Atofina, the Chemicals branch of the TotalFinaElf Group, recently took a major step in the development of its petrochemicals activities in Qatar through two large-scale projects: the installation of an ethane cracker in Ras Laffan and of a polyethylene (LLDPE) plant in Mesaieed.

In order to carry through these projects, Atofina signed an agreement on Thursday 13th June with Qapco (Qatar Petrochemical Company) for the creation of Qatofin, a joint venture in which Atofina and Qapco will have a 36% and 63% share respectively, with the national Qatar company Qatar Petroleum (QP) owning the remaining 1%. Atofina already has a 10% interest in Qapco.

Meanwhile, Qatofin signed an agreement with Q-Chem 2, a joint venture between Qatar Petroleum and Chevron Phillips Chemical, for the installation of an ethane cracker in Ras Laffan, in the North-East of the country. This 1.3 million tpa cracker, in which Qatofin will have a 45.7% shareholding, is due to become operational in 2007.

Downstream, Qatofin is planning the construction of a new 450,000 tpa polyethylene (LLDPE) plant in Mesaieed, in the South-East of Qatar, which will operate the Univation gas phase process. Feedstock for the plant will be provided by ethylene from Qatofin's production quota from the Ras Laffan cracker.

" These projects illustrate Atofina's wish to be a world petrochemical player, gain access to competitive raw materials, and secure a favourable position in order to access the polyolefin markets of South-East Asia. They also consolidate the industrial synergies connecting the Upstream and Chemicals branches of the TotalFinaElf Group ", declared Jean-Bernard Lartigue, Atofina Vice-President. The Ras Laffan ethane cracker will indeed work with the gas produced in Qatar by TotalFinaElf in the context of the Dolphin.