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Qatar : QATAR PETROLEUM and SHELL offer FEED contract to FLUOR.

Qatar Petroleum (QP) and Shell have jointly offered the front-end engineering and design (FEED) contract to Fluor for their Al-Karna petrochemicals project Ras Laffan Industrial City.

QP will own an 80% stake in the Al-Karna project and Shell the balance 20%. The two partners inked a heads of agreement on their planned complex in December 2011, which is expected to cost $6.4 billion.

Following the new development, Mohammed Nasser Al-Hajri, chairman of the project's executive committee and also QP's downstream director, said : "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" .

He added : "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'.

Both the partners say that, as it completes the full scope and definition to create the world-class facility, this is a key milestone that the project has achieved.

The scope being considered for the Al-Karna project includes a world-scale steam cracker, with feedstock sourced from natural gas projects in Qatar; a 1.5 million tpy mono-ethylene glycol (MEG) plant leveraging on Shell's proprietary OMEGA technology; a 300,000 tpy linear alpha olefin unit using Shell's proprietary Higher Olefins Process; and a 250,000 tpy oxo-alcohols unit.

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

Welcoming the milestone achieved, Graham van't Hoff, executive vice president for Shell Chemicals, said : ''The proposed Al-Karna 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" .

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Publication:Mena Report
Date:Mar 1, 2013
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