Energy City Qatar powers up

Energy City Qatar (ECQ) is a hugely ambitious energy project which is breaking new ground in the fields of energy, technology and sustainability in the GGC state of Qatar. The sheer scale of ambition and technological prowess being thrown at the project is testament to Qatar’s ambition to be taken seriously as a major energy hub.

That is, very seriously. In fact, ECQ aims to be the only energy hub in the Middle East – possibly for a very long time. “The idea came from a wide variety of very successful energy hubs from around the world like Houston, Calgary, Singapore,” says Energy City Qatar CEO Hesham Al-Emadi.

“This is where ECQ comes in. It aims to create a dynamic and progressive hub supported by the latest information technology and be a single point of access to the energy industry.” It’s also a genuinely green city, claims the Energy City boss. “We’ve made sure that all the materials for the buildings come from sustainable sources and comply with all major green credentials.”

High standards
ECQ is not at all an industrial city – it is a commercial hub. Building green means construction must adhere to certain certified high standards inclusive of compulsory consideration to air, water, and energy conservation factors. Well, that must be clear even to the most casual observer. The aim though is not just to make Energy City Qatar a major energy hub. Hesham Al-Emadi thinks its ambition should be sufficient to propel the city as the world’s first fully serviced and connected eCity in the world upon its completion.

eCity? Think fiber optic network infrastructure, a data centre providing the full range of security, telecommunications and building management services. There will also be Intelligent Traffic Management Systems, and a comprehensive, responsive Management Services facility. Throw in too a Shipping Brokerage and Logistics operation: ECQ will provide a full logistical service covering all types of shipping, booking, receiving, bill clearing, and insurance for any type of oil and gas-related goods, materials, machinery, and also dry and wet goods.

The project naturally has the full support of the Qatari government and will lead the way in hydrocarbon above-ground resource development. So ECQ is clearly more than a cluster of businesses battling for all-out market superiority. An important part of this project’s ambition is that ECQ becomes a centre of excellence for the energy industry as a whole to interact together, compete and co-operate, at both commercial and technical levels.

Open for business
In order to support ECQ, the Qatari government is ensuring the local infrastructure – transport links in particular – are up to the job. “We are making sure that a new metro is being built that will link the airport of the city and business parks. The location of ECQ is also excellent, in the north of Doha, very close to the airport,” says Hesham Al-Emadi.

The site should also be open not just for huge multi-nationals (several have already committed their interest) but smaller SME businesses that can absorb many of the downstream opportunities that will be offered. In other words, a single point of access to markets and expertise – the full range of the energy industry – with extensive marketing and financial services, all under one roof. In addition, IMEX, Qatar’s own energy trading platform, will help develop an energy-trading base in the Middle East for its own products, a landmark move. This will enable better assessment of the market, risks and prices as well as offering plenty of financial flexibility and liquidity through futures and derivatives-based tools.

A cleaner footprint
It’s well known that Qatar’s economy is expanding at a massive pace. It remains a hugely wealthy country. But that wealth also impacts too, of course, on its carbon footprint, which is also rising as the country becomes more financially confident.

But Qatar is also a very big major exporter of liquefied natural gas (LNG), widely considered as clean energy. In fact, 25 percent of US and UK LNG energy is now supplied by Qatar. The country also holds the world’s third largest gas reserves after Russia and Iran. It’s highly likely it will increase its output in the future.

“Because Qatar is such a big producer of LNG,” says Hesham Al-Emadi, “that means we are actively replacing far more polluting energy sources. ECQ is also making much of use of its extensive water recycling facilities. “Most of our water is recycled or used for irrigation. A lot of our consumption is also minimal because it is just from office use, rather than residential use.”

Also, Qatar is spending billions of dollars on real estate projects in an effort to cut reliance on oil and gas income; currently this contributes to 60 percent of GDP and 66 percent of state revenues.

The countdown begins
So it’s clearly a tremendously exciting time for Qatar and ECQ. Vertical development is not yet complete – it is scheduled for next year – yet huge interest is already being expressed by major companies planning to install themselves in ECQ when it formally opens for business. It is almost inevitable that large players like Exxon Mobil and Shell will want to open their regional headquarters in the city, predicts Hesham Al-Emadi.

“We have developed a partnership with Microsoft and Cisco to design a state-of-the-art holistic technology project master plan,” he says. “We have also signed a contract with AT&T to design a new data centre. We want to provide the kind of facilities that companies increasingly need, not just now but well in the future.”

He adds: “We’re also working to develop an energy procurement and visualisation centre where companies can make use of very high tech oil and geological equipment. All this can be shared. This is really quite unique.”

Energy City Qatar in brief:
– Located north of Doha at Lusail, a new master development by Qatari Diar
– Consists of 92 plots on 720,000 square metres of land
– Launched in March 2006 at estimated value $2.6bn
– Target clients: upstream and downstream energy industry
– Aiming to be the World’s first fully LEED Certified Development – all buildings within the city will be designed with minimum Silver LEED Certification
– Qatari Diar is the property wing of Qatar’s sovereign wealth fund, Qatar Investment Authority
– Encompasses 1.2 square kilometres and employs as many as 20,000 people

Hesham Al-Emadi joined ECQ in 2006 and was appointed CEO in 2007. He has held a number of key positions in the energy industry and is an expert in energy research and investment.