Qatar Petrochemical Company (Qapco), which saw its net profit slide in 2002, is pushing ahead with plans to expand ethylene capacity and improve low-density polyethylene (LDPE) production capabilities. The company is also participating in a project to set up a polyethylene plant as part of “forward integration.”

Qapco confirmed that ethylene capacity would be raised to 720,000 tonnes per annum (tpa) from 525,000tpa. The polyethylene (LLDPE) plant, whose initial capacity of 450,000tpa will be later expanded to 650,000tpa, is being developed jointly with Atofina at Mesaieed Industrial City, the project going by the name of Qatofin.

 The feedstock ethylene required for the LLDPE will be supplied from the ethylene cracker of capacity 1.3 million tonnes per annum being developed at the same time at Ras Laffan Industrial City by a joint venture of Qatofin and Q-Chem.
“These synergies have given rise to further development of Qatar Vinyl Company (QVC), which is now contemplating doubling its existing ethylene dichloride (EDC) and  vinyl chloride monomer (VCM) production capacities, and the plans to have a PVC plant at a later stage,” the spokesman said. QVC is a venture promoted by Qapco jointly with QP, Norsk Hydro and Atofina to produce VCM, EDC and caustic soda.

Qapco also participated in the Qatar Plastics Products Company enterprise from which it derives its bagging and shrinkable film requirements.
Established in 1974 to utilise associated and non-associated ethane gas from petroleum production, Qapco is jointly owned by Industries Qatar (IQ) and Atofina. IQ recently purchased all of Qatar Petroleum’s shares (20 per cent of the total stake). QP is a wholly owned corporation of the state of Qatar and has responsibility for developing and distributing Qatar’s oil and gas reserves.  Atofina is a wholly owned subsidiary of TotalfinaElf.

 Qapco’s manufacturing facilities consist of an ethylene plant, two LDPE plants and a sulphur plant in addition to self-sufficient utilities plants and other offsite and auxiliary facilities.   Qapco is located at Mesaieed Industrial City and has as its neighbors companies producing fertilisers, steel, petroleum products and natural gas liquids. The production units are situated along the coast with jetty facilities and are well connected by road transport, enabling the company to export its entire range of products worldwide.  Qapco produces various LDPE grades to satisfy the requirements of most thermoplastics processing techniques including blown film extrusion, cast film extrusion, extrusion coating, wire and cable coating, injection moulding and blow moulding.

Qapco’s ethylene production in 2002 dropped to 495,000 tonnes from 535,000 tonnes in the previous year. Polyethylene also saw a drop from 382,000 tonnes to 379,000 tonnes.  But sulphur showed an increase, from 41,000 tonnes to 44,000 tonnes.
A substantial part of ethylene is consumed for the production of LDPE of various grades, which are marketed under the ‘Lotrene’ brand. The remaining ethylene is supplied to QVC to meet its feed requirements. 

Year 2002 saw gross sales improving to QR1.07 billion ($293 million) from QR1.06 billion, but net profits came down from QR497 million to QR434 million. The Middle East-Africa and Far East-Oceania regions each accounted for 36 per cent of LPDE sales in volume with South-east and South-west Asia accounting for 26 per cent and America and Europe two per cent.

“Qapco remains focused on identifying prospective markets and capitalising on the evolving opportunities,” the spokesman said. It also markets a part of QVC’s production and some of the HDPE production from Q-Chem within the area of its marketing activities.

“Forward integration by investment in petrochemicals is one of the ways to expand Qatar’s oil and gas-based industries in order to diversify the national income and increase the economic base.  Qapco has been committed to this cause since its inception and became the prime example of such successful integration by playing a significant role in the petrochemical sector,” it said.