The $1 billion Nebras Power Company is likely to begin commercial activities during the first half of 2014, according to the Qatar Electricity and Water Company (QEWC).Nebras Power is 60 percent-owned by publicly-traded QEWC, while Qatar Holding and Qatar Petroleum International, the foreign investment arm of the state energy company, each control 20 percent stakes.
Nebras will invest in power generation, water desalination, and cooling and heating projects, as well as facilities to fuel the overseas projects. QEWC General Manager Fahad al Mohannadi said on Wednesday that the company would immediately initiate the search for good investment opportunities regionally and globally. Nebras will develop a five-year plan effective from the first quarter of 2014. He said QEWC has two investment streams to invest in the electricity and water sector, one locally through QEWC and another internationally through Nebras Power.
Mohannadi said that QEWC had been achieving attractive returns from investments outside Qatar as a result of its focus on acquisition of good investment opportunities while avoiding investment risks. Qatar, the biggest liquefied natural gas producer, used hydrocarbon revenue to invest $60 billion a year abroad from 2008 through 2012, according to International Monetary Fund estimates. In May early this year, Mohannadi had said Nebras will invest in power and water projects in countries with as much as 8 percent growth in electricity demand a year, mainly in the Middle East and East Asia. QEWC will retain sole ownership of its current assets abroad, including a power plant in Jordan.
In July this year, Qatar Petroleum International (QPI) signed an agreement with Greek firm GEK TERNA to acquire a 25 percent stake in it’s Heron II Power Plant. The agreement was significant in that it kicked off QPI’s efforts in terms of investment in the power sector in the next two years. It was also the first time that a Qatari company had invested directly in a Greek energy asset.