The signing of an MoU for the development of a major petrochemical project at Ras Laffan Industrial City was announced in early October by the Minister of Energy and Industry and Chairman of the Board of Directors of Qatar Petroleum (QP), Abdulla bin Hamad Al Attiyah.

Parties to the memorandum were Qatar Petroleum, Chevron Phillips Chemical Company LLC, Chevron Phillips International Qatar Holdings LLC, Atofina SA, an affiliate of TotalFinaElf, and Qatar Petrochemical Company Limited (QAPCO), an affiliate of Qatar Petroleum.

Qatar Petroleum and Chevron Phillips had previously announced the signing of a joint-venture agreement for a combined ethylene and polyethylene project in Qatar. This MoU brings Atofina SA and QAPCO into the project as equity participants in the ethane cracker, which will have an initial capacity of 1,000,000 tonnes per year (tpy), expandable to 1,5000,000 tpy, QP said. The cracker will provide feedstock to new polyethylene plants at Ras Laffan and at Mesaieed Industrial City, via a purpose built pipeline. Once the ethane cracker reaches full capacity, it will be the largest of its kind in the world.

"Studies for the project are in progress and the parties contemplate the first phase of the facility will commence production in the second half of 2006," QP said.

Chevron Phillips and Atofina are active in the petrochemical industry in Qatar.

"This project reflects a considerable enhancement of their participation in the development of Qatar's hydrocarbon resources," the statement added.

Formerly Qatar General Petroleum Corporation QGPC), Qatar Petroleum's (QP) new identity serves as a symbol of the company's commitment to bring pride to Qatar, to develop its potential, and to live up to the expectations of Qatar's people and the company's partners, according to Minister of Energy and Industry Abdullah bin Hamad Al Attiyah.

QGPC was founded in 1974 to oversee the oil and gas industry in the country and various interests overseas, including exploration and drilling for oil, natural gas and other hydrocarbon substances; production, refining, transport and storage of the aforementioned substances and any of their derivatives and by-products, as well as trading in, distribution, sale and export of these products.

Diversification has been a key policy for the company since its establishment, and so in addition to producing crude oil and gas QP also manufactures industrial and even household consumer products through its petrochemical subsidiaries.

In addition to playing a lead role in the development of Qatar's oil and gas industry, such industrial development has required the delicate integration of resources and environmental considerations.QP has said that it is committed to conducting its activities with minimum impact on the environment, while continually improving its environmental performance.