Qatar Petrochemical Company contract to ship ethylene awarded to Norwegian company 

(MENAFN - The Peninsula) Qatar Petrochemical Company (QAPCO) has awarded a contract of Affreightment (COA) to Norwegian gas shipping company Norgas Carrier for shipping its ethylene.

QAPCO produces ethylene, Low Density Polyethylene (LDPE) and Sulphur, generated as by-products. The required feedstock, ethane gas, is supplied by Qatar Petroleum (QP) for the production of ethylene, a significant part of which is used in the production of various grades of LDPE, marketed under the "Lotrene" brand name.

Dr Mohamed Yousuf Al-Mulla, QAPCO General Manager, Terje Orehagen, President and COO signed the agreement. Also present at the signing ceremony were Abdulrahman Ali Abdullah, QAPCO Group Manager and Norgas CEO, Morits Skaugen.

QAPCO expanded its ethylene production capacity from 535,000 MTA to 720,000 in the fourth quarter of 2007. QAPCO consumes about 400,000 MT of ethylene per year for manufacturing LDPE. It also supplies 200,000 MT of ethylene to its subsidiary Qatar Vinyl Company (QVC) for producing EDC/VCM and some 120,000 MT is exported to international markets.

Most of the 400,000 MT LDPE per year that QAPCO produces is exported in more than 80 countries around the globe. QAPCO has logistic network supported by 18 overseas offices and two warehouses.

As a global petrochemical supplier, QAPCO is planning to expand its activities to include the opening of seven more offices and three warehouses mainly in Asia this year.

2008 was another record breaking year for QAPCO in terms of production, sales and profitability. Total ethylene production reached 800,000 MT, showing an increase of 80,000 MT, while total ethylene export increased by 172,000 MT.

Dr Al-Mulla said QAPCO has a major role to play in the growth of petrochemical business in Qatar, adding that the company has drawn up several expansion plans to foster better customer service and strengthen its market position as a global petrochemical supplier.