13-06-2013

Qatar Petroleum and QAPCO sign the technology selection agreements for Al Sejeel

Under the patronage of His Excellency Dr. Mohammed bin Saleh Al-Sada, Minister of Energy and Industry, Qatar Petroleum (QP) and Qatar Petrochemical Company Limited (QAPCO) have signed today the technology license contracts for the Al Sejeel Petrochemical Complex, which will be built in Ras Laffan Industrial City.

QP and QAPCO signed in February 2012 the Heads of Agreement (HoA) to jointly develop this mega-petrochemical complex in Ras Laffan, with QP and QAPCO holding 80% and 20% equity interest, respectively. The Al Sejeel Petrochemical Project is scheduled for completion in 2018 and it 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.

Today marks an important milestone for the development of the Al Sejeel Petrochemical Project, with the signing of Technology Licensing Agreements with Univation Technologies for the polyethylene technology and The Dow Chemical Company for the polypropylene technology. The selection of the licensors is 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 2.2 million MTPA of polymers, including PE and PP resins.

In comments on the occasion, H.E. Dr. Mohammed bin Saleh Al-Sada, Minister of Energy and Industry expressed delight at the pace of progress of the Al-Sejeel Petrochemical Project.

H.E. Dr. Al-Sada said: “An occasion like this is very reassuring for us, as it epitomizes the realization of the wise vision of His Highness Sheikh Hamad bin Khlaifa Al-Thani, the Emir of the State of Qatar who has advocated harnessing our resources in a manner that meets the economic needs of today while safeguarding the requirements of future generations.

“We firmly believe that the development of the downstream petrochemical sector will create countless opportunities for the production of new intermediate and derivative products,” he added.
 
The Al Sejeel Petrochemical Project is part of Qatar’s large-scale expansion of the petrochemicals sector to support diversification and growth of the Qatari economy as the State has announced that it will raise its petrochemical output to 23 million MTPA by 2020. The petrochemical complex will produce ethylene, high-density polyethylene (HDPE), linear low-density polyethylene (LLDPE), polypropylene, butadiene and py-gasoline.
 
“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,” said Eng Hamad Rashid Al Mohannadi, Chairman of QAPCO.

“With QAPCO building on its nearly 40 years of experience, we have demonstrated operational excellence and high product quality as well as developed and maintained competitive edge in the global petrochemical Industry. Therefore, we are honored to have been entrusted with the mission to further integrate the downstream petrochemical sector of the State and to offer new opportunities for our customers as well as opportunities for small and medium size industries to be further developed in Qatar,” he stressed.

Speaking at the signing ceremony, Dr. Mohammed Yousef Al Mulla, Vice Chairman and CEO of QAPCO, added: “The Al Sejeel Petrochemical Project will create over 1,500 career opportunities for Qataris and will generate new channels for the expansion of partnerships with local suppliers and contractors while enhancing community development. Through this project and under the leadership of H.E. Dr. Mohammed bin Saleh Al-Sada, we are proud to contribute to the sustainable development of Qatar’s economy, and we are committed more than ever to deliver as we head up north, from Mesaieed to Ras Laffan.”
 
The development of the Al Sejeel Petrochemical Complex is moving ahead. Following the signing of the Heads of Agreement in 2012, a Project Executive Committee (EXCOM) was formed consisting of representatives from both QP and QAPCO to oversee and direct the advancement of activities of the project.
 
Over the course of one year and under the leadership and guidance of H.E. Dr. Al-Sada, the EXCOM has achieved significant progress within the established timeframe and budget as the Feasibility Study was already completed and the Project Management Contract (PMC) had been awarded to Bechtel. Since then, the PMC team has been mobilized and related work has been started on the 1st of May 2013.

In addition, the Invitation to Bid (ITB) for the Front End Engineering and Design (FEED) had already been issued and the bidding process is currently in progress. The FEED is moving forward with the completion of Phase 2and the project is now entering its Phase 3.