(Updates with cost of project in second paragraph.)
Feb. 13 (Bloomberg) -- Qatar Petroleum and Qatar Petrochemical Co. signed an agreement to build a petrochemical complex in the country’s industrial city of Ras Laffan, the second such plant to be announced in the past two years.
The facility will cost $5.5 billion and be completed by 2018, Qatar’s Energy Minister Mohammed Al-Sada said at the signing ceremony in the Qatari capital Doha. State-run Qatar Petroleum will control an 80 percent stake in the plant and Qatar Petrochemical, a unit of Industries Qatar, will control 20 percent, according to a release handed out at the signing.
The plant will produce 1.4 million metric tons of ethylene, 850,000 tons of high-density polyethylene, 430,000 tons of linear-low-density polyethylene and 760,000 tons of polypropylene a year, according to the release. It will be financed by the partners and by banks, Al-Sada said. Qatar Petrochemical is 80 percent owned by Industries Qatar and 20 percent by Total SA.
The signing came after Qatar Petroleum and Royal Dutch Shell Plc signed a heads of agreement to develop a $6.4 billion petrochemical plant in the Persian Gulf country in December, a project first announced in 2010. Qatar, the world’s biggest exporter of liquefied natural gas, seeks to diversify away from petroleum exports by developing industries that make petrochemicals, fertilizer and aluminum.
--With assistance from Robert Tuttle in Doha. Editors: Rob Verdonck, Rachel Graham
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