News Desk |
Saad Sherida Al-Kaabi, Qatar Petroleum (QP) Chief Executive Officer, on Monday made the announcement in Doha that QP has joined hands with Chevron Phillips Chemical Co. to venture into the construction of an Ethylene plant.
Al-Kaabi, while giving out details about the upcoming joint-venture, stated that the plant once completed will be expected to produce 1.9 million tons of ethylene each year processed from ethane, a natural gas liquid, extracted from the North Field of the country. The production target for the initial years has been set to produce 1.6 million tons a year.
The country has since embarked upon developing an indigenous natural gas production and exporting program that is also considered to be the country’s strength.
Qatar to enter next phase of petrochemical investments
With plans to begin construction of Middle East’s top Ethylene plant, Qatar has reportedly entered the next phase of petrochemical investment. It is reported that the country will own 70 per cent of shares in the projects that will include the production of various petrochemicals and plastic goods.
QP is reportedly venturing into the production of high-density polyethene which will subsequently increase the country’s production to 4,300 tons per year once the plant is constructed by 2025.
Moreover, the extraction companies are expected to gain more profit as the demand for crude oil and natural gas will increase as a subsequent result of the country’s production venture.
Qatar’s North Field – a savior
The expansion of extraction work on Qatar’s North Field has been increased since the country withdrew from the Oil Producing and Exporting Countries (OPEC) earlier this year. The country has since embarked upon developing an indigenous natural gas production and exporting program that is also considered to be the country’s strength.
At present Qatar has the capacity to produce 77 million tons of Liquefied Natural Gas (LNG) per year. However, it plans on to boost the LNG production to 110 million tons a year by 2024.
The expansion of extraction work on Qatar’s North Field has been increased since the country withdrew from the OPEC earlier this year.
The expansion plan of the North Field, the geographical extension of Iran’s South Pars gas-field, is currently underway with additional plans to bid the construction of onshore facilities for the production of various petrochemicals.
Moreover, Qatar owns 14 per cent of known natural gas reservoirs and is presently the world’s third-largest LNG exporter. At present, Qatar exports LNG to states in Europe, Asia Pacific, North America, South Asia and Fareast.
Qatar working to build LNG-trains and LNG carriers for export purposes
Qatar has opened bid to venture with technical companies for the construction of four LNG trains that will be expected to carry 8.8 million tonnes of LNG per year once completed.
In addition, Qatar Petroleum (QP) tendered notices to invite construction contractors for the construction of sixty LNG carriers for its exports to the US. The CEO of QP, Saad al Kaabi, has reportedly stated that the number LNG carriers will be further increased to 100 carriers in the coming years.
Qatar to invest in Pakistan’s petrochemical industry
Qatar is not limiting its petrochemical investment to its local enterprise, it has planned to go global and utilize its natural gas strength to the maximum. At present, Qatar has signed a $20 billion deal with US over LNG trade and investment and is presently constructing a Golden pass for its LNG exports to the US.
Qatar exports LNG to states in Europe, Asia Pacific, North America, South Asia and Fareast.
On his recent visit to Pakistan, the Emir of Qatar Sheikh Tamim bin Hamad Al-Thani has signed various investments deals with Pakistan worth $3 billion. According to reports, Qatar has shown interest in Pakistan’s petrochemical industry located in the country’s port cities.
Qatar has also shown interest in Pakistan’s open bid for the construction of two Re-gasified Liquefied Natural Gas (RNLG) plant. The exchange trade between the two countries increased with more than 230 per cent from QR 782 million to a recorded $2.6 billion in 2018.
Qatar to emerge as an energy giant amid blockade
Qatar is reportedly gaining significance as the largest producer and exporter of LNG in addition to various investments into petrochemical production. Despite being blockaded by its gulf neighbors over alleged support to terrorism since 2017, Qatar has remained consistent in its goals and has drastically increased its capital value.
While Qatar has denied all accusations of terrorism funding imposed by the Saudi-led coalition, it remains determined in diversifying its economy through LNG related production and exports. It has also eased regulations for foreign investment working inside Qatar and is also set to host the Arab region’s fist FIFA World Cup in the year 2022.