Nov 24 2006
The Qatalum project, a 50% joint venture with Qatar Petroleum and Hydro to construct a new primary aluminium plant in Mesaieed Industrial City, Qatar, is progressing according to schedule. Today QP and Hydro have signed a key contract with the Canadian company SNC-Lavalin International Inc, for the construction of the main buildings and related project infrastructure.
The scope of the contract for the service areas and potroom building totals approximately USD 700 million. Once detailed engineering is completed, construction activities are scheduled to begin in November 2007.
The project milestones include a final decision to proceed by the partners in July 2007, with first liquid metal production planned for fourth quarter 2009. The plant shall be in full production during second quarter of 2010.
Qatalum will be the largest primary aluminium plant ever built in one step. The project is very much in line with Qatar Petroleum long-term growth strategy to diversify its energy portfolio, and is an important element in Hydro’s strategy to reposition its upstream aluminium operations.
The primary aluminium capacity will be 585,000 tonnes at full operation, which is 15,000 tonnes higher than initially planned. Future expansion plans would increase production up to 1.2 million tonnes per year. The total project includes the potrooms, anode production, casthouses, gas fired power plant and port facilities.
Including escalation from 2004 to 2006, currency effects and design changes, the revised capital investment estimate for the total Qatalum project is in the range of USD 4.5 billion. In 2004, cost estimates were approximately USD 3 billion.
Preparations for the Qatalum project have been ongoing since the partners entered into a first agreement in December 2004. It will be based on Hydro’s captive technology for potroom and casthouse, with the world-class environmental performance. When in operation, Qatalum will provide approximately 1,100 jobs in the local community, and will be a part of expanding Qatar’s economic diversification. Qatalum will create new market for suppliers and subcontractors for local markets in the Gulf region.
Qatalum operating costs will be among the lowest in the industry, positioning itself as a highly competitive smelter. Qatalum’s dedicated electrical power generation plant will be supplied gas by Qatar Petroleum under a long-term gas contract.
Qatalum production capacity will help meet the strong global demand for primary aluminium products. The Qatalum casthouses will have the capacity to deliver all metal as value added products, serving customers in Europe, Asia and North-America.
Qatalum will draw upon Hydro’s operational experience as a world leader in the aluminium sector, and will utilize technology improvements from Hydro’s aluminium plant in Sunndal, Norway.
Qatar Petroleum (previously known as Qatar General Petroleum Corporation) was established in 1974 as a national corporation completely owned by the State of Qatar. Qatar Petroleum is responsible for all oil and gas industry processes in Qatar and abroad, including the exploration and drilling for oil, natural gas and other hydrocarbon substances, production, refining, transport and storage of the aforementioned substances and any of their derivatives and by-products, as well as trading in, distribution, sale and export of these substances.