Energy and related industries

The energy sector in Qatar is fuelling significant economic growth- by 2010 Qatar is likely to be the world's single largest producer of liquefied natural gas (LNG), with a projected production capacity of 77 million tons per year, some 3 times current production.

Qatar's liquefied natural gas industry is expanding fast, while new oil capacity continues to come on stream, thus boosting export volumes. Output of associated condensates - light oil extracted during gas production - is growing and other gas-based industrial projects (e.g: the Oryx Gas to Liquid facility) are reaching completion, further increasing Qatar's capacity in the energy sector.

In the oilfields, intensified development programmes are increasing and oil production will exceed 1 million barrels per day (bpd) by 2011, which combined with LNG and GTL output will total some 6 million bpd equivalent.

Two gas super-trains are planned, each capable of producing 7.8m tonnes per year. They are expected to supply 15.6m tonnes per year to the US market from 2008. A similar amount is planned for the UK, also from 2008, and the world's largest liquefied natural gas import facility is currently being built at Milford Haven, a project which will bring 16 million tonnes of gas annually from Qatar into the UK gas transmission network. In September 2005 RasGas II signed a 25-year sale-and-purchase agreement with Chinese Petroleum Corporation of Taiwan to supply 3m tonnes/year of liquefied natural gas. Already Japan, South Korea, India and Taiwan are long term buyers and Italy and Belgium have also committed to buy Qatari gas, ensuring that Qatar's energy sector will enjoy long-term stability.

To supply gas to its global customer base, Qatar will expand its fleet of 20 vessels by around another 60, at a cost of some $15 billion, by 2009. On November 28, 2005, HE Yousef Kamal, Minister of Finance, announced a $3 billion deal with Samsung, Daewoo and Hyundai for 12 of the largest LNG carriers, as part of Qatar's strategy to optimise the total LNG value chain to its energy sector customers around the world.

Qatar launched the world's largest liquefied natural gas refinery project in November 2005, further strengthening its energy sector, with production mostly for export to the U.S. In the $14-billion strategic alliance between the two countries, Qatar Petroleum has a 70% stake and ExxonMobil Ras Laffan III Limited, a subsidiary of the US oil major ExxonMobil, the remaining 30%.

On the manufacturing front, Qatar's first helium plant came on stream in August 2005. Qatar Vinyl Company announced, also in August 2005, a plan to triple its ethylene dichloride production capacity. Qatar aims to be a major producer of condensate, naphtha and lube oil by the end of the decade. Meanwhile Qatar Steel Company has embarked on a programme to increase its iron and molten steel capacity by a half while Qatar Petroleum is working on a joint venture with Norsk Hydro to set up an aluminium smelter plant.