Energy City - Qatar unveils master plan for USD 1.6 billion Phase 1 development

The US$ 1.6 billion first phase development is positioned as the first-ever integrated energy hub in the Gulf & MENA region. The project aims at significantly enhancing the Gulf region's ability to capture critical revenue streams from hydrocarbons, and act as a nucleus for the core elements of the Middle East's oil and gas industry.

Announcing the appointment of GFH as the lead financial advisor to the Energy City - Qatar project, Mr. Esam Janahi, CEO and Board Member of GFH said: "As a leading Islamic investment bank that has been associated with some of the most prestigious projects in the region, we are confident that GFH will be able to create a viable, innovative and strong financial blue-print for the Energy City - Qatar project.

Mr. Janahi further said: "The proposed clusters that will comprise the first phase development of the project will include an Intellectual and Technology centre; Education and Training centre; Shipping and Trading centre; Oil and Gas Producers centre; Service Industry centre; Infrastructure and Downstream centre; and an Information, Press and Associations centre.

Energy City - Qatar is an extremely prestigious project that will function as a nerve centre of the global oil and gas business in the Middle East, by attracting the most significant global players in the hydrocarbon value chain.

Commenting on the context behind establishing the Energy City - Qatar, Mr. Janahi said: "The global energy markets are passing through a phase of unprecedented change. The year 2004 was the second consecutive period of high growth in global energy markets - a trend that has well continued into the current year and the pace of growth is likely to sustain for at least the next couple of years."

"The year also saw the energy sector registering the strongest global primary energy consumption since 1984 against the backdrop of a buoyant world economy. The surge in consumption of all fuels has recorded growth rates above 10-year averages, in turn pushing prices of oil, natural gas and coal to record levels," he said.

Quoting energy consumption statistics, he further said that in 2004, primary energy consumption increased by 4.3 per cent with the strongest growth recorded from Asia Pacific, up by 8.9 per cent and the weakest from North America at 1.6 per cent. Coal remained the fastest growing fuel, with a 6.3 per cent increase in global consumption, followed by hydroelectric and nuclear energy at 5 per cent and 4.4 per cent respectively.

"Given this phenomenal consumption growth in the energy sector, the GCC has gained immensely as it accounts for 74.9 per cent of total proven oil reserves and approximately 41.1 per cent of world oil production. The region can further add value to these gains by tapping into above ground resources in the sector, an area so far not explored by OPEC and one that forms the key focus of Energy City - Qatar," he said.

Qatar is a natural location for a project of such magnitude. It is making sizeable new investments in the oil and gas industry. In addition, it is home to the world's third largest natural gas reserves - 'North Field'; the largest-ever gas-to-liquids (GTL) complex and ethane cracker; and, of course, Qatar is the world's leading exporter of liquefied natural gas (LNG)."

"GFH is proud to be associated with this prestigious project as its lead financial advisor. We look forward to leveraging our significant experience in the region to work alongside Energy City - Qatar to create and implement a sound financial strategy for the project."

`Energy City - Qatar,' will consolidate markets, R&D, technology, education, training and finance under one roof, promoting cooperation at both commercial and technical levels. In future phases the development will also offer opportunities for real estate investment in hotels, exhibition halls, residential and commercial property to support the Energy City Qatar.

"At Gulf Finance House, our endeavor is to be associated with projects and investments that are aimed at enhancing shareholder value, while contributing significantly to the socio-economic development of the country and region they are located in. It is a matter of pride for GFH to be given the opportunity to partner with Energy City - Qatar, a significant development which is aimed at accelerating revenue streams from hydrocarbons," Mr. Janahi added.