QatarEnergy and Chevron Phillips Chemical Company (CPChem) have successfully secured a significant $4.4 billion financing package for the Ras Laffan Petrochemicals project. This world-scale integrated polymers complex is set to become a pivotal industrial hub in the Ras Laffan Industrial City.
A joint venture between QatarEnergy, holding a 70% stake, and CPChem, with a 30% share, the Ras Laffan Petrochemicals project stands as the largest petrochemical initiative in Qatar. Its Final Investment Decision was officially greenlighted in January of this year.
HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi, who also serves as the President and CEO of QatarEnergy, expressed the importance of this financing triumph. He stated, “This oversubscribed financing package is an important testament to the financial community’s confidence in Qatar and in its energy and petrochemical industries.”
Al-Kaabi went on to emphasize the Ras Laffan Petrochemicals project’s significance as the largest petrochemical enterprise in the Middle East and one of the largest worldwide. He conveyed his delight at entering this exciting phase with Chevron Phillips Chemical, their long-time partner.
The complex, slated to commence production in late 2026, includes an ethane cracker boasting a capacity of around 2.1 million tonnes of ethylene per year. Additionally, it incorporates two polyethylene trains with a combined output of 1.7 million tonnes per annum of High-Density Polyethylene (HDPE) polymer products. These versatile materials find application in various sectors, encompassing packaging, construction, and consumer goods. The completion of this complex will bolster Qatar’s overall petrochemical production capacity to nearly 14 million tonnes annually.
The Ras Laffan Petrochemicals project is anticipated to yield substantial economic advantages for Qatar, notably through increased tax revenue and foreign investment.
Both QatarEnergy and CPChem expressed their gratitude to all the financial institutions and advisors involved in the financing of this transformative initiative. They eagerly anticipate the further development of their relationships with these lenders in the future.
