Qatar and Chevron sign major petrochemical deal
The move follows QatarEnergy’s gas deals last year with China and Germany.
The state-owned QatarEnergy announced Monday an agreement with the US petrochemical giant Chevron Phillips Chemical to build a petrochemical facility.
QatarEnergy and Chevron Phillips Chemical will build a $6 billion complex in Qatar’s Ras Laffan Industrial City. To this end, the two companies created the joint venture Ras Laffan Petrochemicals. QatarEnergy owns 70% of the venture, while Chevron owns the remaining 30%. Construction began in June of last year and is expected to finish in 2026, Chevron Phillips Chemical said in a press release.
What it means: The facility will include an “ethane cracker.” Ethane is a hydrocarbon found in natural gas and when heated turns into ethylene, which can be used as a fuel. The facility will also produce polyethylene, which is used to make plastic.
Why it matters: QatarEnergy said in a tweet that the deal constitutes the largest petrochemical investment in QatarEnergy’s history. The deal further demonstrates Qatar’s commitment to its oil and gas sector, even as the Gulf states moves towards renewable energy.
