Korean group takes massive gas refinery contract in Qatar
GS Engineering and Daewoo join together to build an US $800 million condensate facility in Ras Laffan Industrial City
Gas-rich Qatar has begun the construction of a US $800 million (QR2.9 billion) refinery, described by its owners as one of the largest of its kind being built in the world.
A South Korean consortium comprising GS Engineering and Construction Corporation and Daewoo Engineering and Construction Company, has been awarded the contract to build the refinery and storage and export facilities.
The condensate facility, to be built in Ras Laffan Industrial City, 80km north of Doha, will have the capacity to process 146,000 barrels per day of gas products.
Qatari Crown Prince Sheikh Tamim bin Hamad al-Thani laid the foundation stone of the Laffan refinery, which will be 80% owned by state-run Qatar Petroleum, with US oil major Exxon Mobil and French firm, Total, each holding 10% of the shares.
According to Faisal al-Suwaidi, CEO of Qatargas Operating Company, which will execute and operate the project, the refinery will come on stream in August 2008.
“The bulk of its products will go to Asian markets,” he said.
The refinery will produce Liquefied Petroleum Gas, as well as naphtha, kerosene and gas oil for the export market.
Qatar’s giant North Field, which has proven reserves of more than 25 trillion m3 of natural gas, is the third largest in the world.
The Gulf country has launched a multi-billion dollar industrialisation drive to become the world’s top exporter of liquefied natural gas.
Along with aiming to be a world LNG exporter, Qatar is experiencing a massive construction boom. And despite being relatively undeveloped when compared to the UAE, it has become the fastest growing Gulf state in the region.