Chevron Phillips Chemical Co. and Qatar Petroleum are planning a massive petrochemicals site that would include almost 4 billion pounds of annual production capacity for high density polyethylene resin.
The complex will be located in Ras Laffan, Qatar, and would be 70 percent owned by Qatar Petroleum. CP Chem President and CEO Mark Lashier signed an agreement for the project on June 24 in Doha, Qatar, along with Qatar Petroleum President and CEO Saad Sherida Al-Kaabi.
"The conclusion of these agreements constitutes an important milestone for Qatar Petroleum, as petrochemicals represent a major pillar of our growth strategy to achieve our vision of becoming one of the best national oil and gas companies in the world," Al-Kaabi said at the event.
The complex will use CP Chem's MarTECH-brand loop slurry process for making around 3.7 billion pounds of HDPE per year. CP Chem, which is based in The Woodlands, Texas, also will provide project management and engineering and construction services to develop the project.
Officials added that engineering work "should commence shortly," with a planned start-up in late 2025.
"This project fits perfectly with our global strategy to build petrochemical assets in regions of the world where feedstock options are abundant and competitively priced," Lashier said.
CP Chem is a 50-50 joint venture between oil and energy firms Chevron Corp. and Phillips 66. The business was founded in 2000 and is a major producer of high, low and linear low density PE, as well as other petrochemicals.
CP Chem's Performance Pipe unit also is one of North America's largest producers of HDPE pipe. The firm employs almost 5,000 and has annual sales of around $12 billion.
CP Chem has expanded its PE resin capacity in recent years to take advantage of new supplies of low-priced natural gas feedstock in North America. The firm has added more than 2 billion pounds of PE capacity in Old Ocean, Texas.
Recent media reports have said that CP Chem plans to bid more than $15 billion to acquire Nova Chemicals, a maker of PE and other resins and petrochemicals based in Calgary, Alberta.
Nova officials have declined to comment on a potential bid. A CP Chem spokesman said in an email that the firm "has publicly stated that we are exploring additional projects that would enhance enterprise value," but added that "it would be inappropriate to comment on such speculation."
Qatar Petroleum is an integrated national oil firm. Its businesses include exploration, production, processing, marketing and sales of oil and gas, liquefied natural gas, natural gas liquids, gas-to-liquids products, refined products, petrochemicals, fertilizers, steel and aluminum.