Qatar Petrochemical Company Ltd (QAPCO) has signed a Sales and Purchase Agreement (SPA) for Ethylene with Engro Polymer & Chemicals Limited (EPCL) of Pakistan and Mitsubishi Corporation of Japan.

As per the SPA, QAPCO will supply EPCL 54,000MT of ethylene per annum for its ethylene dichloride and vinyl chloride monomer (EDC/VCM) plants in Pakistan. Both parties agreed to adjust the quantity up to the maximum requirement which will be 72,000MT per year.

EPCL is a subsidiary of Engro Chemical Pakistan Ltd (EPC) a leading polyvinyl chloride (PVC) manufacturer in Pakistan. EPCL is undergoing expansion involving PVC production increase up to 150,000 tonnes and back integration through setting up of an EDC/VCM plant and a chlor-alkali plant. These expansions are expected to be completed in phases by the first half of 2009.

Mitsubishi Corporation (MC) is a general trading company with over 200 bases of operations in approximately 80 countries worldwide. MC is a shareholder of EPCL also operating as raw material procurement arm for EPCL.

QAPCO General Manager, Mohammed Yousuf Al Mulla said Pakistan is a strategic market for QAPCO due to proximity and good business relationship. QAPCO and EPCL enjoy good business relation since QAPCO and its subsidiary Qatar Vinyl Company (QVC) signed a VCM contract with EPCL and Mitsubishi in 2002 to supply about 80,000 VCM to EPCLs PVC plant in Pakistan.

QAPCO main products are Ethylene and Low Density Poly Ethylene (LDPE) and Sulphur which is generated as a by-product in the process. QAPCO expanded its ethylene capacity from 525,000 MTY to 720,000MTY in 2007.

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