Qatar makes giant energy strides

Qatar’s energy and petrochemical sectors made giant strides this year with many world scale projects either getting launched or inaugurated. The country’s significant achievements this year were mostly in boosting LNG production and exports with three mega trains, each one with 7.8mn tonnes annual capacity, being brought online. In October, Qatar inaugurated RasGas Train 6, which also coincided with the 10th anniversary since the company’s production started. Earlier this year, two other LNG trains - Qatargas trains 4 and 5-were inaugurated. Three more world’s largest 7.8mn-tonnes-a-year trains are under development through expansions both at Qatargas and RasGas. With various expansion projects currently under way and expected to come onstream in the coming years, production capacity will scale up to 77mn tonnes by 2010. Currently, Qatar is the world’s largest exporter and tran-shipper of liquefied natural gas. The country’s LNG production is in excess of 54mn tonnes per year from 11 trains. RasGas accounts for 28.5mn tonnes per year from six trains while Qatargas 25.6 has tonnes per year from five trains. The production and sale of LNG accounted for 30% of the country’s GDP last year year. The royalties, taxes and dividends generated by the Qatar Petroleum affiliates enable the country to invest significantly in education, health, infrastructure and other sectors in line with the vision of HH the Emir Sheikh Hamad bin Khalifa al-Thani. The year also saw two major overseas projects receive Qatari gas – South Hook LNG regasification terminal in the UK and Adriatic LNG terminal in Italy. A joint venture among QP, ExxonMobil and Total, the South Hook LNG terminal with a regasification capacity of 15.6mn tonnes a year, will receive gas straight from the Qatargas 2 project. The Adriatic LNG Terminal is the first offshore gravity-based structure in the world for unloading, storage and regasification of liquefied natural gas. On attaining full operational capacity, the terminal can deliver 6mn tonnes of LNG a year to meet about 10% of Italy’s current natural requirements. The terminal is owned and operated by Terminale GNL Adriatico (Adriatic LNG), which was established in 2005 by Qatar Terminal Limited, a Qatar Petroleum subsidiary (45%), ExxonMobil Italiana Gas (45%) and Edison (10%). In crude oil production, Qatar’s goal is to reach a capacity of 1mn bpd in the medium term. Capacity boost would come as a result of the Field Development Plan (FDP) at Qatar’s largest oilfield – Al Shaheen- carried out jointly by QP and Maersk Oil Qatar. FDP targets an oil production capacity at Al Shaheen Field (in Block 5) of more than 500,000 bpd. The expansion at Qatargas and RasGas LNG facilities would in turn help Qatar become a major producer and exporter of liquefied petroleum gas (LPG). Qatar’s annual LPG production is expected to reach 12mn tonnes within two years from the current 8mn tonnes. Qatar is also investing billions of dollars in new petrochemical ventures through QP, Qapco and their joint ventures. By 2012, Qatar will produce some 16 different types of petrochemical products such as polyethylene, polypropylene, styrene, polystyrene, aromatics and vinyl products. By that time Qatar’s total annual petrochemical production is to exceed 28mn tonnes. The country’s foray into the global league of linear low-density polyethylene (LLDPE) was marked with the inauguration of $1.2bn Qatofin at Mesaieed last month. Qatofin, a joint venture among Qapco (63%), Total Petrochemicals (36%) and QP (1%), will have an annual capacity of 450,000 tonnes. The stage is also set for a major expansion of Qapco, an Industries Qatar–Total Petrochemicals joint venture- with the foundation stone laying for a QR2bn low density polyethylene (LDPE-3) plant at Mesaieed. The plant has been designed to produce 300,000 tonnes per year of low density polyethylene. Qatar National Day on December 18 also saw the start of aluminium exports from the country. Qatalum, a joint venture between QP and Norway-based Hydro, exported its first aluminium to India. And on December 20, Qatalum crossed another milestone when its first electrolysis cell started production of liquid aluminium metal, signalling the commencement of primary aluminium production in Qatar. Qatalum will produce 585,000 tonnes of primary aluminium when the project reaches capacity. The year also saw the commissioning of a 146,000-bpd condensate refinery at Ras Laffan, which produces naphtha, jet fuel and gasoil. Fertiliser major Qafco is currently implementing expansion projects–Qafco 5 and 6-to boost its ammonia and urea production. Qafco 5 will make the company the world’s largest single site producer of ammonia and urea. Qafco’s annual urea output will scale up to 4.3mn tonnes and ammonia to 3.8mn tonnes when the new plant goes online. Qafco 6, which is expected to start up in 2011 or 2012, will further ramp up urea production to 5.6mn tonnes a year. Work is fast progressing at the Pearl GTL project-a QP-Shell joint venture-which is slated for a 2010-end start-up. The gas-to-liquids plant at Ras Laffan will produce about 140,000 bpd of GTL products as well as 120,000bpd of condensate, LPG and ethane from two trains. Qatar also operates Oryx GTL at Ras Laffan, producing of 34,000bpd of specialty products including clean transportation fuels.