Qatar has targeted chemicals and petrochemicals output of 23mn tonnes per year by 2020

By Pratap John

Chief Business Reporter

Qatar is set for another phase of massive development in its chemicals and petrochemicals sector with a targeted output of 23mn tonnes per year (tpy) by 2020.

Qatar’s liquefied petroleum gas (LPG) production, which currently stands at 11mn tonnes per year, will go up by 0.5mn tpy next year with the 2014 commissioning of the Barzan Gas Project.

The multibillion dollar Barzan Gas Project will play a significant role in meeting the energy needs of giant local projects, including the facilities planned for hosting the World Cup in Doha in 2022.

Some important contributing projects for the proposed chemicals and petrochemicals production boost are Al Karaana and Al Sejeel, in addition to a Qatar Fertiliser Company (Qafco) expansion (at Mesaieed), which is the world’s largest single-site producer of both ammonia and urea.

Already, Qatar is the world leader in liquefied natural gas (LNG), producing 77mn tonnes per year. And with two world scale gas-to-liquids (GTL) plants at Ras Laffan, Qatar has emerged as the ‘GTL’ capital of the world.

Qatar’s energy sector development has been driven by the huge North Field gas reserves, the largest non-associated gas reserve in the world.

In 40 years since the North Field gas discovery, Qatar’s LPG industry has grown rapidly, particularly so, in the last decade, HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada said recently.

More LPG volumes are expected from the offshore Bul-Hanaine oil field development, which will not just enhance crude oil production, but will also add important quantities of ethane, propane, and butane.

Recently, Qatar announced a new offshore field discovery in North Field’s Block 4 North, with as much as 2.5tn cu ft of natural gas. This is Qatar’s first new discovery in 42 years, coming after four years of intensive exploration activities.

While energy sector single-handedly spurred the country’s growth until the early 1990s, Qatar’s rapid expansion in the last two decades has seen major contributions from sectors such as construction, transport and communication, banking and finance, real estate and business services.

The country has a “significant pipeline” of infrastructure projects estimated to be worth $183bn that it has committed to deliver ahead of the FIFA World Cup 2022.

The largest of these is the Doha Metro Scheme. The network will cover a distance of about 216km and will have some 100 stations. Good progress is already being made on the project with QRail awarding design and construction contracts totalling $5.4bn in May this year.

A light rail system is also planned to link the new Hamad International Airport with central Doha and the various stadiums that are being built to host the World Cup.

The key driver of growth will therefore continue to be the non-hydrocarbon sector (at least until 2015), when the Barzan Gas Project is expected to start production.