Qatar Petroleum has announced the launch of its giant Laffan Refinery 2 project which on completion will effectively double the condensate refining capacity of the refinery to 300,000 barrels per day.

Laffan Refinery 2 (LR 2) project is a joint venture between Qatar Petroleum, Total, Idemitsu, Cosmo, Marubeni and Mitsui.

The Laffan Refinery processes condensate, an associated product to natural gas production that is refined into a number of high-quality products which can be used as lower emission fuels and feedstock for petrochemical production.

All products will be hydro-treated to reduce the content of sulfur, meeting the most stringent quality standards.

The LR2 project, located at Ras Laffan Industrial City, will add to Qatargas' integrated value chain and will generate revenue from supplying the refined products into domestic and export markets.  

Qatar Emir Sheikh Tamim bin Hamad Al Thani on Wednesday formally laid the foundation stone for LR2 at a special ceremony held at the Qatar National Convention Centre in Doha. Government ministers and other key executives attended.

Speaking at the launch, Dr. Mohammed bin Saleh Al-Sada, the Minister of Energy & Industry, said the new refinery represents another step on the path to achieving the Qatar National Vision conceived by the country's leadership.

The LR Project, he said, aims to build a bridge between present and future generations by optimizing Qatar's natural resources and fostering sustainable growth.  

"The refinery will solidify the country's unique position as the largest condensate producer with the largest condensate refining capacity in the world," he added.

Dr Al-Sada pointed out that the refinery was part of an integrated development programme being implemented by all active parties in the energy and industry sector in Qatar to enhance its capability to fulfill diverse energy needs.

"The new refinery will create added value and new economic opportunities by enhancing our export capacity and fulfilling long term needs of international markets," he said.

"We in the energy sector and in Qatar Petroleum in particular, are fully committed to utilizing our hydrocarbon resources and employing the huge potential of our petrochemical and manufacturing industries to achieve the growth and development that our beloved country and its wise leadership aspire to," he added.

LR2, like LR1, will be operated by Qatargas Operating Company Limited (Qatargas) and the construction works are scheduled to be completed by the third quarter of 2016, said the statement from Qatar Petroleum.

Qatargas CEO Sheikh Khalid bin Khalifa Al-Thani said over the years the company has successfully delivered a series of world class projects that uphold its commitment to technical and operational excellence while maintaining the highest environmental standards.

"Once again we bring together industry leading partners to stimulate further economic growth for the country and deliver increased value to our people and shareholders," he remarked.

Mohammed Bin Nasser Al-Hajri, Qatar Petroleum director of Downstream Ventures, said: "As part of Qatar Petroleum's vision and mission we are paying special attention to the development of the downstream petrochemical and refining sector with the clear objective of creating additional opportunities for the production of intermediate and derivative products to satisfy the increasing domestic demand and create new markets for the country."

"We value our partnership with Qatargas and the various stakeholders. We look forward to continuing our collaboration on joint projects which foster sustainable growth," he noted.

 Salman Ashkanani, Qatargas chief operating officer at Refinery Ventures, said: "With our track record of operating multiple projects safely, reliably and efficiently over the years, we are pleased to have been entrusted to deliver and operate LR2."

"Upon its completion, Qatar will have the capacity to process approximately 40 per cent of the condensate from the North Field. This significant achievement will be a catalyst for further economic stability," he added.-TradeArabia News Service