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Qatar Petroleum, Qapco Sign Deal to Build Petchem Complex

Feb. 13 (Bloomberg) -- Qatar Petroleum and Qatar Petrochemical Co. signed an agreement to build a petrochemical complex in the country’s industrial city of Ras Laffan, the second such plant to be announced in the past two years.

The facility will cost $5.5 billion and be completed by 2018, Qatar’s Energy Minister Mohammed Al-Sada said at the signing ceremony in the Qatari capital Doha. State-run Qatar Petroleum will control an 80 percent stake in the plant and Qatar Petrochemical, a unit of Industries Qatar, will control 20 percent, according to a release handed out at the signing.

The plant will produce 1.4 million metric tons of ethylene, 850,000 tons of high-density polyethylene, 430,000 tons of linear-low-density polyethylene and 760,000 tons of polypropylene a year, according to the release. It will be financed by the partners and by banks, Al-Sada said. Qatar Petrochemical is 80 percent owned by Industries Qatar and 20 percent by Total SA.

The signing came after Qatar Petroleum and Royal Dutch Shell Plc signed a heads of agreement to develop a $6.4 billion petrochemical plant in the Persian Gulf country in December, a project first announced in 2010. Qatar, the world’s biggest exporter of liquefied natural gas, seeks to diversify away from petroleum exports by developing industries that make petrochemicals, fertilizer and aluminum.

To contact the reporter on this story: Amir Ibrahim Ali Shabana in Dubai at ashabana@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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