Deli 2 ver 0 ing 0 ene 8 rgy to the world

Transcription

1 Delivering 2008 Energy to the world

2 Table of Contents A Message from the chief executive officer... 1 Safety Is Our Top Priority... 3 Current Operations: Offshore... 5 Current Operations: Onshore... 7 Qatargas 2: The First Integrated LNG Project... 9 QatarGas 3: Economies of Scale QatarGas 4: Economies of Scale A New Generation of LNG Ships Customers and Markets Laffan Refinery Facts and Figures... 21

3 A Message From the Chief Executive Officer Natural gas is increasingly becoming the fuel of choice for customers around the world due to its clean-burning and lower emission qualities. As leaders in Liquefied Natural Gas (LNG), Qatargas is proud to deliver one of Qatar s most precious and important natural resources to the world. Along with our advances in onshore LNG facilities, Qatargas is pioneering the development of two new classes of LNG tankers. The Q-Max and Q-Flex LNG tankers currently under construction will have a cargo capacity 60 percent larger than the current LNG fleet. Our Laffan Refinery under construction will be one of the largest condensate refineries in the world when completed. Qatargas is moving forward to position Qatar as the world leader in LNG. By the end of the decade we will be exporting LNG, Condensate, and Sulfur to every corner of the globe. Our Qatargas 2 project is the world s first fully integrated value chain LNG venture. It and our Qatargas 3 and Qatargas 4 projects are using the same proprietary technology to achieve economies of scale and integration that put Qatargas ahead of its competitors. Mr. Faisal M. Al Suwaidi Although our world leading projects are ambitious, we remain focused on our goal. A goal matched by our commitment that every customer will be completely satisfied with our products and services. We are Qatargas. And we are delivering energy to the world. 1

4 Safety Is Our Top Priority At Qatargas safety is our top priority and a core value. We are committed to the safety of our employees, our contractors and the public. Some of the initiatives include: Development of an Electronic Permit to Work system. Safe Equipment Isolation and Simultaneous Operations policies. The Company s Incident & Injury Free (IIF) program introduced in 2002 has seen over 23,000 employees and project contractors trained in safety concepts and practices that state everyone has a right and responsibility to speak up to correct an unsafe situation. The program is endorsed and supported by the company s management team and is designed to encourage positive safety behaviour both in and outside of worksites. Introduction of Contractor Safety Management System and integration of contractors into safety programs and culture. Updated process for Job safety analysis, toolbox talks and TapRooT accident investigation model. Introduction of newer, more stringent requirements for personal protective clothing for employees and contractors. Community HSE awareness programs. As part of the commitment to safety a special senior management committee was established with direct oversight for the Safety, Health, Environment and Quality programs of the company. This committee, chaired by the Chief Executive Officer, has overseen the implementation of a number of specially designed safety initiatives. The program of initiatives and change has driven and continues to drive a change in people s attitude and behaviour towards safety in all aspects of their work. This change is also reflected in our safety statistics of existing operations of four years without a Lost Time Injury (LTI) onshore and five years without an LTI in our offshore operations. 3

5 Current Operations OFFSHORE Qatargas Operating Company Limited operates the existing trains and facilities on behalf of the Qatargas 1 shareholders. In the future, the Operating Company will operate all of the assets of the current expansion projects. North Field Bravo is the heart of the production, separation and treatment offshore facilities complex. Commissioned in 1996, the main Qatargas offshore facilities include living quarters, two production facilities platforms, three wellhead platforms (two of which are located adjacent to the production facilities) and one Qatargas offshore operations are located approximately remote platform located about five kilometres away. 80 kilometres northeast of Qatar s mainland. Processed gas is transferred to shore with the associated Twenty-two production wells have been drilled and completed to supply over 1,650 million standard cubic feet (45 million cubic condensate via a single 32 inch subsea pipeline, where it becomes the feedstock for the onshore LNG plant. metres) of raw natural gas per day from the field s reservoir, underneath the seabed, to the existing Qatargas 1 trains. 5

6 CURRENT OPERATIONS ONSHORE Qatargas onshore operations occupy a site within Ras Laffan Industrial City on a plot of land 3.7 square kilometres in area. The plant consists of three trains to process the natural gas into the export product known as LNG. The current capacity of the trains fractionated into liquefied processed gas and plant condensate. The cryogenic main heat exchanger in each train then cools the gas to about minus 150 degrees Celsius through a mixed refrigerant system, liquefying it in the process. is 10 million tonnes per annum of LNG. Finally, as the pressure is reduced to almost zero, temperature The first step on the onshore facilities is the separation of condensate from gas. The separated condensate is stabilized and sent to storage to await export. decreases to minus 162 degrees Celsius, nitrogen is removed, and LNG is then piped to one of four storage tanks, prior to being loaded into ships. The gas then flows to the three identical liquefaction trains for processing into LNG. During the first phase of this process, sulfur compounds, carbon dioxide and water are removed in stages. Each of the four LNG tanks has one-metre thick concrete wall with a fully insulated inner-steel lining to maintain the LNG at minus 160 degrees Celsius (minus 260 degrees Fahrenheit). The capacity of each tank is 85,000 cubic metres and the The gas is then chilled using propane and mixed refrigeration processes. The heavy hydrocarbons are separated out and combined capacity of the four tanks is equivalent to about five days of plant production. 7

7 QatarGas 2 The First Integrated LNG Project The Qatargas 2 project is the world s first fully integrated value chain LNG venture. It involves the development of two world class LNG trains each with a capacity of 7.8 million tones per annum (mtpa) of LNG and The engineering, procurement and construction by the joint venture of Japan s Chiyoda and the French company Technip is on track for the first of the new trains to be up and running in mtpa Liquefied Petroleum Gas (LPG), condensate production of 90,000 bpd, three storage tanks, power utilities and water injection systems, a fleet of 14 ships and a receiving terminal. As part of the total expansion of Ras Laffan capacity, Qatargas 2 is also leading the construction of facilities for expanded LNG storage and loading, including eight 145,000 cubic metre tanks and three LNG berths, The project started with the drilling of 30 wells and installation of three new platforms in Qatar s North Field. The offshore platforms constructed in the United Arab Emirates by NPCC will be unmanned and the jackets a 12,000 tonne/day common sulfur system serving all Ras Laffan ventures and an export pipeline and mooring buoy for loading condensate ships some 55 kilometres offshore. are in place. The platforms will produce 2.9 billion cubic feet of gas per day. Total production will be piped to shore via two wet-gas pipelines. Once the gas is processed and made into LNG, it will be loaded and shipped in specially designed and built fleet of ships to markets in the Once ashore the mega-train processing is based on the Air Product s United Kingdom, United States and Europe. proprietary APX process technology. The use of this technology allowed Qatargas to achieve a fundamental milestone for the LNG industry by increasing the size of the trains to a record new level of 7.8 mtpa for each train. 9 Upon arrival in the United Kingdom, the LNG will be off-loaded into a purpose built terminal at Milford Haven, Wales. Once linked to the national pipeline grid the Qatargas 2 project will be capable of supplying up to 20 percent of the UK s natural gas needs.

8 QatarGas 3 Economies of Scale The Qatargas 3 project involves the construction of a new LNG train with a capacity of 7.8 million tonnes per annum. Once feet of gas per day, delivering LNG and substantial volumes of condensate and LPG. completed this will be the sixth Qatargas train. Qatargas 3 utilizes the same Air Products proprietary APX The LNG that Qatargas 3 will produce will be transported to market on a fleet of ten ships each with a capacity of approximately 210, ,000 cubic metres. The first cargo is expected to be delivered in process technology as Qatargas 2, helping to achieve economies of scale and integration which puts Qatargas ahead of its competitors. The Qatargas 3 and Qatargas 4 projects are being developed and executed by a Joint Asset Development Team to capture synergies between the two projects. The project starts at the wellhead with the drilling of new development wells and the construction in the United Arab Emirates of new unmanned platforms. The upstream platforms and infrastructure consists of three unmanned platforms, up to 33 wells and two subsea pipelines, all of which are shared with When completed Train 6 will ship its LNG predominantly to the United State s Gulf of Mexico receiving terminals. At full operational capacity the train will provide approximately 1 billion cubic feet of gas per day for 25 years to the US market. Qatargas 4. Qatargas 3 will produce 1.4 billion standard cubic 11

9 QatarGas 4 Economies of Scale Qatargas 4 is the newest of the LNG projects to start design and construction, with the foundation stone being laid in April Like Qatargas 3, Qatargas 4 involves the construction of a new LNG train with a production capacity of 7.8 mtpa. Once economies of scale and integration not previously possible in the LNG industry. The Qatargas 3 and Qatargas 4 projects are being developed and executed by a Joint Asset Development Team to capture synergies between the two projects. completed it will be Qatargas seventh train and the last of the planned developments at this stage. Qatargas seventh train will predominantly supply the United States and Europe. The upstream platforms and infrastructure consists of three unmanned platforms and two subsea pipelines, which are shared with Qatargas 3. Qatargas 4 will produce 1.4 billion standard cubic feet of gas per day delivering LNG and substantial volumes of condensate and LPG. The LNG that Qatargas 4 will produce will be transported to market via a fleet of eight ships (approximately 210, ,000 cubic metres capacity each) that will be constructed in Korean shipyards. The first LNG cargo is expected to be delivered around the end of the decade. Qatargas 4 utilizes the same Air Product s proprietary APX process technology as Qatargas 2 and 3, helping to achieve 13

10 A NEW GENERATION OF LNG SHIPS Qatargas is pioneering the development of two new classes of LNG tankers. Referred to as Q-Max and Q-Flex, the ships were designed by a team of engineers who have made a quantum leap in the capacities of LNG carriers. Each ship will have cargo capacity of between 210,000 and 266,000 cubic metres and are 80 percent larger than the current LNG fleet. Cargo re-liquefaction plants will return boil-off to the cargo tanks and therefore maximize the cargo outturn at the discharge port. Underwater coatings using the latest technology silicon anti-fouling system, which not only enhances the speed and performance of the vessel, but is also friendly to the marine environment since it does not release any biocides into the sea to prevent marine growth on the hull. These new vessels have many innovative features to maximize cargo deliveries and to ensure the highest levels of safety and reliability. Membrane type cargo containment system. Fire fighting specification calling for combinations of Hi-Ex foam, Hi-fog water systems and safer and cleaner fire extinguishing agents to eliminate the need for CO2 a first for LNG ships. Twin engines and shafts to ensure maximum propulsion safety and reliability, with reduced environmental footprint and twin rudders to ensure safety of navigation and manoeuvrability in confined waters. Slow speed diesel engines which are more thermally efficient than steam turbines and therefore burn less fuel, which will produce The vessels are currently being constructed at three building yards in South Korea at Hyundai Heavy Industries at Ulsan, Samsung Heavy Industries (SHI) on Geoje Island and Daewoo Shipbuilding & Marine Engineering (DSME) on Geoje Island. 40 percent lower overall emissions compared to traditional existing LNG carriers. The first four vessels were delivered during

11 CUSTOMERS AND MARKETS Qatargas produces three main products for export: LNG, Condensate, and Sulfur. In addition, helium and LPG are sold. By supplying markets in the United States, the United Kingdom, France, and Mexico. end of the decade we will be exporting these products to every corner of the globe. This achievement will be matched by our commitment that every market and every customer will be completely satisfied with our products and services. Buyers in Japan were the foundation customers for the development of the original Qatargas trains. Qatargas currently supplies eight companies in Japan. The majority of these are power and gas utility companies which supply gas and electricity Natural gas is increasingly becoming the fuel of choice for to millions of domestic users in the Japanese market. customers around the world due to its clean-burning and lower emission qualities. LNG is a way of delivering natural gas around the world, safely and reliably. By the end of 2007, we successfully In addition, in recent times we have supplied spot cargos to Spain, Japan, USA, France, Italy, and Turkey. delivered 1,260 LNG cargos to our customers. By end of the decade we expect to achieve our vision to become Currently Qatargas 1 supplies LNG under long term contracts to customers in Japan and Spain. Qatargas 2, 3 and 4 will be the world s leading supplier by exporting 42 million tonnes per annum of LNG. 17

12 Laffan Refinery The Laffan Refinery Company Limited s plant is designed to be one of the largest condensate refineries in the world when it starts production with a processing capacity of 146,000 barrels for this project is a consortium of GS Engineering & Construction Corporation and Daewoo Engineering & Construction Company who were awarded the contract in May per stream day (BPSD). The plant foundation stone was laid in April 2006 by HH Sheik The Laffan refinery will help to capture synergies and opportunities from the development of the North Field, Qatargas, RasGas and Tamim bin Hamad Al-Thani and construction work is now well underway. Ras Laffan City ventures. The shareholders of the Laffan Refinery are Qatar Petroleum The project involves construction of process units including utility systems, distillation units, naphtha, and kerosene hydrotreaters, (51%), ExxonMobil (10%), Total (10%), Idemitsu (10%), Cosmo (10%), Mitsui (4.5) and Marubeni (4.5%). a hydrogen unit and a saturated gas plant producing naphtha, kerosene gasoil and LPG for the export market. The Engineering, Procurement and Construction (EPC) contractor 19

13 LNG facts and Figures QATARGAS 1 Owners Qatar Petroleum (65%) ExxonMobil (10%) Total (10%) Mitsui (7.5%) Marubeni (7.5%) Train Capacity Three trains of 3.3 mtpa each 1 st LNG Cargo 1996 Ships 11 ships, 135 km 3 capacity each Main Markets Japan, Spain QATARGAS 2 Owners Train 4 Qatar Petroleum (70%) ExxonMobil (30%) Train 5 Qatar Petroleum (65%) ExxonMobil (18.3%) Total (16.7%) Train Capacity Two LNG trains of 7.8 mtpa each 1 st LNG Cargo 2008 Ships 14 state-of-the-art large LNG carriers QATARGAS 3 Owners Qatar Petroleum (68.5%) ConocoPhillips (30%) Mitsui (1.5%) Train Capacity One LNG train of 7.8 mtpa 1 st LNG Cargo 2009 Ships Ten state-of-the-art large LNG carriers Intended Main Market USA QATARGAS 4 Owners Qatar Petroleum (70%) Royal Dutch Shell (30%) Train Capacity One LNG train of 7.8 mtpa 1 st LNG Cargo End of the decade Ships Eight state-of-the-art large LNG carriers Intended Main Markets USA and Europe Intended Main Market United Kingdom 21

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