Qatar Economic Review 2006(September) - QNB

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3.2 The Natural Gas SectorQatar’s North Gas Field, discovered in 1971, is the largest non-associated gas field in the world, withproven reserves currently estimated at over 910 trillion cubic feet (tcf), which is equivalent to about 164billion barrels of oil. These reserves would translate into 14.4% of the world total and will be sufficientto support planned production of natural gas for over 200 years. The North Field extends over an areaof approximately 6,000 square kilometres, predominantly underlying the territorial waters of the Stateof Qatar (Figure 3.1). Associated gas reserves are currently estimated at 15 tcf. Within the Middle East,Qatar has the second highest proven gas reserves after Iran.QP has initiated and developed two major LNG projects with foreign shareholders for the purpose ofutilising the North Field gas for exports in the form of LNG. These projects are Qatargas and RasGas.Expansion of LNG facilities through RasGas II, Qatargas II, RasGas 3, Qatargas 3, and Qatargas 4 isbeing pursued to meet additional export opportunities. Sales and Purchase Agreements (SPA) havebeen reached with a number of countries, which at their peak in 2011 will reach 59.4 million tons perannum (mtpa). Several Heads of Agreement (HoA) have also been signed, and should these turn intoconfirmed SPAs, total LNG exports would reach about 78.1 mtpa by 2011 (Table 3.5). The Qatar GasTransport Company (Nakilat) was established as a DSM listed company in early 2005, to meet thetransportation needs of the various LNG export deals. QP has allocated QR 122 billion in its five yearplan, starting 2006, to meet the rapidly expanding needs of the Natural Gas sector.Table 3.5Qatar’s ContractedLNG Exports (mtpa)Destination(Supplier)Sales & Purchase Agreements2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Japan 1 (Qatargas 1) 6.3 6.3 6.3 6.3 6.4 6.6 6.6 6.6 6.6 6.7 6.7Korea 2 (RasGas) 4.9 4.9 6.8 8.8 8.8 8.8 6.8 4.9 4.9 4.9 4.9India 3 (RasGas II) - - 2.5 3.8 5.0 5.0 5.0 5.6 7.5 7.5 7.5Italy 4 (RasGas II) - - - - - - 3.5 4.7 4.7 4.7 4.7Spain 5 (Qatargas 1) 1.2 1.1 1.3 2.2 2.6 2.9 2.9 2.9 2.9 2.9 2.21SPA’s with 8 Japanese Companies.2SPA with KOGAS of Korea.3SPA with Petronet of India.4SPA with Edison Gas of Italy.5SPA with Gas Natural Group ofSpain.6SPA with BP.7SPA with Endesa Generacion SAof Spain.8SPA with Fluxys LNG of Belgium.9SPA with Distrigas of Belgium.10SPA with Chinese PetroleumCorporation.11HoA with ExxonMobil.12HoA with Total.13HoA with ConocoPhilips.14HoA wth Eni of Italy.15HoA with ExxonMobil.16HoA with ExxonMobil.Spain 6 (Qatargas 1) - 0.1 0.8 0.7 0.5 - - - - - -Spain 7 (RasGas II) - - - 0.6 0.8 0.8 0.8 0.8 0.8 0.8 0.8Belgium 8 (RasGas II) - - - - - 2.6 3.4 3.4 3.4 3.4 3.4Belgium 9 (RasGas II) - - - - - 1.5 2.1 2.1 2.1 2.1 2.1Taiwan 10 (RasGas II) - - - - - - 1.2 2.5 3.0 3.0 3.0UK 11 (Qatargas II) - - - - - - 5.3 7.8 7.8 7.8 7.8France 12 (Qatargas II) - - - - - - - 5.3 7.8 7.8 7.8USA 13 (Qatargas 3) - - - - - - - 5.3 7.8 7.8 7.8Total SPAs 12.4 12.4 17.7 22.4 24.1 28.2 37.6 51.9 59.3 59.4 58.7Heads of AgreementSpain 14 (Qatargas 1) - - 0.4 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7USA 15 (RasGas 3) - - - - - - 1.0 8.1 10.8 10.2 10.2USA 16 (Qatargas 4) - - - - - - - - 5.3 7.8 7.8Total HoAs - - 0.4 0.7 0.7 0.7 1.7 8.8 16.8 18.7 18.7Grand Total 12.4 12.4 18.1 23.1 24.8 28.9 39.3 60.7 76.1 78.1 77.4Source: Qatargas, RasGas, and QNB.KEY ECONOMIC SECTORS 18
Qatar’s LNG Projects1. Qatar Liquefied Natural Gas Company (Qatargas)Qatargas was established in 1984, with the first sales agreement being signed in 1992. The mainactivities of Qatargas are divided into two main projects with separate shareholder groups: the upstreamjoint venture (offshore production and the onshore receiving facilities) and the downstream joint venture(onshore LNG Plant).The Qatargas upstream joint venture has equity held by QP (65%) and four major energy and tradingcompanies, TotalFinaElf (20%), ExxonMobil (10%), Mitsui (2.5%) and Marubeni (2.5%). The Qatargasdownstream joint venture has equity held by QP (65%), TotalFinaElf (10%), ExxonMobil (10%), Mitsui(7.5%) and Marubeni (7.5%).The first output from the plant in the form of condensate was shipped to Japan in October 1996, withthe first LNG shipment to Chubu Electric Power following in December of the same year. The productioncapacity of Qatargas’ existing three trains exceeds 9.2 mtpa, whose output is destined to Japan (ChubuElectric Power and seven other Japanese customers).In 2005, Qatargas exported a total of 9.9 million tons (mt) of LNG, with contracted exports expected toreach 41.5 million tons by 2011 (Table 3.6). Qatargas produced 9.9 mt of LNG and around 60,000 bpdof condensates in 2005.Table 3.6(a)Qatargas ActualLNG Exports(In million tons per annum) 2000 2001 2002 2003 2004 2005Actual (SPA’s and Spot) 6.6 7.5 7.5 8.0 8.9 9.9(b)Qatargas AnticipatedLNG Exports(In million tons per annum) 2006 2007 2008 2009 2010 2011Contracted (SPA’s and HoA) 10.2 10.2 15.5 28.6 38.9 41.5Source: Qatargas, QP and QNB.Japan is the world’s largest importer of LNG, importing 97% of its natural gas needs, all in the form ofLNG. Japan is the main importer of Qatargas’ LNG and in 2005 imported 6.2 million tons, followed bySpain with 2.9 mt and other spot sales totaled 0.8 mt (Table 3.7).Table 3.7Qatargas’ LNGExports (mtpa)Destination Country 2001 2002 2003 2004 2005Japan 6.1 6.3 6.8 6.8 6.2Spain 0.6 1.2 1.1 2.0 2.9Others 0.8 - 0.1 0.1 0.8Total 7.5 7.5 8.0 8.9 9.9Source: Qatargas and QP.Qatargas has completed its debottlenecking process which began in 2001, and current productioncapacity of its three existing trains has increased from 6.6 mtpa to 10.2 mtpa in 2006. The debottleneckingproject was completed by a joint venture partnership between Chiyoda Corporation of Japan andTechnip of France.KEY ECONOMIC SECTORS 19
Page 1: HEAD OFFICEQatar National Bank SAQ,
Page 5 and 6: Sovereign Ratings: State of QatarQa
Page 8 and 9: Economically Active Population by G
Page 10 and 11: 2. The Economy of QatarQatar’s ec
Page 12 and 13: The Non-Oil and Gas SectorThe Non-O
Page 14 and 15: 3.Key Economic Sectors3.1 The Oil S
Page 16 and 17: Blocks 1, 3, 4, 7 and 14 (Offshore)
Page 20 and 21: 2. Qatar Liquefied Natural Gas Comp
Page 22 and 23: QatargasTable 3.10LNG Summary (Mtpa
Page 24 and 25: Al Khaleej Gas ProjectA Development
Page 26 and 27: Qatar Steel Company (QASCO)QASCO is
Page 28 and 29: Ras Laffan Ethylene Cracker (RLEC)T
Page 30 and 31: The other leading educational insti
Page 32 and 33: Table 4.2Weightage on the ConsumerP
Page 34 and 35: Qatar’s principal export items in
Page 36 and 37: In 2005, Qatar’s main import trad
Page 38 and 39: 6. Monetary PolicyThe monetary mana
Page 40 and 41: 7. Banking SectorThe Qatari banking
Page 42 and 43: TABLE 7.2Balance Sheets of Qatari B
Page 44 and 45: The Services sector recorded a grow
Page 46: 2005/06 BudgetPreliminary data on g
Page 49 and 50: The DSM market capitalisation decli
Page 51 and 52: 11. Investment IncentivesQatar welc
Page 53 and 54: 12. Qatar National BankQatar Nation
Page 55 and 56: 1APPENDIXQatar Statistical SummaryT
Page 58: QNB Branches and OfficesHead Office

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