Since 2005, huge investment in its gas infrastructure has meant Qatar has had one of the fastest gross domestic product [GDP] growth rates in the world, its pace rivalling the emerging economic superpowers of China and India.

Qatar’s growth has averaged just over 19 per cent for the years between 2006-2011 with the vast majority coming from the country’s liquefied natural gas (LNG) sector.

In 2012, the focus is now changing for Doha. Qatar’s oil and gas industry is making way for other sectors, such as infrastructure being developed to coincide with the football World Cup due to take place in 2022.

Middle East projects tracker MEED Projects states there are $17bn-worth of oil, gas and petrochemical projects currently at the study, design or tender phase in Qatar.

Almost 80 per cent of planned projects are in these downstream oil and gas areas and this reflectsQatar’s growing interest in adding value to a percentage of its gas resources. Two major projects dominate the list and they are both petrochemicals.

The $6.4bn Ras Laffan Olefins project is a joint venture of Qatar Petroleum (QP) and the UK/Dutch Shell Group. If the joint-venture partners decide to go ahead, the project will convert gas from Qatar’s giant North Field into ethylene and other base chemicals, which will then be sold on the international market. Engineering, procurement and construction (EPC) contracts are pencilled in for mid-2013.

A similar scheme is being planned by QP subsidiary Qatar Petrochemical Company (Qapco). The $5bn Ras Laffan Petrochemical Complex will also convert gas feedstock to base chemicals, such as ethylene and polypropylene. The project is in the study phase and EPC contracts are expected in 2014.   

It is interesting to note that Qatar has a huge number of projects that are on hold or cancelled. MEED Projects states that $56bn-worth of oil and gas projects have that status. These include major downstream schemes such as QP’s $11bn Al-Shaheen oil refinery, as well as about $15bn-worth of gas to liquids (GTL) projects planned by the US’ ExxonMobil.

Doha has not completely dropped all of its gas projects and there are still $2,1bn-worth of live gas schemes in Qatar, which make up more than 12 per cent of total live projects. These include the $1.5bn phase 2 at the Oryx gas to liquids plant that plans to release EPC tenders in 2013.

After such massive capital expenditure Qatar’s oil and gas sector is slowing down and it is probable it will remain stagnant until at least 2014.

Doha is expected to make a decision on further exploration and production of gas from North Field some time in 2014-15. Until that happens, many of the largest EPC contractors and engineering consultancies will continue to concentrate on other markets in the Middle East.