Qatar Petroleum Company (Qapco) signed a US$165.8 million first phase contract with Taiwanese company CTCI Corporation to revamp its plant machinery and enhance productivity.
The QAPCO contract to CTCI may rise further still, as it includes a provision for a potential extension of $48.32 million, which would raise the total investment of Phase I to $214 million.
The Phase I of the project will see the installation of new furnaces and ethylene storage tank will incorporate the latest technology in the market and will be “a massive leap in environmentally sustainable development’, Dr Mohammed Yousef Al Mulla, CEO of Qapco, said at the signing ceremony.
The project will use the latest technology in combustion, waste control and on-line monitoring and the key benefits would be significant reduction in Nitrogen Oxides (NOx) emissions, reuse of coke inside the furnaces that will prevent contamination of the environment, better efficiency in fuel consumption and improved yield, officials added.
The new green technology will be a milestone in protecting the environment and safety standards at Mesaieed Industrial City. Phase II of the project, which is estimated to cost $550 million, aims to increase the overall production to between 950,000 to 1 million tonne of ethylene. The contract is expected to be awarded in the first quarter of 2013.
The second phase is still under study by QAPCO and its tender details will be announced at a later stage after approval by the company’s board.