The Middle East's first energy business centre, known as Energy City Qatar, was formally launched by HE the Prime Minister Sheikh Abdullah bin Khalifa Al Thani on 21 March 2006 in Doha, the State of Qatar ("Qatar").
Energy City Qatar is the maiden project of Gulf Energy, a global consortium of energy experts (the International Advisory Board includes Mr Bernard De Combret (Elf and TotalFinaElf), Harald Norvik (formerly Norwegian Duputy Energy Minister & Secretary of State), and Richard H. Matzke (formerly vice chairman of ChevronTexaco Corp)working to generate high value-adding business ideas to the benefit of energy stakeholders worldwide. US$2.6 billion is being invested in the establishment of the project.
A five-year energy investment programme of $70 to $80 billion is also currently underway and will see Qatar become the world's biggest liquefied natural gas exporter and the world leader in gas to liquids production at more than 300,000 barrels a day. Qatar will be the fourth largest petrochemicals producer globally.
While this domestic investment is massive it is noted the Middle East accounts for over 60% of the world's proven oil reserves and over 40% of the world's natural gas reserves.
Notwithstanding this the region does not have a business centre dedicated to the energy sector. The central aim of Energy City Qatar is to fill this void and positively contribute to the economic development, not only of Qatar, but of the Middle East region.
This aim is reflected in the Vision Statement of Energy City Qatar: "Energy City Qatar will be the Gulf's first energy business centre catering exclusively to the commercial, technical and human resource needs of the oil and gas industry operating in the region, with state of the art facilities and services, to the benefit of participants, the region, and the entire global energy spectrum."
Located approximately 20 minutes from Doha International Airport, Energy City Qatar will be some two square kilometers in size and will form part of Lusail, a large residential and corporate development. It will however provide much more than simply accommodation for oil, gas and service companies. With surging energy requirements causing record growth rates and no sign of demand slackening, the Middle East holds a central role in the world economy.
Energy City Qatar will consist of numerous 'centre' developments or zones that together will provide the development with cohesion and completeness. Through such satellites, Energy City Qatar will provide state of the art communications, high-tech data storage, retrieval and viewing facilities, advanced management and governance facilities, support infrastructure and state of the art office space and retail amenities.
The following centres will be part of Energy City Qatar:
Oil and Gas Producers Centre
A centre designed to be home to the world's leading international oil companies and national oil companies.
Service Industry Centre
The Service Industry Centre will include office buildings, specialised storage and maintenance services for the oil field service industry; drilling service, EPC contractors, equipment suppliers and fabricators, offshore suppliers and seismic acquisition, and processing companies.
Infrastructure and Downstream Centre
The petrochemical, refining, power generation, pipelines and other infrastructure expenditures in the region may exceed US $100 billion in the next five to ten years. Downstream investments will account for the lion's shares. Mid-stream projects, including gas pipelines and various expansions of existing industrial projects will also become important.
The offices will be specially designed for the main local and foreign infrastructure and downstream gas companies.
Shipping & Trading Centre
This centre will house the Gulf Mercantile Exchange, brokerage offices, trading rooms, ship chartering activities, spot LNG market and trading facilities, etc. Most of the shipping logistical support activities can also be housed here.
This is one of the most critical centres in the sense that it will:
1. Help establish entirely new trading practices in crude oil, products and natural gas
2. It will establish the Gulf region as the critical price discovery hub for crude and oil products
3. It will establish spot LNG trade as a market
Information and Associations Centre
This centre will include:
1. Facilities, services, and technology supporting international energy associations
2. State of the art communications and conference facilities
3. Events Hall - for ceremonial events, awards ceremonies, etc.
In addition to the above centres, numerous top-end retail boutiques, restaurants, coffee shops and health clubs will add to the overall development.
The Establishment of an Energy Trading Platform
Following the announcement of the creation of Energy City Qatar, Gulf Energy has signed Memorandums of Understanding (MoU(s)) with the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA), to establish the Middle East's first dedicated energy trading platform - the International Mercantile Exchange (IMEX).
Its MoU with the QFCA records its plans for cooperation on and promotion of IMEX, and the MoU with the QFCRA includes arrangements for the design and setup of the regulatory framework for the energy trading platform.
Commenting on this significant initiative, HE Sheikh Mohammed bin Ahmed bin Jassem Al Thani, formerly the Minister of Economy and Commerce in Qatar and Chairman of Qatar Financial Centre Authority, said, "With Qatar being on track to be the leading exporter of LNG by 2010 and an important exporter of oil, the introduction of IMEX fits well in the country's dedication to the energy sector and world-class finance."
Phillip Thorpe, Chairman and CEO of the QFCRA said, "The QFC Regulatory Authority is a modern, fully integrated financial services regulator, operating to the highest international standards, and ideally placed to regulate the Middle East's first energy trading platform. We are pleased to be working with Gulf Energy towards making IMEX a world class exchange by providing a framework which meets the QFCRA's standards and regulatory objectives."
IMEX will be located in Energy City Qatar. IMEX will feature some of the most technologically advanced trading platforms in the world and be regulated by the QFCRA.
In further developing the vision of Energy City Qatar as a "state of theart" city, Gulf Energy has also signed a MoU with Microsoft Corporation and Accelerator Technology Holdings (a cosignatory to the MoU). The MoU provides for the development and implementation of a new generation of advanced enterprise-level solutions to form the necessary technology infrastructure required for the project.
The establishment of state of the art facilities in the heart of one of Qatar's newest developments is attracting a large amount of interest from global players in the energy sector. This combined with the creation of the IMEX at Energy City Qatar and the large domestic investment in the sector is likely to contribute to the success of the project and makes Qatar the logical choice for the regions first Energy City.
By GlennOBrien
Al Tamimi & Company 2006
