EXCEEDING EXPECTATIONS

Qatar 2019 | ENERGY | INTERVIEW

Qatar Petroleum has the largest industrial base in Qatar and it is harnessing latest technologies to deliver enhanced performance and deliver on its ambitious growth strategy and vision to be one of the best oil and gas companies in the world.

Saad Sherida al-Kaabi
BIOGRAPHY
Saad Sherida Al-Kaabi is the Minister of State for Energy Affairs and the President & CEO of Qatar Petroleum. He studied petroleum and natural gas engineering at Pennsylvania State University and then joined Qatar Petroleum's Reservoir & Field Development Department. He then occupied a series of more senior positions before taking up his current role in 2014. He is also the Minister of State for Energy Affairs.

What is Qatar Petroleum's role in Qatar's current industrial renaissance?

As the national oil and gas company, Qatar Petroleum is responsible for all oil and gas activities in Qatar, including exploration, production, refining, transport, and storage. Qatar Petroleum plays a critical role in driving and delivering Qatar's energy strategy. In April 2017, I announced the lifting of the moratorium on new projects utilizing North Field gas. This immediately re-energized industrial development in Qatar, placing the North Field Expansion project and the planned world-class petrochemicals complex at Ras Laffan at the center of Qatar's industrial growth. Progress does not end there. In conducting its operations, Qatar Petroleum is harnessing technologies to deliver enhanced and more efficient performance across its assets. The current industrial renaissance in Qatar includes strategic initiatives in the services sector in addition to the traditional heavy industries processing and extracting hydrocarbons. Qatar Petroleum has the largest industrial base in Qatar and is a major consumer of technologically complex industrial services, which it is leveraging to catalyze the growth of the local services industry. In February 2019, Qatar Petroleum launched the Tawteen initiative to attract suppliers to set up facilities in Qatar. This initiative is in conjunction with other positive steps across the economy to further enhance the attractiveness of investment in the industrial sector in Qatar, such as the creation of economic zones. Tawteen offers a large number of services-based business opportunities involving complex technology, which will support Qatar's economic diversification strategies. Qatar Petroleum is also taking significant steps internationally in the oil and gas sector, where, via acquisitions and global exploration agreements, it has entered several new jurisdictions in 2018, including Brazil, Mexico, Argentina, South Africa, and Oman. Qatar Petroleum's ambitions extend further, and it will continue to seek opportunities to invest and deliver on its ambitious growth strategy and vision to be one of the best oil and gas companies in the world.

How will the new petrochemicals complex at Ras Laffan strengthen Qatar's position as a petrochemical supplier?

Qatar will build the Middle East's largest ethane cracker as part of a new world-scale petrochemicals complex to be located at the Ras Laffan Industrial City. An ethane cracker distills hydrocarbons into materials that can be used to make plastics. With a capacity of more than 1.6 million tons per year of ethylene, the ethane cracker will be one of the largest in the world. World-class derivative plants will also be built at Ras Laffan Industrial City as part of the petrochemicals complex. Qatar Petroleum has invited a group of leading international companies, with extensive experience in the petrochemicals industry, to submit proposals to partner with Qatar Petroleum in the development and operation of this new world-scale petrochemicals complex. We are currently evaluating proposals and will announce the name of the selected partner in due course. The petrochemicals complex will consolidate Qatar's position among the leading petrochemical producers in the world.

Given its strong position as a supplier of various petrochemicals and refined products, what measures is Qatar taking to maintain its position?

Qatar Petroleum and its group of companies have established themselves over the past 20 years as a reliable and trustworthy supplier of LNG, crude oil, refined products, and petrochemicals. We are an effective partner in all our joint ventures. We ensure that we always maintain an open and constructive dialogue with all our customers and partners and listen to their needs, and this has contributed significantly to our reputation as a long-term partner and supplier of choice. Qatar Petroleum has been at the forefront of ensuring that all customer expectations are consistently met, thereby cementing Qatar's international reputation as a trustworthy and reliable partner.

Growth in LNG consumption is expected to come mainly from Asia between 2020 and 2030. How is Qatar Petroleum working to secure its position as a leading provider?

In 2017, we announced the North Field Expansion project. When completed, it will add four new mega-trains to our existing 14 trains and raise Qatar's LNG production capacity from 77 million tons per annum (MTPA) to 110MTPA. This will raise Qatar's total production capacity by about 1.4 million barrels of oil equivalent per day. In addition, we have recently taken, together with our partner ExxonMobil, the final investment decision for the Golden Pass LNG export project in Sabine Pass, Texas, which will have a production capacity of around 16MTPA. The additional capacity will enhance the depth and flexibility of our global LNG supply network, strengthen our leading position as the world's largest LNG producer and exporter, and further boost Qatar Petroleum's strategic growth plan. With an unparalleled LNG industry already spanning 22 years, Qatar has developed a reputation as a reliable world-class supplier of LNG around the globe. Qatar's focus is on harnessing existing relationships and establishing new ones to continue to be an LNG supplier of choice in developed and emerging markets. Qatar already has a strong presence in the Asian LNG markets, and we continue to underpin this position with new agreements such as the 22-year, 3.4-MTPA agreement with PetroChina in 2018. We will use the unique opportunity that the North Field Expansion project presents, as well as our plans to expand our involvement across the energy value chain, to boost our position as the world's leading LNG provider. We are also looking at increasing our regasification capacity, evaluating the expansion of South Hook and Adriatic Terminals capacity, and reviewing opportunities for new re-gas terminals in Germany and Asian emerging markets.

The National Vision 2030 aims for a “fully developed gas industry that provides a major source of clean energy for Qatar and for the world." What is Qatar Petroleum's standpoint to meet this objective?

LNG is the cleanest fossil fuel and Qatar, through its existing LNG supplies and the addition of North Field Expansion as well as the Golden Pass LNG export project, will continue to play a leading role in supplying clean fuel to the world. We are also focusing on meeting clean energy objectives through initiatives aiming at improving the energy efficiency, which would lead to an increase in production and reduction in emissions. Equally important, Qatar Petroleum is developing infrastructure for the use of CNG in Qatar's public transportation as well as corporate and government fleets.

What is your outlook for Qatar's energy sector in 2019?

It will be an exciting year as we make substantive strides with the North Field Expansion project and the new petrochemicals complex. There is also the transition of the Idd Al-Shargi North Dome offshore oil field into a 100% Qatar Petroleum operation. We are also working to further advance the development of our oil and gas fields and stimulate the enhancement of our local supply chain. Overseas, we will focus on investing in a range of high-quality opportunities in accordance with our growth strategy and vison “to become one of the best national oil and gas companies in the world, with roots in Qatar and a strong international presence."