Qatar Oil & Gas e-Guide by Marhaba Information Guide, Qatar

Q A T A R O I L & G A S E-G U I D E

Extracted from issue

spring

2020 summer

Contents • Oil, Gas and Petrochemicals Update • Company Activities

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• Special Feature Qatar Turns to Solar Energy Qatar Biofuel Exploration The OGP Process 3/26/20 12:26 PM

Founder & Managing Editor Hilary Bainbridge Marhaba endeavours to quote accurate information and updates each of its sections every issue. However, the magazine accepts no liability in the case of unintentional errors. © 2020 Marhaba Information Guide. All Rights Reserved. No part of this magazine may be reproduced, in any form, without written permission of the publishers.

Dana Public Relations PO Box 3797, Doha, Qatar Tel (+974) 4465 5533, 4465 0083 Fax (+974) 4465 5588

General Information marhaba@qatar.net.qa Retail Sales retailsales@marhaba-qatar.com

Editorial Sarah Palmer (Editor) Ola Diab (Deputy Editor) Terry Sutcliffe Gina Coleman Online Lubuna Jeffin Advertising Howard Bainbridge

Digital Lalaine Turqueza Charlotte Wright Weslee Dizon Retail Sales Ayen Molina Design and Artwork Dick Tamayo Mar Principe Arnel Ramos

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Contents Oil, Gas and Petrochemicals Update All the latest news from around the world and in Qatar

Feature – Qatar Turns to Solar Energy Qatar is due to harness more of the sun’s energy with the building of a new solar power plant.

Feature – Qatar Biofuel Exploration Well known for its natural gas reserves, Qatar is now venturing into the world of biofuels to diversify its economy.

Feature – The OGP Process A handy guide to the some of the aspects of the oil and gas industry.

Company Activities • • • • • • • •

Qatar Petroleum • QP Industrial Cities Qatargas • Qatar Fertiliser Company Qatar Petrochemical Co • Qatar Plastic Products Co Qatar Fuel Additives Co • Qatar Chemical Co Ltd Ras Laffan Operating Co • ConocoPhilips Exxonmobil Qatar Inc • North Oil Company Oryx GTL • Occidental Petroleum of Qatar Ltd Sasol • Qatar Shell • Total • WOQOD

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Oil, Gas and Petrochemicals Update The Gallaf Project is a multi-phase development for maintaining Al Shaheen’s production capacity at a plateau of 300,000 bpd. Situated 80 km north of Ras Laffan, Al Shaheen contributes some 45% to the country’s oil production.

Qatar’s Gas Interests

Oil, Gas and Petrochemicals Update

An affiliate of Qatar Petroleum (QP) and the French liquefied natural gas (LNG) terminal operator Elengy, a subsidiary of ENGIE Group, have entered into a long-term agreement for LNG receiving, storage and regasification services at the Montoirde-Bretagne LNG Terminal in France.

Global Overview For maybe the first time ever, world health issues have dramatically impacted global oil sales. The outbreak and spread of the new Covid-19 virus led to the lockdown of towns and cities in several countries, together with the closure of factories, shops and restaurants, and the postponement or cancellation of major conferences and sporting events. Flights were rerouted or cancelled and overland travel restrictions put in place. China, the world's biggest importer of crude oil – it usually consumes about 14 mn barrels a day – currently needs a lot less oil to power machinery, fuel vehicles, and ‘keep the lights on’. Bloomberg reported that the country’s daily crude consumption slumped by 20%, the equivalent of the UK and Italy's oil needs combined. In February, OPEC cut its forecast for global growth in oil demand this year due to the coronavirus outbreak, noting its output fell sharply in January as producers implemented a new supply-limiting pact agreed in December 2019. In its February report, OPEC said world oil demand is expected to rise by 990,000 barrels per day (bpd) this year, down 230,000 bpd from the previous forecast.

Qatar’s Oil Interests Sembcorp Marine Offshore Platforms Pte Ltd has secured offshore platform contracts that support the redevelopment efforts at Al Shaheen field in Qatari waters. The company will team up with customer North Oil Company (NOC) to fabricate two well head platforms for the NOC-operated oil field, which will be bridge-linked to the field’s existing facilities. Awarded under NOC’s Gallaf Batch 2 Project, the contract covers engineering, procurement, construction, installation, commissioning and offshore brownfield integration of the platforms, to be started-up at Al Shaheen by December 2021.

Under the agreement, Qatar Terminal Limited (QTL), a subsidiary of QP, will subscribe to the equivalent of almost 3 mn tonnes per annum (tpa) of the terminal’s throughput capacity for a term up to 2035. Montoir-de-Bretagne LNG will thereby become a new LNG import terminal position for QP in Europe, facilitating the supply of Qatari and internationally sourced LNG to French and European customers. Qatargas Operating Company Limited (Qatargas) has delivered the first Q-Flex cargo of LNG to the SUMMIT LNG Floating Storage and Regasification Unit located offshore Bangladesh. It marked the first commercial open water ship-to-ship transfer involving a Q-Flex vessel delivering to Petrobangla. The FSRU SUMMIT LNG is under a 15-year charter deal to Petrobangla and carried the inaugural LNG cargo from Qatar in April 2018. Qatargas also delivered a commissioning LNG cargo to India’s newest LNG receiving terminal, Mundra, located on the country’s west coast. Mundra is the second LNG terminal that Qatargas helped commission in India within a year. It followed an earlier commissioning of cargo to the Ennore LNG receiving terminal, near the southern Indian city of Chennai. Meanwhile, Qatargas achieved a major milestone with its North Field Bravo Living Quarters Expansion Project as it safely and successfully completed the onshore fabrication of the living quarters structure by Nakilat-Keppel Offshore Marine (N-KOM) at the Erhama Bin Jaber Al Jalahma Shipyard. The project is significant as it is the first time that a major offshore living quarters structure has been entirely fabricated at a local yard in Qatar. This aligns with Qatargas' commitment to Tawteen, the supply chain localisation programme initiated by QP for the energy sector. A key element of this commitment is supporting the realisation of Qatar National Vison 2030 in supporting local companies engaged in knowledge and technology-based businesses.

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marhaba.qa QP and Kuwait Petroleum Corporation (KPC) have entered into a long term Sale and Purchase Agreement for the supply of up to 3 mn tons tpa of LNG to the State of Kuwait. Under the 15-year agreement, LNG deliveries to Kuwait’s new LNG receiving terminal at Al Zour Port will commence in 2022 to support Kuwait’s growing energy needs and demand, particularly in the power generation sector.

and distributing chemicals, fertilizers and steel products helped to maintain the sales volume at 9.5 mn metric tpa, down by 2% against 2018, and also improved IQ’s access to global markets.

On the environmental front and in line with its commitment to protect the biodiversity in the Qatari marine environment, Qatargas, in collaboration with the Ministry of Municipality and Environment, has successfully completed the installation of 200 artificial coral ridge modules off Banana Island in Doha Bay. This follows initial work in which nearly 4,500 living hard corals were relocated from nearshore pipelines areas to a suitable coral reef area in 2007, during the construction of LNG expansion projects, and the transfer of approximately 3,000 hard corals during 2012–2014.

Towards the end of 2019, Qatar Fertiliser Company (Qafco), celebrated its Golden Jubilee. HE Saad Sherida Al Kaabi, the Minister of State for Energy Affairs and President and CEO of QP, noted that Qafco was the first company established in Qatar on the principle of partnership with a foreign investor, and the first partnership model for many Qatari joint ventures with partners from around the world.

The project reflects Qatargas' continuing commitment to protect Qatar's rich offshore biodiversity and is aligned with the Environment Pillar of Qatar National Vision 2030 that calls for protection of Qatar's unique environment and its nurture.

Qatar’s Petrochemical Interests Industries Qatar has announced a net profit of QAR2.6 bn for the year ended 31 December 2019. IQ says its business performance in 2019 reflected the challenging macroeconomic environment that prevailed in 2019, which was marked by weaker global demand, lower global GDP growth, trade conflicts and overcapacities. The Group responded to those external pressures by leveraging its competitive advantages such as long-term access to feedstock and a relatively low-cost operating infrastructure. The Group’s partnership with Muntajat, a leader in marketing

At the end of 2019, the Group was able to settle its entire debt obligation, making the Group debtfree. The Group’s total assets and total equity reached QAR35.9 bn and QAR34.2 bn respectively, as of 31 December 2019.

‘Qafco was the first building block of Mesaieed Industrial City, the first Qatari petrochemical manufacturer to export its products from Mesaieed ports to the world, and the first company to train and develop Qatari capabilities to work in and lead the petrochemical sector,’ he added. Recalling Qafco’s 50-year growth story, HE Al Kaabi said the company has become a bright industrial face of Qatar, starting production from its first factories in 1973 with a capacity of 900 tons of Ammonia and 1,000 tons of Urea per day, to become one of the largest producers of chemical fertilizers in the world, producing 3.8 mn tons of Ammonia and 5.6 mn tons of Urea every year through six integrated production lines. The products are exported all over the world, and Qafco is the world’s largest producer of Urea and Ammonia from one location.

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The Minister said that Qafco is also the cornerstone of the establishment of Industries Qatar, the largest listed company in the Qatari stock market. m HH Sheikh Sabah Al Ahmad Al Sabah, the Emir of the State of Kuwait, received the OAPEC oil ministers in the presence of HE Saad Sherida Al Kaabi, the Minister of State for Energy Affairs and President and CEO of Qatar Petroleum, and the head of Qatar’s delegation to the Organization’s ministerial meeting. The meeting was on the sidelines of OAPEC’s 103rd meeting of its Council of Ministers, held in Kuwait City. HE Al Kaabi is pictured fourth left. ©

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FEATURE

Qatar Turns to Solar Energy By Sarah Palmer A solar power plant is to be built for the first time in Qatar, as part of the state's efforts to fight carbon emission and climate change.

milestone was reached in Qatar recently, with the signing of the QAR1.7 bn, 800MW Al Kharsaah Large Scale Solar Photovoltaic (PV) Power Plant.

Agreements have been signed between Qatar Petroleum (QP), Qatar General Electricity and Water Corporation (Kahramaa), Qatar Electricity and Water Company (QEWC), Siraj Energy, Marubeni Corporation and Total, to establish the project company and for power purchase from the plant. QEWC is one of the largest utility companies in the MENA region, and is the main supplier of electricity and desalinated water in Qatar. QP and QEWC have established a joint venture company, Siraj Energy, for the generation of electricity from solar power. QP holds 40% and QEWC 60% in Siraj Energy. Pursuant to the agreements, Kahramaa, in its capacity as the Transmission and Distribution System Owner and Operator (TDSOO) in Qatar will buy electricity from Siraj1, which is owned by Siraj Energy (60%), and Marubeni Corporation of Japan and Total Solar International of France (40%). The 10 sq km project is in Al Kharsaah, about 80 km west of Doha. It follows a Build, Own, Operate, and Transfer (BOOT) model and has a term of 25 years – thereafter ownership will be transferred to Kahramaa. Under the first phase, 350MW will be connected to the grid by Q1 2021, while the commercial commissioning of the total capacity will start in Q1 2022; this is in line with objectives set out in Qatar National Development Strategy 2018–2022.

'The plant will generate about eight times the quantum of solar energy that Qatar had pledged to build, helping the 2022 FIFA World Cup become a carbon-neutral event.' He added 'The project is also part of our efforts to conserve energy and protect the environment in a manner that strikes a balance between the needs of the current generation and that of the future generations as stipulated by Qatar National Vision 2030.' The project will employ the latest solutions and innovations in solar energy technology, including the use of dual panels, state-of-the-art automated systems to track the sun, and robots to clean the solar panels to ensure the continuity of production efficiency and reduce plant operating costs. The power plant is expected to produce approximately 10% of the country's peak electricity demand and reduce 26 mn tonnes of carbon dioxide. This aligns with the objectives of the National Programme for Conservation and Energy Efficiency (Tarsheed) by Kahramaa. Tarsheed aims to reduce 1 mn tonnes of carbon emissions annually until 2022. Kahramaa had invited Requests for Bids (RFB) to build Qatar’s first large-scale solar PV power plant at the start of 2019 – 16 international solar power developers were prequalified and five competitive bids were received. This was a large number of bids taking into account the nature of the project, reflecting the strength and attractiveness of Qatar’s electricity market and the global interest to invest in the country. m

Speaking after the agreements were signed, HE Saad Sherida Al Kaabi, the Minister of State for Energy Affairs and QP President and CEO, stated that the project is part of the energy sector’s preparation to host the 2022 FIFA World Cup QatarTM. QATAR AND PETROCHEMICAL © MARHABA M77GAS SPRING/SUMMER 2020 E-GUIDE © MARHABA 398 OIL,

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Company Activities

March 2020

Marhaba compiles these pages either from updates received directly from companies or from the media. While we endeavour to present an accurate picture of the most recent news, it is not always possible to have information verified. Therefore, we do not accept responsibility for any omissions or inaccuracies.

Qatar Petroleum Qatar Petroleum (QP) is an integrated national oil corporation responsible for the sustainable development of Qatar’s oil and gas resources. Its corporate vision is ‘to become one of the best national oil companies in the world, with roots in Qatar, and a strong international presence.’ QP’s activities encompass the entire spectrum of the oil and gas value chain locally, regionally, and internationally, and include the exploration, refining, production, marketing and sales of oil and gas, liquefied natural gas (LNG), natural gas liquids (NGL), gas-to-liquids (GTL) products, refined products, petrochemicals, fertilisers, steel and aluminium. QP’s operations are conducted at various onshore locations, including Doha, Dukhan, Mesaieed Industrial City and Ras Laffan Industrial City, as well as at offshore areas, including Halul Island, offshore production stations, drilling platforms, and the North Field. Pantone 346

Pantone 541

Human capital The Human Capital Directorate has the responsibility of catering to QP’s human capital requirements in an ever-changing competitive environment. It provides quality support services to QP’s operations in the areas of human resources and strategic Qatarisation, as well as learning and development. QP is spearheading the energy and industry sector’s Strategic Qatarisation Plan to maximise the employment of Qatari nationals. Health, safety and environment QP is committed to the health and safety of its employees, contractors, visitors and the local communities, and to the protection and conservation of the natural environment. Oil and gas fields and operation areas Onshore oil QP produces crude oil, condensate, natural gas liquids, associated gas, and nonassociated gas from its onshore fields in Dukhan. Located 84 km west of Doha, Dukhan accommodates oil and gas facilities, housing, medical, recreational and educational institutions, and related services. The first shipment of oil from Dukhan was transported on 31 December 1949 through the Mesaieed port terminal. Offshore oil QP produces high-quality crude oil and associated gas from the offshore Idd El

Shargi, Maydan Mahzam, Bul Hanine, and Al Rayyan fields, which began production in 1964, 1965, 1972, and 1996, respectively. Exploration, appraisal and development operations During the last 25 years, QP has signed Exploration and Production Sharing Agreements (EPSA) and Development and Production Sharing Agreements (DPSA) with a number of major international oil and gas companies, including Elf Aquitaine/Total, Anadarko Qatar, Maersk Oil Qatar, Occidental Petroleum Qatar, Qatar Petroleum Development, Talisman Energy Qatar, GDF Suez, China National Offshore Oil Corp (CNOOC) and Qatar Shell. These agreements have boosted Qatar’s oil and gas reserves through new discoveries and the development of existing fields. Some of the fields which were discovered and/or developed through these agreements are Idd El Shargi Dome (North and South), Al Shaheen Field and Al Khaleej Field, as well as Al Karkara and A Structures. North Field The North Field, an area of 6,000 sq km with total recoverable gas of 900 tn standard cubic feet, is considered the largest single non-associated gas reservoir in the world. The utilisation of this field’s massive reserves has become a primary national goal to continue the development and prosperity of the country. Halul Island Halul Island is a storage and exportation centre for Qatar’s marine crude oil. The island, which has an area of 1.5 sq km, lies approximately 96 km to the northeast of Doha. It has 11 large crude oil storage tanks with a total capacity of 5 mn barrels. The island also has pumping facilities, power generators, desalination plants, a heliport and a harbour suitable for supply boats that support operations. It is also fully equipped with community facilities for almost 1,000 QP staff and contractors. Refined products QP Refinery The QP Refinery started as a small topping plant in 1958 and has grown over the years into a giant refinery organisation. It has successfully made the State of Qatar selfsufficient and export-oriented in refined oil and petroleum products, with its designed capacity of 137,000 barrels per day (bpd) of refined products for domestic use as well as for export. Laffan Refinery Laffan Refinery is a joint venture with international majors and is one of the largest condensate refineries in the world. It started production in late 2009 and is operated ©

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by Qatargas Operating Company Limited (Qatargas). The 146,000 bpd refinery processes field condensate from Qatargas and Al Khaleej Gas to produce naphtha, jet fuel, gas oil and LPG. A second condensate refinery, called the Laffan Refinery 2 (LR2), started operations in December 2016 and added another 146,000 bpd of processing capacity, thus doubling Qatar’s refining capacity. LR2 produces low sulfur Euro-V specifications products such as naphtha, Jet A-1, ultra low sulfur diesel (ULSD), propane and butane for local and international markets. Natural gas liquids (NGL) There are four NGL plants in Mesaieed Industrial City producing propane, butane and condensate, which are mainly intended for export. Ongoing projects Barzan Gas Project The Barzan Gas Project will develop approximately 1.9 bn cfpd of North Field wellhead gas, and produce 1.4 bn cfpd of sales gas for the domestic market (power generation) in addition to associated condensate ethane, LPG and sulphur. Bul Hanine Redevelopment QP is investing in the redevelopment of the existing Bul Hanine offshore oil field, which is located about 120 km to the east of the Qatari coastline. The project is one of the largest to be managed and executed by QP. It is designed to prolong the field’s life by countering its production decline and doubling its current oil production rate. New Petrochemical Complex QP has announced the selection of Chevron Phillips Chemical Company LLC as its partner in a new Petrochemicals Complex, which will be developed and constructed in Ras Laffan Industrial City. The new complex will have an ethane cracker with a nameplate capacity of 1.9 mn tons of ethylene per annum, making it the largest ethane cracker in the Middle East and one of the largest in the world. It will also include two high-density polyethylene derivative units, which will raise Qatar’s current polyethylene production capacity by 82% by the fourth quarter of 2025. North Field Expansion Project This is a project to develop additional gas from the North Field and to build four new LNG trains to raise Qatar’s LNG production capacity from 77 mn tons per annum to 110 MTPA. In addition to LNG, the new project will also produce about 4,000 tons per day of ethane, 260,000 bpd of condensate, 11,000 tons per day of LPG, and approximately 20 tons per day of pure helium.

QP Industrial Cities QP’s Industrial Cities Directorate has the overall

mandated responsibility for Ras Laffan Industrial City, Mesaieed Industrial City and the Dukhan Concession Area. It is responsible for developing and providing land, infrastructure, facilities and services required by the industries operating in those areas, which altogether play a pivotal role in enhancing diversification, industrialisation, and the extraction of the highest economic value from Qatar’s oil and gas resources. Guided by Qatar National Vision 2030 and in compliance with corporate, state, and international governance, QP Industrial Cities is committed to: • Contributing to the sustainable social and economic development of Qatar. • Achieving the highest level of health, safety, security, environmental protection and socioeconomic sustainability. • Protecting the interests of the State, Qatar Petroleum and business partners. • Operating highly reliable facilities and providing responsive services to business partners. • Developing, optimising and sustaining worldclass infrastructure and facilities. • Developing local talent and acting as a leader in corporate citizenship. • Directing the development, regulations and operations of Mesaieed Port and Ras Laffan Port. • Acting as the Municipal Authority in the responsible areas as granted by the laws of the State of Qatar. Ras Laffan Industrial City (RLIC) Ras Laffan Industrial City (RLIC) is situated 80 km from Doha along the northeast coast of Qatar, and is one of the fastest-growing industrial cities in the world. It is the main base for the exploitation and development of Qatar’s vast resources from the North Field, which is the world’s largest single non-associated gas reservoir. Since its establishment in 1996, RLIC has evolved into a world-class industrial city, facilitating the needs of the most technologically sophisticated natural gas-based industries. Major industries operating in RLIC RLIC provides state-of-the-art infrastructure, facilities and services to major ventures of the oil and gas industry and supporting projects, which are all set to achieve the planned production capacity of 25 bn cubic feet of gas per day. These include: • Qatargas, the largest producer of LNG in the world. • Pearl GTL and Oryx GTL, major producers of GTL. • Al Khaleej Gas – lean natural gas for the Qatar market.

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• Dolphin Energy Limited – lean natural gas for export by pipeline to the GCC. • Laffan Refinery 1 & 2 – refined petroleum products. • Ras Laffan Olefins Company – ethylene for petrochemical products. • Ras Laffan Helium – the world’s largest producer of helium. • Qatar Power, Ras Girtas Power and Ras Laffan Power – power for Qatar and for export to the GCC market. • Erhama Bin Jaber Al Jalahma Shipyard – shipbuilding, repair and maintenance services. Mesaieed Industrial City (MIC) Located 40 km south of Doha, Mesaieed Industrial City (MIC) is the hub for petrochemicals, chemical fertilisers, oil refining and metallurgical industries in Qatar. MIC also hosts numerous small and medium-sized industries as well as a well-planned, self-contained, sustainable, modern township with fully-serviced infrastructure providing a high quality of life for its residents. Major industries operating in MIC A wide range of products is produced in MIC. These include natural gas liquids, petrochemicals, plastic resins, refined petroleum products, aluminium and steel, which are supplied to local, regional and international markets. The major industries operating in MIC include the following: • QP’s Mesaieed Operations manages the onshore processing, distribution and export of products derived from non-associated gas. • QP Refinery processes crude oil and condensate into a variety of finished products including naphtha, gasoline, jet fuel, diesel and fuel oil. • Qatar Petrochemical Company (QAPCO) is one of the leading producers of ethylene and lowdensity polyethylene (LDPE) in the Middle East region. • Qatar Fertiliser Company (QAFCO) is a leading, world-class fertiliser producer and is the world’s largest single-site producer of ammonia and urea. • Qatar Chemical Company (QChem) is a worldclass integrated petrochemical plant producing high and medium-density polyethylene and other products. • Qatar Steel is a regional leader in the steel industry. • Qatar Aluminium Company (Qatalum) is a fully integrated aluminium plant that produces highquality primary aluminium products. • Qatar Vinyl Company (QVC) produces high-quality vinyl products. • Qatar Fuel Additives Company (QAFAC) produces methanol and methyl tertiary butyl ether (MTBE).

Dukhan Concession Area Dukhan is located 80 km west of Doha and produces about 180,000 bpd of oil. It covers an area approximately 80 km by 8 km with oil production facilities, associated and nonassociated gas facilities and NGL production. In addition to industrial plants, infrastructure and assets, Dukhan is home to 12,000 residents living in a community encompassing schools, medical facilities, extensive leisure facilities and all the amenities expected of a bustling community. The main products conditioned for export from the Dukhan fields are crude oil, condensate, natural gas liquids (NGL), and stripped associated gas (SAG). These products are delivered to various internal and external customers. • Crude oil is exported through the terminal operations department at Mesaieed and also supplied to the QP Refinery. • Condensates are sent to the QP Refinery in Mesaieed. • Arab D NGL is supplied to NGL4 at Mesaieed. • NGL is delivered to NGL1 and NGL2 in Mesaieed. • SAG is supplied to QNCC, QAPCO and QAFCO via QP’s Gas Distribution System. qp.com.qa

Qatargas Qatargas is a unique global energy operator in terms of size, service and reliability. The company operates 14 Liquefied Natural Gas (LNG) trains with a total annual production capacity of 77 mn tonnes. This makes Qatargas the largest LNG producer in the world. Since the first production in 1996, Qatargas has successfully delivered cargos to 31 countries and is committed to meeting the world’s demand for safe, reliable and clean energy. Established in 1984, Qatargas develops, produces, and markets hydrocarbons from the world’s largest non-associated natural gas field. In addition to producing LNG, Qatargas is also a leading exporter of natural gas, helium, condensate and associated products. Apart from the LNG facilities, Qatargas also operates the Jetty Boil-Off Gas facility, Al Khaleej Gas, Ras Laffan Helium, the two Laffan Refineries (among the largest condensate refineries in the world), and the Ras Laffan Terminal on behalf of all participants. Today, Qatargas continues to set the benchmark in the LNG industry as it safely and reliably ©

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supplies energy to customers all over the world. qatargas.com

Qatar Fertiliser Company QAFCO’s inception in 1969 as a joint venture company to produce chemical fertilisers was the first and a significant step in Qatar’s industrial diversification programme to utilise its abundant natural gas resources. QAFCO is now owned by Industries Qatar (IQ) (75%) and Yara Nederland BV (25%). The majority of IQ shares are owned by Qatar Petroleum (QP), making QP the ultimate parent of the company. QAFCO inaugurated its first plant in 1973. Today the QAFCO complex comprises six ammonia and six urea completely integrated trains, a melamine plant and two urea formaldehyde plants. QAFCO is now the world’s largest single-site producer of ammonia and urea, with an annual production capacity of 3.8 mn metric tonnes (MT) of ammonia and 5.6 mn MT of urea, enabling Qatar to be the largest exporter of urea in the world. Currently, QAFCO exports ammonia and urea via Muntajat Company to more than 45 nations across the globe, with its primary consumers being in South East Asia, North America, Australasia and Southern Africa. UFC85 Plant As well as boosting its fertiliser production QAFCO also has two urea formaldehyde plants producing 60,000 mtpa of UFC85, the anti caking agent vital to urea production. The urea formaldehyde plant is owned by Gulf Formaldehyde Company, a joint venture between QAFCO (70%), Qatar Industrial Manufacturing Company (20%), and United Development Company (10%). Qatar Melamine Plant The largest melamine plant in the Middle East and one of the largest in the world, with a production capacity of 60,000 mtpa. The melamine project is owned by QAFCO (60%) and QP (40%). qafco.com

Qatar Petrochemical Company Qatar Petrochemical Company (QAPCO) QPJSC was established in 1974. It is a joint venture between Industries Qatar (80%) and Total Petrochemicals France (20%). QAPCO is a pioneer in petrochemical production and one of the largest manufacturers of low-density polyethylene (LDPE) in the region. QAPCO is involved in joint ventures that include Qatar Vinyl Company (QVC) QPJSC, Qatofin

Company Limited QPJSC, and Qatar Plastic Products Company (QPPC), making QAPCO a regional petrochemical powerhouse. QAPCO main facilities consist of an ethylene plant (cracker) with a production capacity of up to 830,000 MTPA, three LDPE plants with a total combined production capacity of over 795,000 MTPA, and a sulfur plant with a production capacity of up to 70,000 MTPA. As by-products, the ethylene plant produces liquid petroleum gases (LPG) with an annual capacity of up to 55,000 MTA and hydrogenated pyrolysis gasoline with a capacity of up to 45,000 MTA. Joint Ventures Qatofin Company Limited QPJSC Qatofin was established in 2005 and is a joint venture between QAPCO (63%), Total Petrochemicals France (36%) and QP (1%). Qatofin produces linear lowdensity polyethylene (LLDPE), mainly for export, and has a production capacity of more than 570 kilotonnes per annum (ktpa). Qatar Vinyl Company (QVC) Established in 1997 as a limited Qatari shareholding company, with QAPCO fully operating QVC plants from 2017. Shareholders are Mesaieed Petrochemical Holding Company (55%), QAPCO (31%) and QP (12.9%). Ras Laffan Olefins Company (RLOC) RLOC is a joint venture between Q-Chem ll (53.31%), Qatofin (45.69%) and QP (1%). It owns a cracker that supplies Mesaieed LLDPE unit with ethylene feedstock and is managed and operated by Q-Chem ll. Qatar Plastics Products Company See entry below. qapco.com

Qatar Plastic Products Company Qatar Plastic Products Company (QPPC) was established in 1998 and commercial production commenced in 2000. Around 90% of production is sold to the domestic market while the remainder is marketed in other Gulf countries and Europe. The production facility is located at Mesaieed Industrial City. The company is equally shared between QAPCO, QIMC and Stefano Ferretti (Italian partner). QPPC produces plastic film for industrial packaging using the blow extrusion process, with products manufactured from different kinds of polymer to satisfy customer requirements. Printing is done using Flexographic printing lines in up to six colours for excellent quality. Every delivery has a product analysis certificate detailing the composition, dimension and mechanical properties. QATAR PLASTIC PRODUCTS COMPANY W.L.L.

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The company produces form, fill and seal film, shrinkable film and hood, construction foil (polythene sheet and sleeve), greenhouse and agricultural film, general purpose film, heavy duty trash bags, and wood-plastic composite. Qatar Wooden Products Co commenced commercial production in 2013. The fully automatic wooden pallet production line and heat treatment facility is able to produce 1.6 million wooden pallets a year, serving the wooden pallet requirements of QAPCO, Q-CHEM & II and QATOFIN. qppc.net

Qatar Fuel Additives Company Qatar Fuel Additives Company Limited (QAFAC) was established as a Qatari joint stock company to build, own and operate facilities at Mesaieed Industrial City for the production of methanol and methyl tertiary butyl ether (MTBE). Since the 1960s methanol has been produced from petroleum, naphtha and natural gas, and is a clear, colourless, flammable liquid with a characteristic odour. It is a clean energy source and a raw material for many everyday items. Within the petrochemical industry, it is used as a raw material for manufacturing solvents, formaldehyde, methyl halide, methyl amine, acetic acid, ethyl alcohol, acetic anhydride, dimethyl ether (DME) and MTBE. The QAFAC methanol plant can produce 2,950 metric tons a day of US Federal Grade AA methanol from the natural gas provided by QP, through steam reforming, methanol synthesis and distillation. The majority is exported to the Far East, Europe, India and the GCC region. MTBE is a chemical compound from the chemical reaction of methanol and isobutylene. Produced in large quantities, it is usually used as a fuel additive in motor gasoline, one of a group of chemicals known as ‘oxygenates’ because they raise the oxygen content of gasoline. At room temperature, MTBE is a volatile, flammable and colourless liquid that dissolves easily in water. The QAFAC MTBE plant produces around 1,830 metric tons a day by processing methanol from the on-site methanol plant and field butane from QP. The product is used by the QP refinery at Mesaieed as a gasoline blender as an octane enhancer and oxygenator to replace lead in the gasoline marketed in Qatar. The main international markets for MTBE are the Far East, Europe, South America and the GCC. qafac.com.qa

Qatar Chemical Company Ltd Qatar Chemical Company Ltd (Q-Chem) is owned by Mesaieed Petrochemical Holding Company QSC (MPHC) (49%), Chevron Phillips Chemical International Qatar Holdings LLC (49%), and QP (2%). MPHC is majority owned by QP. The Q-Chem facility produces high- and medium-density polyethylene (HDPE and MDPE), 1-hexene and other products, using technology provided by Chevron Phillips Chemical. Located in Mesaieed Industrial City (MIC), the Q-Chem complex has a production capacity of 453,000 tonnes per annum (MTA) of polyethylene and a 1-hexene unit with a production capacity 47,000 MTA. The complex also consists of a sulphur recovery and solidification plant, a water treatment plant, seawater cooling system, dock facilities and administrative buildings. Adjacent to the Q-Chem plant, the joint venture Q-Chem II facility produces 350,000 MTA of HDPE, and has introduced the first full range Normal Alpha Olefins (NAO) unit with a production capacity of 345,000 MTA. The plant has raised the Q-Chem HDPE production capacity to 803,000 MTA, to meet the increasing demand of customers in Asia, Europe and Africa. Similarly the NAO plant produces a full range of alpha olefins. Both plants utilise Chevron Phillips Chemical’s proprietary loop-slurry process for high-density polyethylene. Ras Laffan Olefins Company Ltd (RLOC) is owned by Q-Chem II (53.31%), Qatofin Company Limited QSC (Qatofin) (45.69%) and QP (1%). The 1.3 mn mtpa ethylene cracker is operated by Q-Chem II. Ethylene is sent from Ras Laffan to Q-Chem II and Qatofin derivatives units in Mesaieed via a 135 km pipeline, whereupon 700,000 mtpa of ethylene is allocated to Q-Chem II and 600,000 mtpa is transported to Qatofin. qchem.com.qa

Ras Laffan Power Company Ltd Ras Laffan Power Company Limited QPSC (RLPC), established in 2001, is the provider of electricity and water for the people and industrial projects of Qatar. RLPC is a joint venture company owned by Qatar Electricity & Water Co (QEWC) (80%), QP (10%) and GIC (10%). RLPC has a 25-year Power and Water Purchase Agreement with Kahramaa and a 25-year Fuel and Seawater Supply Agreement with QP. RLPC contributes 18% of the country’s power supply and 23% of the country’s water supply. ©

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RLPC is operated by Raslaffan Operating Company WLL. Being the owner of the first independent power and water plant in the State of Qatar, RLPC plays a major role in meeting both the domestic and industrial demand for electricity and water in the coming years. rlpc.net

ConocoPhillips ConocoPhillips is the world’s largest independent exploration and production (E&P) company based on proved reserves and production of liquids and natural gas. ConocoPhillips explores, produces, transports and markets crude oil, natural gas, natural gas liquids, liquefied natural gas and bitumen worldwide, with operations and activities in 20 countries. In Qatar, ConocoPhillips operates its Global Water Sustainability Center at the Qatar Science and Technology Park (QSTP) which focuses on innovative solutions to treat produced water from the oil and gas industry as well as desalination, recycling, awareness and conservation. ConocoPhillips contributes to social, economic and environmental improvements in all the communities in which it operates. ConocoPhillips’ signature CSR campaign in Qatar is the Kulluna Health and Safety campaign, in partnership with Hamad Medical Corporation (HMC). conocophillips.com

ExxonMobil Qatar ExxonMobil, one of the largest publicly traded international energy companies, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources, is one of the largest refiners and marketers of petroleum products, and its chemical company is one of the largest in the world. ExxonMobil has partnered with QP to develop the North Field, the world’s largest non-associated natural gas field. Through the Qatargas joint venture, the company has participated in 12 of the 14 LNG trains, 27 of the world’s largest LNG ships, three receiving terminals in Europe and the US, and Qatar’s largest condensate refinery. ExxonMobil is the only foreign participant in two domestic gas projects – Al Khaleej Gas and

Barzan Gas. ExxonMobil also provides technical and management expertise to directly support QP through secondments of ExxonMobil employees. ExxonMobil Research Qatar (EMRQ) opened at QSTP in 2009 to conduct research in areas of common interest to Qatar and ExxonMobil. Scientists and researchers at EMRQ continue to advance projects in environmental management, water reuse, LNG safety and coastal geology. By using global knowledge to develop local resources, EMRQ is able to create an invaluable link between the local and international research communities. exxonmobil.qa

North Oil North Oil Company (NOC) is an operating company created through a joint venture agreement to operate and further develop the Al Shaheen oil field for the next 25 years. NOC is a Qatari company, 70% owned by QP and 30% by Total. Al Shaheen oil field is located in Qatari waters 80 km north of Ras Laffan with facilities consisting of 33 platforms and more than 300 wells, currently producing around 300,000 barrels of oil per day. Al Shaheen is Qatar’s largest offshore oil field and one of the largest offshore oil fields in the world. noc.qa

ORYX GTL ORYX GTL Ltd was established in 2003 to develop, construct, and operate Qatar’s first gas-toliquids (GTL) plant, converting natural gas into high quality GTL products including diesel, naphtha, and liquefied petroleum gas (LPG). GTL fuels are gaining greater acceptance as a sustainable longterm alternative to conventional fuels due to its superior characteristics. ORYX GTL is a 51:49 joint venture between QP and Sasol Middle East and India (SMEA), combining QP’s natural gas wealth with Sasol’s technological know-how to manufacture more than 32,400 barrels a day of high specification GTL diesel, naphtha and LPG. Naphtha produced at ORYX GTL is exported from Ras Laffan and marketed by Qatar International Petroleum Marketing Company (Tasweeq) to customers in the Middle East and Far East. oryxgtl.com.qa

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Qatar Shell

Total

Shell is the largest international investor in Qatar. QP and Shell have jointly delivered two of the largest energy projects in the world in Ras Laffan Industrial City. Pearl Gas-to-Liquids (GTL) is the world’s largest GTL plant, cementing Qatar’s position as the GTL capital of the world. Costing USD19 bn, this is the largest single investment in the Shell Group’s global portfolio. Meanwhile the Qatargas 4 LNG project (QP 70%, Shell 30%) combines Shell’s global leadership in LNG with Qatar’s position as the world’s largest LNG supplier. The Qatar Shell Research & Technology Centre at QSTP is a world-class research and development facility and learning centre, with investment of up to USD100 mn on programmes in support of energy and the environment. Qatar Shell also supports Qatar National Vision 2030 through investments in national talent and capability development, via the professional development of Qatari employees and an extensive CSR programme. shell.qa

French energy major TOTAL has been in Qatar since 1936, active in all areas of the oil and gas sector. Total is the shareholder and sole operator of Al Khalij offshore oilfield. In 2016, Total won the bid for Al Shaheen offshore oilfield, resulting in North Oil Company, established as a partnership between Total and QP. Total is also a founding partner of Qatargas, a founding member and leading partner of Dolphin Energy, and a partner of Muntajat. Total also owns prominent shares in QAPCO and Qatofin, and has a stake in the two Laffan Condensate Refineries operated by Qatargas in Ras Laffan. Total Marketing Qatar has a prominent market share for lubricants in Qatar for automotive, construction, industrial and marine customers. The Total Research Center Qatar at QSTP has leading edge and innovative research projects related to sustainable development, marine biodiversity, biofuels, and solar energy. total.com

Sasol Sasol is an international integrated chemicals and energy company. Through talented people, Sasol use selected technologies to safely and sustainably source, produce and market chemical and energy products competitively to create superior value for customers, shareholders and other stakeholders. The company develops and commercialises technologies, and build and operate world-scale facilities to produce a range of high-value product streams, including liquid fuels, chemicals and lowcarbon electricity. Sasol employs 31, 270 people working in 32 countries. In Qatar, Sasol is a 49% shareholder with QP in ORYX GTL, the world’s first commercial-scale GTL plant. ORYX GTL uses Sasol proprietary gas-to– liquids (GTL) technology to convert natural gas into liquid fuel and chemical products. sasol.com

WOQOD Qatar Fuel Company (WOQOD) QPSC was formed as a joint stock company in 2002 to provide downstream, refined fuel storage, distribution and marketing services in Qatar. WOQOD is listed on Qatar Exchange following its IPO in 2003. WOQOD distributes fuel products within Qatar for all transportation – diesel and gasoline for vehicles, marine fuel for seagoing vessels, and aviation fuel for airlines – with fuel distribution depots in Mesaimeer and Ras Laffan. WOQOD has a fleet of road tankers and an extensive network of petrol stations, as well as vessels for supplying marine fuel. Qatar was the first GCC country to convert to fully unleaded gasoline and WOQOD’s diesel has the lowest sulfur content in the region. WOQOD also fulfils Qatar's energy needs through ecofriendly fuel products like liquefied petroleum gas (LPG) and compressed natural gas. LPG is supplied to domestic customers via Shafaf cylinders, while industrial and commercial users can have LPG tankers installed. WOQOD has diversified into retail marketing with Sidra convenience stores, a one-stop shop solution at their fuel stations. m woqod.com.qa ©

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FEATURE

Qatar Biofuel Exploration Qatar is known as one of the world's major producers of natural gas, with the State sitting on huge reserves, and domestic companies such as Qatar Petroleum (QP) contributing to the local economy. However, over the last few years, Qatar has been diversifying its oil and gas sector by delving into the world of biofuels and biogas.

atar revealed some of its research and development into sustainable biofuels at the start of the UN Climate Change Conference COP-18, which was held in Doha for the first time in November 2012. Roberto Gonzalez, the President of the Council of the International Civil Aviation Organization, and other delegates were given a tour of Qatar University's QAR45.5 million biofuel project, the only one of its kind in the region. Already three years into the first phase of the project at the time of the tour, QU alongside partners Qatar Airways and Qatar Science and Technology Park (QSTP) had developed an exceptional state-of-the-art facility, renowned both locally and internationally for its groundbreaking research. The first phase of the project looked at biodiesel, bioethanol and bio-crude oil, to be specifically used by the airline industry. Moving forward to April 2018, the Center for Sustainable Development at QU confirmed it is now developing the necessary methods to produce biocrude oil as part of the Qatar Biofuel Project. The Center for Sustainable Development has developed an endowed chair with funding from Qatar Shell. The Qatar Shell Professional Chair in Sustainable Development aims to establish greater understanding of the concept of sustainable development and form a research programme to increase understanding of sustainable development issues in Qatar. The Chair also allows experts in relevant fields

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to work together to create a holistic vision of sustainable development in Qatar, including the sustainable use of energy. It is recognised that Qatar has seen unprecedented development over a short period of time, creating huge amounts of waste adversely affecting the environment and undermining sustainable development. When looking at the sustainable use of energy, the project team studied each type of biofuel in terms of economic viability against available resources including the infrastructure already in place in the oil and gas sector. This study provided the data necessary to choose which biofuel best suited the aims of the project. Under the second phase, the project will research aviation biofuel from algae-based bio-crude. According to Hareb Al Jabri, Center for Sustainable Development Director and Qatar Biofuel Project Manager, 'Production of biofuels can be done efficiently under searing temperatures and without relying on Qatar’s arable land.' He added 'If successfully produced on a commercial scale, the discovery will have international ramifications – significantly reducing one of the airline industry’s biggest fixed costs and providing a sustainable, environmentally-friendly fuel where carbon dioxide is recycled rather than accumulating in the atmosphere.' Under the analytical study, the biomass was converted into bio-crude oil. Its components were then separated using the available refinery systems. The project is now developing these production processes and investigating volume and quality levels. It is hoped that the results of the biofuel project will add value to Qatar's oil and gas sector. It fits in with Qatar Airways' mandate to use environmentally-

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friendly fuel in the airline industry as well as reduce the negative environmental effects of conventional fuel. It will also satisfy one of the goals of Qatar National Vision 2030, to diversify the nation's economic diversification and create a knowledgebased economy. 'These efforts are highlighted in the Qatar National Strategy which started in 2011, which focuses on the importance of supporting research projects related to the development of technologies for renewable energy, as well as to drive collaboration efforts with various local and regional institutions to produce renewable energy,' states Al Jabri. Turning waste into fuel Another department at QU, the College of Engineering, has launched a project in conjunction with the Ministry of Municipality and Environment to produce biogas from waste. The aim is that this biogas can be used as a clean energy to power motor vehicles. The project will study various techniques for producing biogas from waste, with vehicles being converted from diesel to biofuel and compressed gas to utilise the waste from the solid waste management centre.

The first phase of the project will involve an economic feasibility study to look at aspects such as the storage of biogas, the costs involved in its compression and purification, and buying the machinery necessary to convert vehicles to biofuel. An experimental study has already powered a vehicle using biogas from waste. The country is actively embracing Waste to Energy (WtE) as a sustainable waste management strategy and cost-effective fuel source for the future. Simply

put, WtE works by taking waste and turning it into a form of energy â&#x20AC;&#x201C; electricity, heat or transport fuel. Qatar was the first GCC country to implement a waste-to-energy programme and generates over 30MW of electricity from the Domestic Solid Waste Management Center (DSWMC) at Mesaieed. A solid waste management plan is being implemented for managing wastes from households, commercial establishments, and the construction industry. The target is to recycle 38% of solid waste, up from the current 8%, and reduce domestic per capita waste generation. More than 2.5 million tons of municipal solid waste is produced each year, and Qatar has one of the highest per capita waste generation rates worldwide at 1.8 kg per day. m

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FEATURE

The OGP Process

Qatargas plant

Qatar has one of the world's largest reserves of natural resources, so at some point in your stay you will strike up conversation with someone working in the industry. But do you know your upstream from your midstream and downstream?

atar may be the smallest OPEC Member Country, when talking about its land mass and population, but it has huge resources at its disposal.

Petroleum and natural gas make up the majority share of the national gross domestic product (GDP), and these resources have made Qatar one of the richest countries in the world, with a fast growing economy. Oil exploration began at the Dukhan field located 84 km west of Doha in 1935, with the first well drilled in 1940 and commercial exportation starting on 31 December 1949. Meanwhile, crude oil and associated gas from the offshore Maydan Mahzam and Bul Hanine fields began production in 1965 and 1972, respectively. These fields are under the governance of Qatar Petroleum (QP), the national oil company which oversees all of the state's oil and gas resources. Qatar is a member of the Organization of the Petroleum Exporting Countries (OPEC), a permanent, intergovernmental organisation, created at the Baghdad Conference in September 1960 by five Founder Members: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Current members are: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, the Republic of the Congo, Saudi Arabia, United Arab Emirates, and Venezuela. These countries are estimated to hold over 80% of the world's proven oil reserves, making OPEC a major influence on oil prices. Qatar joined OPEC in 1961. HE Dr Mohammed bin Saleh Al Sada, Minister of Energy and Industry, is the Head of Delegation. He is also Managing Director and Chairman of the Board of Directors of QP, among other posts, having joined the company in 1983. QATAR OIL, GAS AND PETROCHEMICAL E-GUIDE ÂŠ

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For those not involved in the industry, some of the lingo used can be a veritable minefield (or rather oilfield!) of odd jargon. Here is our handy guide to popular terminology involved in the processes.

The basic process The oil and gas industry is essentially divided into three main sectors. The exploration and production of oil and gas is referred to as upstream. It is the search for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequent drilling and operation of the wells that recover and bring the crude oil and/or raw natural gas to the surface. The transportation, storage, and wholesale marketing of crude or refined petroleum products is referred to as midstream. Turning crude oil and natural gas into everyday products is known as downstream, giving us such things as gasoline, diesel, kerosene, jet fuels and asphalt. Exploration and well development Oil and gas companies use seismic data to identify areas that may contain reserves, which may be both onshore and offshore. An exploratory well is then drilled to locate proven reserves (Qatar has the third largest natural gas proven reserves). If oil and gas are discovered a development well is drilled for extraction. If a well is found to be incapable of producing either oil or gas in sufficient quantities to justify completion, it is referred to as a dry hole and is plugged and abandoned, filled with cement and all surface equipment removed. A derrick is the tower-like structure housing most of the drilling controls. It is used around oil wells and other drilled holes, and is a complex set of machines specifically designed for optimum efficiency, safety and low cost. A rig is a derrick with an engine-house and other necessary equipment. The rigs operate 24/7 with crews working in shifts. Generally the bigger the rig the deeper it can drill.

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A blow-out preventer is used to avoid uncontrolled releases, when the well pressure exceeds the ability of the wellhead valves to control it. Similarly precautions are taken for such things as sour gas wells, which may release toxic fumes. Safety and environmental issues are of paramount concern, for staff working on the rig as well as nearby residents. A somewhat controversial activity, fracking is slang for hydraulic fracturing and creates fractures in rocks and rock formations by injecting fluid into cracks to force them further open. Fractures can also exist naturally in formations, and both natural and man-made fractures can be widened by fracking. As a result, more oil and gas can be extracted from a given area of land. The underground formation where oil and gas has accumulated is a reservoir. It consists of a porous rock to hold the oil or gas, and a cap rock that prevents its escape. Recoverable reserves is the proportion of the oil and gas in a reservoir that can be removed using currently available techniques. Associated gas is natural gas found as part of, or in conjunction with, other oil constituents, whereas non-associated gas is produced from gas fields which do not produce any crude oil.

Production The production process involves extracting and separating the hydrocarbons and other components for sale to consumers and discarding what cannot be sold or reused. Oil is generally handled at a refinery while natural gas may be processed either in the field or at a natural gas processing plant. The main products of the oil and gas industry are petroleum (gasoline) and fuel oils. A barrel is the unit of measurement for petroleum products and contains 159 litres. Barrels per calendar day (b/cd) are the total number of barrels processed in a refinery within a year, divided by 365 days, whereas barrels per stream day (b/sd) are the number of barrels that a refining facility can process within 24 hours, operating at full capacity under optimal conditions.

These liquids separate at different levels in the distillation column â&#x20AC;&#x201C; heavy residuals at the bottom, diesel fuels in the middle and gasoline at the top. These raw materials are sent for further processing to make a number of different products. Petroleum products include aviation gasoline, motor gasoline, naphtha, kerosene, jet fuel, distillate fuel oil, residual fuel oil, liquefied petroleum gas, lubricants, paraffin wax, petroleum coke and asphalt. Natural gas is a mixture of hydrocarbon compounds and small quantities of various non-hydrocarbons existing in the gaseous phase or in solution with oil in natural underground reservoirs. Natural gas may require separation from oil (if associated gas) along with the removal of any condensates and water, and is usually done at the wellhead. Pure natural gas is almost all methane. Natural gas is measured by volume in cubic feet and is treated at a liquefaction and purification facility known as a train, so called because the liquefaction plant may consist of several parallel units arranged in a sequential manner. Qatargas operates 14 LNG trains and plans to increase production from its giant offshore North Field by 40%, from 77 to 110 million tons a year by 2024. Natural gas liquids (NGLs) are reservoir gases liquefied at the surface in lease separators, field facilities or gas processing plants. NGLs include ethane, pentane, propane, butane and natural gasoline and are a valuable by-product. There are four NGL plants in Mesaieed Industrial City. For more information about the oil and gas companies operating in Qatar, see Company Activities in this section. m

The refinery capacity is the maximum amount of input to crude oil distillation units that can be processed in an average 24 hour period â&#x20AC;&#x201C; the QP Refinery has a capacity of 137,000 barrels per day (bpd) of refined products, while the two Laffan Refineries have a capacity of 292,000 bpd. Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits which must be refined to produce various usable products. It is heated and changed into a gas, whereby the hot gas passes through a distillation column, becoming cooler as they rise and condensing into a liquid.

The first well, Dukhan No 1, was drilled by Qatar Petroleum Company in October 1938 to a total depth of 5,685 feet. It was completed 8 January 1940 producing 5,000 barrels a day ÂŠ

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