Page 4 - DMEA Week 09 2023

DMEA COMMENTARY DMEA

Qatar’s clean energy

push hinges on gas

Qatar is making moves to diversify its economy to ensure its long term sustainability

QATAR HOME to one of the world’s largest gas deposits, 1.5mn tpy of CO2.
Qatar has been shifting gears on projects to raise It will also provide around 35 MW of renew-
WHAT: Qatar is LNG production through its North Field East able electricity to the Ammonia-7 factory from
leveraging its gas riches (NFE) and North Field South (NFS) projects, but a photovoltaic solar power plant in Mesaieed
to invest in alternative other downstream developments are also gath- Industrial City, currently under construction.
industries that could ering pace. As with the first development phase QatarEnergy’s latest sustainability roadmap also
sustain its economy beyond of the supergiant North Field, these will continue includes projects that will further deploy CCS
the energy transition. to be the main driver of the Qatari economy for technology with the goal of capturing over 11mn
at least the next two or three decades. But with a tpy of CO2 by 2035.
view towards sustaining its economy through-
WHY: Gas has made out the energy transition and beyond, the tiny Petrochemical goals
Qatar one of the world’s peninsular nation is leveraging its gas wealth to Further down the value chain, QatarEnergy and
wealthiest countries and invest in new petrochemical projects while mov- Chevron Phillips Chemical Co. (CPChem) – a
it is taking a leadership ing towards more sustainable fuels and carbon joint venture between Chevron and Phillips 66
position among Gulf states capture and storage (CCS). Co. – announced in mid-January that they had
in terms of the energy Qatar views gas as a transitional fuel, aiming taken a final investment decision (FID) to build
transition. to be a leading supplier for industrialising econ- the Ras Laffan Petrochemicals complex, a $6bn
omies in Asia as they switch from coal to natural integrated olefins and polyethylene facility at Ras
gas, and anticipates the product will remain a key Laffan Industrial City.
WHAT NEXT: part of the global energy industry for decades, The Ras Laffan plant is anticipated to begin
North Field East and North believing it will play an important role in the production in 2026 and will have an ethane
Field South will continue global transition to low-carbon energy. Conse- cracker with a capacity of 2.1mn tpy of ethylene.
to drive the economy for quently, it has also invested in CCS and renew- This makes it the largest in the Middle East
decades to come, but able energy supply to cater for its latest plants. and the world. Furthermore, the plant contains
Qatar is taking some major two polyethylene trains with an output of 1.7mn
strides towards a more Mesaieed Ammonia Plant 7 tpy of High-Density Polyethylene (HDPE) poly-
diverse economy. On March 1, QatarEnergy announced that its mer products, able to raise the total petrochemi-
Renewable Solutions division and Qatar Fertil- cal production capacity of Qatar to almost 14mn
iser Co. (Qafco) would begin construction on tpy.
the Ammonia 7 project, a facility that aims to be Al-Kaabi said at the signing ceremony that
able to produce 1.2mn tonnes per year (tpy) of “this marks QatarEnergy’s largest investment
blue ammonia. ever in Qatar’s petrochemicals sector and the
The new plant is to be operated by Qafco as first direct investment in 12 years. It will double
part of its integrated facilities, and is expected our ethylene production capacity, and increase
to begin production in early 2026 according to our local polymer production from 2.6 to more
a statement made by QatarEnergy, the contract than 4mn tpy, and place the utmost emphasis on
having been awarded to a consortium of compa- sustainable growth and the environment.”
nies consisting of ThyssenKrupp and Consoli- A 70% equity share will be owned by
dated Contractors Co. (CCC). QatarEnergy whereas CPChem will own the
Saad Al Kaabi, Qatar’s Minister of State for final 30%.
Energy Affairs and QatarEnergy CEO, said Al-Kaabi added: “There is no doubt that this
Ammonia-7 is “a milestone project for the king- cornerstone investment in Ras Laffan Indus-
dom and the industry as a whole.” He added: “It trial City marks an important milestone in
builds on our expertise in installing, operating QatarEnergy’s downstream expansion strat-
and maintaining conventional ammonia plants egy. It will not only facilitate further expansion
to produce fertilisers … We are also building on in the downstream and petrochemical sectors
our unique position in the renewables and car- in Qatar, but will also reinforce our integrated
bon capture and sequestration space … as well position as a major global player in the upstream,
as on our ideal logistical capabilities and advan- LNG and downstream sectors. This will be fur-
tages to supply differentiated, low-carbon prod- ther enhanced once the new world-scale petro-
ucts and fuels to the world.” chemical project in Orange, Texas, in the United
Included in the agreement is a stipulation that States of America comes online in partnership
QatarEnergy Renewable Solutions will develop with Chevron Phillips Chemical, executed by
and run CCS infrastructure capable of capturing our joint venture Golden Triangle Polymers

P4 www. NEWSBASE .com Week 09 03•March•2023