Apr 19 2007
National Oil Corporation of Libya (NOC) and The Dow Chemical Company (DOW) have announced plans to participate in a joint venture to operate and expand the Ras Lanuf petrochemical complex in Libya.
The Country (Libya) recently embarked on a policy of attracting foreign expertise and investments which will lead to further reintegration into the global economy. Dow is the first global chemical company to participate in such economic development of the Libyan petrochemical industry.
The investment supports the Libyan government’s economic policy in diversifying its domestic economy by expanding its downstream industries; including petrochemical and basic product manufacturing. Enhancements at the Ras Lanuf petrochemical complex on the Mediterranean coast will position the joint venture for future growth as a world-class supplier of polyethylene and polypropylene.
Through the joint venture, Dow will help upgrade and modernize existing assets to develop more high-skilled jobs in country and stimulate investments in associated industries by utilizing its technical capabilities.
“We are very enthusiastic about the opportunity for Dow to participate in this project with NOC and work together to invest in this dynamic part of the world,” said Andrew Liveris, chairman and CEO of Dow. “This venture is consistent with Dow’s strategy to grow its position in Basic Plastics and Chemicals through joint ventures. Our participation in the partnership with NOC at Ras Lanuf will benefit from an advantaged strategic location on the Mediterranean and competitive feedstock. This activity also represents another example of Dow’s commitment to the region.”
Dr. Shukri Ghanem, Chairman of NOC, said, “We are delighted our companies are negotiating an agreement of this nature for the benefit of the Libyan economy. The partnership will bring a respected global company and its expertise together with a proven National enterprise to upgrade and produce world grade products while enhancing the technical abilities of the Libyan workforce.”
The joint venture agreement encompasses the Ras Lanuf site’s existing naphtha cracker, two polyethylene production facilities and associated infrastructure. The project will include refurbishment and expansion of the existing units, followed by construction of an ethane cracker and additional polyethylene and polypropylene facilities. Later phases will include construction of additional hydrocarbon, plastics and chemical production facilities based on natural gas.
The Ras Lanuf petrochemical complex is on the Mediterranean coast of Libya and was built in the 1980s.