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Shell and Qatar Petroleum sign HOA for petrochemical complex

LNG Industry,


Qatar Petroleum and Shell have signed a Heads of Agreement (HOA) that sets the scope and commercial principles for the development of a world-scale petrochemicals complex in Ras Laffan Industrial City, Qatar. This agreement follows the conclusion of a joint feasibility study conducted by the partners, Qatar Petroleum and Shell.

The scope under consideration includes a steam cracker, with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant with a capacity of up to 1.5 million tpy using Shell’s proprietary OMEGA (Only MEG Advantaged) technology; 300 kilotonnes per annum of linear alpha olefins using Shell’s proprietary SHOP (Shell Higher Olefin Process); and another olefin derivative.

The complex will produce petrochemicals products to be marketed primarily into Asian growth markets. Qatar Petroleum will have an 80% equity interest in the project and Shell 20%.

Minister of Energy and Industry of the State of Qatar,

Dr. Mohammed bin Saleh Al-Sada, said, “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. In line with directives of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al Thani, this large petrochemicals complex will provide Qatar with another viable option to extract optimal value from its natural gas resources.”

Qatar Petroleum and Shell have delivered Pearl Gas-to-Liquids (GTL) and Qatargas 4 this year; two of the world’s largest projects built in Ras Laffan Industrial City.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/13122011/shell_and_qatar_petroleum_sign_hoa_for_petrochemical_complex/


 

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