QAPCO launches $220 mln ethylene expansion project

Qatar Petrochemical Company (QAPCO) will officially launch its Ethylene Expansion Project (EP2) on January 8, 2007 at the Messaieed Industrial City. The project was completed in July this year increasing the company's ethylene production by around 200 kilotonnes (KT) per year with the surplus amount shipped to global markets.

QAPCO's current annual ethylene production stands at 720 KT and has the potential to export about 120 TO 140 KT per year.

QAPCO signed last month a Contract of Affreightment (COA) with gas shipping firm Etizen Norgas Gas Carriers (ENGC) of Norway for THE export of ethylene after a five-year gap.

According to the contract, ENGC will ship QAPCO'S EP2 ethylene production, while the Norwegian company will meet QAPCO's full transportation requirements for ethylene exports until the end of next year. Ethylene exports will cover India, Europe and South-East Asia.

ENGC currently operates a fleet of 32 vessels, including 30 semi-refrigerated ethylene vessels and two non-ethylene ships ranging in size from 6,000 to 12,000 cubic metres.

QAPCO has earned an international reputation of being a high quality producer of ethylene. The ethane feedstock needed for the production of ethylene is supplied by Qatar Petroleum (QP(.

Most of the ethylene produced by QAPCO is used as feedstock for the low density polyethylene (LDPE) plants to produce Lotrene (unprocessed plastics). The rest of the ethylene produce is supplied to its subsidiary, Qatar Vinyl Company (QVC).

QAPCO produces a wide range of LDPE grades suitable for industrial applications, food packaging, shrink wrap film, injection moulding, cable and wire manufacture, pipe and tube manufacture.

Production capacity for ethylene in the Middle East will more than double in the next five years, rising from over 13 million metric tonnes in 2007 to over 29 million metric tonnes in 2012. This represents nearly half of global capacity growth, according to the Gulf Petrochemicals and Chemicals Association (GPCA).

The Middle East will be the epicentre of global petrochemicals manufacturing, producing essential materials for packaging, healthcare, pipes, electronic goods, personal care, construction and many other industrial or consumer requirements.

Back to News...