By Ron Chen, Bureau Chief, Asia
Ras Laffan Petrochemicals, a joint venture company owned 30 per cent by Chevron Phillips Chemical and 70 per cent by QatarEnergy, today announced that it has secured US$4.4 billion to finance an integrated polymers facility to be located in Ras Laffan Industrial City, Qatar.
The project financing comprises commercial and Islamic lenders and a group of export credit agencies.
“CPChem very much appreciates the support of the export credit agencies and financial institutions that are participating in the financing of this project,” said CPChem Senior Vice President, Finance, and Chief Financial Officer Darren Ercolani. “This financing helps support CPChem’s growth strategy and our productive collaboration with QatarEnergy.”
Finalizing the financing is a key milestone in the development of the 435-acre petrochemical project, which will include the largest ethane cracker in the Middle East and one of the largest in the world. The facility will have a capacity of 2.1 million metric tons per year of ethylene and will also include two high-density polyethylene derivative units with a total annual capacity of 1.7 million metric tons.
The polyethylene units will use CPChem’sMarTech™ loop slurry process to produce high-density polyethylene for durable goods like pipe for natural gas and water delivery and packaging applications to protect and preserve food and keep medical supplies sterile.
CPChem and QatarEnergy reached positive final investment decision for the Ras Laffan Petrochemicals project in January 2023, and startup of the facility is expected in late 2026.
The two companies also are constructing a joint venture integrated polymers facility on the Texas Gulf Coast, which is expected to be operational in 2026.