Chiyoda and CTCI sign US$1.5bn Qatar’s Laffan Refinery 2 deal
A joint venture of Japan-based Chiyoda Corporation and Taiwanese CTCI Corporation has been awarded a contract for the engineering, procurement, supply, construction and commissioning (EPSCC) of the US$1.5bn Ras Laffan Refinery 2 (LR 2) project in Qatar
The deal was signed by Qatar minister of energy and industry Mohammed bin Saleh Al Sada, Chiyoda Corporation chairman Takashi Kubota, and John T Yu, chairman of CTCI.
LR2 will have a processing capacity of 146,000 bpd, similar to the existing Ras Laffan Refinery (LR1), and will be operated by Qatargas.
Adjacent to LR1, LR2 is expected to have a daily production capacity of 60,000 barrels of naphtha, 53,000 barrels of jet fuel, 24,000 barrels of gas oil and 9,000 barrels of liquefied petroleum gas (LPG).
Al Sada said, “The agreement is in line to ensure the optimal utilisation of our country’s natural resources while contributing effectively to securing energy supplies for the local and international markets.”
Khalid bin Khalifa Al Thani, Qatargas CEO, commented, “LR2, while improving product distribution domestically, will also help meet the increasing demand of international customers for cleaner fuel products. Qatargas will manage the EPSCC activities and eventually operate the facilities on behalf of the shareholders, utilising the synergies available in Laffan Refinery 1, which hasbeen in operation since 2009.”
Salman Ashkanani, Refinery Ventures’ CEO, added, “The new expansion project will double the existing capacity of the Laffan Refinery to a total of 292,000 bpd.”