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FROM FRONTIER TO EMERGING MARKET: QATAR’S LONG-TERM GROWTH PLAN
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COUNTRY REPORT
the entire value chain of LNG liquefaction
trains, tankers, and storage and
receiving facilities.
Qatar is now the leading LNG producing
country in the world, having
raised its annual LNG production
capacity by more than 108% from
approximately 37.1m tons in 2009 to
approximately 77.4m tons per annum
this year. Qatar’s flagship Qatargas and
RasGas LNG projects, have led the
development of the country’s LNG
business through strategic partnerships
with leading oil and gas companies,
A snapshot of Qatar’s infrastructure in capacity, quality and cost
Power and water
Transportation
Focus area
Power supply
Water
supply
2020
2020
Wastewater +2030
Roads
Seaports
Airports
Metro
Rail
Information and
communication
technology
+2030
+2030
2020 b
+2030
+2030
na
Committed capacity significantly
exceeding demand
If RAF A in operation until 2020, no
further capacity additions required
Networks being developed;
treatment capacity additions in 2011
satisfying needs beyond 2030
Current network congestion, but
road expansion plans based on very
high population projections
including ExxonMobil, Shell, TOTAL
and ConocoPhillips. Having invested
across the entire LNG value chain,
Qatar now enjoys meaningful cost
advantages in the gas sector due to significant
economies of scale and a low
cost structure and the country is
regarded as the world’s leading authority
on LNG technology and distribution.
Qatari LNG is now sold globally to customers
in 11 countries, including
Mexico, the US, the UK, France, Spain,
India, Japan and of course China. Most
of the LNG produced by the country’s
Adequacy of supply, quality and efficiency Attention point
Current port operating beyond
capacity; new Doha port expected
with large excess capacity if phases
2-3 realised
Current airport operating beyond
capacity; new Doha International
Airport phase 1-2 required—phase
3 expansion could be postponed
(from 2015 to 2020)
Very large network (85 kilometres)
relative to Doha transportation
demand
Network covering main hubs in
Qatar
Limited penetration gap in internet;
national broadband network
expected with 95% coverage
Limited number and duration of
interruptions; approximately 100%
network coverage
Quality of water in line with
benchmarks; 98% network coverage;
water stock limited to 1.5 days
River quality of treated water;
investigation of water quality
upgrade
Lowest perceived quality of road in
Gulf Cooperation Council (World
Economic Forum); need to
strengthen public transport
Current port congested; new Doha
port expected in line with
international standards
Current airport congested: 3 stars
(out of 5) Skytrax rating; new Doha
international airport expected in line
with international standards
Service quality expected in line with
international standards
Service quality expected in line with
international standards
Bandwidth performance below
international benchmarks; new
national broadband network to
increase performance to 50
megabits per second
upstream ventures is sold under longterm
take-or-pay agreements that
provide certainty of volume off-take and
buyers benefit from long term fixed price
agreements.
The supply of cheap hydrocarbon
feedstock and energy has also helped
prime the development of downstream
industries in both the petrochemical
and metallurgical sectors, with some
sub-sectors such as fertilisers growing
at a fast clip. Other segments such as
healthcare have also picked up
momentum in recent years.
Critical issue
Meeting Qatar’s needs by 2016? a Service quality Efficiency
High power generation CAPEX; low
plant use after 2011 (60%);
transmission and distribution losses
in line with the benchmarks
High network losses (30%-50%);
high per capita demand
Limited treated sewage effluent use
(60%); low expected treatment plant
use after 2011
Construction cost in line with Gulf
Cooperation Council average but
low use if network realised based on
current population projections
Expected low use of new port; high
share of total cost incurred in phase
1 (+70%)
New Doha International airport with
high capital expenditure per
passenger; high share of total cost
incurred in phase 1-2 (70%-80%)
Expected low use; expected high
lifecycle cost
Low number of passengers/km of
railway compared to EU average
Planning in preliminary stage
a Current or planned capacity is adequate and is not expected to reach saturation until the year indicated. b Refers to phases 1 and 2. Source: Qatar National Development Strategy 2011-2016, supplied April 2011.
M AY 2 0 1 1 • F T S E G L O B A L M A R K E T S
Megaprojects