Q-Energy puts its 2008 projects on the back burner
Q-Energy has been forced to delay its planned new projects because of the global economic slowdown, a senior official has revealed.
All the projects announced last year have been shelved but will be revived later this year as the injection of financial aid by the government stimulates the economy and the demand for energy rises in line with the capital's increasing population.
Q-Energy, a joint venture between Abu Dhabi's Al Qudra and Dubai's Lootah BC Gas, is involved in the power and engineering, procurement and construction (EPC) sectors with a prime focus on gas utility services.
"The company has been affected by the ongoing global economic crises," Managing Director Dan Danesh told Emirates Business. "These circumstances have caused us to delay our projects.
"We are a part of this world, and like everyone we have been affected. There has been an impact on our business and projects have been delayed. It is not only our projects that have been delayed, others have had to do the same."
However, Danesh said business had picked up over the past three or four months.
"Demand for natural gas distribution has picked up, and as the leader in this business for 12 years, Q-Energy is in a prime position. We are able to capitalise on that and provide expertise to the local market. Gas distribution is the key area. Our model is to give a reliable, good and economical service but above all we have to ensure that a system is safe.
"We have established a complete operational maintenance service with 24/7 response for the projects that we implement – and that is very important, particularly to ensure safety and good service. We are pleased to have participated in the growth of the business in the UAE and look forward to starting many more projects."
Danesh said Q-Energy had projects on Abu Dhabi's Yas, Reem and Sadiyaat islands as well on the mainland and at a number of new developments in Dubai, including The Palm Jumeirah and Discovery Gardens.
"We work on projects with Abu Dhabi Gas Industries (Gasco), which is responsible for gas distribution in the emirate. We have a major stake in the country's energy sector worth up to Dh2 billion.
"We have lots of projects in the pipeline, but in terms of regional projects I don't think any of mega size are yet to be announced. However, the gas distribution project for the entire emirate of Abu Dhabi is yet to be built."
The company has expanded beyond its twin bases of Abu Dhabi and Dubai.
"We also operate in East Africa – in Tanzania, Ethiopia and Sudan. In Tanzania, we are involved in laying pipelines to take gas to industrial complexes from the main supply sources."
He said Q-Energy had a $10 million (Dh37m) stake in the Tanzanian project and its investment was set to grow as the company serviced the growing demand for energy.
"We started this project six years ago and it is still ongoing. The country has a great need for energy as it is at present able to supply only 60 per cent demand.
"The country has gas but needs people like us to deliver it. Our role is to take the gas from the owners to the consumers and users. We are facilitators and play a big role in that country. We are primarily an EPC contractor and our contract keeps expanding.
"We are active in India and have had a number of partnerships there. We are working with government authorities there. We also operate in Canada."
Follow Emirates 24|7 on Google News.