On December 21st Qatar Petroleum (QP) and Royal Dutch Shell (Netherlands/UK) signed a Memorandum of Understanding (MoU) to build a monoethylene glycol (MEG) plant at Ras Laffan, which will have a nameplate production capacity of 1.5m t/y of MEG and 2m t/y of other olefins derivatives. MEG is an important raw material for industrial applications, and is used in the manufacturing of polyester (widely used in cloth), films and fibres. The project will use Shell's OMEGA technology and cost an estimated US$6bn.

Qatar's deputy prime minister and energy and industry minister, Mr Attiyah, who signed the MoU with Shell's chief executive, Peter Voser, said that the project had been fast-tracked to ensure that it is completed before the World Cup 2022-related infrastructure programme reached its apex. He expects the MoU to be converted into a formal heads of agreement in March 2011, and front-end engineering and design (FEED) to follow immediately after that, with the start-up expected in 2016. The project is part of Qatar's strategy to diversify the use of its gas and expand downstream industries (see Economic policy).