Energy-rich Qatar and a consortium led by Total of France have signed a joint venture agreement to build a $1.5 billion petroleum refinery in the Gulf state, local media reported on Monday.
The refinery will have a daily production capacity of 146,000 barrels of petroleum products, reports said.
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Government-owned Qatar Petroleum will hold 84 percent in the equity of Ras Laffan Refinery (LR2), while Total will have a 10 percent share. The rest will be held by Japanese groups Idemitsu et Cosmo, Marubeni and Mitsui, reports said, adding that the facility will be operated by Qatargas.
The refinery will have a daily production capacity of 60,000 barrels of naphtha, 53,000 barrels of jet fuel, 24,000 barrels of gasoil, and 9,000 barrels of liquefied petroleum gas (LPG).
The Gulf state produces around one million barrels of crude oil daily. But it sits on the world's third largest reserve of natural gas -- more than 900 trillion cubic feet (25 trillion cubic metres).