CPChem expands in Qatar

Chevron Phillips Chemical Company LLC (CPChem) has announced two new joint-venture agreements for the development of its second world-scale petrochemical project in Qatar.
Q-Chem II, building on the success of the existing Q-Chem Joint Venture between an affiliate of CPChem and Qatar Petroleum, plans to build two new ethylene derivative units adjacent to the Q-Chem complex at Mesaieed Industrial City. The polyethylene and normal alpha olefins (NAO) facilities will each have a capacity of 350,000 metric tons per year and will utilise proprietary CPChem technology. Qatar Petroleum will hold a 51% equity position in Q-Chem II; an affiliate of CPChem will retain 49%.
The other new joint venture project, an ethane cracker located in Ras Laffan, will provide ethylene feedstock to the Q-Chem II plants via a purpose-built pipeline. With an initial capacity of 1.3 million metric tons per year, the venture will include Atofina SA and Qapco, through Qatofin, as equity participants in the project with Q-Chem II. Studies for the project are in progress and the facility is expected to commence production in the second half of 2007.

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