QatarEnergy and Chevron Phillips Chemical Company LLC (CPChem) has announced the securing of $4.4 billion in financing for the Ras Laffan Petrochemicals project, a world scale integrated polymers complex in Ras Laffan Industrial City, Qatar.

The senior debt financing package is comprised of commercial and Islamic facilities as well as Export Credit Agency (ECA) financing. With QatarEnergy holding a 70% stake and CPChem holding a 30% stake, this joint venture is considered the largest petrochemical project in Qatar, with the Final Investment Decision being announced in January 2023.

“This oversubscribed financing package is an important testament to the financial community’s confidence in Qatar and in its energy and petrochemical industries,” said Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and the President and CEO of QatarEnergy.

“This large-scale cornerstone investment represents a significant achievement and a major milestone for the Ras Laffan Petrochemicals project—the largest in the Middle East and one of the largest in the world. We are very pleased to enter this exciting stage of this project with our long-time partner Chevron Phillips Chemical,” Al-Kaabi added.

The complex, expected to begin production in late 2026, consists of an ethane cracker with a capacity of about 2.1 million tons per annum (mtpa) of ethylene.

Additionally, the complex includes two polyethylene trains that will produce a combined output of 1.7 mtpa of High-Density Polyethylene (HDPE) polymer products. These products are used in a wide range of applications, including packaging, construction, and consumer goods.

With this project, Qatar’s overall petrochemical production capacity will increase to nearly 14 mtpa in addition to generating significant economic benefits for the country, including increased tax revenue and foreign investment.