Qafco
Qafco
Qafco
40 YE A R S O F PR O D U C T I O N
His Highness His Highness
Sheikh Tamim Bin Hamad Al-Thani Sheikh Hamad Bin Khalifa Al-Thani
Emir of the State of Qatar Father Emir
Mr. Hamad R. Al-Nuaimi Mr. Jorgen Ole Haslestad Mr. Nasser J. Al-Kuwari
Director Director Director
1. Business Policy 10
Vision
Mission
Objectives
2. Qatar Fertiliser Company 11
Introduction
Historical Milestones
Products
3. QAFCO Downstream 15
Gulf Formaldehyde Company
Qatar Melamine Company
4. Chairman’s Message 17
5. Management Report 19
Production
Shutdown
Plant Maintenance
Human Resources
YEARS
QAFCO Management Systems
Quality
o f e c o - f r i e n d ly
Safety
o p erat i o n s
Environment
Projects
Major Events
6. Independent Auditors’ Report 31
Our Mission
We shall operate the plants Efficiently, Safely and in an Environmentally Responsible manner to Produce and Dispatch Ammonia, Urea, Urea
Formaldehyde and Melamine at the Quality required by Customers and to carry out investments to Maximize Shareholders Returns.
Our Vision
Maintain QAFCO as the largest Quality Ammonia and Urea Producer.
Satisfy QAFCO’s Need for Urea Formaldehyde.
Quality Melamine Producer.
The shareholders and their shareholding interests in the Company are as follows:
WE ARE COMMITTED THROUGH OUR Name of the shareholder Country of incorporation Interests
Comply with all relevant Qatari Legislations, Regulations and
OCCUPATIONAL HEALTH & SAFETY, Standards adopted by the Company. Industries Qatar (IQ) Qatar 75%
ENVIRONMENTAL, QUALITY AND Yara Nederland BV Netherlands 25%
RESPONSIBLE CARE INTEGRATED Communicate this Policy and systems performance measures
to our employees, contractors and other stakeholders including
MANAGEMENT SYSTEMS TO: public and make it available to them and other interested
IQ is the immediate parent of the Company, which is a 70% owned subsidiary of Qatar Petroleum (QP). Thus QP is the ultimate parent of the
Company.
parties.
Lead QAFCO in ethical ways that increase the benefits to
society by protecting our employees, environment and QAFCO’s inception in 1969 as a joint venture company to produce chemical fertilisers was the first and a significant step in Qatar’s industrial
Monitor, study, assess for significance and record the
community. diversification program to utilize its abundant natural gas resources. Since then QAFCO has steered its way successfully, responding adequately
environmental impacts of our operations for possible
reductions. to the world market demand for fertiliser and living up to the expectations of its shareholders, IQ and Yara.
Increase the competency of personnel and use of technology
to enhance Customers Satisfaction, environmental, safety, QAFCO inaugurated its first plant in 1973 with a design capacity of 900 tons of Ammonia and 1000 tons of Urea daily. Presently QAFCO
Encourage re-use and recycling and manage our solid waste
health and security performance. complex comprises five completely integrated trains: QAFCO-1 (1973), QAFCO-2 (1979), QAFCO-3 (1997), QAFCO-4 (2004), QAFCO-5
to reduce environmental impacts.
(2011) and QAFCO-6 (2012). Each train is made up of two units, one for production of Ammonia, and the other for Urea.
Prevent pollution and control operational and security risks Conduct regular reviews of relevant Occupational Health,
in order to protect the environment, the safety and health of our Safety, Security, Environmental, Quality and Responsible Care
employees, contractors, visitors, neighbors and the community. activities for compliance with the adopted Standards.
Through scientific strategic plans and integration of the latest technologies, QAFCO has
Steward our products and services through each life cycle
stages in order to protect people and the environment.
Open information, communication and sharing of experience developed steadily, over the years, in terms of nameplate capacity, production quantities,
with all parties affected by or interested in our activities on
safe use, transportation and disposition of our products quality and competitiveness of products and become one of the main producers and
Implement Occupational Health & Safety, Environmental, and to recognize, respect and respond to our community
Quality and Responsible Care Integrated Management Systems concerns about our products and operations. exporters of ammonia and urea in the world. Today, Qatar, after the inauguration of the
as a prime line responsibility at all levels of our organization and
continually improve their performance and effectiveness. Work with Government, Agencies and Associations at all
sixth Urea facility at QAFCO, is the 4th largest Urea producer in the world with an export
Involve and consult our employees on matters related to our
levels in the development of effective and efficient health, market extending to more than 35 countries across the continents. Qatar is poised to be
safety, security, environmental laws and in industry standards
Integrated Management Systems. and supporting research. the largest Urea exporter in the world.
Our products
Ammonia
Urea – Prilled and Granular
Urea Formaldehyde
Melamine
Ammonia
Ammonia is a chemical compound made of Nitrogen 82% and Hydrogen 18%. It is produced using Natural gas as the main feedstock. The other
feeds required are Steam and Air. These feed materials undergo a series of reactions in the ammonia plant, before Ammonia is produced in
gaseous form. This is turned into liquid under pressure and cooling down. Ammonia is stored at a temperature of minus 33 deg centigrade in a
specially refrigerated Ammonia storage tank.
g reat er h ar v es t s
Urea Formaldehyde Condensate
UFC-85 is a viscous liquid containing 60% Formaldehyde, 25% Urea and balance water. Formaldehyde is first produced by the reaction of
Methanol with air. This is then absorbed in Urea solution to form UFC-85. Urea Formaldehyde Condensate (UFC-85) is an additive, which is
added to the Urea product to improve its strength. UFC-85 is used as an anti-caking agent for the Urea.
Melamine
Melamine is used in the synthesis of Melamine Formaldehyde (“MF”) and Melamine Urea Formaldehyde (“MUF”) resins, which are used mainly
for laminates, wood adhesives, surface coating, paper, textile treatment and for molding compounds.
QAFCO Downstream
The Shareholders and their shareholding interests in the company are as follows:
YEARS
Qatar Industrial Manufacturing Company 20%
United Development Company 10%
o f g reat s o c i a l
commitment
In 2013, we completed 40 years of production. The forty years saw QAFCO’s Ammonia and Urea
manufacturing capability increasing from a mere 900 MT/day and 1000 MT/day respectively
to 9300 MT/day of Ammonia and 14,900 MT/day of Urea. It is a phenomenal achievement as
QAFCO became the largest single site producer of Ammonia and Urea in the world.
In the meantime, QAFCO also diversified into producing Urea Formaldehyde, Melamine
and Aqueous Ammonia. QAFCO has built the capacities to produce 60,000 MT of Urea
Formaldehyde, 60, 000 MT of Melamine annually. Our diversification into Aqueous Ammonia,
a highly effective agent in reducing NOx emissions complements QAFCO’s strong commitment
towards protecting the environment.
In the year 2013, QAFCO produced 3.6 million MT of Ammonia and 5.5 million MT of Urea.
Melamine production for the year touched 60,523 MT in response to market demands. En route,
to these excellent figures, QAFCO had some remarkable achievements as well. On the 27th
December 2013, QAFCO produced 10,665.7 MTPD and 16,670 MTPD of Ammonia and Urea
respectively – a production history. Meanwhile, Urea Formaldehyde and Melamine production
was at 59172 MT and 60523 MT respectively.
On the sales front, Ammonia sales volume stood at 615,000 MT, as compared to 683,000 MT
last year. Meanwhile, 5.4 million MT of Urea was sold in the year 2013 as compared to 4.2
million MT in 2012.
The profits stood at 3.9 billion Qatari Riyals. The profits were slightly offset compared to 2012
due to negative sales price of Urea in the international markets.
We maintained our reputation of being one of the most environmentally responsible plant
operators in the world. Our safety performance was satisfactory.
On the Qatarisation front, QAFCO continues to work on its efforts to meet the targets set by
Qatar Petroleum. Focus has been on to attract Qatari nationals and train and develop them to
take up leading technical and non-technical positions in QAFCO.
To conclude, I am happy to note that we scrupulously moving towards achieving the vision of His
Highness Sheikh Tamim Bin Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar. I am grateful
to the guidance given by HE Dr. Mohammad Bin Saleh Al Sada, Minister of Energy and Industry
and the QAFCO board. I express my gratitude towards Industries Qatar, Yara Nederland and
QAFCO Management and staff who worked hard towards QAFCO achieving its potential.
Records 2013:
ACHIEVEMENTS
Highest ever daily Ammonia production in QAFCO
During the year 2013 due to excellent production performance of
achieved on 27th December 2013: 10,665.7 MT
all the plants QAFCO achieved new records of Ammonia and Urea
Highest ever daily Urea production in QAFCO
production. Apart from production performance, the following have
achieved on 27th December 2013: 16,670.8 MT
been achieved:
QAFCO-5 & 6 plants have been certified for Integrated
Ammonia Management Systems.
QAFCO operates six ammonia plants with a combined production Urea-5 plant has achieved first TWO million ton of Urea
YEARS
capacity of 3.8 million MT per annum at its existing facility (QAFCO production while Ammonia-5, Ammonia-6 and Urea-6 have
1 to 6) in Mesaieed, Qatar. In the year under review, QAFCO achieved first ONE million tons production mark.
QAFCO has touched its own record many times during 2013
o f f r u i t f u l i n i t i at i v es produced 3,641,331MT, the highest volume in its production
history. Of the total production this year 3,042,026 MT was utilized by loading 5 ships simultaneously. This record was created during
in QAFCO for the production of Urea, Aqueous Ammonia and 2012
Melamine. Achieved Highest Yearly Export - Urea: 5.45 Million MT and
Melamine: 59,500 MT
Ammonia & Urea production in the last five years Achieved Maximum number of shipments in one year: 217
ships
Ammonia 2
Urea 4
Urea 2
Scholarship Programs
The Company has identified Highl Flyers with excellent Quality is our choice
performance/academic record and approved Scholarship/ To maintain and improve the high quality of products, QAFCO
Sponsorship Programs to pursue Academic Studies locally and implements a stringent quality management program facilitated by
abroad, as part of their Career Path progression. Brief statistics real time monitoring and measurement of production processes
are given below: from the incoming raw material to the distribution of final products
as well as by sophisticated laboratory analysis at various stages
Safety Training
Various trainings were conducted by safety staff with the aim MAJOR EVENTS IN 2013
of increasing the Safety awareness among the employees and
contractors and monitored every operation to ensure the intended Helmet Awareness Campaign
QP Environment Fair
results. QAFCO participated in the 3-day QP Environment Fair that was
In order to stress on the importance of helmets in an industrial set
held at the Doha Exhibition Center in April 2013. This event is a
up, a Safety Helmet Awareness Campaign was conducted in the
unique medium provided by QP to all the industries to showcase
month of March. The campaign was well appreciated.
and present their environmental achievement and initiatives to the
community. The event also serves as a medium for addressing
environmental topics with different entities.
Initiatives
In January 2013, Ministry of Education and Qatar University officials
visited QAFCO to carry out water sampling for Radioactivity and
Mercury in the canal between QAFCO and QAPCO.
As an essential part of its social responsibility Qatar Fertiliser effectively sponsored the participation of a number of professors QAFCO plays at different social levels, citing the show as one of its
Company (QAFCO) is keen to actively strengthen the relationship and students from Qatar universities and Texas in this convention; important tools to involve community members in various cultural
between the company and the community to which it belong and as QAFCO invited two professors and 18 students from the and social activities.
operate with. Accordingly QAFCO assumes significant roles in Engineering and Business Administration colleges of Qatar
sponsoring social, cultural, environmental, educational and sport University and Texas University in Qatar to attend this
events and activities held in or hosted by the State of Qatar. convention.
QAFCO Texas A&M conference. With this initiative QAFCO has stepped on to a new phase in
On 10 January 2013 Texas A&M University at Qatar hosted the educating the youth and developing their skills by introducing
sixth installment of the annual QAFCO-Texas A&M at Qatar them to the specialized conferences, a step that increases the
Chemistry Conference 2013 at the University’s Engineering Qatari youth’s scientific and practical qualification in order that
Building at the Education City campus. The conference explored they will become the ideal choice for employment in both public
QAFCO Flower and Vegetable Show
green chemistry and its application to environmental challenges as and private sectors, which is QAFCO’s vision.
2013
its main focus. The conference featured an impressive technical HE Minister of Energy and Industry Dr. Mohammed Bin Saleh QAFCO celebrates National Sport Day
program and sessions showcased opinions and research from Al-Sada inaugurated QAFCO Flower & Vegetable Show 2013 As part of its social responsibility towards the community
at Al-Banush Club in Mesaieed. The one-day event attracted a and its belief in the importance of sports for a sound body and
huge crowd of participants and visitors from all sections of society mind, QAFCO on the occasion of the second anniversary
including professionals from hotels and nurseries, amateurs and of Qatar National Sport Day (QNSD), stitched a busy
school students involving in floral arrangements, vegetable and
fruit carving, cake and candy decorating, etc. HE Dr. Mohammed
Bin Saleh Al-Sada, Minister of Energy and Industry hailed the
Flower and Vegetable Show and said, “It has an important role
in promoting environmental awareness amongst all sections of
QAFCO Day
QAFCO Annual Day 2013 was celebrated at the newly renovated
Al-Banush Club in a spectacular fashion. QAFCO Day is an
annual get-together function held in January every year, for the
Company’s management and staff. QAFCO CEO Mr. Khalifa
Al-Sowaidi presented the Company’s achievements in 2012
and outlined plans and objectives for the year 2013. He also
24th QAFCO Open Tennis Championship QAFCO sponsored the “Made in Qatar”
The 24th edition of QAFCO Open Tennis Championship was held Exhibition 2013
with more than 350 players competing in over 400 games over a QAFCO sponsored the “Made in Qatar” exhibition organized at the
period of three weeks. The event, which concluded on November Doha International Exhibition Center. The exhibition symbolizes the
15, 2013 was attended by many tennis enthusiasts from Qatar. Qatar National Vision 2030 of diversifying of country’s economy Into a promising future
QAFCO Open has been a fertile ground for many budding talents from the traditional sectors of oil and gas and expanding it sources QAFCO has been contributing towards realising the vision of
who made their names at the national circuits. of generating national income. QAFCO participated as ‘Gold HH Sheikh Tamim Bin Hamad Al-Thani, Emir of the State
Sponsor’ to the “Made in Qatar” exhibition. of Qatar with its high standards of production and operations. I
take this opportunity to thank HE Dr. Mohammed Saleh Al Sada,
the Minister of Energy and Industry and the QAFCO Board who
QAFCO’s 2012 Sustainability Report achieves GRI’s A+ level
have been giving guidance throughout the year. I am grateful to
QAFCO published its 2012 Sustainability Report, which has achieved the A+ level, the highest according to the guidelines set by the Global QAFCO’s Board of Directors, Management and all employees,
Reporting Initiative (GRI), the world’s most recognized standard for reporting economic, environmental and social sustainability. For its 2012 with whom I look forward to yet another promising year.
Report, QAFCO adopted the most updated version of the GRI reporting guidelines (G3.1).
Speaking on the occasion, Mr. Khalifa Al Sowaidi, QAFCO CEO and Vice- chairman said, “In our second sustainability report, we reassert our
commitment to the principles of Global Compact as we focus on our new initiatives in the field of community engagement, employee relations,
safe workplace and progress on the environmental front. We see this as an opportunity to share our experiences in our journey towards
becoming a sustainable organization.”
Khalifa Abdulla Al Sowaidi
In 2013, QAFCO was the runner-up among organizations with more than 500 employees under the SDIR Programme Awards. The awards
Vice-Chairman and Chief Executive Officer
were developed by QP’s HSE Regulations and Enforcement Directorate over the past three years to recognize high-quality sustainability
reporting and performance.