ExxonMobil Advances Qatar Chemical Plan

ExxonMobil Chemical and Qatar Petroleum have agreed to "progress studies" on a $3 billion petrochemical complex in Ras Laffan, Qatar. The firms first announced plans for the project in June 2004.

The facility would include a 1.3 million-metric-ton-per-year ethylene cracker, as well as downstream units producing polyethylene and ethylene glycol. Expected to be completed in 2012, the facility would draw on natural gas from projects under way in Qatar's North Fields and serve customers in Asia and Europe.

ExxonMobil won't be the first foreign petrochemical investor in the Persian Gulf state. Chevron Phillips Chemical and Qatar Petroleum started up an ethylene cracker and derivatives complex there in 2003. Total Petrochemicals and Qatar Petroleum have an ethylene-based complex currently under construction. And Shell Chemicals is also considering a joint venture in the country.