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Shell and QP move on FEED for Qatar Ras Laffan olefins

QP and Shell completed feasibility study on $6 billion Ras Laffan petrochemical complex

Qatar Petroleum (QP) and Shell have completed the feasibility study of the World-scale petrochemicals Complex in in Ras Laffan Industrial City, Qatar

Estimated to cost $6 billion capital expenditure this petrochemical complex will be designed around a world-scale steam mixed cracker (ethane or methane)

Shell and QP are targeting to benefit from the competitive feedstock coming from either the natural gas provided directly from the North field, either from the ethane delivered from the other gas projects in Qatar.

This flexibility in the supply of the mixed cracker will allow Shell and QP to use the most cost effective feedstock source depending on the global demand for natural gas or petrochemicals products.

The working interests in the project are shared between:

 – QP 80%

 – Shell 20%

From the positive conclusions of the joint feasibility studyQatar Petroleum and Shell signed in 2011 Heads of Agreement for the Development of a World-scale petrochemicals Complex in in Ras Laffan.

Now QP and Shell have decided to move ahead on the next step to launch the Front end engineering and design (FEED) work.

This FEED will include the following packages:

 – 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

Shell and QP to call for FEED tender in two phases

A first series of call for tenders should be released on mid 2012 and a second series of call for tenders is expected later in 2012.

Shell and QP expect the key owner of ethylene and olefin derivatives licenses such as Technip from France, Linde from Germany and CB&I Lummus, KBR, and the Shaw Group from USA, to submit offers for the different packages.

Shell and Qatar Petroleum are targeting a final investment decision in 2014 for completion and commercial production in 2018.

Through this Ras Laffan petrochemical complex, Shell and Qatar Petroleum are building up a long term partnership around an upstream-downstream integrated business model to reduce their respective exposure to low natural gas prices and take advantages of the value chain on high added value petrochemical products to be exported to Asia.

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

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