TECHNIP / CHIYODA USD 4 BILLION CONTRACT IN QATAR PRESS CONFERENCE December 16, 2004 I. THE NATURAL GAS MARKET II. LIQUEFIED NATURAL GAS 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.