regular supply of ethylene. The RLOC plant in Ras Laffan cracks ethane gas into ethylene, which is the main raw material used by Q-Chem II and Qatofin. The ethylene is then transported to Mesaieed via a dedicated 135km pipeline.
"This unique arrangement allows both Q-Chem and Qatofin to take advantage of massive economies of scale, thereby allowing both companies to be even more competitive on the international market," explained Al Emadi.
The EPC contract for the project was won by a consortium of Tecnimont and Daewoo Engineering & Construction Co Ltd. The successful financing of Q-Chem II and Qatofin projects won the prestigious "Europe Middle East Africa Petrochemical Deal of the Year Award" for 2005 from the Euromoney Project Finance magazine. The combined financing of Q-Chem II and Qatofin set the benchmark for future shared petrochemical asset financing in the Middle East and GCC.
"With its significant boost to HDPE capacity as well as the first ever NAO plant in the Middle East, Q-Chem II marks a very important milestone in the evolution of Qatar's petrochemicals sector," said Al Attiyah.
"The plant puts Qatar one step closer to achieving the goals laid out in the National Vision 2030."
Nasser Al Harthy
© The Peninsula 2010
