meed-logo

line1 line2 line3
SIGN IN / REGISTER

Qatar chemical projects take a step forward

20 January 2025

 

Qatar has invested tens of billions of dollars this decade in its giant North Field liquefied natural gas (LNG) expansion programme, as well as projects to increase gas production from the massive North Field offshore reserve.

Along with raising gas and LNG production capacity, state enterprise QatarEnergy has also sought to derive greater economic value from its natural gas output by allocating significant capital expenditure (capex) to ethane-based petrochemical projects.

Engineering, procurement and construction (EPC) works are progressing on the Ras Laffan petrochemicals project, which will consist of an ethane cracker with an output capacity of 2.1 million tonnes a year (t/y) of ethylene, making it the largest ethane cracker in the Middle East and one of the largest in the world. When the facility is commissioned in 2026, it will raise Qatar’s ethylene production potential by nearly 70%.

QatarEnergy and US-based Chevron Phillips Chemical (CPChem) have allocated a capex budget of $6bn to the Ras Laffan petrochemicals project, making it one of the largest chemical investments in Qatar.

Ras Laffan Petrochemicals, a 70:30 joint venture of QatarEnergy and CPChem, is the operator of the Ras Laffan project. Chevron and Phillips 66 are each 50% stakeholders in CPChem.

Ras Laffan project EPC works

QatarEnergy and CPChem signed the final investment decision agreement and awarded the two main contracts for EPC works for the Ras Laffan petrochemicals complex in January 2023.

A consortium of South Korea’s Samsung E&A and Taiwan-based CTCI Corporation won the EPC contract for the main ethylene plant. Samsung E&A is in charge of the major ethylene production facilities. Its scope of work includes furnaces, ethane (C2) hydrogenation, the hydrogen purification unit and three main compressors. CTCI is responsible for the utility infrastructure, including steam/condensate collecting and boiler feed water.

The EPC contract for the polyethylene plant was awarded to Italian contractor Maire Tecnimont, which announced the value of its contract to be $1.3bn.

Maire Tecnimont is required to execute the EPC of the main polyethylene plant, which includes two polyethylene units with a capacity of 1 million t/y and 680,000 t/y, respectively, together with the associated utilities and offsite facilities. The Italian contractor’s scope of work also covers engineering services, equipment and material supply, and construction activities up to mechanical completion.

US-headquartered industrial digitalisation services provider Emerson was awarded the main automation contract for the Ras Laffan petrochemicals project.

In November last year, the Samsung E&A and CTCI consortium secured another contract from Ras Laffan Petrochemical, worth $418m, to build the main ethylene storage plant for the upcoming facility.

Qapco petrochemicals project

Meanwhile, front-end engineering and design works continue on Qatar Petrochemical Company’s (Qapco) project to build a large-scale integrated petrochemicals production complex in Ras Laffan Industrial City (RLIC). The complex will feature propane dehydrogenation (PDH) and polypropylene (PP) production plants.

Qapco’s planned petrochemicals facility is estimated to have a production capacity of 1 million t/y of propylene, which will be converted into 1.08 million t/y of polypropylene grades, including co-polymer products. The propylene to polypropylene conversion will be done by two 540,000 t/y-capacity processing trains and achieved by adding an ethylene comonomer.

Propane and butane, sourced from units within RLIC, will be the main feedstock for the PDH and PP plants.

Qapco is expected to start the main EPC tendering process for the integrated petrochemicals production complex in the first quarter of this year.

Industrial salt project

Separately, QatarEnergy signed a tripartite memorandum of understanding in September last year between its subsidiary Mesaieed Petrochemical Holding Company (MPHC), Qatar Industrial Manufacturing Company (QIMC) and Turkiye’s Atlas Yatirim Planlama to create a new entity called Qatar Salt Products Company (QSalt).

QSalt will build a salt production plant in the Um Al-Houl area of Qatar at an estimated cost of $275m. MPHC will be the largest shareholder in QSalt with a 40% stake, while QIMC and Atlas Yatirim Planlama will hold a 30% stake each. QatarEnergy subsidiary Qapco and MPHC subsidiary Qatar Vinyl Company (QVC) will operate the facility.

Qapco is an 80:20 joint venture of Industries Qatar and France’s TotalEnergies. QatarEnergy, in turn, owns the majority 51% stake in Industries Qatar.

MPHC, in which QatarEnergy holds the majority 57.85% stake, owns a 55.2% stake in QVC.

The new plant in Um Al-Houl will produce industrial salts essential for the petrochemicals industry, along with bromine, potassium chlorides and demineralised water, which will be produced at a later stage, “contributing to product diversification and economic growth”, QatarEnergy said.

The plant will have a production capacity of 1 million t/y, and will “significantly reduce Qatar’s reliance on imported raw materials, addressing the current import of approximately 850,000 tonnes [a year] of table and industrial salts annually”.

This facility will utilise wastewater from reverse osmosis desalination units, transforming waste from desalination processes into a valuable resource.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13257580/main.gif
Indrajit Sen

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Contractor appointed for Abu Dhabi Riviera residences

    1 July 2026

     

    Dubai-based real estate developer Mered has appointed Turkiye’s Sera Group as the main contractor for its Riviera Residences project on Al-Reem Island in Abu Dhabi.

    The development will comprise more than 400 one- to three-bedroom apartments and 11 villas.

    Lebanese engineering firm Dar Al-Handasah is the project consultant, while Switzerland’s Herzog & de Meuron is the architect.

    The enabling works are being carried out by local contractor NSCC International.

    Mered and Sera Group are also working together on the Iconic Tower project in Dubai Internet City, where the developer awarded the main contract in December 2024.

    The 67-storey tower is being built on a site covering about 6,368 square metres.

    Local firm Mirage is the project consultant, while Singapore-based Hirsch Bedner Associates is the project architect.

    Dubai-based Chawla Architectural & Consulting Engineers is the architect of record, and Omnium International is the quantity surveyor.

    The foundation works were carried out by local firm Dutch Foundations.

    Mered’s latest contract awards in the UAE market come amid heightened real estate and construction activity, with schemes worth more than $323bn at the execution or planning stages, according to UK-based analytics firm GlobalData.

    GlobalData forecasts that output from the UAE’s residential construction sector will grow by 3% in real terms in 2026-29, supported by infrastructure, energy and utilities developments, as well as residential construction projects.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17509888/main.jpg
    Yasir Iqbal
  • Siemens Energy to supply turbines for Oman IPP projects

    1 July 2026

    Germany’s Siemens Energy has announced it will supply power generation technology and long-term service agreements for the 2.6GW Misfah and Duqm independent power producer (IPP) projects in Oman.

    The scope includes the supply of six F-class gas turbines, six generators and 20-year long-term service agreements for the equipment.

    The combined-cycle gas-fired plants will add almost 20% to the sultanate’s electricity generation capacity. They are expected to provide electricity to more than two million people.

    Oman’s Nama Power & Water Procurement (Nama PWP) signed power-purchase agreements (PPAs) for the development and operation of the plants in January.

    The two combined-cycle gas turbine plants are being developed by a consortium comprising Korea Western Power (Kowepo), Qatar’s Nebras Power, the UAE’s Etihad Water & Electricity (EtihadWE) and Oman’s Bhawan Infrastructure Services.

    The Misfah IPP will be led by Nebras Power and located in Wilayat Bousher in Muscat Governorate, with a planned capacity of 1,600MW.

    The Duqm IPP will be led by Kowepo and located in Wilayat Duqm in Al-Wusta Governorate, with a capacity of 800MW.

    In May, MEED exclusively reported that a consortium of China-headquartered Shandong Electric Power Construction No. 3 Company (Sepco 3) and South Korea’s Doosan Enerbility had been appointed as the main contractor.

    The gas turbines will have hydrogen co-firing capability, providing flexibility to increase hydrogen use over time, Siemens said in a statement.

    The turbines will be manufactured at Siemens Energy’s facility in Berlin. The generators will be produced at the company’s plant in Muelheim, Germany.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17506190/main.jpg
    Mark Dowdall
  • Qiddiya awards estimated $1bn racecourse deal

    1 July 2026

     

    Register for MEED’s 14-day trial access 

    Saudi gigaproject developer Qiddiya Investment Company (QIC) has awarded an estimated SR4.3bn ($1.1bn) contract for the construction of a racecourse at Qiddiya entertainment city, on the outskirts of Riyadh.

    The contract was awarded to Taj Dhabi, a local subsidiary of UAE-based Trojan Construction.

    The racecourse venue will cover 1.3 million square metres and accommodate 70,000 spectators.

    QIC issued the tender for the construction works in December last year, but formally announced the project only on 10 February. Contractors submitted their bids on 15 February, MEED previously reported.

    According to a statement published on QIC’s website: “The venue will include the region’s first straight-mile turf course, alongside a 2.2 kilometre (km) main turf track and a 2.4km inner dirt track.

    “A 21,000-seat grandstand will anchor the venue, with the ability to expand capacity to up to 70,000 guests through event overlays during major race days,” the statement added.

    A centrepiece of the venue will be a 110-metre central parade ring, located in the middle of the racecourse.

    The project also includes an equine hospital that will provide advanced veterinary services, including diagnostics, surgery, rehabilitation and emergency care for horses.

    The Qiddiya City horse racing venue is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, the Prince Mohammed Bin Salman Stadium, a motorsports track, a performing arts centre, the Dragon Ball and Six Flags theme parks, and Aquarabia.

    The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

    GCC presses ahead with tourism projects

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17506035/main.jpg
    Yasir Iqbal
  • NCP seeks firms for Saudi Arabia university hospital PPP

    1 July 2026

    Saudi Arabia’s Umm Al-Qura University, in collaboration with the National Centre for Privatisation & PPP (NCP), has launched an expression of interest for the completion of the construction and operation of the Umm Al-Qura University Hospital in Mecca.

    Issued to contractors on 30 June, the notice has a submission deadline of 21 July.

    The scope includes completing the remaining construction works, as well as the subsequent operation of the hospital.

    Upon completion, the hospital will have a capacity of 391 beds.

    The project will be delivered as a public-private partnership (PPP) under a design, build, finance, operate and maintain model.

    The contract duration is 30 years.

    The project is the latest healthcare project to be procured on a PPP basis in the kingdom. In June, MEED reported that Saudi Arabia’s Ministry of Health and NCP had awarded a PPP contract for the operation and management of the Sabic Specialised Behavioural Healthcare Hospital in Riyadh.

    That contract was awarded to SEH Healthcare, a consortium comprising local firms Specialised Medical Company (SMC Healthcare) and Health Gates Complex, and Germany’s Dr Ebel Fachkliniken.

    In a filing with the Saudi Exchange (Tadawul), SMC Healthcare said the total estimated project value is about SR3.8bn ($1bn).

    In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

    Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

    In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17506381/main.jpg
    Yasir Iqbal
  • On-site work starts for $5.4bn gas project in Algeria

    1 July 2026

    On-site work has started for the $5.4bn gas project in Algeria’s Illizi South block, days after a key meeting between Algeria’s Oil and Gas Minister Mohamed Arkab and the chief executive of the Saudi company Midad Energy, Sheikh Abdulelah Bin Mohammed Bin Abdullah Al-Aiban.

    The total investment of about $5.4bn will be fully financed by Midad Energy, including approximately $288m allocated to the exploration phase.

    It is being developed in partnership with Algeria’s national oil and gas company Sonatrach.

    Structured under Algeria’s Hydrocarbon Law No. 19-13, the agreement spans 30 years, with a 10-year extension option. It includes a seven-year exploration phase.

    The initial exploration phase is worth $288m and will involve 2D and 3D seismic exploration as well as drilling more than 13 appraisal wells, according to a report by the local news service Algerie360.

    The second phase, with an investment value of approximately $5.1bn, will involve drilling approximately 60 wells and constructing four natural gas compression units.

    The project is projected to produce a cumulative total of 125 billion cubic metres of natural gas and 204 million barrels of liquid hydrocarbons over 30 years.

    This will include 103 million barrels of liquefied petroleum gas and 101 million barrels of condensate.

    Midad Energy has also stated its intention to further expand its investment in Algeria’s oil and gas industry and explore new joint investment opportunities with Sonatrach.

    Algeria’s president, Abdelmadjid Tebboune, signed a presidential decree ratifying the development agreement in March.

    Presidential Decree No. 26-113 was issued on 8 March 2026 and underpinned by Articles 91-7 and 141.

    It approved a contract signed in Algiers on 13 October 2025 between Sonatrach and Midad Energy.

    The contract granted both companies the rights to explore and exploit hydrocarbons in the Illizi South area. Algeria’s National Agency for the Valorisation of Hydrocarbon Resources (Alnaft) announced the contract award on 11 October 2025.

    The block is located about 100 kilometres south of In Amenas, which was raided by Al-Qaeda-linked terrorists in 2013, leading to a hostage crisis.

    READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17505309/main.jpg
    Wil Crisp