QATAR - AES Leads IWPP.

The US power company AES in May 2001 was selected as a developer and operator of a 750 MW and 40m gallons/day co-generation power and water desalination complex to be built at the new Ras Laffan Industrial City. This is a BOT project, the first of its kind in Qatar. AES will own 55% of the independent power and water producing (IWPP) company. QP, QEWC and Gulf Investment Corp. will each hold 15% in the IWPP.

Kahramaa will be the sole buyer of power and water from the IWPP, under a long-term contract. QP will supply the IWPP with natural gas and sea water under a long-term contract, and is to build a common sea water facility near the complex. AES has said it expects the power plant to be fully operational by May 2004, with partial deliveries as early as March 2003. The main contractors will be Enelpower and Fisia Italimpianti of Italy. A financial close for the venture was expected in August. Electrowatt Engineering Services of Switzerland is the project manager, contracted in mid-July 1999.

As power requirements at Ras Laffan will increase, with new industrial projects, coming on stream in the next few years, the IWPP intends to double its capacity by 2006. Major clients will be downstream facilities at Ras Laffan for the expanding Qatargas LNG venture, such as additional liquefaction facilities and cryogenic storage units. Another giant venture built at this centre is Ras Laffan LNG (RasGas), which will have four major LNG trains by 2005. Its first train came on stream in May 1999 and began exports in June. Its second train came on stream in March 2000. Qatargas and Rasgas are to build a condensate refinery at Ras Laffan as a joint venture (see DT 10).

The other big industrial centre in the emirate, at Umm Said, has been offering incentives to attract foreign investment. Expansion projects are being built there for Qatar Petrochemical Co. (QAPCO), Qatar Steel Co. (QASCO), Qatar Fertiliser Co. (QAFCO) and Qatar National Cement Co (QNCC). One plant at Umm Said has the capacity to produce 660,000 t/y of methanol and 550,000 t/y of MTBE, run by the Qatar Fuel Additives Co. (QAFAC).

Other projects in Qatar include a hot briquetted iron plant, a 220,000-240,000 t/y aluminium smelter which QP still intends to build, a $1.5 bn GTL venture with Exxon and a second GTL venture with Sasol - both to be built at Ras Laffan - and an expansion of the Umm Said refinery. A new 10m square metre industrial centre is being set up west of Doha (see the petrochemical sector in DT 11).