Cracker in Qatar

,

,

(QAPCO) and

have signed a letter of intent with

to provide engineering, procurement and construction services to build an ethylene cracker in Ras Laffan Industrial City, Qatar.

The cracker will provide ethylene feedstock via pipeline to derivative units planned for development in Mesaieed, Qatar. The cracker venture will be owned by Qatar Petrochemical Company and Total Petrochemicals through their Qatofin joint venture, and Qatar Petroleum with Chevron Phillips Chemical Company through their Q-Chem II joint venture.

The Q-Chem II project and the ethylene cracker are expected to begin operation in late 2008.

Q-Chem II will include a 350,000 metric-ton-per-year polyethylene plant and a 350,000 metric-ton-per-year normal alpha olefins plant that will be located adjacent to the existing Q-Chem complex.

Qatofin is involved in the construction of a new 450,000 metric tons per year polyethylene (LLDPE) unit. The new unit, one of the largest of its type in the world, is to go into service in 2008, and will be located in Mesaieed alongside the existing QAPCO polyethylene units (LDPE).