DOHA: Minister of State for Energy Affairs, and President and CEO of QatarEnergy HE Saad bin Sherida Al Kaabi, stated that the growth and development of the petrochemical industry in Qatar have been on the path of continuous success since the establishment of Qatar Petrochemical Company (QAPCO) half a century ago.
He made these remarks during his speech at the opening of the 17th Gulf Petrochemicals and Chemicals Association (GPCA) Annual Forum, which kicked off on Sunday and will continue until Dec 6 under the theme 'Mobilizing Chemistry for Impactful Transformation'.
He highlighted that thanks to the significant efforts of QAPCO, the world's largest blue ammonia plant is being constructed, which will produce 1.2 million tonnes of blue ammonia annually, pointing out that this plant is set to be the most sustainable facility of its kind. He stated that as part of this project, the facility will capture and sequester 1.5 million tonnes of carbon dioxide a year. He added that a portion of the electrical power for the facility will be provided by a solar power generation station, which QatarEnergy is establishing in the Mesaieed Industrial City.
He expressed pride in QAPCO being the world's largest integrated producer of ammonia and urea from a single site, with a production capacity of about four million tonnes of ammonia and six million tonnes of urea annually, which ensures food security for over 100 million people every day.
The Minister of State for Energy Affairs also mentioned the partnership between QatarEnergy and Chevron Phillips, where the recent announcement was made regarding the commencement of the construction of two ethane cracking units, each with a capacity exceeding two million tons annually, with the first unit is in Qatar, and the second is in the United States.
He pointed out that these two units will be the largest in the world, and their operation is expected to commence by the end of 2026. These projects are an integral part of a wide range of projects in the Gulf Cooperation Council (GCC) countries, where the industry has started increasing production to meet the growing global demand with population growth and rising living standards.He stated that the GPCA Forum has evolved over the years to become a leading event in the petrochemical industry in the Middle East, thanks to GPCA's collective efforts, adding that the distinguished forum is held for the first time in Qatar.
He emphasized that the 2023 forum provides a valuable platform for discussing strategic priorities such as enhancing operational excellence and developing new technologies that improve production efficiency.He emphasized that, in reality, any meaningful discussion about the energy industry today cannot take place without addressing the urgent environmental issues and concerns of many people, especially the transition to cleaner forms of energy, hence, the importance of this year's slogan: "Mobilizing Chemistry for Impactful Transformation." He continued that to achieve a purposeful and realistic transition to low-carbon energy, there must be a serious understanding of what needs to be done, adding that in the face of prevailing emotional and unrealistic discourse, everybody needs to take a step back and seek a common understanding of what can and cannot be done.
He stressed that a fair, safe, and sustainable transition to low-carbon energy would contribute to protecting the planet and providing economic growth, noting that achieving this goal requires focusing on three important areas that are considered necessary to enable the transition process, the first of which is increasing investments in energy efficiency and innovation in the low carbon fields. This includes the integration of renewable energy, carbon capture and sequestration technologies, and low-carbon solutions to reduce greenhouse gas emissions and the carbon intensity of chemical manufacturing processes.Other areas of interest include optimal use of resources, waste reduction, water management, and the development of circular economies through improved recycling and reuse of materials. The second area is political commitment as there is a need for coordinated policies and incentives to support the success of the petrochemical industry. The third is enabling action, which is awareness.
The minister said that placing the burden on energy producers alone is not fair. We need to make clear to our workforce, communities, and consumers the essential and critical role that the chemical industry plays in improving the quality of life around the world.
He underscored the need for media and education campaigns to drive change and to ensure that all stakeholders appreciate the enormous value and contribution that the industry makes. His Excellency added that he believes that by doing this, they can make important progress to ensure that the long-term aspirations they have set for this industry are met.
He said that, since its foundation in 2006, GPCA has made every effort to build a strong chemical industry in the GCC countries. Today, GPCA, which includes more than 250 companies operating in the chemical and related industries, focuses on dealing with the most important challenges and developments affecting the use of petrochemical products. At the same time, they place great emphasis on enhancing energy efficiency, developing new energy sources, and delivering unique projects.
For his part, HRH Minister of Energy of the Kingdom of Saudi Arabia Prince Abdulaziz bin Salman Al Saud affirmed that the global demand for petrochemicals would continue in the coming period and that the sector is in continuous and rapid growth. He said that petrochemicals are here to stay and the hydrocarbon sector would continue to generate income and generate money for investors, asking those who talk about transformation to live with the data in their hands and the facts before them today and for decades to come.
The Minister of Energy of the Kingdom of Saudi Arabia said that the rapid growth of the petrochemical sector will necessarily be reflected in the volume of demand for hydrocarbons as raw materials, noting that market and analyst expectations indicate an increase estimated at 50 percent to about 1.2 trillion tonnes annually by 2040.
The Minister pointed out that petrochemicals and their derivatives are used in about 50 percent of the components of automobile production, including electric ones.
In the same context, Minister of Energy and Minerals of the Sultanate of Oman HE Eng Salim bin Nasser Al Aufi indicated that switching to the use of renewable energy and green hydrogen would not eliminate the need to use oil and gas, noting that only 20 percent of a barrel of oil goes to the transportation and electricity sector, while the remaining percentage goes to petrochemical industries.
GPCA Forum witnessed the awarding of the Legacy Award "Al Rowad" to Engineer Hamad Rashid Al Muhannadi, former General Manager (1992 - 2007) and Chairman of the Board of Directors (2011 - 2014) of Qatar Petrochemical Company (QAPCO) and a founding member of the Board of Directors of GPCA (2006-2009).
