Shell and state-run Qatar Petroleum have signed a memorandum of understanding to jointly study the development of a major petrochemicals complex in Ras Laffan Industrial City, Qatar.

The companies will build a mono-ethylene glycol plant with a capacity of up to 1.5 million tonnes per year using Shell’s proprietary OMEGA technology and other olefin derivatives to yield over two million tonnes of finished products.

Shell CEO Peter Voser said that this new project will combine Shell’s experience and technology with the ambition of the State of Qatar to create further value from its natural gas resources.

In Qatar, Shell and Qatar Petroleum are together building the Pearl gas-to-liquids plant and the Qatargas 4 LNG project.