technip/chiyoda : usd 4 billion contract in qatar

TECHNIP / CHIYODAUSD 4 BILLION CONTRACT

IN QATAR

PRESS CONFERENCEDecember 16, 2004

2

I. THE NATURAL GAS MARKET

II. LIQUEFIED NATURAL GAS

III. THE QATARGAS II PROJECT

3

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

4

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

5

A GEOGRAPHICAL IMBALANCE

40.8

30.3

4.2

4.1

2.6

5.1

7.7

29.4

4.2

7.8

20.1

7.8

21.7

13.4

% of global gas consumption by region

% of global gas reserves by region

Source: Oil & Gas Journal, 2004

6

THE GAS PATH: FROM PRODUCTION TO END-USE

LNG

Pipeline

GTL

Power StationsPower Stations

Export

Local Market

PetrochemicalsPetrochemicals

FertilizerFertilizer

Fuel (GTL)Fuel (GTL)

ResidentialResidential

7

NATURAL GAS EXPORTS

Primary Flows2003 Figures

Russia Europe 132

PIPELINE: 455 Bn M3Canada US99

Norway W. 68 Europe

33Algeria W. Europe

Indonesia Japan, 35 Korea

LNG: 169 Bn M3

28Algeria W. Europe

Malaysia Japan, 23 Korea

Trinidad US12

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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

9

THE LNG CHAIN

REGASIFICATION

TRANSPORT: -160°C

GAS TREATMENT AND LIQUEFACTIONNATURAL GAS PRODUCTION

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LNG MARKET TRENDS

Today, global demand is ~ 150 million tons paBetween 2000 and 2030, LNG demand is expected to increase fivefold

11%

8%

8%

10%

4%10%

11%

2%7%

3%

14%

2%

3%

3%

2%2%

25%

21%

6%

48%

2012 – LNG Demand 2012 – LNG Supply

270 MTAAsia

Europe

India

Americas

Brunei

IndonesiaRest of World

Australia

Algeria

MalaysiaVenezuela

Egypt

Qatar

Bolivia

Trinidad

Nigeria

Oman

270 MTA

Eq. Guinea

Russia

Angola Traditional SuppliersNew SuppliersSource: Shell Global Solutions

Future Suppliers

11

2

4

2

3

26

3

2? ?8 23

410

2

EXISTING AND PLANNED LNG INSTALLATIONS (2004 – 2012)PLANTS TERMINALS

Existing

Planned

1

ANGOLA LNGChevron-Texaco and

partners - 1 Train (4 Mty)

1

SKIKDA – SONATRACH1 Train (~ 4 Mtpa) IS

1

IDKU (1 Train )BG/Petronas/ GDF/

EGPC/EGAS

2

YEMEN LNGTotal & partners - 2

Trains (3.6 Mtpa)

6

QATARGAS 2 – Exxon/QP – 2 Trains (7.8 Mtpa) QATARGAS 3 – Phillips/QP – 2 Trains (7.8 Mtpa)

RASGAS II – Exxon/QP - 2 Trains (7.8 Mtpa)

BRASS LNGPhillips / NNPC/ Agip

– 2 Trains(5 Mtpa)

2

1GORGON

LNGChevron-Texaco / Shell /

Exxon/Mobil 1 Train (5

Mtpa)

4

NIOC LNG

NIGEC / BG

2 Trains (4.8 Mtpa)

PARS LNG

NIGEC / Total /

Petronas– 2 Trains (5Mtpa)

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THE INCREASING CAPACITY OF LNG TRAINS

Train Capacity (MTA)

Egypt

Trinidad Train 4

Rasgas Trains 1 & 2

Rasgas Train 3

0

2

4

6

8

1964 1972 1978 1982 1989 1997 1999 2003 2005 2006

Qatargas II

2007 Beyond2007

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III. THE QATARGAS II PROJECT

1. OVERVIEW

2. THE PROJECT

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THE WORLD’S LARGEST GAS FIELD

QATAR

I R A N

Persian Gulf

North Field

South Pars

SAUDIARABIA

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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 major step in Qatar’s long-term plan to increase its LNG exports above 70 MPTA by 2010

16

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

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QATARGAS II: THE MAIN CHARACTERISTICS

LNG 15.6 MT/yr

30 Bn M3/yr

GASCondensates

~ 6 MT/yr

Propane / Butane 1.7 MT/yr

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LOCATION OF QATARGAS II

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QATARGAS II: PROJECT EXECUTION

YokohamaProject direction& engineering ofLNG trains

QATARGAS IIConstruction

YOKOHAMA

PARIS

RAS LAFFAN

Paris Engineering of off-sites& associated utilities

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EVOLUTION OF CONTRACT SIZE$ in Billions

1

2

3

4

1998 2002 2003 2004

Sincor OGD2 Bonny Island Trains 4 & 5

DaliaSURF + FPSO

Qatargas IITrains 4 & 5