Qatar Petroleum and Royal Dutch Shell agreed on Tuesday to study building a petrochemical project worth six billion dollars in Ras Laffan by 2016.
The two companies signed a memorandum of understanding in the Qatari capital Doha under which they will jointly study development of the project, a statement said.
"The scope under consideration will include a monoethylene glycol plant of up to 1.5 million tons per annum," it said.
Qatari Energy Minister Abdullah al-Attiyah, who signed on behalf of state-controlled Qatar Petroleum, told reporters that the value of the project amounts to six billion dollars.
"We are talking about a six-billion-dollar (project) and we expect production to start in 2016," he said.
The small Gulf emirate, which holds the world's third-largest gas reserves, last week celebrated raising its production capacity for liquefied natural gas to 77 million tons annually, enforcing its position as the world's largest producer.
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