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
  • Arada awards $408m W Residences Dubai Harbour contract

    23 February 2026

    Register for MEED’s 14-day trial access 

    Sharjah-based real estate developer Arada has awarded a AED1.5bn ($408m) contract for the main construction works on its W Residences project at Dubai Harbour.

    The contract was awarded to the local Engineering Contracting Company.

    The development comprises 490 branded residences across three towers.

    The project's enabling works, including excavation and piling, have begun and are being carried out by another local firm, APCC Piling & Marine Contracting.

     Arada has awarded APCC a separate AED51m ($14m) contract to undertake the enabling works.

    The development will consist of residential, retail and leisure facilities and will be operated by US-based Marriott International.

    Arada launched the project in October 2024, as MEED reported.

    The latest contract award follows Arada's award of two contracts, worth AED2.7bn ($735m), for construction work on all four phases of the Masaar 2 residential community in the Rowdat district of Sharjah.

    Arada awarded Sharjah-based Intermass Contracting a contract for the construction of phases one, three and four.

    Abu Dhabi-based contractor Pivot Engineering & General Contracting won a contract to build the second phase of the project.

    The overall scheme encompasses the construction of 1,997 residential units across all four phases.

    Construction is expected to begin shortly, and the project is slated for completion by 2028.

    Arada is the developer behind three masterplanned residential communities in Sharjah. The Aljada, Masaar and Nasma Residences communities are valued at a combined AED33bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15717440/main.jpg
    Yasir Iqbal
  • Seven companies show interest in $3.3bn Kuwait gas project

    23 February 2026

     

    At least seven companies have shown interest in participating in the planned tender for a Kuwait Gulf Oil Company (KGOC) project to develop an onshore gas plant, according to industry sources.

    The project budget is estimated to be $3.3bn and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

    Previous meetings with contractors took place at the offices of Technip Energies in Abu Dhabi.

    Contractors that have sent representatives to the meetings include:

    • Samsung E&A (South Korea)
    • Larsen & Toubro (India)
    • Tecnicas Reunidas (Spain)
    • Saipem (Italy)
    • Hyundai Engineering & Construction (South Korea)
    • Hyundai Engineering Company (South Korea)
    • JGC (Japan)

    At the last meeting, contractors were told that the invitation to bid is currently scheduled to be issued at the end of March.

    It was also confirmed that Kuwait’s Central Agency for Public Tenders (Capt) will not be involved in the tender process.

    Capt is supposed to review technical and commercial evaluations of bids and verify that bidding is competitive.

    It is understood that not requiring Capt to approve this tender will speed up the tender process.

    The plant will have the capacity to process up to 632 million cubic feet a day of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

    France-based Technip Energies completed the contract for the front-end engineering and design.

    The facility will be developed next to Kuwait’s Al-Zour refinery.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15717358/main.png
    Wil Crisp
  • Egypt tenders 500MW solar IPP

    19 February 2026

    Register for MEED’s 14-day trial access 

    Egyptian Electricity Transmission Company (EETC) has issued a request for qualifications for a 500MW solar photovoltaic (PV) independent power producer project in Egypt’s West of Nile area.

    The bid submission deadline is 11 May.

    The project is being supported by the European Bank for Reconstruction & Development and will be developed under a build-own-operate model.

    Developers will be responsible for designing, financing, constructing, owning and operating the plant, with EETC acting as the offtaker for generated electricity.

    US/India-based Synergy Consulting is acting as lead, financial and commercial advisor for this transaction.

    The project forms part of Egypt’s strategy to strengthen long-term electricity supply and increase renewable generation capacity.

    Egypt is targeting 42% renewable energy in its power mix by 2030. The country aims to raise this share to 65% by 2040.

    EETC previously had plans to build a 200MW solar plant in a west Nile area but cancelled the tender for the project in 2020.

    Egypt's power sector had its strongest year in over a decade last year, accounting for $4.2bn of total contract awards.

    Despite dipping from the previous year, solar accounted for about $1bn of total awards. 

    In November, a consortium of local firms Hassan Allam Utilities and Infinity Power won contracts to develop two solar PV projects with a combined capacity of 1,200MW, supported by 720 megawatt-hours (MWh) of battery storage.

    The UAE’s Amea Power and Japan’s Kyuden International Corporation also recently reached financial close on a $700m project comprising a 1,000MW solar plant and 600MWh battery system in Aswan.

    The scheme is backed by a $570m debt package led by the International Finance Corporation and is expected to become Africa’s largest single-asset solar and storage facility when it enters operation later this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15701778/main.jpg
    Mark Dowdall
  • Local contractor wins $143m Jeddah sewage contracts

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s National Water Company (NWC) has awarded two sewage network contracts worth a combined SR536.3m ($143m) to local contractor Civil Works Company.

    The projects will be implemented over 32 months from site handover and will serve northern Jeddah districts.

    The first contract, valued at SR278.5m ($74.3m), covers incomplete main lines and secondary sewage networks serving parts of the Al-Bashair, Al-Asala and Al-Falah neighbourhoods.

    The scope includes pipelines ranging from 200mm to 800mm in diameter with a total length of about 54.8 kilometres (km).

    The package also includes sewage tunnels with diameters ranging from 600mm to 1,800mm and a total length of approximately 6.5km. Works will also serve the Taybah, Abhar Al-Shamaliyah and Al-Hamdaniyah districts.

    The second contract is valued at SR257.8m ($68.8m). It covers the implementation of main lines and sub-networks to serve part of the Al-Hamdaniya neighbourhood.

    The works include pipelines ranging from 200mm to 1,500mm in diameter with a total length of about 78.5km. The scope also includes horizontal drilling works for sewage tunnels with diameters from 1,200mm to 1,400mm and a total length of approximately 205 metres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699620/main.jpg
    Mark Dowdall
  • Saudi Arabia prequalifies firms for gas transmission grids

    19 February 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Energy Ministry has prequalified companies to develop natural gas distribution networks in five industrial cities in the kingdom on a build-own-operate (BOO) basis.

    The industrial zones earmarked are Al-Kharj Industrial City; Sudair City for Industry and Business; and the First, Second and Third Industrial Cities in Jeddah, the Energy Ministry said in a statement.

    The contractors prequalified to bid for the natural gas transmission grids BOO scheme include eight standalone firms and seven consortiums:

    • East Gas (Egypt)
    • Natural Gas Distribution Company (Saudi Arabia)
    • Egyptian Kuwaiti Advanced Operation and Maintenance (Saudi Arabia)
    • Modern Gas (Egypt)
    • Saab Energy Solutions (Saudi Arabia)
    • Sergas Contracting (Saudi Arabia)
    • Bharat Petroleum Corporation (India)
    • UniGas Arabia (Saudi Arabia)
    • Best Gas Carrier / Khazeen / Mubadra (Saudi Arabia)
    • Al Sharif Contracting (Saudi Arabia) / Anton Oilfield Services Group (China) China Oil and Gas Group
    • Hulul (owned by Saudi Arabia’s National Gas and Industrialization Company) /Al-Fanar Gas Group (UAE)
    • Indraprastha Gas (India) / Masah Contracting (Saudi Arabia)
    • Expertise Contracting / PGL Pipelines (UK)
    • National Gas Company (Egypt) / Egypt Gas (Egypt)
    • Taqa Arabia (Egypt) / Taqa Group (UAE)

    The Energy Ministry has set a deadline of 23 April for these prequalified contractors to submit technical bids.

    The ministry added in its statement that it has identified a total of 36 industrial cities in Saudi Arabia for gas infrastructure development.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15699582/main0334.png
    Indrajit Sen