Qafac revives methanol plan

Qatar Fuel Additives Company (Qafac) is understood to be trying to reactivate plans for a new methanol plant at its Mesaieed complex by reducing the project's scope to make it less costly.

The original project called for the installation of 6,750 tonnes a day (t/d) of methanol capacity and 1,000 t/d of ammonia. However, the scheme was put on hold in 2005 in light of the rising engineering, procurement and construction prices, which have become increasingly significant for companies across the region (MEED 7:1:05).

The new plan envisages construction of a methanol plant with a capacity of 3,000 t/d, which will be located adjacent to Qafac's existing complex

at Mesaieed.

With the scope of the scheme scaled back, finding enough natural gas feedstock to meet the plant's needs remains the key stumbling block.

Since Doha imposed a moratorium on further development of its giant North gas field, the

development of the local downstream industry has been hampered by feedstock constraints as supplies of non-allocated gas have dwindled.

The original front-end engineering and design contractor was the US' Mustang Tampa, with Germany's Lurgi as

the technology supplier for the methanol train.

Established in 1991, Qafac is a joint venture between Industries Qatar, Dubai-

based International Octane, and Opic Middle East Corporation and LCY Investments Corporation, both of Taiwan.

Its existing facilities are designed to produce 832,000 tonnes a year (t/y) of methanol and 610,000 t/y of methyl tertiary butyl ether (MTBE).

Last year it handed a 13-month engineering, procurement and construction contract worth $22 million to Geneva-registered Archirodon Construction (Overseas) to upgrade its existing methanol plant.

www.meed.com/petrochemicals