Qatar Fertiliser Company (Qafco), poised to become the world’s largest ammonia and urea manufacturer within months, signed several deals in recent weeks in line with its position as one of the world’s prominent suppliers of fertiliser and related products.

The deals signed with Qatari firms related to the supply of aqueous ammonia which facilitates the bringing down of pollution levels. Agreements reached with Indian and South African firms were for supplies of ammonia and urea.

Qafco will be supplying 13,000 tonnes of aqueous ammonia to Mesaieed Power Company Limited (MPCL) annually for 24 years. MPCL will use the product for power generators at the Mesaieed Power Plant.

'Aqueous ammonia’s role as a highly effective agent in reducing Nox emissions is well known. The establishment of this facility at Qafco complements our strong commitment towards protecting our environment,' said Qafco CEO Khalifa Abdullah Al Sowaidi.

Al Sowaidi added that it was Qafco’s intention to supply aqueous ammonia to gas-operated industrial plants in Qatar, which will help the supplied firms comply with Qatari environmental regulations.

An aqueous ammonia facility was established at the Qafco complex in 2009 and has an annual production capacity of 60,000 tonnes.

Qafco signed a similar agreement in June with Ras Qirtas Power Plant and expects to sign new deals with leading industries in the country.

Fertiliser deals

In fertiliser deals, Qafco signed a urea pact with Coromandel International Limited, the largest private sector fertiliser manufacturer in India. Al Sowaidi, who was present in Hyderabad for signing the agreement, said Qafco considered India as a strategic market and that 50 per cent of its ammonia production went there through long-term offtake agreements. He added that Qafco was keen on increasing urea supplies to the Indian market.

Ahead of a surge in production capacity, Qafco is expanding its presence in world markets. Weeks ago it entered into a major new agreement to supply Omnia Group of South Africa with more than 200,000 tonnes of ammonia annually for five years with an option for another five years. Qafco already has a presence in South Africa through Fasco and Sasol.

Qafco 5 and 6

Qafco is all set to become the world’s largest fertiliser producer when its Qafco 5 becomes operational by year’s end.

When that happens, the company will claim top position as the world’s largest fertiliser producer with an annual production of 3.6 million tonnes of ammonia and 4.3 million tonnes of urea. Qafco 6, which is expected to come on line in 2012, will boost the company’s annual urea production to 5.6 million tonnes, representing 15 per cent of the global trade. The current overall annual production capacity of the four plants is two million tonnes of ammonia and three million tonnes of urea.