Qatar Petroleum said it has signed the technology licence contract with and Qatar Petrochemical Company Limited (Qapco) for the upcoming Al Sejeel Petrochemical Complex at Ras Laffan Industrial City.

The duo had early last year signed the Heads of Agreement (HoA) to jointly develop this mega-petrochemical complex, in which QP will hold a 80 per cent equity interest.

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, said a statement from QP.

Today marks an important milestone for the development of the Al Sejeel 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 agreement was signed in the presence of Dr Mohammed bin Saleh Al-Sada, Qatar Minister of Energy and Industry, the statement added.

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, said Dr Al-Sada.

“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.

Al Sejeel 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.

Qapco chairman Hamad Rashid Al Mohannadi said it is a pioneering initiative as this 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," he added.

"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," said Al Mohannadi.

"Therefore, we are honored to have been entrusted with the mission to further integrate the downstream petrochemical sector of the state and offer new opportunities for our customers as well as opportunities for small and medium size industries to be further developed in Qatar,” he stressed.

Qapco vice chairman and CEO Dr Mohammed Yousef Al Mulla said Al Sejeel will create over 1,500 career opportunities for Qataris and generate new channels for expansion of partnerships with local suppliers and contractors while enhancing community development.-TradeArabia News Service