Qatar Energy Transmission and Distribution
Qatar forecasts an increase in demand for power and water due to the 2022 FIFA World Cup and the North Field Expansion project, which will increase Qatar’s liquefied natural gas production by 64 percent upon its completion in 2027. This increased demand has driven players in Qatar’s power and water industries to undertake significant expansion plans.
With no local competition, Qatar relies on imported, state-of-the-art technologies and solutions from global trading partners to meet its energy and water demands. U.S. technologies enjoy a strong reputation in Qatar in these sectors, and opportunities exist for U.S. firms in the power and water sectors as Qatar undergoes this expansion. Sub-sector areas with strong market potential include instrumentation and testing equipment, heat exchangers, valves, pumps, engine controls, energy storage, tanks, control switches, hydraulic hoses, couplers, and tools/accessories for utility and commercial uses, OEMs, and electrical contractors.
Qatar has two major players in the electrical and water utility sector: Kahramaa and QEWC. The Qatar General Electricity and Water Corporation, also known as Kahramaa, controls electricity distribution and transmission throughout the country and serves as the sole purchaser of electricity in Qatar. The Qatar Electricity and Water Company (QEWC) is a semi-public body that is the main supplier of electricity in Qatar and is responsible for adding new electricity-generating capacity. It is also one of the largest power generation and water desalination companies in the Middle East & North Africa. QEWC, with its foreign partners, owns and operates eight electricity generation and water desalination facilities in Qatar and QEWC has significant shares in other seven power plants.
Kahramaa has officially shortlisted five bidders for the Facility E independent water and power project (IWPP), which is scoped to generate 2.5 GW of power and 130 million imperial gallons per day (MIGD) of water by 2022-2023. Kahramaa has also signed a deal to expand its existing Facility D (IWPP) site. The expansion will increase water desalination capacity by 61.45 MIGD with a total capacity to 197.95 MIGD by 2021 by utilizing reverse osmosis technologies, thus improving efficiency and reducing gas usage.
Kahramaa has also begun the implementation of the $8.2 million advance metering infrastructure project, to be integrated with electricity and water meters throughout Qatar. In addition, Kahramaa has developed a smart grid roadmap in collaboration with Texas A&M Qatar Campus’s Engineering Experiment Station. Kahramaa aims to transform Qatar’s electrical grid with smart grid technologies by 2026 and convert all Kahramaa meters to smart technologies with fiber optics expected by 2022, creating opportunities for U.S. firms offering smart grid solutions.
The Qatar Electricity & Water Company (QEWC) plans to increase the desalination capacity by 61.5 MIGD at the Umm Al Houl Power Plant, which is one of the largest water desalination and power generation plants in the region. Another existing plant, Ras Abu Fontas (A), will be decommissioned from its current operations and upgraded. The power and water purchase agreement for this initiative is currently under development, and will include a production capacity of 2,300 MW of electricity and 100 MIGD of water. The first phase of the power generation segment is expected to be completed by 2022 and full completion of the entire project is slated for completion by the third quarter of 2023. There are a number of ongoing efforts to upgrade and expand the national electrical and water distribution networks and increase desalination capacity. Further power grid and generation projects are also underway.
The above-mentioned opportunities will require professional solutions in transmission and distribution technologies, renewable energy integration, and advance water treatment systems. U.S. companies offering electricity transmission and distribution technologies, as well as desalination and water technologies, to support network integration to the end-users should consider entering this market.
U.S. companies offering quality solutions for these opportunities should work with Golda Agnazata at the U.S. Commercial Service in Qatar to explore matchmaking, market research, and other assistance.
U.S. firms should regularly monitor Qatar Electricity and Water Company and Kahramaa for upcoming projects.
For more information contact Office.Doha@trade.gov.