State-owned Qatar Petroleum and Anglo-Dutch oil giant Shell signed Sunday a heads of agreement to build a petrochemical complex in the energy-rich Gulf state valued at $6.4 billion.
Qatari energy minister Mohammed al-Sada and Peter Voser, chief executive officer of Shell signed in Doha the agreement that "sets the scope and commercial principles for the development of a world-scale petrochemicals complex in Ras Laffan Industrial City," a joint statement said.
This agreement follows the conclusion of a joint feasibility study conducted by the two sides, it said, pointing out that Qatar Petroleum will hold an 80 percent equity interest in the project and Shell 20 percent.
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Sada told reporters at the signing ceremony that the value of the contract would be $6.4 billion.
The scope under consideration includes a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar, in addition to a mono-ethylene glycol plant of up to 1.5 million tonnes per annum, 300 kilotonnes per annum of linear alpha olefins, and another olefin derivative, the statement said.
It said the "cost-competitive petrochemicals products" will be marketed primarily into Asian growth markets.
Qatar Petroleum and Shell have delivered Pearl Gas-to-Liquids (GTL) and Qatargas 4 this year, which are two of the world’s largest projects built in Ras Laffan Industrial City, the statement said.
The small emirate, which holds the world's third-largest gas reserves, last year celebrated raising its production capacity for liquefied natural gas to 77 million tonnes annually, enforcing its position as the world's largest producer.