Energised by high oil prices and the potential from its gas reserves, Qatar is investing hugely in developing its industrial sector and veering away from dependence on oil.

One of the important expansions involves Qatar Petrochemicals Company (Qapco).  Qatar and France’s Total have begun work on a 450,000 tonnes per year (tpy)  linear low-density polyethylene (LLDPE) plant, scheduled for completion in late 2008.
The project is a joint venture between Qapco, which has a 63 per cent stake, Total Petrochemicals, 36 per cent, and Qatar Petroleum, one per cent.
The total cost is estimated at $1.2 billion, Qatar’s energy minister Abdulla Al Attiyah said of the Qatofin facility.
Another major production company, Qafco, is preparing for its fifth phase, which will add 1.1 million tonnes of ammonia and a similar quantity of urea to its capacity, boosting ammonia capacity by 55 per cent to 3.1 million tpy and urea production by 40 per cent to 4 million tpy. Qafco is also revamping its Qafco-1 facilities.
Plans for an aluminium plant are making headway. Norsk Hydro and Qatar Petroleum have formed a 50/50 joint venture to build a 585,000 tpy smelter for a 2009 start-up to take advantage of Qatar’s cheap energy. Norsk Hydro had earlier estimated the project cost at around $3 billion, but has now indicated it is reviewing that estimate.
Norsk Hydro has said construction will begin in mid-2007 with the first metal emerging in the fourth quarter of 2009 and full production being reached in 2010.
Qatalum, as the joint venture is called, comprises a smelter, a casthouse, a carbon plant and a dedicated 1.35 MW gas-fired power plant.
There have been developments at Qatar Steel Company (Qasco), an affiliate of Industries Qatar (IQ).  The steel maker has awarded a contract to C Transport Maritime SAM (CTM) of Monaco for shipping 3.36 million tonnes of iron ore from Brazil and Sweden for a three-year period beginning next year.
With the construction boom ongoing, Qatar National Cement Company  (QNCC) is keen to maintain its position as one of the important suppliers for local building projects. QNCC has signed an agreement with FCB Cement of France, which will construct a QR800 million ($219 million) plant with a production capacity of 5,000 tonnes of clinker per day.
The new plant, the fourth for the company, will allow Qatar National Cement Company (QNCC) to increase its output to 11,900 tonnes of clinker per day and 15,500 tonnes of cement per day.
The company also signed a consulting agreement for the project with Basse Sambre-ERI from Belgium, which is also the consulting firm for plant 3.
Once the plants reach their projected capacities, QNCC will be able to fully meet the cement requirement of the local market and export surplus cement to neighbouring countries.
The new plant will be established in two stages with commissioning of one of the cement grinders taking place in 17 months and the other in 22 months.
An initiative that has great significance for future generations is the Qatar Science & Technology Park (QSTP), which aims to provide funding and opportunities to entrepreneurs in technology fields. The organisation has announced the launch of a $30 million ‘New Enterprse Fund’ and a $100 million ‘Technical Venture Fund’ which will invest in early-stage and mid-stage technology enterprises respectively. To encourage innovativeness, a ‘Proof of Concept Fund’ has been started for offering grants to Qatar-based researchers to evaluate and develop their innovations while a planned business incubator is another initiative aimed at encouraging the entrepreneurial spirit.
General Electric, one of the tenants at QSTP, will be supplying six PG6581B (Frame 6B) gas turbines Pearl GTL, the gas to liquids project underway in Ras Lafafn Industrial City.  The turbines are equipped with dual fuel IGCC (integrated gasification combined-cycle) type combustion systems. As part of its contract, GE will also provide IGCC combustion engineering, combustion system lab testing, spare parts and training. The project marks the first time GE’s Oil & Gas business will supply Frame 6 units with IGCC technology.