QP and Exxon sign US$2 billion LNG deal

ExxonMobil inks the first in a series of US$20 billion worth of LNG and GTL deals with Qatar.

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By  Rhys Jones Published  May 22, 2005

Qatar Petroleum (QP) and US major ExxonMobil last week signed an initial deal to build a US$2 billion petrochemical plant in Ras Laffan. A letter of intent is due to be signed between the two companies in July. The contract was signed by Abdullah bin Hamad al-Attiyah, Qatar’s second deputy premier and minister of energy and industry, who is also QP board chairman and Michael Dolan CEO for petrochemicals, ExxonMobil. After signing the contract, al-Attiyah said the US$ 2billion project would produce some 1.6 million tonnes of ethylene per annum. “As per the agreement, this quantity of ethylene would be processed to obtain some 420,000 tonnes of linear low-density polyethylene, 420,000 tonnes of low-density polyethylene and 420,000 tonnes of high-density polyethylene per annum,” said al-Attiyah. “These basic principles of the agreement come just one year after a memorandum of understanding was signed and upon the completion of the economic feasibility study for this gigantic project,” he added. Exxon and QP have a long-running relationship, with the US major planning to invest some US$20 billion on liquefied natural gas (LNG) and gas-to-liquids (GTL) projects.

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