2015 Minerals Yearbook QATAR [ADVANCE RELEASE] U.S. Department of the Interior April 2019 U.S. Geological Survey The Mineral Industry of Qatar By Loyd M. Trimmer III In 2015, Qatar’s real gross domestic product (GDP) increased activities resulted in increased demand for building materials by 3.3% compared with an increase of 4.0% in 2014. Growth (Organization of the Petroleum Exporting Countries, 2016, in real GDP was attributed to investments in the hydrocarbon p. 16–17, 86; Qatar National Bank S.A.Q., 2016, p. 3, 4). sector and the building and construction sector. In 2015, Qatar The Qatar National Vision (QNV 2030) set long-term was a major producer of primary aluminum, ammonia, direct- economic transformation goals aimed at reducing reliance reduced iron (DRI), helium, natural gas, sulfur, and urea. Qatar on the hydrocarbon sector through large investments in the was the world’s second-ranked producer of helium behind the industrial and construction sectors, such as projects related United States, accounting for 31% of global output (table 1; to electricity transmission, transportation infrastructure, and International Monetary Fund, 2016, p. 173; Hamak, 2017). commercial and residential developments, with the goal of According to the Organization of the Petroleum Exporting diversifying Qatar’s economy by 2030. In May, the Public Countries (OPEC), the country was also the world’s fourth- Finance Law No. (2) of 2015 was enacted with the purpose of ranked producer of natural gas, accounting for 4.9% of global enabling long-term investment strategies through prioritizing output, and the leading exporter of liquefied natural gas (LNG), state projects and adopting international best financial practices accounting for 31.4% of global LNG exports as indicated by and standards. The Investment Law No. (13) of 2000 permits BP p.l.c. Among countries in the Middle East, Qatar ranked 100% foreign ownership of projects involving the mining and second in the production of natural gas, accounting for 27% development of natural resources, upon the Government’s of the natural gas produced in the region, and first in the approval. Foreign ownership is generally 49% interest for export of natural gas, accounting for 79% of the region’s gas most businesses (including mining), with the remaining 51% exports, as indicated by OPEC. BP estimated the country’s interest held by the Government. Law No. 3 of 2007 provides proven natural gas reserves to be 24.5 trillion cubic meters, and the legal framework for the regulation, taxation, ownership, OPEC estimated the country’s reserves to be 24.3 trillion cubic and production of the country’s natural resources. The Law also meters, both of which were the third-ranked proven natural gas governs petroleum production and distribution operations. The reserves in the world, or about 13% of the world’s total. Qatar’s Ministry of Industry and Energy is responsible for establishing production of crude petroleum and condensate accounted and regulating the country’s petroleum and nonfuel mineral for 1.8% of the world’s total production. The country held policy (U.S. Department of State, 2015). 25.7 billion barrels (Gbbl), or 1.5% of the world’s proved crude petroleum reserves, according to BP, or 25.2 Gbbl, or 1.7% Production as indicated by OPEC. Other mineral commodities produced In 2015, notable decreases in the country’s metal production in Qatar included calcium carbonate, cement, clay, dolomite, included crude steel, which decreased by 25% to 2.59 million gypsum, lime, limestone, methanol, sand, shale, steel, and metric tons (Mt) from 3.47 Mt in 2014. Production of steel sulfuric acid (table 1; BP p.l.c., 2016, p. 6, 20, 28; Organization products, which included steel bars and billets, decreased by of the Petroleum Exporting Countries, 2016, p. 22, 105–106). 15% and 10%, respectively. Production of aluminum decreased The hydrocarbons sector continued to be the country’s by 5% to 610,000 metric tons (t) from 640,000 t in 2014. primary economic sector in 2015, accounting for 36.2% of Significant increases in the production of industrial minerals the total GDP. The value of the country’s exports decreased included calcium carbonate, which was reported to have by 39% to about $77.3 billion from about $126.7 billion increased by 32% to 37,000 t from 28,000 t in 2014. Production in 2014. The decline was primarily attributed to the nearly of cement was estimated to have increased by 13% to 6.9 Mt 50% decrease in the value of crude petroleum exports, which from 6.1 Mt in 2014. Production of residual fuel oil was decreased to about $28.3 billion from $56.4 billion in 2014. estimated to have increased by 26% compared with 2014. The average price of the country’s export petroleum blend Production of gasoline was estimated to have decreased by 20%. decreased to $50.71 per barrel in 2015 from $96.39 per barrel in Data on mineral production are listed in table 1. 2014. Lower petroleum prices and the slight decrease in crude petroleum production resulted in Government revenue being Structure of the Mineral Industry lowered to 39.3% of GDP in 2015 from 45.4% in 2014. The nonhydrocarbon sector, which accounted for 63.8% of the GDP, Qatar Petroleum (QP) is a state-owned public corporation increased by 7.8% in 2015 owing to Government investment that owned and operated all aspects of Qatar’s upstream and spending on large infrastructure projects. The building and downstream crude petroleum and natural gas sector, including construction sector contributed 2.2% to nonhydrocarbon the exploration, production, transport, storage, marketing, GDP growth, followed by manufacturing, which contributed and sale of crude petroleum, gas-to-liquids (GTL), LNG, 0.7%. Increases in the building and construction sector were and natural gas liquids (NGL), in addition to fertilizers and accounted for, in part, by construction in preparation for the petrochemicals. Qatargas Operating Co. Ltd. operated four 2022 FIFA World Cup. Increased building and construction primary LNG enterprises at Ras Laffan: Qatar Liquefied Natural QATAR—2015 [ADVANCE RELEASE] 59.1 Gas Co. Ltd. (Qatargas 1), Qatar Liquefied Natural Gas Industrial Minerals Co. Ltd. 2 (Qatargas 2), Qatar Liquefied Natural Gas Co. Ltd. 3 (Qatargas 3),Qatar Liquefied Natural Gas Co. Cement.—In 2015, demand for cement increased owing Ltd. 4 (Qatargas 4). Ras Laffan Liquefied Natural Gas Co. to increased activity in the construction sector resulting from Ltd. (RasGas) produced helium from two plants at Ras Laffan investment in infrastructure and industrial capacity under QNV (table 2; U.S. Energy Information Administration, 2015). 2030. In response to increased demand, the country’s cement State-owned company Industries Qatar Q.S.C. (IQ) owned production increased by an estimated 13% to 6.9 Mt from 80% of Qatar Petrochemical Co. Ltd. Q.S.C. (QAPCO); the 6.1 Mt in 2014. Qatar National Cement Co. Q.S.C. (QNCC) remaining QAPCO shares (20%) were owned by Total S.A. produced about 3.8 Mt of cement in 2015 compared with 3.5 Mt of France. IQ also owned 50% of Qatar Fuel Additives Co. in 2014. In 2015, construction of the fifth kiln line at QNCC’s Ltd. Q.S.C. (QAFAC), which mainly produced methanol, Umm Bab integrated cement plant continued under a contract petrochemicals, and sulfur; the remainder of QAFAC shares with Fives FCB of France. The fifth kiln line was expected to were owned by OPIC Netherlands Antilles N.V. (20%), and be completed in late 2017 and to increase the plant’s clinker International Octane Ltd. and Lee Chang Yung Chemical capacity by 1.8 million metric tons per year (Mt/yr). QNCC held Industry Corp. (15% each). IQ held a 75% majority interest about 55% of the domestic cement market (International Cement in Qatar Fertilizer Co. S.A.Q. (QAFCO), which produced Review, 2015, p. 108; DOHA, 2016; Qatar National Cement Co. primarily ammonia and urea; the remaining 25% of QAFCO Q.S.C., 2016, p. 5). shares were owned by Yara Netherland BV of the Netherlands. Al Khalij Cement Co. (a subsidiary of Qatari Investors Qatar Steel Co. Q.S.C. (QASCO), a wholly owned subsidiary Group) sold 2.6 Mt of cement in 2015, a 23% increase from of IQ, produced hot-briquetted iron (HBI) and DRI, steel 2014. By yearend, the company completed construction and reinforcing bar (rebar), steel billets, and steel coils, in addition commissioned the Line 2 Project at its Umm Bab integrated to lime. Qatar Aluminium Ltd. (QATALUM), which was a cement plant, located about 80 kilometers west of Doha. The 50–50 joint venture between QP and Norsk Hydro ASA of production capacity of the line increased to 5.7 Mt/yr (Qatari Norway, produced primary and secondary aluminum from its Investors Group, 2016, p. 63–64). smelter at Mesaieed (table 2; Industries Qatar Q.S.C., 2016, Mineral Fuels and Related Materials p. 12–14; Norsk Hydro ASA, 2016, p. 118). Helium.—In 2015, Qatar was estimated to have produced Commodity Review about 50 million cubic meters of helium compared with about Metals 46 million cubic meters in 2014. RasGas produced helium at Qatar Helium 1 and Qatar Helium 2 plants, located in Ras Aluminum.—In 2015, QATALUM produced about Laffan, which had a total capacity of 55.4 million cubic meters 610,000 t of aluminum compared with 640,000 t in 2014. The per year of liquefied helium. Qatar was estimated to account company’s processing facilities in Mesaieed, which consisted for about 31% of the world’s helium output and 20% of the of an aluminum smelter, casthouse, carbon anode plant, and world’s helium reserves in 2015.