  KQ Vel is a peculiar A0p star with a strong surface magnetic field of about
7.5 kG. It has a slow rotational period of nearly 8 years. Bailey et al. (2015)
detected a binary companion of uncertain nature, and suggested it could be a
neutron star or a black hole. In this Letter we analyze X-ray data obtained by
the Chandra telescope to ascertain information about the stellar magnetic field
and interaction between the star and its companion. We confirm previous X-ray
detection of KQ Vel with a relatively large X-ray luminosity of 2\times 10^{30}
erg/s. X-ray spectra suggest the presence of hot gas at > 20MK and, possibly,
of a non-thermal component. X-ray light curves are variable, but better quality
data are needed to determine periodicity if any. We interpret X-ray spectra as
a combination of two components: the non-thermal emission arising from the
aurora on the A0p star and the hot thermal plasma filling the extended shell
surrounding the "propelling" neutron star. We explore various alternatives, but
a hybrid model involving the stellar magnetosphere along with a hot shell
around the propelling neutron star seems most plausible. We speculate that KQ
Vel was originally a triple system, and the Ap star is a merger product. We
conclude that KQ Vel is an intermediate-mass binary consisting of a strongly
magnetic main sequence star and a neutron star.
