(EnergyAsia, December 5 2011, Monday) — Qatar Petroleum and Royal Dutch Shell yesterday signed a heads of agreement covering the scope and commercial principles for the development of a world-scale petrochemicals complex in Qatar’s Ras Laffan Industrial City.

The partners are looking to develop a world-scale steam cracker to be fuelled by Qatar’s natural gas, a mono-ethylene glycol (MEG) plant of up to 1.5-million-tonne-per-year capacity, a 300,000-tonne/year linear alpha olefins plant, and another olefin derivative facility. Shell will use its proprietary Only MEG Advantaged (OMEGA) technology in the MEG plant, and its Shell Higher Olefin Process (SHOP) technology to produce linear alpha olefins.

The complex, 80% owned by Qatar Petroleum and 20% by Shell, will produce cost-competitive petrochemicals products primarily for export to Asia.

The agreement was signed in the Middle East country yesterday by Mohammed bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry, and Peter Voser, Shell’s CEO, following the conclusion of a joint feasibility study by Qatar Petroleum and Shell.

Mr Al-Sada said: “This critical petrochemicals project fits well with Qatar’s strategy to strengthen and further diversify its growing chemicals industry and represents an important milestone on our journey to become a significant global petrochemicals producer. In line with directives of His Highness, the Emir, Sheikh Hamad Bin Khalifa Al Thani, this large petrochemicals complex will provide Qatar with another viable option to extract optimal value from its natural gas resources.”

Mr Voser said: “This agreement marks the beginning of another partnership with Qatar Petroleum for the development of a world-scale petrochemicals project in Qatar. Coming on the heels of the inauguration of Pearl GTL, this new venture demonstrates the commitment of both parties to deepen our relationship even further.

Shell values the opportunity to bring to Qatar the expertise and technology necessary to deliver a petrochemicals project of this scale and looks forward to its successful delivery.”

Earlier this year, Qatar Petroleum and Shell completed their joint Pearl gas-to-liquids (GTL) and Qatargas 4, which are among two of the world’s largest projects built in Ras Laffan.