Qapco signs ethylene shipping contract with Norgas

Other stories: Top 10 Middle East oil & gas events in 2010 | World's 10 largest oilfield technology companies | World's 10 largest petrochemicals companies | Oil industry giants: ADNOC | Oil industry giants: Saudi Aramco | Top 10 MENA Region mega projects | Top 10 billion dollar oil deals of the summer | 2009's winners and losers in the oil industry | 10 events in oil's history that shook the world | Top 10 Gulf mega projects | Top 10 largest publicly traded oil companies | World's 10 largest oilfield services companies | World's 10 largest oil and gas contractors

Qatar Petrochemical Company (Qapco), and Norwegian shipping company Norgas have signed a contract of affreightment (COA) for the transportation of ethylene from Mesaieed to various international destinations in the year 2010.

In a statement the companies said that Norgas will transport between 54,000 and 65,000 tonnes of ethylene from Mesaieed in 2010. The quantity could double after the start up of Qapco’s new ethylene cracker at Ras Laffan. The approximate value of the contract for the base volume is US$6.87 million.

Qapco’s main products are ethylene, low density polyethylene (LDPE) and sulphur. It also produces 410,000 tonnes LDPE per year and marketed under the Lotrene brand name.

The majority of the production volume is exported into more than 87 countries through Qapco’s logistic and sales network supported by twenty six overseas offices and five remote regional warehouses.

Qapco’s current ethylene production capacity reached 800,000Mt/y. Qapco consumes about 410,000 tonne ethylene for manufacturing LDPE and also supplies about 220,000 tonne ethylene to its subsidiary Qatar Vinyl Company (QVC) for manufacturing EDC /VCM and the balance is exported into international markets mainly for customers in Indian subcontinent, Asia and Europe.

Story continues below

Advertisement

FEATURED COMMENT Through this article I came to know new things, and I was looking for the data regarding production capacity of LD and L   1 Comments Read more comments »

Qapco will also market and sell the surplus ethylene from its subsidiary Qatofin Company Ltd (QATOFIN) after the startup of the new Ras Laffan Cracker (RLOC) in which QATOFIN is a shareholder with QP and Q-CHEM II. RLOC’s ethylene production capacity is 1.3 million tonne per year which is expandable up to 1.6 million metric tonnes, to be known one of the largest ethylene crackers in the world.

QATOFIN’s share of ethylene in RLOC is about 600,000MT per year and QATOFIN will consume about 422,000 tonne ethylene to produce duce 450,000 tonne Linear Low Density Polyethylene (LLDPE) per year and the balance is exported through QAPCO into international markets.

Total ethylene export by Qapco including QATOFIN’s surplus would be in the range of 300,000 tonne-350,000M tonnes per year.