MOSCOW (MRC) -- Qatar Petroleum and Qatar Petrochemical Company signed technology licence contracts for the multibillion dollar Al Sejeel petrochemical complex with Univation Technologies for the polyethylene technology and Dow Chemical Company for polypropylene technology, said Gulf-times.
QP and Qapco had signed the Heads of Agreement (HoA) to jointly develop the mega-petrochemical complex in Ras Laffan in February 2012.
QP and Qapco hold 80% and 20% equity interest respectively in the project.
The Al Sejeel Petrochemical Project is scheduled for completion in 2018 and will feature a world-scale mixed-feed steam cracker, with the original mixed feedstock of ethane, butane, and naphtha, thus allowing extra flexibility and diversity in terms of products.
QP and Qapco said the selection of the licensors was a highly strategic landmark and highlights the evolution of the project.
With the signing of the technology agreements, the Al Sejeel plants will be designed to produce 2.2mn tonnes per year (tpy) of polymers, including polyethylene and polypropylene resins.
Al-Sada said: "We firmly believe that the development of the downstream petrochemical sector will create countless opportunities for the production of new intermediate and derivative products."
The Al Sejeel project is part of Qatar’s large-scale expansion of the petrochemicals sector to support diversification and growth of the Qatari economy as the country has announced that it will raise its petrochemical output to 23mn tpy by 2020.
The petrochemical complex will produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene, butadiene and py-gasoline.
Qapco chairman Hamad Rashid al-Mohannadi said, "The Al Sejeel Petrochemical Project represents a pioneering initiative as it is the first time that two Qatari entities will build and develop together a petrochemical complex of this scale. Over the past years, Qatar and the country’s petrochemical sector in particular have built tremendous capabilities, developed a talented national workforce, and acquired strong technical and operational expertise to develop and implement strategic projects such as Al Sejeel."