Qatar Petroleum (QP) has signed a joint venture agreement with Total, Idemitsu, Cosmo, Marubeni and Mistui for the new Laffan Refinery 2 (LR2) Project.
The new LR2 condensate refinery is similar to the first Laffan Refinery (LR1), which started operations in September 2009, with a similar processing capacity of 146,000 bpd.
Under the agreement, the LR2 ownership structure will be composed of QP (84 per cent), Total (10 per cent), Idemitsu (2 per cent), Cosmo (2 per cent), Marubeni (1 per cent) and Mitsui (1 per cent).
It will be operated by Qatargas and will have a daily production capacity of 60,000 barrels of naphtha, 53,000 barrels of jet fuel, 24,000 barrels of gasoil, and 9,000 barrels of liquefied petroleum gas (LPG).
Projected to cost approximately US$1.5 billion, the LR2 project is expected to be completed in the second half of 2016.
Speaking at the signing ceremony, Qatar’s minister of Energy and chairman & managing director of QP, Dr. Mohammed bin Saleh Al-Sada, , said: “The Laffan Refinery 2 Project comes in line with Qatar’s drive to monetise its resources and expand its industrial base for the benefit of its people."
He added that: “The construction of the new refinery will give Ras Laffan a total installed condensate refining capacity of about 300,000 barrels per day, making it one of the largest single site facilities of its kind in the world.” He also stressed that a currently under construction diesel hydrotreater (DHT) expected to be commissioned in the second quarter of 2014, will have enough capacity to process all the light gasoil from both LR1 and LR2 into ultra-low-sulphur diesel which meets the most stringent environmental specifications."