Qatar Economic Review 2006(September) - QNB

Qatar Vinyl Company (QVC)QVC is a joint venture between QAPCO (31.9%), QP (25.5%), Norsk Hydro of Norway (29.7%) and TotalPetrochemicals of France (12.9%). Krupp Uhde of Germany constructed the core process unit of theplant, while Italy’s Technip covered the development of a 130 MW power generation facility. Project costswere estimated at $680 million. In 2005, QVC produced 240,000 tons of EDC, 270,000 tons of VCM and350,000 tons of Caustic Soda. QAPCO provides the Ethylene feed-stock and also supplies facilities tothe company through horizontal integration. South East Asia and Australia buy a large part of QVC’sproduction. QVC has already started looking into expansion prospects, with studies to expand capacitycurrently underway.Qatar Chemical Company (Q-Chem)In November 1997, QP (with a 51% interest) and Chevron Phillips Chemical Company (with a 49%interest) signed a joint venture agreement to construct a petrochemical complex, called Qatar ChemicalCompany (Q-Chem), in the Mesaieed industrial area.Construction of the $1.2 billion ethylene cracker plant with a capacity of 500,000 tpa commenced in1999, and had its first commercial operational year in 2004. The plant obtains Ethane and Butane feedstockfrom the NGL-4 facility. The plant has a capacity of 500,000 tpa of Ethylene, 453,000 tpa of High-Density Polyethylene (HDPE), 47,000 tpa of Hexane-1, and 36,000 tpa of Sulphur. In 2005, Q-Chemproduced 450,000 tons of Ethylene, 410,000 tons of HDPE, 35,000 tons of Hexane-1, and 36,000 tonsof Sulphur.Qatar Chemical Company II (Q-Chem II)Qatar Petroleum, with a 51% stake and Chevron Philips Chemical Company (CPC) with a 49%stake are partners in this joint-venture, which will see the construction of a ‘world-scale’ high densitypolyethylene (HDPE) and olefins plant, adjacent to the Q-Chem plant in Mesaieed. The ethanefeed-stock for the project will be sourced from the Ras Laffan Ethylene Cracker project, whichwill be fed with natural gas from the North Field. The project is estimated to cost well in excess of$1 billion, with a design capacity of 350,000 tpa of HDPE and 350,000 tpa of normal alpha olefins.The feasibility study for the project has been completed, with project completion scheduled for thefirst quarter of 2009. A Letter of Intent for building the plant was signed with Technip of France in April2005.QP - Shell Petrochemical PlantQatar Petroleum and Shell Chemicals signed a Letter of Intent in March 2005 to set up a $2 billion worldscale ethane cracker and derivatives complex at Ras Laffan. QP will hold a 51% stake in the venture,with Shell holding the remaining 49%. The ethane cracker project is expected to have a design capacityof 1.3 mtpa and is expected to be completed by 2010.QatofinThis is a joint venture between QAPCO (63%), Total Petrochemicals (36%) and QP (1%), which will seethe establishment of a Linear Low Density Polyethylene (LLDPE) plant with a 450,000 tpa capacity. Theplant will be located in Mesaieed, adjacent to the QAPCO facilities. The ethane feed-stock for the plantwill be supplied from the Ras Laffan Ethylene Cracker project. The EPC contractors for LLDPE plant isSnamprogetti, with the foundation stone for the project being laid in May 2006. The plant is scheduled forstart-up in the last quarter of 2008.KEY ECONOMIC SECTORS 27