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Shell and Qatar Petroleum move ahead with Ras Laffan petrochemical

Shell and QP plan $6.5 billion capital expenditure for the Ras Laffan petrochemical complex

In 2011, Qatar Petroleum and Shell signed a Heads of Agreement for the Development of a World-scale petrochemicals Complex in in Ras Laffan Industrial City, Qatar

This agreement follows the conclusion of a joint feasibility study conducted by the partners, Qatar Petroleum and Shell.

With feedstock coming from natural gas projects in Qatar, the world-scale steam mixed cracker (ethane or methane) will be designed to produce:

 – 1.1 million t/y of ethylene

 – 170,000 t/y of propylene

Then the olefin derivatives and other units will include:

 – 1.5 million t/y Mono-ethylene glycol (MEG) plant using Shell’s proprietary OMEGA (Only MEG Advantaged) technology using two trains of 750,000 t/y capacity each

 – 300,000 t/y linear alpha olefins (LAO) using Shell’s proprietary SHOP (Shell Higher Olefin Process)

 – 250,000 t/y oxo-alcohols

 – Other olefin derivatives.

 – Offsites and Utilities

 – Project Management Services

Technip, Linde, CB&I, KBR and Shaw in competition.

The complex will produce cost-competitive petrochemicals products to be marketed primarily into Asian growth markets.

Qatar Petroleum will have an 80% equity interest in the project and Shell 20% since ExxonMobil withdrew from the project

Shell and QP are planning to release the Calls for Tenders in two phases, at the end of first half 2012 and at the end of second half 2012.

Technip from France, Linde from Germany and CB&I, KBR, and the Shaw Group from USA, are expected to bid for the different packages.

The contracts awards are expected in 2013.

Shell and Qatar Petroleum are targeting to complete the project and start commercial production in 2017.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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