Qatar Oil and ExxonMobil found a petrochemical project

The Qatari Oil company and the American ExxonMobil have initialed an agreement for the establishment of a petrochemical factory at a cost of 2 billion dollars in Raas Laffan industrial city in Qatar. The address of intention is expected to be signed in July.

Qatar's minister of energy and industry Abdullah al-Ateyah said that the basic principles of the agreement was agreed upon. He added that a final agreement is expected to be signed next year to found the factory which is designed to produce 1.6 million tons of Ethylene as from 2011.

The Petrochemical complex will use Ethan gas from new projects in the giant Qatari North field and its products will be exported to Asia and Europe.

Axon and Qatar Gas company are linked to strong relations. The giant American oil company wants to invest $ 20 billion in projects to produce liquid natural gas and other projects to transfer gas into liquids.

Worthy mentioning that agreements were signed in April in Paris between Qatar oil and several French companies to build a factory for producing 1.3 million tons annually of Ethylene and to expand in producing polyethylene both of low and high density to reach 1.55 million tons annually.

It is expected that Qatar's production of these chemicals if the new agreement is signed between Qatar Oil and ExxonMobil will increase to 2.8 million tons annually by the beginning of 2011.