QatarEnergy announced on Sunday the final investment decision on the $6 billion Ras Laffan Petrochemicals Complex with partner Chevron Pillips Chemical which is expected to be the largest of its kind in the Middle East.
The complex, expected to begin production in 2026, includes an ethane cracker with a capacity of 2.1 million tons of ethylene per year.
The integrated complex will also include two high-density polyethylene derivative units with a total production capacity of 1.7 million tons per year, QatarEnergy chief Saad al-Kaabi Kaabi said.
State-run QatarEnergy will hold a 70 percent stake in the venture with Chevron Phillips Chemicals holding 30 percent under the agreement signed on Sunday.
"This marks QatarEnergy's largest investment ever in Qatar's petrochemical sector," Kaabi said.
The complex, located in Ras Laffan industrial city, is an "important milestone" in Qatar's downstream expansion strategy, he said.
Qatar, one of the world's top producers of liquified natural gas (LNG), will see its ethylene production capacity double on the back of the new complex. Local polymer production will also increase from 2.6 million to 4 million tons per annum.
In another context, Qatari IT services firm MEEZA will be the first company in the country to use book-building to carry out an initial public offering, it said in a statement on Sunday, as Qatar aligns itself with international practices.
The company, part-owned by telecom operator Ooredoo, said it was selling 50 percent of its share capital in a public-share sale with a planned listing on the Qatar Stock Exchange.
The IPO process, which begins this month, will allow the company to offer a price range to test investor appetite and determine the IPO price.
The offering's price range is between 2.61 riyals ($0.71) to 2.81 riyals per share, potentially raising between 846 million and 911 million riyals.
Qatar introduced regulations for book-building in February 2021 to help attract foreign investors and elevate its status towards a developed market.
Until now, the standard practice in Qatar has been for a company to set a price based on feedback from two independent valuation reports.
In its statement, MEEZA said the book building would follow the regulator Qatar Financial Markets Authority's offering and listing regulations, including "a set of new procedures that would provide additional options for companies wishing to offer and list in the financial market".
