QATAR - Aluminium Smelter.

QP (51%) and Yara (49%) are to have a 585,000 t/y aluminium smelter built at Mesaieed. The project is to cost $4.8 bn, up from $3 bn estimated in late 2004, when agreement on this was signed by the two partners. The final go ahead for this JV, Qatalum, was made in July 2007.

A foundation stone laying ceremony is set for November. This is to begin production in 2009. It will be the largest primary aluminium plant ever built in a single phase. It will consist of a smelter, casthouse and carbon plant, as well as a gas-fired 1,250 MW power plant to cost over $1 bn and to be built by General Electric and Doosan of Korea.

Qatar Industrial Manufacturing Co. (Qimco), a player in the petrochemicals industry, is involved in various ventures in this sector and in pharmaceuticals. It assesses market prospects, examines raw material availability, and finally considers whether gas from the North Field would give a competitive advantage. Its investments include:

A 15,000 t/y urea formaldehyde plant, built at Mesaieed at a cost of $6.9m, is a JV between Qimco (50%), Qafco and other local companies and individuals. It went on stream in 2002. It takes methanol feedstock from Qafac and urea from Qafco.

A 30 t/d sulphuric acid plant, built at Mesaieed, uses molten sulphur supplied by Qapco. The output is used locally.

A 20,000 t/y melamine plant built at the fertiliser complex in Mesaieed at a cost of $60.4m is a JV with Qafco.

A 20,000 t/y maleic anhydride plant using n-butane feedstock from QP's facilities. MA is used to make unsaturated polyester. Polyester is used to make reinforced glass fibre. MA is an unstable product; the project's promoters had to secure an offtaker before they could give the go-ahead for the plant (see down11QatrPetchmSep12-05).

Qimco was set up in 1989 as a joint stock company to encourage private sector involvement in industrial ventures in Qatar and abroad. Since then Qimco has taken equity in ventures including Qatar Jet Fuel Co., Qatar Metal Coating Co., Modern Detergent Industries Co., the Saudi-based Gulf Ferro-Alloys Co., and Bahrain's National Chemical Industries Co. (see background in Vol. 61, DT No. 11).

QP has been studying two projects for Mesaieed to complement Qapco's production: (1) a 100,000 t/y toluene di-isocyanate (TDI) plant; and (2) 250,000 t/y propane dehydrogenation and PP plants as a JV of QP and Atofina.

The Qatar Fuel Additives Co. (Qafac) in mid-1999 began production of methanol and MTBE from a plant at Mesaieed. It can produce 825,000 t/y of methanol and 610,000 t/y of MTBE. This is owned 50% by QP, 20% by Taiwan's Chinese Petroleum Corp (CPC) and 15% by each of Lee Chang Yung Chemical Industry of Taiwan and International Octane of Canada. The foreign partners are committed to lift the output, mostly marketed in Taiwan.

A $800m expansion - Qafac-II - is having 6,750 t/d methanol unit and a 1,000 t/d of ammonia plant being built. Shareholders in Qafac and Qafac-II will be identical.

Qatar Industrial Gases Co. (QIGC) has plants built at Mesaieed and Ras Laffan producing industrial gases. In July 2005 QP signed the JV agreement on this with Qatar Nitrogen Co. (QNC) and Air Liquide Middle East, part of Paris-based Air Liquide. The Mesaieed plant supplies 200 t/d of oxygen and nitrogen to industrial users. The Ras Laffan plant supplies nitrogen. The gases are piped to consumers. The plants will went on stream earlier in 2007. QP and QNC hold 60%. Air Liquide holds 40%.

In July QIGC signed a letter of intent to supply Qatar Steel Co. (Qasco) with oxygen. Qasco has new high performance steel furnaces built using oxygen injection. The furnaces need 170 t/d of oxygen supplied by QIGC.

Qatar Steel Co: Qasco at Mesaieed is owned by QP, having bought out the 20% stake of Kobe Steel and 10% of Tokyo Boeki in late May 1997 (thus ending a 22-year association with the two Japanese firms). Based on direct reduction (DRI) process, Qasco's capacity was raised from 500,000 t/y to 650,000 t/y by late 1997. A second DRI plant, Qasco-2, licenced by Midrex of the US on stream in early 1999 raised the capacity to 1.2m t/y. Qasco-2 has a new reinforced bar plant next to the existing one.

Qasco's recent expansion has added a 1.5m t/y DRI module, taking hot briquetted iron (HBI) capacity to 2.3m t/y. Meltshop capacity has been raised 50% to 1.5m t/y with installation of a 500,000 t/y unit. Its rolling mill capacity has been doubled through a 700,000 t/y plant. Qasco gave the DRI lump-sum turnkey (LSTK) contract to Kobe Steel March 2005. Contracted later were the meltshop and rolling mill. Of the 1.5m t/y, half of the HBI is consumed internally; the rest is being exported. Qasco's focus is no longer confined to Mesaieed. In 2003, it bought Jebel Ali-based Steelmaker's 150,000 t/y rolling mill. The UAE is a key market for Qasco. The investment has introduced it to new products, such as coils and wire rods, and specialty materials like high carbon and low-carbon. It has provided it with new outlet for its billets.

A 2m t/y HBI plant at Mesaieed is owned by Qatar Hot Briquetted Iron Co. (Qabico). Qabico is owned 31% by Qasco, 16.3% by Duferco Int'l, 16.3% by GIC, 16.3% by National Industries Co. (NIC) of Kuwait, 10% by Qimco, and 10% Qatar Shipping Co. Duferco takes 1.2m t/y, Qasco markets 400,000 t/y, and 400,000 t/y are taken by NIC.