Qatar’s Global LNG Strategy: “A New Era in LNG Marketing”
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Click to edit Master title style Click to edit Master subtitle style Qatar’s Global LNG Strategy: “A New Era in LNG Marketing” GasTech 2005 Bilbao, Spain – 14 th March 2005 by Ali Al Hammadi Chief Operating Officer Commercial & Shipping Qatar Liquefied Gas Co.
Transcript of Qatar’s Global LNG Strategy: “A New Era in LNG Marketing”
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Qatar’s Global LNG Strategy: “A New Era in LNG Marketing”
GasTech 2005Bilbao, Spain – 14th March 2005
by Ali Al HammadiChief Operating Officer Commercial & Shipping Qatar Liquefied Gas Co.
Qatargas II Project: The Full Value Chain
Qatargas II Project Chronology
• June 2002 – Qatar Petroleum and ExxonMobil sign HOA for 15.6 MTA LNG
– “Full Value Chain” Concept
– $12+B venture into the Liquid UK Market
• 2003 – Launched FEEDS, ordered long-lead equipment
• 2004
– Began drilling, issued tenders and awarded EPC contracts
– Ordered first 8 – 200+km3 ships
– Closed financing on two 7.8 MTA Trains, 15.6 MTA Terminal
• Winter 2007 / 2008 – First gas sales in UK
GasSupply
GasLiquefaction
LNGShipping
LNGRegasification
Gas LNG LNG Gas to
Pipeline
Ras Laffan
Doha
QGII Gas Supply – The Giant North Field
• World’s largest non-associated gas field
• Over 900 TCF of recoverable gas reserves
• Offshore production of 2.8 BCFD
• 30 wells
• 3 offshore platforms
• 2 – 100 km pipelines (one 36” & one 34”)
North Field
State of Qatar
Ensco 54 on Location
QGII Gas Liquefaction
The Worlds Largest LNG / LPG Trains
Scope
• 2 – 7.8 MTA APCI Trains
• 15.6 MTA LNG
• 100 kbd Condensate
• 55 kBD LPG
• ~1500 MT/day Sulfur
Technology Step-outs
• 7.8 MTA lean LNG Trains
• Use of GE Frame 9 Turbines
2.2
3.3
4.8
7.8
0
1
2
3
4
5
6
7
8
1997 1999 2004 2007
Qatar Large Train DevelopmentMTA
210 km3 LNG Tanker315m length x 50m beam x 27m depth
138 km3 LNG Tanker266m length x 42.7m beam x 26.3m depth
QGII South Hook LNG Terminal
X
ExxonMobilMilford
X
South Hook Terminal
X
Qatargas II – UK Market
• Deepwater Port in Milford Haven
• Large LNG Ships (200+km3)
• 2 Berths
• 15.6 MTA Regas (2.1 BCFD)
• 5 - 155km3 Storage Tanks
• Requires 130 km Transco Tie-In
• First delivery – Winter 2007/08
UK Market Opportunities – “A Turning Point for LNG”
Innovative Solutions
• Economies of Scale
• Large Train Technology (7.8MTA)
• Large Ship Technology (200-250km3)
• New Business Model
• Pro-Active Marketing
• Innovative Commercial Arrangements
• Flexible Diversion Mechanism
• Strategic Partners as Customers
• Shareholder Commitments
Challenge
Strong Competition
Distance to Market
Liquid Market Price
& Volume Risk
UK Market Opportunities – “A Turning Point for LNG”
Innovative Solutions
• Economies of Scale
• Large Train Technology (7.8MTA)
• Large Ship Technology (200-250km3)
• New Business Model
• Pro-Active Marketing
• Innovative Commercial Arrangements
• Flexible Diversion Mechanism
• Strategic Partners as Customers
• Shareholder Commitments
Challenge
Strong Competition
Distance to Market
Liquid Market Price
& Volume Risk
QGII Financing – “A Turning Point for LNG”
UK Market Financing
• $12+B Project – Set new benchmarks for Size, Pricing, Terms & Structure
+ 1st LNG Project Financed for an Integrated Value Chain based solely on
a Liquid Market
+ Largest Project Financing ever (outside Transportation Infrastructure)
+ Unprecedented operational flexibility and expansion terms
• $6.5 B Raised in Project Financing for Qatargas II
+ 36 Banks, 6 Islamic Institutions, US Exim, ExxonMobil
• £600M Raised for South Hook LNG Terminal Company Ltd.
+ 12 Banks and ExxonMobil
Awards
+ Project Finance International Gas Deal of the Year
+ Euromoney Middle East Oil & Gas Deal of the Year
