Qatar Fuel (Woqod): MEED Assessment

24 May 2011

Woqod’s future prospects are tied to the nation’s economic development and its rising population

Woqod has an enviable position among regional downstream energy marketing and distribution firms. It forms part of the web of interdependent companies the Qatari government is establishing with its hydrocarbons wealth to broaden its economic base. Its main shareholder, state oil company QP – custodian of the world’s largest gas field – provides it with financial stability and capital to invest in its core businesses. Its chairman is the deputy prime minister and the former minister of energy and industry. Woqod has exclusive rights to market and distribute petroleum products in Qatar, and as such will benefit from the development of the country’s aviation and maritime sectors, which are benefitting from heavy government investment.

In 2010, Qatar’s LNG output hit 77 million tonnes a year. The fleet of huge vessels needed to ship the gas globally, under the various long-term supply deals Doha has signed, will ensure a steady stream of customers for the new bunkering facilities at Ras Laffan.

Woqod’s future prospects are tied to the nation’s economic development and its rising population, which has doubled over the past six years to 1.69 million and is expected to exceed 2 million by 2013. The state plans to invest more than $60bn in road and transport projects over the next decade, generating huge demand for bitumen – sales of which increased 158 per cent last year. The expansion of ports and the airport will further boost the firm’s income. Such ready-made customer bases make Woqod a sound investment.

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