QatarEnergy and Chevron Phillips Chemical Company (CPChem) have secured $4.4bn (QR16bn) of financing for their Ras Laffan Petrochemicals facility.

QatarEnergy said the senior debt financing package consists of commercial, Islamic, and Export Credit Agency financing.

Located in Ras Laffan Industrial City, Qatar, the project is 70% owned by QatarEnergy with the remaining 30% stake controlled by CPChem.

The integrated polymers complex is expected to commence production in late 2026.

It comprises an ethane cracker with the capacity to produce 2.1 million tonnes per annum of ethylene.

Additionally, it has two polyethylene trains that are designed to produce 1.7 million tonnes of high-density polyethylene polymer products every year.

With the completion of the facility, Qatar hopes to produce around 14 million tonnes of petrochemicals annually.

The final investment decision (FID) for the project was announced in January 2023.

QatarEnergy president and CEO Saad Sherida Al-Kaabi said: “This oversubscribed financing package is an important testament to the financial community’s confidence in Qatar and in its energy and petrochemical industries.

“This large-scale cornerstone investment represents a significant achievement and a major milestone for the Ras Laffan Petrochemicals project – the largest in the Middle East and one of the largest in the world.”

CPChem senior vice-president, finance, and CFO Darren Ercolani said: “CPChem very much appreciates the support of the export credit agencies and financial institutions that are participating in the financing of this project. This financing helps support CPChem’s growth strategy and our productive collaboration with QatarEnergy.”

On the Texas Gulf Coast, US, the two businesses are also building a joint venture integrated polymers factory that will be operational in 2026.

In September 2023, QatarEnergy signed a ten-year naphtha supply deal with Japanese company Marubeni Petroleum.