HE al-Sada: ‘A key milestone

Qatar Petroleum (QP) and Shell have agreed to initiate the next project definition phase of Front End Engineering and Design (FEED) for their proposed world-scale petrochemicals project at Ras Laffan.
This follows the Heads of Agreement signed between the two companies in December 2011, which “set the scope and commercial principles” for the development of this facility.
Under consideration are a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a mono-ethylene glycol plant of up to 1.5mn tonnes per year (tpy) using Shell’s proprietary OMEGA (Only MEG Advantaged) technology; 300,000tpy of linear alpha olefins using Shell’s proprietary SHOP (Shell Higher Olefin Process); and a 250,000tpy OXO Alcohols unit.
A joint statement issued by QP and Shell yesterday said: “The petrochemical complex will produce cost-competitive products to be marketed worldwide.
“Qatar is well located for investments in petrochemical derivatives manufacturing facilities due to its proximity to growth markets, particularly Asia; in combination with access to ethane feed stocks.
“The project is consistent with QP’s strategic plan to grow its Petrochemicals industry and footprint, and Shell’s aim to grow its presence in the Asia-Pacific and Middle East region.”
QP would have an 80% equity interest in the project and Shell 20%.
Commenting on the progress achieved in project implementation, HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada said: “I am pleased that QP and Shell have progressed this world-class project into the FEED stage.
“This is a key milestone in the journey to enhance Qatar’s growing chemicals industry delivering another viable option to generate optimal value from its natural gas resources, in line with the directives of HH the Emir, Sheikh Hamad bin Khalifa al-Thani.
“I am looking forward to the completion of the design and engineering work to reach a Final Investment Decision leading up to project execution.”
Qatar Shell executive vice president Wael Sawan said: “The advancement of this petrochemicals complex consolidates Shell’s strong partnership with QP across the full spectrum of hydrocarbon development.
“I am very proud we have been selected to partner QP in this venture which should give Shell the opportunity to deploy the company’s innovative solutions to demonstrate our competitiveness.”
The chairman of the project’s executive committee Mohammed al-Hajri said: “QP and Shell have worked successfully together to reach this milestone.
“I look forward to the teams to build on this solid foundation and jointly work towards a positive final investment decision”.