IQ plans QR5.4bn capital expenditure over five years
February 17, 2014 - 12:14:21 am
DOHA: Industries Qatar’s (IQ) five-year business plan envisages accumulated capital spend of an estimated QR5.4bn from 2014 to 2018. The plan includes completing construction of all of its current major projects, including a 2.0 million MT/PA integrated steel mill in Algeria, and a mixed-feed steam cracker and petrochemical complex.
“This budgeted capital spend may increase with the determination of final construction costs for existing projects, approval of projects currently under evaluation and the implementation of the group’s 10-year growth strategy.”, Abdulrahman Ahmad Al Shaibi, Chief Coordinator, Industries Qatar announced here yesterday.
Giving an update of the group’s current major capital expenditure and investment projects, he said that in Q2, 2011, the group’s steel subsidiary, Qatar Steel, commenced work on its EF5 project consisting of a QR1.2bn green field steel melt shop built adjacent to its main facility in Mesaieed Industrial City, Qatar. Commercial operations at the facility commenced in February, 2014. The project is expected to boost the group’s billets capacity by an additional 1.1 million
MT/PA, ensuring that as Qatar continues its ambitious construction programme in the run-up to the World Cup 2022, Qatar Steel will maintain its position as the country’s predominant steel supplier.
The original intention was for the new steel melt shop’s electric furnace to immediately replace two of Qatar Steel’s old electric furnaces; however, Qatar Steel has subsequently confirmed its intention to continue operating EF1 and EF2 for an additional year, before decommissioning those old facilities in early 2015.
Qatar Steel’s Saudi Arabian-based 31.03 percent associate, SOLB Steel Company, commenced commercial operations of a 1.0 million MT/PA steel melt shop and a 0.5 million MT/PA rolling mill in January 2013, with construction of a second similar rolling mill in progress and now due to be completed in the second half of 2014. Qatar Steel’s total investment contribution was QR225.0m for both phases.
The QR0.1bn CO2 recovery project is designed to capture over 500 MT per day of carbon dioxide produced by the group’s fuel additives joint venture, Qafac, and utilise it in the production of methanol.
The project is expected to not only reduce Qafac’s greenhouse gas emissions, but simultaneously boost the group’s production of methanol by circa 46,000 MT/PA. When commercially launched in the fourth quarter of 2014, the facility is expected to be the region’s largest of its kind and a source of incremental profits to the group. The Peninsula