Shell (The Hague / Netherlands; www.shell.com) has signed a memorandum of understanding (MoU) with Qatar Petroleum (QP, Doha / Qatar; www.qp.com.qa) to study the development of a petrochemicals complex in Ras Laffan / Qatar. The Anglo-Dutch group said the project would include a 1.5m t/y MEG plant plus other olefins derivatives, yielding more than 2m t/y of finished products. The MEG plant would be based on Shell’s “Omega” technology.

Qatar’s energy minister, Abdulla bin Hamad Al-Attiyah, said the proposed project was part of plans to optimise the utilisation of the country’s natural gas resources and expand downstream industries. “Together with Shell we aim to study and develop a major petrochemical complex which aligns with our plans of increased petrochemical production and diversification of our product portfolio,” he added.

Al-Attiyah said at the end of last month that QP was in talks with both Shell and Total Petrochemicals (Brussels/ Belgium; www.totalpetrochemicals.com) about developing the Ras Laffan cracker project – see Plasteurope.com of 03.12.2010.

ExxonMobil (Houston, Texas / USA; www.exxonmobil.com) has also been in talks with QP about developing a cracker project in Ras Laffan. Industry sources have said they believed ExxonMobil had exited the project, although the US group said it was continuing to study the project.

The project's original plans had foreseen a 700,000 t/y MEG line, to be commissioned by the end of 2014, as well as a 1.6m t/y ethane cracker and two 650,000 t/y PE lines. It is likely that the higher MEG capacity outlined in the MoU will result in changes in the entire planning.