Qatar Is Having Global Energy City.

Washington-based PFC Energy, a strategic adviser in energy, has been appointed as principal consultant and adviser by Gulf Energy, a global consortium, for the multi-billion dollar Energy City - Qatar. The first phase of this is to cost $1.6 bn.

PFC Energy will advise on strategy, opportunities and risks related to development. The announcement follows the recent appointment of Bahrain-based Gulf Finance House as lead financial adviser to the project.

Esam Janahi, CEO and board member of Gulf Finance House (GFH), last month said: "For the successful roll-out of a project of the magnitude of Energy City - Qatar, it is essential to have world-class partners who will help steer the project forward.

The Qatar project is designed to be region's first integrated energy business centre for oil and gas in the Middle East. It will enable the region, which accounts for over three-fourths of the world's proven oil reserves, to capture critical above-ground economic benefits and competencies.

Vahan Zanoyan, CEO & president of PFC Energy, added: "Energy City - Qatar is a revolutionary concept that will transform the development process not only in Qatar, but also in the entire Middle East region. We are very proud to be partnering with Gulf Energy to drive the development of this pioneering energy hub".

Gulf Energy, a consortium of leading energy consultants and major investors from the Arab Gulf Co-operation Council (GCC) area, the US, Europe, and South East Asia, unveiled the Energy City project in October. The project has set itself the ambitious task of enhancing the region's ability to capture critical revenue streams from hydrocarbons and becoming the nucleus for the core elements of the Middle East's oil and gas industry.

Janahi then said: "As a leading Islamic investment bank that has been associated with some of the most prestigious projects in the region, we are confident that GFH will be able to create a viable, innovative and strong financial blueprint for...Energy City... The global energy markets are passing through a phase of unprecedented change.

"The year 2004 was the second consecutive period of high growth in global energy markets - a trend that has well continued into the current year and the pace of growth is likely to sustain for at least the next couple of years.

"The year also saw the energy sector registering the strongest global primary energy consumption since 1984 against the backdrop of a buoyant world economy. The surge in consumption of all fuels has recorded growth rates above 10-year averages, in turn pushing prices of oil, natural gas and coal to record levels.

"Given this phenomenal consumption growth in the energy sector, the GCC has gained immensely as it accounts for 74.9% of total proven oil reserves and...[about] 41.1% of world oil production. The region can further add value to these gains by tapping into above ground resources in the sector, an area so far not explored by OPEC and one that forms the key focus of Energy City - Qatar. Qatar is a natural location for a project of such magnitude. It is making sizeable new investments in the oil and gas industry.

"...[Qatar] is home to the world's third largest natural gas reserves - North Field - the largest-ever gas-to-liquids complex and ethane cracker; and, of course, Qatar is the world's leading exporter LNG.

Energy City - Qatar will consolidate markets, R&D, technology, education, training and finance under one roof, promoting co-operation at both commercial and technical levels. "In future phases the development will also offer opportunities for real estate investment in hotels, exhibition halls, residential and commercial property".

GFH's investment portfolio includes major projects such as the $1.3 bn Bahrain Financial Harbour; the $750m al-Areen development; the $3.8 bn Legends in Dubailand; and the $1 bn Royal Metropolis in Jordan.

GFH's investments include Solidarity - Takaful; Bahrain's Royal University for Women; and the regional budget airline MenaJet.