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Inside Qatar’s $6 billion Ras Laffan petrochemicals project

QatarEnergy is building an integrated polymer olefins and polyethylene complex in Qatar’s Ras Laffan Industrial City.

The Ras Laffan Petrochemical Complex will be located in the Ras Laffan Industrial City (RLIC), 80km north of Doha in Qatar.

RLIC is a 294 km sq industrial hub owned and operated by QatarEnergy. It is home to many international companies and situated strategically close to the North Field.

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Project partner

In January 2023, QatarEnergy announced the final investment decision with Chevron Phillips Chemical Co. to build the 2.1 million mt/year ethylene project for $6 billion, marking the company’s largest investment in petrochemicals in Qatar.

The project also includes two polyethylene trains with a combined output capacity of 1.7 million mt/year of high-density polyethylene polymer products, raising Qatar’s overall petrochemical production capacity to about 14 million mt/year. Chevron Phillips is a joint venture of Chevron and Phillips 66.

First announced in 2019, the project will feature the Middle East’s largest ethane cracker. Production is expected to begin in 2026.

Contractors

The construction of the facility will involve the use of energy saving technology and ethane as feedstock to reduce greenhouse gas emissions in the atmosphere.

Early works for the project began in June 2022.

In January 2023, Samsung Engineering was awarded a contract for the ethylene unit and its utilities of the Ras Laffan Petrochemical Complex.

Samsung Engineering will carry out the works under a joint venture with the engineering, procurement, and construction (EPC) company CTCI called Samsung Engineering CTCI Joint Venture (SCJV).

As agreed, Samsung Engineering will be responsible for major ethylene production facilities including C2 hydrogenation, hydrogen purification unit and three main compressors.

On the other hand, CTCI will take up engineering of utility infrastructure, including steam/condensate collecting and boiler feed water among others.

The related procurement and construction work will be conducted jointly by the SCJV. The contract award marked Samsung Engineering’s re-entry into the Qatari market after being associated with the delivery of the Ras Laffan Diesel Hydrotreater (DHT) project.

Chevron Phillips Chemical will be delivering project management services for the Ras Laffan Petrochemical Project.

Tecnimont won a $1.3 billion EPC contract for the implementation of the polyethylene plant as well as associated utilities and offsites facilities. The scope of work will include engineering services, equipment and material supply, and construction activities.