Doha – The growth and development of the petrochemical industry in Qatar has been on a path of continuous success since the establishment of Qatar Petrochemical Company (QAPCO) half a century ago, according to Saad bin Sherida Al Kaabi, the Gulf country’s Minister of State for Energy Affairs and the President & CEO of QatarEnergy.
He made these remarks during his speech at the opening of the 17th Gulf Petrochemicals and Chemicals Association (GPCA) Annual Forum, which kicked off Sunday and will continue until Dec. 6 under the theme “Mobilizing Chemistry for Impactful Transformation.”
Al Kaabi highlighted that, thanks to the significant efforts of Qatar Fertilizer Company (QAFCO), the world’s largest blue ammonia plant is under construction. This facility is set to produce 1.2 million tons of blue ammonia annually and is poised to be the most sustainable facility of its kind.
He noted that the plant will capture and sequester 1.5 million tons of carbon dioxide a year. Additionally, he mentioned that a portion of the electrical power for the facility will be supplied by a solar power generation station, which QatarEnergy is establishing in Mesaieed Industrial City.
Expressing pride in QAFCO, Al Kaabi noted that it is the world’s largest integrated producer of ammonia and urea from a single site. With a production capacity of about four million tons of ammonia and six million tons of urea annually, it ensures food security for over 100 million people every day.
He also mentioned the partnership between QatarEnergy and Chevron Phillips. He highlighted the recent announcement regarding the commencement of the construction of two ethane cracking units, each with a capacity exceeding two million tons annually. The first unit is located in Qatar, and the second will be in the United States.
Al Kaabi pointed out that these two units will be the largest in the world, with their operation expected to commence by the end of 2026. These projects are integral to a broader range of initiatives in the Gulf Cooperation Council (GCC) countries, where the industry is ramping up production to meet the growing global demand driven by population growth and rising living standards.
He stated that the GPCA Forum has evolved over the years into a leading event in the Middle East’s petrochemical industry, thanks to the collective efforts of GPCA. He added that this distinguished forum is being held for the first time in Qatar.
Al Kaabi emphasized that the 2023 forum provides a valuable platform for discussing strategic priorities, such as enhancing operational excellence and developing new technologies to improve production efficiency.
He stressed that any meaningful discussion about today’s energy industry must address urgent environmental issues and concerns, especially the transition to cleaner energy forms. Hence, the significance of this year’s theme: “Mobilizing Chemistry for Impactful Transformation.”
He continued, stating that to achieve a purposeful and realistic transition to low-carbon energy, a serious understanding of the necessary steps is essential. In the face of prevailing emotional and unrealistic discourse, he urged for a step back to seek a common understanding of feasible actions.
Al Kaabi stressed that a fair, safe, and sustainable transition to low-carbon energy is crucial for protecting the planet and fostering economic growth. Achieving this goal, he noted, requires focusing on three key areas essential for enabling the transition.
The first is increasing investments in energy efficiency and innovation in low-carbon fields. This includes integrating renewable energy, carbon capture and sequestration technologies, and low-carbon solutions to reduce greenhouse gas emissions and the carbon intensity of chemical manufacturing processes.
Other areas of focus include the optimal use of resources, waste reduction, water management, and the development of circular economies through enhanced recycling and reuse of materials. The second area is political commitment, as coordinated policies and incentives are necessary to support the petrochemical industry’s success. The third area involves enabling action through awareness.
Al Kaabi stated that placing the burden solely on energy producers is unfair. He emphasized the need to make clear to the workforce, communities, and consumers the essential and critical role the chemical industry plays in improving quality of life worldwide.
He underscored the importance of media and education campaigns to drive change and ensure that all stakeholders recognize the immense value and contributions of the industry. Al Kaabi expressed his belief that by doing so, significant progress can be made in achieving the long-term goals set for the industry.
Al Kaabi noted that since its foundation in 2006, GPCA has been dedicated to building a robust chemical industry in the GCC countries. Today, GPCA, comprising over 250 companies in the chemical and related industries, focuses on addressing the most pressing challenges and developments in petrochemical product usage. Concurrently, they place a strong emphasis on enhancing energy efficiency, developing new energy sources, and delivering unique projects.
Saudi Minister of Energy Prince Abdulaziz bin Salman Al-Saud, affirmed that the global demand for petrochemicals would continue to grow. He stated that petrochemicals are here to stay and that the hydrocarbon sector will continue to be profitable for investors. He urged those discussing transformation to consider the current data and facts, which will remain relevant for decades.
The Saudi Minister of Energy noted that the rapid growth of the petrochemical sector will inevitably reflect in increased demand for hydrocarbons as raw materials. Market and analyst expectations suggest an estimated increase of 50 percent to about 1.2 trillion tons annually by 2040.
He pointed out that petrochemicals and their derivatives are used in about 50 percent of automobile production components, including electric vehicles.
In a related discussion, Oman’s Minister of Energy and Minerals Eng. Salim bin Nasser Al Aufi, said that the shift to renewable energy and green hydrogen does not negate the need for oil and gas. He noted that only 20 percent of a barrel of oil is used for transportation and electricity, while the remaining percentage is utilized in petrochemical industries.
The GPCA Forum also featured the presentation of the Legacy Award “Al Rowad” to Engineer Hamad Rashid Al Muhannadi. He served as the former General Manager (1992 – 2007) and Chairman of the Board of Directors (2011 – 2014) of Qatar Petrochemical Company (QAPCO) and was a founding member of the Board of Directors of GPCA (2006-2009).