Qatar puts mega project on hold amidst supply surplus
Last month Industries Qatar announced that they cancelled their mega project, Al-Sejeel petrochemical complex, and that they were in search of new downstream investments. The complex was expected to be completed in 2018 and house a 1.4 mil tons/year ethylene cracker with downstream PE and PP plants.
Players noted that the Middle East is already due to see more polymer capacity in the near term coming from United Arab Emirates’ Borouge 3 complex in the following months, followed by Sadara’s complex in Saudi Arabia coming in 2015.
The country is planning to invest $25 billion to expand its petrochemical capacity to 23 million tons by 2020 from 16.8 million tons in 2012, according to media reports. In the coming years, two petrochemical plants will be launched in Qatar known as Al-Karaana and Ras Laffan Gasoline and Aromatics Project (RLGAP). Neither project is slated to produce polymers. The Al-Karaana project, a joint venture between Shell and Qatar Petroleum (QP) will be able to produce 1.5 million ton/year of MEG. The plant is expected to be online in the second half of 2018. RLGAP is expected to produce 1.304 million ton /year of PX and 890,000 ton/year of benzene.
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