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…
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 Residential Residential Power Power Stations Stations Pipeline Petrochemicals Petrochemicals Export LNG Fertilizer Fertilizer Fuel Fuel (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…
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: -160C 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% 14% 11% Venezuela Americas…
III. THE QATARGAS II PROJECT 1. OVERVIEW 2. THE PROJECT 13
THE WORLDS LARGEST GAS FIELD IRAN South Pars North Field SAUDI ARABIA Persian Gulf QATAR 14
QATARGAS II: AN INTEGRATED PROJECT The 4 key elements of the project: Offshore platforms and associated conduits An onshore gas treatment plant and LNG facility LNG transport carriers An LNG reception terminal in the UK A…
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…
QATARGAS II: THE MAIN CHARACTERISTICS LNG 15.6 MT/yr GAS Condensates 30 Bn M3/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