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Latest Update: Saturday10/10/2009October, 2009, 11:39 PM Doha Time
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Qafco awards $160mn deal on fertiliser plant project
By Pratap John/Chief Business Reporter
Qatar Fertiliser Company has awarded a $610mn engineering, procurement and construction (EPC) contract for Qafco-6 to a
Saipem-led consortium, which also comprises Hyundai Engineering & Construction Company.
The state-of-the-art plant being set up as part of Qafco-6 is expected to be completed and taken over by the fertiliser major by the
third quarter of 2012. It will comprise granulated urea production plant with a capacity of 3,850 tonnes per day and associated
utilities and off-site units at the Qafco complex at Mesaieed.
Qafco-6 will increase the company’s annual production capacity of urea to 5.6mn tonnes.
Besides the main contractors Saipem and Hyundai, a number of international and national construction companies will take part
in the project construction as sub-contractors, Qafco said.
Saipem and Hyundai have been working at the Qafco-5 project, which is under construction.
Qafco said, “The letter of intent is an advanced step forward towards the execution of the project, which is set to become a
milestone in the country’s industrial development plans. These plans receive the full support of HH the Emir, Sheikh Hamad bin
Khalifa al-Thani, HH the Heir Apparent Sheikh Tamim bin Hamad al-Thani and HE the Deputy Premier Abdulla bin Hamad AlAttiyah.”
Qafco-6 was based upon Qatar Fertiliser Company’s ‘successful’ business experience in the last four decades and Qatar’s huge
reserves of natural gas. The project was launched after a detailed study covering all the technical, economic and financing
aspects.
“It became evident that the project is economically viable and can be executed with maximum cost-effectiveness,” Qafco said.
Qafco has gained rich experience in the implementation of major fertiliser projects such as Qafco-3, which went on stream in
1997, Qafco-4 (2004) and Qafco-5, which is under construction and set for an early 2011 start-up.
The company said there is only a limited need for recruitment of additional manpower for Qafco-6. Skilled manpower to run and
maintain the project facilities, both on the administrative and the technical sides is already available.
Another major incentive for Qafco-6 is the existence of adequate infrastructure.
With the latest expansion, there are tremendous prospects for Qafco to meet the rising demand for fertilisers, particularly in Asia.
Qafco’s latest production facilities and strong marketing arm will also help it reach its products in the target markets.
“The design and engineering of the project facilities have taken into account the various environmental considerations and
ensured compliance with the highest standards of safety,” Qafco said.
The company said the adoption of state-of-the-art technology would help Qafco-6 cut down on unit production cost, boost its
profitability and make it a key player in the global fertiliser market.
The project will help create many job opportunities for nationals and enable Qatari employees of Qafco to acquire expertise in
the design, construction and operation of large-scale industrial projects.
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