Registration Document 2005 - Total.com

the provinces of Shanghai, Jiangsu and Zhejiang in eastern China
with a total investment of approximately $100 million was signed
in September 2005. The first 100 stations under this agreement
were approved by the Chinese Ministry of Commerce in
December 2005. The remaining 200 stations should be authorized
after the petroleum products distribution market in China is
completely opened, which is expected to occur in 2006. TOTAL
and Sinochem have been partners for more than 10 years in the
WEPEC refinery located in Dalian, in which TOTAL has 22.4%
interest and which has a refining capacity of 10 Mt/y. A distillate
hydrocracker with a planned capacity of 1.5 Mt/y is under
construction and is scheduled to begin operations in 2006. These
investments represent a major step forward in TOTAL’s strategy of
expanding its petroleum products marketing operations in China.
In 2005, TOTAL continued to develop its network in the Philippines
and in Pakistan.
Other Countries
In addition to the zones previously mentioned, TOTAL has also
developed a significant presence in Turkey and in the Caribbean.
In 2004, TOTAL strengthened its positions in the Caribbean with
the creation of two new subsidiaries in Jamaica and Puerto Rico.
These new subsidiaries complement TOTAL’s existing activities in
Haiti, the French West Indies, Cuba and Costa Rica.
Specialties
TOTAL produces a wide range of refined petroleum products at its
refineries and other facilities.
TOTAL is among the leading companies in the European specialty
products market, in particular in the bitumens, jet fuels and
lubricants markets. TOTAL distributes aviation fuel at 550 airports
and markets lubricants in over 150 countries. In 2005, TOTAL
strengthened its positions in the Central and Eastern European
lubricants market by entering into a joint-venture with the Romanian
company Lubrifin. The joint venture is 51% owned by TOTAL and
was created to produce and market lubricants and greases for the
automotive and industrial markets.
TOTAL has continued to develop its international LPG (butane and
propane) distribution activities and is the fourth largest international
distributor (5) .
(5) Company sources, on the basis of volumes sold.
(6) ETBE: Ethyl-Tertio-Butyl-Ether.
(7) Including Algeciras and Huelva refineries (Cepsa).
(8) VOME: Vegetable-Oil-Methyl-Esther.
Bio-fuels and hydrogen
Business overview
Refining & Marketing - Downstream
The Group plays an active part in the promotion of renewable
energies and alternative fuels.
TOTAL - Registration Document 2005
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In 2005, TOTAL consolidated its position as a major participant
among oil companies active in biofuels in Europe by producing
390 kt of ETBE (6) in seven refineries (7) and incorporating 321 kt
of VOME (8) in diesel fuels produced at eight European refineries.
In May, 2005, TOTAL signed a VOME supply contract with
Sofiprotéol and Diester Industry for periodically increasing quantities
of up to 600 kt/y. In July 2005, TOTAL signed a Memorandum
of Understanding with Neste Oil for the production of a new
generation bio-diesel. TOTAL and Neste Oil are studying the
possibility of building, through a 50/50 joint venture, a production
plant for this biodiesel at one of TOTAL’s refineries in Europe.
This new, high-quality bio-diesel should contribute to meeting the
objectives defined in Europe for incorporating bio-fuels.
Also in 2005, TOTAL intensified its research efforts for making
biomass technologies commercially viable, including both technical
procedures (electricity and steam production) and new products
(emerging technologies for producing bio-fuels and other bioproducts).
TOTAL has formed partnerships in the Netherlands
(to develop technology for converting wet biomass residues
into bio-diesel), Germany (to study various methods of gasifying
biomass) and in France (for various research projects supported by
the National Research Agency). TOTAL has also been cooperating
with automobile manufacturers to study the use of these bio-fuels
in automobile engines.
In 2005, TOTAL continued its research and testing programs for
fuel cell technologies and hydrogen fuels. In this area, TOTAL has
entered into cooperation agreements for automotive applications
(with Renault in 2003 and Delphi in 2001) as well as stationary
applications (with Electrabel and Idatech in 2004). Under its
partnership with BVG, the largest public transport company in
Germany and the operator of buses in Berlin, TOTAL created a
hydrogen center of excellence in Berlin. The first public hydrogen
fueling station has been operating in Berlin since November 2005.
TOTAL is also an active participant in the hydrogen technology
platform program launched by the European Commission at the
end of 2003, which aims at promoting the development of new
technology in Europe.
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