Fluor lands Qatar petchem mega-deal

Al Karaana complex will be 80% owned by Qatar Petroleum, 20% by Shell

NEWS, Projects, Fluor, Front end engineering & design, Petchem, Qatar

Qatar Petroleum (QP) and Shell have awarded the front-end engineering and design (FEED) contract for their $6.4bn Al-Karaana petrochemicals project to Fluor.

"The focus of the project team is on the delivery of a quality FEED that will be a major step towards successfully delivering this project which is an important part of our overall petrochemical development plan," said Mohammed Nasser Al-Hajri, chairman of the project's executive committee and also QP’s downstream director.

"We are delighted to have awarded the integrated FEED contract to Fluor, a world-class engineering company with a proven track record and expect Fluor to deliver FEED work of the highest quality and standards.”

The firm will now design a petchem complex that includes a world-scale steam cracker, with feedstock coming from natural gas projects in Qatar; a 1.5m  tpy mono-ethylene glycol (MEG) plant; a 300,000 tpy linear alpha olefin unit; and a 250,000 tpy oxo-alcohols unit.

"The Al-Karaana petrochemicals complex project has been envisioned to further boost Qatar’s rapidly growing stature in the global petrochemicals industry," said H.E Dr. Mohammed bin Saleh Al-Sada, Qatar’s energy minister and Industry and managing director of QP.

Graham van’t Hoff, executive vice president for Shell Chemicals, said he was delighted with the development milestone.

“The proposed Al-Karaana project underlines Shell’s growth aspirations in the Middle East, and our contribution towards supporting Qatar’s strategy to diversify its energy industry and produce cost-competitive products," he said.

Qatar Petroleum will hold an 80% stake in the Al-Karaana project and Shell the remaining 20%. The companies signed a heads of agreement on their proposed complex in December 2011. It is estimated to cost $6.4 billion.

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