JEDDAH, 5 April 2005 — The Qatar-based Al-Addiyar Real Estate Investment Company yesterday signed an agreement with Gulf Energy to develop an “Energy City” in Qatar that will raise the global stakes of Middle East’s energy sector, reshape the dynamics of its oil and gas business and expand its role in the management of resources.
Al-Addiyar Real Estate is a government of Qatar owned company with a capital of $1 billion and Gulf Energy is a global consortium of leading energy consultants, researchers and academics. Gulf Energy will evolve the marketing as well as technical strategy in cooperation with Al-Addiyar Real Estate to develop this landmark project.
Positioned as the first-ever integrated, energy hub in the region, the multibillion dollar Energy City, will significantly enhance the Gulf region’s ability to capture critical revenue streams from hydrocarbons, and act as a nucleus for the core elements of the vertical section of the Middle East’s oil and gas industry.
Commenting on the project, Nassser Hassan Al-Ansari, chief executive, Al-Addiyar Real Estate, said: “According to the master plan, the “Energy City”, will function as a nerve center of global oil and gas business in the Middle East, by attracting the biggest players in the hydrocarbon value chain. It will consolidate markets, R&D, technology, education, training and finance under one roof, promoting cooperation at both commercial and technical levels. The development will also offer opportunities for real estate investment in hotels, exhibition halls and malls.”
He said under the terms of the MoU, the construction of the project will begin in the third quarter of this year.
The project is a pioneering initiative that will take the Middle East much beyond its role of just controlling over half of the world’s oil and gas reserves. Energy City will place Qatar on the world energy map, joining the league of other key energy centers like Calgary, Singapore, Houston, Stavangar and Aberdeen.
“The Energy City will revolutionize the oil and gas sector in the Gulf. It will house an integrated complex where international and state-owned oil companies and service providers will base their operations. The Energy City will also integrate crucial asset classes such as hi-tech data, infrastructure, communications and advanced management,” Al-Ansari said.
He said that the Energy City will also have a shipping and trading component which can be housed anywhere in the Gulf and still be part of Energy City — thus reinforcing its regional character. It will host the Gulf Mercantile Exchange (GMEX), trading rooms, brokerage offices and base for shipping and logistics.
The intellectual and technology cluster will form the heart of Energy City. Its Core Research Lab and Data Center will form a crucial area comprising a main research laboratory linked to geology & geophysical analysis facility.
Al-Ansari said the Energy City will also offer the research center a research satellite.
An exclusive education & training center will be set up in collaboration with Imperial College, Texas, A&M and IFP, with regional affiliations.
The Service Industry Satellite will serve as a base for oil field services industry comprising drilling, service, EPC contractors, offshore suppliers and seismic companies. The Infrastructure and Downstream Satellite will serve downstream companies.