Business Reporter

Al-Sobai ... says Woqod has increased its distribution capacity

A STEEP rise in the number of vehicles last year, half of which are trucks, caused a spurt in demand for diesel but Qatar Fuel Company (Woqod) says it has built two additional loading stations at Mesaieed and Ras Laffan to ensure smooth distribution.
Besides the increasing demand, traffic snarls and restrictions on the movement of heavy vehicles had its impact on the supply chain, according to top Woqod officials, who were responding to reports of shortage of diesel in Qatar.
The daily diesel consumption in the state is estimated at 32,000 barrels.
“The main reason (for the current problem) is the sudden increase in demand for petroleum products, especially diesel. There has been almost a four-time increase in the registration of vehicles in 2006,” Woqod vice chairman and managing director Mohamed Khalifa Turki al-Sobai said.
In 2006, about 84,000 vehicles, half of which were trucks, hit the road compared to 26,000 in the previous year, he said, adding “in 2007, we are expecting a 20% growth.”
Observing that 3,500 trucks came into the Qatari market last month alone, al-Sobai said: “We were almost at the edge and when they came we could not supply.”
The sudden increase affected the logistics from Woqod’s side, he said, adding “the multi-product pipeline, running from Mesaieed to Doha, carrying our products have reached the maximum limit.”
However, the official was not willing to term it as shortage saying “the guarded availability is there and the bottleneck is the pipeline, which is from Mesaieed to Doha.”
Stressing that works were underway to construct another pipeline by 2008 that would increase its capacity by more than two-and-a-half times, he said “as an interim solution we have just opened two loading stations in Mesaieed and Ras Laffan” besides the one existing in Doha.
The new loading station at Mesaieed would be able to cater to 20-25% of the present daily market demand and the one at Ras Laffan 15%, he said.
Asserting that Woqod has increased the (distribution) capacity by 50% (with the opening of two more loading stations), al-Sobai said it should solve the problem until the new pipeline came into operations.
Woqod is planning to have 13 more loading stations in the next two years and it will have 50 within the next five years. Its strategy is to have 10 stations a year.
Elaborating on its even distribution strategy, he said Woqod would be serving the country from three locations - Doha for the main city and surrounding as well as suburbs, Mesaieed for the south and west, and Ras Laffan for the northern part.
Woqod operations director Nasser Ibrahim Fakhroo said there were also problems related to traffic jams, road closure and stipulations on the movement of tankers during the day.
“If earlier a truck commits five loads, now it can hardly take two loads and this delayed the turnaround time,” he said.
The reported shortage of super petrol (Octane 97) was due to the pumping of diesel, which was crucial for Ras Laffan and big projects, al-Sobai said, adding all the products -– including diesel, petrol and aviation turbine fuel were supplied through the same pipeline.
Some vehicle owners had complained of “severe shortage” of super grade petrol in various dispensing outlets across Doha.
Al-Sobai asked the customers to report to them in case of any petrol station informing them of no stock.
On petrol stations, he said the focus was on Doha and needed support from the Urban Planning Department and other agencies, while it has also planned petrol stations along the highways for which it was waiting for the upgradation works to be over.