Qatar’s energy sector takes giant strides in 2024

Qatar’s energy sector took giant strides this year with the launch of a slew of projects that will boost the country’s production capabilities in LNG, oil, petrochemical and renewable energy portfolios.

The year also saw Qatar announcing huge investments in petrochemicals, fertiliser and the renewable energy sectors.

QatarEnergy continues to play its leading role in the optimal investment of the country's natural resources of oil and gas, in accordance with the principles set forth by Qatar National Vision 2030.

The goal is to meet the country's energy needs and provide the national economy with the financial resources necessary for the comprehensive development of the country.

On February 19, His Highness the Amir Sheikh Tamim bin Hamad al-Thani laid the foundation stone for the $6bn Ras Laffan Petrochemical Complex, one of the largest in the world, which will raise Qatar’s overall petrochemical production capacity to about 14mn tonnes a year by the end of 2026.

The groundbreaking ceremony for the world-scale integrated polymers complex was held at Ras Laffan Industrial City, and attended by HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi, also the President and CEO of QatarEnergy; Mark Lashier, President and CEO of Phillips 66; Bruce Chinn, President and CEO of Chevron Phillips Chemical; and senior executives from QatarEnergy and Chevron Phillips Chemical.

The complex will house an ethane cracker with a capacity of 2.1mn tonnes per year of ethylene, making it the largest in the Middle East and one of the largest in the world, and raising Qatar’s ethylene production capacity by more than 40%.

Another major project launched this year was the QR4.4bn Blue Ammonia Plant at Mesaieed Industrial City.

Under the patronage of His Highness the Amir Sheikh Tamim bin Hamad al-Thani, His Highness the Deputy Amir Sheikh Abdullah bin Hamad al-Thani laid the foundation stone of the blue ammonia plant at a special ceremony at Mesaieed Industrial City on November 26.

The blue ammonia plant is the largest of its kind in the world and represents an important milestone in QatarEnergy’s strategy to expand in the clean energy sector by producing low carbon ammonia – one of the most important solutions to reduce CO2 emissions.

HE the Minister of State for Energy Affairs Saad bin Sherida al-Kaabi said: “This facility consists of an ammonia production unit with a capacity of 1.2mn tonnes per year, along with an additional unit for CO2 injection and storage, with a capacity of 1.5mn tonnes per year. QatarEnergy will provide the new plant with more than 35 megawatts of electricity from the solar power plant currently being built in Mesaieed Industrial City, thereby becoming blue ammonia. This plant will enhance our ability to provide the world with low-carbon products, in line with the global efforts to reduce carbon emissions.”

HE al-Kaabi noted: “In building this facility, we will rely on our own capabilities and expertise in the construction and operation of ammonia plants used for the production of fertilisers. This will be carried out in cooperation between QatarEnergy and Qatar Fertiliser Company - Qafco.”

The plant at Mesaieed Industrial City will offer a strategic location, integrated infrastructure, ideal capabilities, and a port that is considered one of the largest petrochemical export facilities in the Middle East.

The plant is expected to start production in the second quarter of 2026, marking a milestone in Qatar Energy’s strategy to expand into the cleaner energy sector.

At the Doha Forum this month, al-Kaabi said Qatar will be doubling its LNG production in a few years to almost 160mn tonnes per year (mtpy) in a “responsible way” with carbon capture and sequestration.

The country’s LNG production will go up from the current 77 mtpy to 142 mtpy with the operation of North Field development projects, al-Kaabi said and noted: “Internationally, we are adding 16-18 mtpy with our partner, ExxonMobil through the Golden Pass Project in the United States.”

The Golden Pass LNG Export Project is located in Sabine Pass, Texas.

This month, QatarEnergy and Shell entered into a new long-term sale and purchase agreement (SPA) for the supply of 3 mtpy of liquefied natural gas (LNG) to China.

LNG deliveries under the SPA will commence in January 2025, underscoring the commitment of both entities to meeting the world's growing energy demands. The agreement also highlights the continued growth of China’s LNG market, which is projected to be the largest globally.

Al-Kaabi said: "We are pleased to enter into this new long-term LNG SPA with our trusted partner, Shell. This agreement helps meet the requirements of Shell's end customers in China and enhances our contributions to meeting the needs of LNG end-users worldwide."

In October, QatarEnergy signed a partnership agreement with TotalEnergies to enter into a solar power project that is part of the Gas Growth Integrated Project (GGIP) in Iraq.

Pursuant to the terms of the agreement, which is subject to regulatory approvals, QatarEnergy will acquire a 50% interest in the solar photovoltaic project, while TotalEnergies will retain the remaining 50%.

MPHC, QIMC, Turkiye’s Atlas Yatirim Planlama signed an agreement in September to establish a joint venture - Qatar Salt Products Company (QSalt), which will build a new salt production facility at Um Al Houl in Qatar.

The new joint venture will build a QR1bn salt production plant in Qatar’s Um Al Houl area and will be operated by Qatar Petrochemical Company (Qapco) and Qatar Vinyl Company (QVC).

The MoU was signed in the presence of HE al-Kaabi, which was attended by senior executives from QatarEnergy and the participating companies.

This strategic partnership, an initiative by QatarEnergy’s Tawteen localisation programme, brought together Mesaieed Petrochemical Holding Company (MPHC - 40% share), Qatar Industrial Manufacturing Company (QIMC- 30% share), and Turkiye’s Atlas Yatirim Planlama (30% share).

In September, QatarEnergy signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of six additional state-of-the-art QC-Max vessels, bringing the total number of LNG vessels on order under its fleet expansion programme to 128, including 24 QC-Max mega vessels.

In the same month, QatarEnergy inaugurated the first conventional-size LNG vessel under its historic shipbuilding programme. The ship – ‘Rex Tillerson’ was named after the former chairman and CEO of ExxonMobil as a tribute to his life-long accomplishments in the energy sector.

The traditional naming ceremony was held at the Hudong-Zhonghua Shipyard in the Chinese city of Shanghai and was attended by minister al-Kaabi.

In September, QatarEnergy announced that it will build a new solar power mega project at Dukhan, which will more than double the country’s solar energy production, significantly contributing to lower carbon emissions in the framework of a realistic energy transition.

The new project will boost Qatar’s PV solar power production capacity to about 4,000 megawatts by building one of the world’s largest solar power plants in the Dukhan area, with a production capacity of 2,000 megawatts.

In the same month, QatarEnergy also announced that a world-scale urea fertiliser complex will be built at the Mesaieed Industrial City, which will make Qatar the world’s largest urea exporter by 2030.

The plant will double Qatar’s annual urea production capacity to 12.4mn tonnes.

Al-Kaabi said the new mega project entails building three ammonia production lines that will supply feedstock to four new world-scale urea production trains in Mesaieed Industrial City.

“The new facilities, which are planned to be built, will more than double the State of Qatar’s urea production from about 6mn tons per year currently to 12.4mn tons per year. Production from the project’s first new urea train is expected before the end of this decade,” al-Kaabi noted.

In April, QatarEnergy signed an agreement with China State Shipbuilding Corporation (CSSC) for the construction of 18 ultra-modern QC-Max size LNG vessels, at a cost of $6bn, marking a significant addition to its historic LNG fleet expansion programme.

The new vessels, with a capacity of 271,000 cubic meters each, will be constructed at China’s Hudong-Zhonghua Shipyard, a CSSC wholly-owned subsidiary, and will feature state-of-the-art technological innovation and environmental performance.

In February, QatarEnergy announced that it was proceeding with a new LNG expansion project, the ‘North Field West’ project, to further raise Qatar’s LNG production capacity to 142mn tonnes per year before the end of this decade, representing an increase of almost 85% from current production levels.

HE al-Kaabi said extensive appraisal drilling and testing have confirmed that productive layers of Qatar’s giant North Field extend towards the west, which allows for developing a new LNG production project in Ras Laffan.

In January QatarEnergy announced the award of the four main Engineering, Procurement, Construction, and Installation (EPCI) contract packages related to the next development phase of the offshore Al Shaheen field (Qatar’s largest oil field) to increase production by about 100,000 barrels of oil per day.

The award is part of Project Ru’ya (vision in Arabic), the third phase of Al Shaheen’s development since North Oil Company, a joint venture between QatarEnergy (70%) and TotalEnergies (30%), took over the field’s operation in July 2017.

Al-Kaabi also highlighted Qatar’s investments in petrochemicals, fertiliser and renewable energy sectors at the Doha Forum this month.

“We have already announced to increase our petrochemicals production by almost 130%. This will be realised through the largest polyethylene plant in the Mena region, which we are building in Ras Laffan along with Chevron Phillips Chemical Company (CPChem).

“And in the US, we have partnered with Chevron Phillips Chemical for the Golden Triangle Polymers Plant in Texas, which is considered the biggest in the world.”

Qatar’s urea production, he said, will go up from about 6 mtpy currently to 12.4 mtpy (by 2030) with production commencing at the world-scale urea fertiliser complex at Mesaieed Industrial City.

“Now we are the second largest fertiliser producer in the world. And by 2030, we will become the largest fertiliser producer in the world. It will contribute significantly to global food security by helping feed around 160mn people around the world,” al-Kaabi noted.

He reiterated Qatar’s commitment to “clean air and clean water” and said the country is giving a lot of push to production of renewable energy.

“In Qatar, we are working on renewables. A few years ago, we had zero renewables in Qatar. Now, 10% of the power we enjoy in Qatar comes from solar. Next year, we will add two more solar plants – one in Mesaieed and another one in Ras Laffan. At that time, solar will contribute to almost 15% of our power output.

“We will build a fourth solar plant with a production capacity of 2,000 megawatts in Dukhan. This represents approximately 30% of Qatar’s total electrical power production capacity,” HE al-Kaabi said.

With the addition of the new Dukhan Solar Power Plant, QatarEnergy’s portfolio of solar power projects in Qatar will reach a capacity of about 4,000 megawatts by 2030.