Qatar will become the Middle East's first producer of the petrochemical normal alpha olefins (NAO) with the launch of the newest petrochemical plant, QChem II, a senior executive said at a plant launch on Tuesday. QChem II is a joint venture between Qatar Petroleum, which holds a 51 percent stake, and Chevron Phillips. QChem II is also part owner of the Ras Laffan Olefins Co, with Qatofin as the other shareholder.
The $1.3 billion plant is expected to produce 350,000 metric tonnes of polyethylene and 345,000 tonnes of normal alpha olefins annually, Chevron Phillips Executive Vice President Tim Taylor told reporters. Full capacity of the plant is expected to be reached by early next year, Taylor said, adding future expansion is a possibility.
"We always look forward, just like we did when we completed QChem I. We would hope that beyond this there is the opportunity to expand," he said. QChem I has been operating since 2003 and produces roughly 460,000 tonnes of polyethylene and just under 50,000 tonnes of 1-hexene annually. NAO are used in household and personal care products such as plastics, liquid soaps, sunscreen, detergents and adhesives. Polyethylene is used in the manufacturing of items such as plastic cartons, bottles, toys, trash bags and food packaging containers.