Qatar Petroleum has signed a letter of intent (LOI) with Yara and Qafco to build the platform for an ammonia and urea plant.
Qatar Petroleum is represented by H.E. Abdulla bin Hamad Al-Attiyah, the Second Deputy Premier Minister and the Minister of Energy and Industry of the state of Qatar. The LOI creates the platform for the construction of a plant that will produce 1 million tonnes of ammonia and 1.1 million tonnes of urea.
The agreement opens up additional growth for one of the world’s largest fertiliser plants. Commenting on the agreement, Chairman of Qafco, Abdullah Hussain Salatt said, ”We are preparing a Qafco-5 project which is supported by this new 25 year long gas contract. Qafco exemplifies a relationship that matured from a partnership of pioneers to a close-knit cooperation running the largest urea plant in the world\\$quot;.
President and CEO of Yara International, Thorleif Enger said, \\$quot;We see a very good future for Qafco. World demand for nitrogen fertilizers is expected to continue to grow. With the new gas agreement with Qatar Petroleum we have secured a competitive energy platform for a further expansion of this successful partnership\\$quot;.
Qafco-4, a $470 million US dollar project, went on-stream in 2004 and made Qafco the world’s largest producer of urea. Yara (formally Hydro Agri) has supported Qafco since 1973 with their technology and personnel in both construction and operations.
Industries of Qatar own a 75% stake in Qafco, the remaining 25% is owned by Yara. Yara markets 50% of the urea produced by Qafco.