By Andy Sambidge
Gulf state forecast to more than double spend to feed its massive economic expansion
Qatar is forecast to spend more than $20bn on power generation and water desalination over the next 10 years to feed the Gulf state’s massive economic expansion.
A report by Beltone Financial, cited by Qatar daily Gulf Times on Friday, showed Qatar's spending on utilities is set to double the $10bn spent in the last decade.
"The hosting of the FIFA 2022 World Cup means that significant investments in infrastructure (transportation networks, roads, hotels, airport and other facilities) will be needed,” Beltone Financial said.
While the country boasts one of the highest per capita consumption rates of electricity in the world, Beltone Financial said it believes that demand will continue to grow.
“Going forward, expectations are that electricity demand will continue to grow by at least 10 percent per annum for the next five to seven years and, subsequently, at around 4 percent per annum until 2030,” Beltone Financial said.
Qatar’s electricity supply and consumption grew at double digit rates over the past decade in line with the growth in demand, it added.
With the completion of the Ras Girtas plant in April 2011, Qatar’s electricity capacity now stands at 8,756MW.
The Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada, said recently that Qatar now has a surplus of at least 2,500MW, which can be exported to neighbouring GCC countries through the “interconnection grid”.
The report said water demand is forecast to continue growing at 11 percent annually for the next five to seven years.
Qatar’s total water desalination capacity now stands at 327 million imperial gallons per day, Beltone Financial said.
Desalinated water represents the GCC’s main source of water, given the scarce water resources in the peninsula.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.