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Kuwaiti Company Part of Mideast Energy Hub

Posted on: Saturday, 25 March 2006, 00:00 CST

By Velina Nacheva, Kuwait Times

Mar. 24--KUWAIT: With 25 per cent ownership, Kuwait Investment Company is a strategic partner in the Middle East's first energy business hub called Energy City Qatar worth $2.6 billion, which was officially launched in a ceremony held at the Sheraton Kuwait in Doha on Tuesday evening.

Talking to the Kuwait Times before the official launch Esam Janahi, Chairman of Gulf Energy -- Bahrain-based consortium of international energy experts behind Energy City Qatar (ECQ), explained the vision behind the major energy project.

Janahi explained that there are sizeable ownerships from Gulf region companies and entities from the international market. "There are currently discussions with other parties to get clusters within the city," he said and added that this will add value to them in terms of penetrating the market".

On the vision of ECQ and projecting an eventual restructuring of the world's energy market in the aftermath of ECQ establishment Janahi dubbed ECQ as "a hub, which will create a new era of business". "We have this value added to the industry itself," he said and explained that all the other cities around the world known as energy cities or are energy-related "do not have semblance to such a total solution".

"We have one stop-shop total solution for international oil companies, national oil companies, service oriented services to be part of that," he concluded.

Qatar, home to the world's third largest natural gas reserves ECQ is aimed to become the Gulf's first hydrocarbon industry hub. ECQ is also targeted to be a single point of access to markets and expertise, the Middle East home for global players in the hydrocarbon value chain.

Addressing the audience at the ceremony Abdullah Bin Hamad Al-Attiyah, the Second Deputy Prime Minister and Minister of Energy and Industry and Chairman and Managing Director of Qatar Petroleum, focused on the expected growth in the country's gas production and export in the coming years.

"Qatar provides 25 million tonnes of gas annually to Europe, America and Asia. I expect an approximately 50 per cent increase in the gas demands within the coming 25 years," he forecast recalling the first liquid gas shipments Qatar made to Japan and Korea.

Backed by private entities, ECQ will turn into the Middle East's first full-service energy business centre catering to the commercial, technical and human resource needs of the oil and gas industry operating in the region, with cutting-edge facilities and services. ECQ will also be home to a dedicated energy-trading platform, the International Mercantile Exchange (IMEX), which will be regulated by the Qatar Financial Centre Regulatory Authority. ECQ will turn into an innovative, vibrant energy centre filled with customers, suppliers and related service providers freely interacting, cooperating and competing for the advancement of the energy sector.

Addressing the guests at the event Janahi said, "The Middle East accounts for over 60 per cent of the world's proven oil reserves and over 40 per cent of the world's natural gas reserves. But, the region doesn't have a dedicated energy business centre. ECQ was conceived with the central aim of filling this void and positively contributing to the economic development of Qatar and the region."

Gulf Energy, the consortium of international energy experts behind ECQ, recently signed an MOU with Microsoft providing for the development and implementation of the next generation of advanced enterprise-level solutions to form the necessary technology infrastructure for ECQ.

In a recorded message aired at the event, Bill Gates, Chairman and Chief Software Architect of Microsoft Corporation, explained the reasons for his corporation's major involvement in ECQ. Stressing on software's central role in the energy industry, Gates explained that Microsoft had a presence in Qatar for several years and reassured of his company's commitment to investing in the country, its people and its businesses. "We fully support your efforts to establish Qatar as a world leader in the global energy industry and Microsoft will strive to be at the forefront of the development of software solutions of the oil and gas industry. We've helped make significant advances that are enabling energy companies to create the strong infrastructure needed to streamline operations and respond quickly to customer needs."

He expressed his faith in ECQ becoming an "international showcase for the next generation of technology innovations which also promises to play a major role in the economic and social development of this vitally important region of the world."

On his part, Dave O'Reilly, Chairman and Chief Executive Officer of Chevron Corporation, commented that as one of the world's leading energy companies, they have been active in the Gulf region for more than 75 years. "We believe ECQ is an example of Qatar's strong leadership to create a more secure energy future. Against a backdrop of surging demand for both natural gas and diesel fuel, Chevron is advancing major projects to produce LNG and GTL synthetic fuels -- and Qatar is central to our efforts," he concluded.

Vahan Zanoyan, President and CEO of PFC Energy [strategic advisor to ECQ] and Board Member of Gulf Energy said, "Qatar is the ideal location for the Middle East's energy business centre. Participants in ECQ will be able to gain significant efficiencies due to the benefits of clustering; ease of interaction and communication, economies of scale and easier access to opportunities and decision-makers at all levels."

Six-year-old Gulf Finance House (GFH), leading Islamic banking player is ECQ's leading financial advisor. GFH offers investment opportunities in the countries where it operates to further their economic and social development. It also aims to capitalise on the increasing willingness of Islamic investors to back local and regional business projects and opportunities and to take advantage of the wave of reforms initiated by the governments of the Gulf countries to diversify and liberalise their economies.

Another part of the city are the recently announced appointment of ECQ's International Advisory Body, comprised eminent experts from the business world, particularly from the energy and energy-related sectors. The board includes Henri Philippe Reichstul from Brazil, Simon Tay from Singapore, Bernard De Combret from France, Harald Norvik from Norway and Richard H Matzke from USA.

ECQ was launched under the patronage of the Amir of Qatar Sheikh Hamad Bin Khalifa Al-Thani. TV personality Sir David Frost hosted the event presided by Sheikh Abdullah Bin Khalifa Al-Thani, Prime Minister of Qatar. Sheikh Hamad bin Jassim Bin Jabr Al-Thani, the First Deputy Prime Minister and Minister of Foreign Affairs and Chairman of Qatari Diar Real Estate and Investment Company attended the event.

Kuwait Times was among business and energy leaders invitees and media from all the Americas, Far and Middle East, China, India and Europe.

Among the present was also Sheikh Mohamed bin Ahmed Al-Thani, Minister of Economy and Commerce and Chairman of the Qatar Financial Centre Authority.

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Copyright (c) 2006, Kuwait Times

Distributed by Knight Ridder/Tribune Business News.

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Source: Kuwait Times

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