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Qatar and US-based Chevron Phillips Chemical Company LLC signed a multi-billion dollar deal to invest in an energy complex that would boost Doha’s status as a top petrochemical supplier in the world
State-owned QatarEnergy announced the $6 billion investment is a joint project by Chevron Corp and Phillips 66, which is responsible for the construction and operation of the Ras Laffan petrochemical project (RLPP), the largest of its kind in West Asia.
The complex is expected to produce 2.1 million tonnes of ethylene as soon as 2026 and has a total annual production capacity of 1.7 million tonnes of polyethylene derivative units.
The project will be constructed on a 1,760,382 square meter site and will host one of the largest ethane crackers in the world with a capacity of 2080 KTA of ethylene, according to Arabian Business.
Additionally, it will include polyethylene derivative units with a maximum capacity of 1680 KTA.
Polyethylene is vital for producing plastic-based goods or water and natural gas pipelines used in infrastructure development.
This gas-to-plastics deal will contribute to lowering the dependence of Qatar’s economy on the export of gas and oil and diversify its revenue streams by tapping into new lucrative sectors.
“This marks QatarEnergy’s largest investment ever in Qatar’s petrochemical sector,” QatarEnergy CEO Saad al-Kaabi Kaabi announced.
He added that this is the first major investment in 12 years, and constitutes a milestone in QatarEnergy’s “downstream expansion strategy.”
Kaabi elaborated that this would allow Qatar to maintain its status in the petrochemical sector as a leader, and reinforce its position as a reliable global partner while lowering “waste and greenhouse gas emissions.”
QatarEnergy and Chevron Phillips Chemical to build one of the world’s largest ethylene plants. This is the largest investment in QatarEnergy’s history in the petrochemical sector in Qatar
#QatarEnergy #YourEnergyTransitionPartner #Qatar pic.twitter.com/z6gxPior8O
— QatarEnergy (@qatarenergy) January 8, 2023
Earlier in December 2022, QatarEnergy announced an $8.5 billion dollar investment alongside Chevron Phillips to develop the Golden Triangle Polymers Plant in Texas, USA.
QatarEnergy holds a 49% equity in the project, which will create thousands of jobs in the US and “generate an estimated $50 billion of net economic impact over 20 years,” according to Kaabi.
Qatar’s Investment Authority also owns an 18.46 percent equity in Rosneft, Russia’s largest oil-producing company, making it the second largest investor after the Russian state.