1. Overview:

Brief History

QAFAC was incorporated as a Qatari shareholding company in 1991 by way of Emiri Decree No. 20. It was formed as a joint venture for the construction and operation of a methanol and MTBE production facility.

In 2003, with the approval of QAFAC’s shareholders, QP transferred all of its shares in QAFAC to IQ by way of a Share Transfer Agreement.

Ownership

Currently, QAFAC is owned by IQ [50%], OPIC Middle East Corporation owning [20%], International Octane Limited [15%] and LCY Middle East Corporation [15%].

2. Recent Performance: (Full Share)

Balance Sheet

Profit & Loss Account

[Figures are full share of the company]

3. Main Products:

Methanol

QAFAC Methanol is produced from natural gas provided by QP, via steam reforming and methanol synthesis. Methyl Alcohol, Wood Spirit, Wood Alcohol and Carbinol are other names for Methanol. It is also called Colombian Spirit.

Methanol is a clear, colourless, flammable liquid with a characteristic odour. It is a clean energy source, as well as a raw material for some of the everyday items we use.

Within the Petrochemical industry, it is used as a raw material for the manufacturing of Solvents, Formaldehyde, Methyl Halide, Methyl Amine, Acetic Acid, Ethyl Alcohol, Acetic Anhydride, DME and MTBE.

Methyl Tertiary-Butyl-Ether (“MTBE”)

MTBE is produced by processing butane and methanol. The methanol is provided by the on-site Methanol plant and QP provides the field butane.

MTBE is a colourless, flammable liquid with a characteristic odour and has an average octane number of 108. Therefore, it is used as a gasoline additive that provides clean burning fuel to reduce the tail gas pollution generated by motor vehicles, and at the same time, it eliminates the need for Tetra Ethyl Lead blending the gasoline. QAFAC MTBE is also being used by QP Refinery to replace lead in the gasoline being marketed in Qatar.

4. Markets:

The primary markets for the company are the Far East, Europe and the Gulf region.