Qatar Steel Company, a subsidiary of Industries Qatar, has signed a purchase agreement for oxygen and nitrogen for its plant at Mesaieed with Qatar Industrial Gases. QIG had signed a letter of intent with Qasco for a long term supply last year. Qasco has planned to set up new steel furnace using oxygen injection. These furnaces will require up to 170 tonnes a day of oxygen, which will be supplied by QIG. Supply is scheduled to commence in 2007.


QIG will also install a new air separation plant near Qasco’s existing plant ASP-2 for producing additional oxygen to meet the increased demand from Qasco after the implementation of ongoing expansion. QIG will supply 8400 N cum/hour oxygen and 600 N cum/hour nitrogen from the new plant and the ASP-2. The new plant will be commissioned within 18 months from date of signing the agreement. QIG will also supply nitrogen and oxygen to other consumers in and around Mesaieed from their ASP installation.

QIG is a $50 million JV of Qatar Petroleum & Qatar Nitrogen Company jointly holding 60% stake and French Air Liquide Middle East holding 40% stake.