Technip/Chiyoda : USD 4 Billion Contract in Qatar
TECHNIP / CHIYODA USD 4 BILLION CONTRACT IN QATAR
PRESS CONFERENCE December 16, 2004 I. THE NATURAL GAS MARKET
III. THE QATARGAS II PROJECT
2 I. THE NATURAL GAS MARKET
1. THE MARKET 2. A GEOGRAPHICAL IMBALANCE 3. THE GAS PATH: FROM PRODUCTION TO END-USE 4. NATURAL GAS EXPORTS
3 THE NATURAL GAS MARKET
Longer lasting reserves (60 years at current consumption rates) compared to oil reserves (40 years)
A more environmentally-friendly fossil fuel source than either oil or coal
Declining domestic production in OECD countries (primarily in the US and UK)
Economic expansion of large Asian countries (China, India) is leading to a strong increase in their gas demand
Gas reserves are primarily located in the Middle East and Russia
A growing geographical imbalance between supply and demand
4 A GEOGRAPHICAL IMBALANCE
30.3 20.1
5.1 21.7 4.2 29.4 40.8
7.8 13.4
7.7 7.8 2.6
4.14.2
% of global gas consumption by region
% of global gas reserves by region
Source: Oil & Gas Journal, 2004
5 THE GAS PATH: FROM PRODUCTION TO END-USE
Local Market ResidentialResidential
PowerPower StationsStations Pipeline PetrochemicalsPetrochemicals
Export LNG FertilizerFertilizer
FuelFuel (GTL)(GTL) GTL
6 NATURAL GAS EXPORTS
2003 Figures Primary Flows
132 Russia Europe 99 Canada US PIPELINE: 455 Bn M3 Norway 68 W. Europe
Algeria 33 W. Europe
Indonesia 35 Japan, Korea 28 Algeria W. Europe LNG: 169 Bn M3 23 Malaysia Japan, Korea 12 Trinidad US
7 II. LIQUEFIED NATURAL GAS (LNG)
1. THE LNG CHAIN 2. LNG MARKET TRENDS 3. EXISTING AND PLANNED LNG INSTALLATIONS (THROUGH 2012) 4. THE INCREASING CAPACITY OF LNG TRAINS
8 THE LNG CHAIN
NATURAL GAS GAS TREATMENT AND LIQUEFACTION PRODUCTION
REGASIFICATION
TRANSPORT: -160°C
9 LNG MARKET TRENDS
Today, global demand is ~ 150 million tons pa Between 2000 and 2030, LNG demand is expected to increase fivefold 2012 – LNG Demand 2012 – LNG Supply Brunei Rest of World 3% Indonesia
21% Venezuela 14% 11% Americas Malaysia 48% 3% 8% Trinidad Asia 7% 270 MTA 270 MTA Bolivia 2% 8% Australia 25% 11% Europe 10% 6% Qatar 4% 3% 10% Algeria 2% 2% Oman 2% India Egypt Russia Nigeria Eq. Guinea Angola Traditional Suppliers
Source: Shell Global Solutions New Suppliers Future Suppliers 10 EXISTING AND PLANNED LNG INSTALLATIONS (2004 – 2012)
PLANTS TERMINALS Existing SKIKDA – SONATRACH QATARGAS 2 – Exxon/QP – 2 Trains (7.8 Mtpa) 1 Train (~ 4 Mtpa) IS QATARGAS 3 – Phillips/QP – 2 Trains (7.8 Mtpa) RASGAS II – Exxon/QP - 2 Trains (7.8 Mtpa) Planned
NIOC LNG NIGEC / BG 2 Trains 2 (4.8 Mtpa) 8 10 23 4 4 ? ? 1 2 2 PARS 21 6 LNG 2 NIGEC / Total / Petronas 3 – 2 Trains 2 (5Mtpa)
1 3 GORGON 41 LNG Chevron- Texaco / BRASS LNG Shell / Phillips / NNPC/ Agip ANGOLA LNG IDKU (1 Train ) YEMEN LNG Exxon/Mobi – 2 Trains Chevron-Texaco and BG/Petronas/ GDF/ Total & partners - 2 l 1 Train (5 (5 Mtpa) partners - 1 Train (4 Mty) EGPC/EGAS Trains (3.6 Mtpa) Mtpa)
11 THE INCREASING CAPACITY OF LNG TRAINS
Train Capacity (MTA) Qatargas II
8
Trinidad Train 4 6 Egypt Rasgas Train 3
4 Rasgas Trains 1 & 2
2
0 1964 1972 1978 1982 1989 1997 1999 2003 2005 2006 2007 Beyond 2007
12 III. THE QATARGAS II PROJECT
1. OVERVIEW 2. THE PROJECT
13 THE WORLD’S LARGEST GAS FIELD
I R A N
South Pars
North Field SAUDI ARABIA
Persian Gulf QATAR
14 QATARGAS II: AN INTEGRATED PROJECT
The 4 key elements of the project:
Î Offshore platforms and associated conduits
Î An onshore gas treatment plant and LNG facility
Î LNG transport carriers
Î An LNG reception terminal in the UK
A major step in Qatar’s long-term plan to increase its LNG exports above 70 MPTA by 2010
15 QATARGAS II: TRAINS OF 7.8 MILLION TONS/YR EACH
Project located at Ras Laffan, Qatar
Client: Qatargas II (70% Qatar Petroleum, 30% ExxonMobil)
Contract value for LNG facility: USD 4 billion for both trains
Execution: Joint venture Technip / Chiyoda
Scheduled first delivery of LNG: January 2008
16 QATARGAS II: THE MAIN CHARACTERISTICS
LNG 15.6 MT/yr
GAS Condensates 3 30 Bn M /yr ~ 6 MT/yr
Propane / Butane 1.7 MT/yr
17 LOCATION OF QATARGAS II
18 QATARGAS II: PROJECT EXECUTION
Yokohama Project direction Paris & engineering of Engineering of off-sites LNG trains & associated utilities
PARIS
YOKOHAMA RAS LAFFAN
QATARGAS II Construction
19 EVOLUTION OF CONTRACT SIZE $ in Billions
4
3
2
1
1998 2002 2003 2004
Sincor OGD2 Bonny Island Dalia Qatargas II Trains 4 & 5 SURF + FPSO Trains 4 & 5
20