Chevron Phillips Chemical (CPChem) and QatarEnergy have secured $4.4bn financing for their Ras Laffan Petrochemicals project in Qatar through a senior debt financing package.

The partners had taken a final investment decision (FID) on the $6bn integrated polymers complex in Ras Laffan Industrial City in January 2023.

The senior debt financing package is made up of commercial and Islamic facilities alongside financing from Export Credit Agency (ECA).

Qatar Minister of State for Energy Affairs and 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.”

QatarEnergy holds a 70% stake in the Ras Laffan Petrochemicals joint venture company while CPChem owns the remaining 30% stake.

CPChem finance senior vice president and chief financial officer 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.”

The 435-acre Ras Laffan Petrochemicals project is anticipated to begin operations in late 2026.

It will feature what is claimed to be the largest ethane cracker in the Middle East. The petrochemical facility’s capacity will be 2.1 million metric tons per year of ethylene.

Besides, it will house two high-density polyethylene derivative units with a total capacity of 1.7 million metric tons per year.

The polyethylene units will leverage CPChem’s MarTech loop slurry process for producing high-density polyethylene for durable goods such as pipe for natural gas and water delivery. The produced polyethylene is also intended for use in packaging applications for protection and preservation of food and for maintaining the sterility of medical supplies.

For Qatar, the Ras Laffan Petrochemicals project will increase its overall petrochemical production capacity to around 14 million tons per annum.

Both partners are also engaged in co-developing the $8.5bn Golden Triangle polymers plant in Orange, Texas.