Qatar has signed an agreement with US chemical company Chevron Phillips to build a $6 billion petrochemical plant.
The Ras Laffan petrochemical complex is expected to start operating in 2026 and will include the largest ethane cracker in the Middle East, producing 2.1 million tons of ethylene, 1.7 million tons of polyethylene derivatives and increasing polymer production from 2.6 million tons to more than 4 million tons, and the capacity of petrochemical production in Qatar will grow to 14 million tons per year.
Qatar Energy Minister Saad bin Sherida Al Kaabi said the new petrochemical plant will produce fewer gas emissions compared to other facilities around the world.
Al Kaabi indicated during the signing of the agreement in Doha that the Ras Laffan petrochemical plant is Qatar’s largest direct investment in the area in 12 years and a milestone in Qatar’s energy strategy in the petrochemical sector.
Notably, Qatar Energy Company, which is headed by Al Kaabi, owns 70% of the equity in the joint venture with Chevron Phillips, which owns the remaining 30%.
At the end of November 2022, Qatar announced its first major deals to supply liquefied natural gas to Germany for a period of 15 years, starting in 2026, so that Doha will supply Berlin with two million tons of gas annually.
The agreement comes one week after Qatar Energy announced a 27-year agreement to supply China with 4 million tons of liquefied natural gas annually from the North East Field, which it said was the longest in the history of Qatar’s energy sector.