Liquefied Natural Gas (pdf - 2.32 MB) - Total.com

LiqueFieD NATurAL GAS

2
4
8
The benefits of a
clean energy source
The LNG market
Liquefaction
14
16
Shipping
Regasification
Trading and
20 marketing
22
24
Total, innovating
in LNG technology
Total’s LNG
activities worldwide

Jean-Marc Hosanski
Senior Vice President, LNG
Total Gas & Power
Over the last two decades, liquefied natural gas has grown in importance
to become a vital element in the global natural gas balance.
Consumption of LNG is growing very strongly – by about 7% per year –
and despite the economic downturn that began in 2008, its share of the gas market
is rising steadily as well. LNG met around 7% of world gas demand in 2008 and
this figure is projected to rise to nearly 11% in 2015.
The traditional LNG markets (Northeast Asia, europe and North America) as well
as emerging markets (india, China and South America) clearly appreciate
the advantages of an energy source that is at once energy-efficient, clean, and
as easy to transport as liquid hydrocarbons.
in this context of strong growth, Total, which was among the LNG industry
pioneers, is backed by very solid positions in the upstream and downstream
segments of the gas chain.
Our objective is to increase our LNG production by developing new projects.
in this respect, 2009 has been a watershed year for Total: the start-up of two
major liquefaction projects – qatargas 2 and Yemen LNG – will in the short term
allow the Group to boost its LNG production by 50%. Other projects under
way or under study in Nigeria, Angola, Australia, russia and iran will permit
the pursuit of production growth through the decade 2010-2020.
Our ability to guarantee sales for our liquefaction projects is a decisive advantage
in meeting these objectives, which is why we have been strengthening
our downstream LNG presence. Total has acquired interests in four receiving
terminals – in india, Mexico, France and the united Kingdom – and has reserved
large-scale regasification capacity in a terminal in the united States.
We are now studying further import terminal projects, including one in Croatia
intended to supply Southern europe.
By consolidating our portfolio of customers in these growing markets and
securing physical access to markets as well, we are in a position to purchase
LNG ourselves, thereby facilitating the launch of new upstream projects.
1

2
THE BENEFITS OF A CLEAN ENERGY SOURCE
Global demand for natural gas is growing faster than demand for
other fossil fuels, largely because of its environmental advantages.
Combustion of natural gas does not produce heavy unburned
compounds and also generates less greenhouse gas emissions,
thanks to its high hydrogen content.
Gas-fired power plants not only help to meet steadily expanding
demand for electricity, with savings in construction time and capital
costs, but with cogeneration and combined-cycle technologies,
they also have limited environmental impact because they are extremely
energy efficient. This means that more usable energy is produced
from less natural resources. Leveraging natural gas resources is
therefore a critical challenge.

Safety throughout the LNG chain
Production, handling, transportation and storage of LNG – and this is true
of all inflammable substances – involve unavoidable risks. So all possible care
is taken during project design and daily operations to maintain the highest
possible safety standards.
Maintaining integrity
everything about an LNG project – choice of sites for the
liquefaction plant, loading facilities and regasification
terminal; sizing of equipment; selection of technologies to
be used – is carefully studied so as to ensure optimum asset
integrity. Meteorological extremes and seismic risks are
also duly taken into account. Optimum safety distances
are calculated for each plant site, provision is made for
permanent monitoring, and emergency equipment, such as
retention tanks and fire-fighting systems to curb the
consequences of a potential leak, are always included.
Total is participating in a number of advanced research
projects to more accurately assess risks and thereby
improve facilities design, operating procedures and,
where necessary, evacuation conditions. The Group also
contributes to the industry’s international initiatives to
enhance LNG shipping and storage safety through its
participation in the Society of international Gas Tanker
and Terminal Operators (SiGTTO), which oversees
compliance with stringent construction and operating
standards for LNG carriers and terminals.
Patrice Lecomte
Senior Vice President,
Health, Safety,
Environment & Sustainable
Development,
Total Gas & Power
The application
of the highest safety
standards in the design and
construction of the facilities,
constantly improved risk
management and the
promotion of a strong safety
culture in our operations are
basic rules and imperatives.
Total implements
internationally recognized
safety management systems
that demand constant
vigilance and a commitment
to progress.
3

4
THE LNG MARKET
LNG trade has grown at a remarkable pace.
Traded volumes have increased at an average rate of around 7% a year
from 2000 to 2008 and exceeded 230 billion cubic meters in 2008.
LNG, helping to interconnect gas markets
The world gas market is still basically regional and
characterized by long-term contracts and different pricing
formulas in each zone, but this regional separation is now
weakening.
This is because cargos of LNG, unlike pipeline gas, can
be easily diverted to a new destination, with the strong
increase in logistic capacity in the past few years (LNG
carriers and regas terminals) now futher enhancing
flexibility. Therefore it is possible to arbitrate between
different import markets and sell at the best price.
The LNG segment thus plays a balancing role between
world gas markets. So far, this arbitrage phenomenon
involves only limited volumes of gas but its importance
will grow as the share of LNG in world gas consumption
increases. This will result in a much stronger correlation
between markets that were previously independent.
indeed, this can already be observed between the united
States (Henry Hub) and the united Kingdom (NBP).

New opportunities and new markets
The relative importance and the role played by LNG differ significantly
in the three main markets: Asia, europe and North America.
Nevertheless, LNG’s growth potential in each region is high, for a variety
of reasons. At the same time, new markets are emerging.
In Europe
At present, LNG accounts for 10% of gas demand (and
22% of imports). But this percentage is increasing
steadily and LNG consumption is projected to increase
very significantly in the coming years, rising from
57 billion cubic meters in 2008 to 130 billion in 2015.
In Asia
LNG satisfies nearly all gas demand in Japan, South Korea
and Taiwan, which together account for around two-thirds of
the world market.
Northeast Asia is a mature market, long dominated by
national and regional import monopolies but now
experiencing sweeping changes from increased competition
between regional players. As monopoly positions are being
challenged more and more, a need has arisen for more
flexible and diverse supply mechanisms, with more emphasis
on short- and medium-term contracts in particular.
The Chinese and indian markets offer extraordinary growth
potential for the LNG industry in Asia.
Japan, a thirst for LNG
Japan has been the world’s largest importer of LNG
for nearly 40 years.
in 2008, the country accounted for 40% of the global
market, importing 69 million metric tons, up 3% from
2007. With 2/3 of imports used for power generation
and 1/3 fed into the grid for industrial, commercial
and household use, LNG currently meets a little more
Masaki Yamada
LNG Marketing Manager,
LNG Division, Total Gas & Power
In the early 2000s, the first signs of deregulation
in Japan’s energy sector, strong growth in Asian LNG
markets and stiffer competition among LNG producers
led Total to strengthen its LNG marketing presence
in Japan. An LNG office was set up in Tokyo to capitalize
on the proximity of the LNG players in Northeast Asia
(Japan, South Korea and Taiwan), which is still the
Market liberalization is remodeling the landscape.
New customers are emerging, numerous receiving
terminals are being built, and even though long-term
contracts are still the rule, there is strong growth in
short-term and spot trades.
in China, demand for gas is growing fast and neither the
country’s dynamic domestic production nor its pipeline
import contracts can meet current needs. in this favorable
context, LNG imports are expected to increase by an
estimated 15% a year. China is now securing its imports
via a growing number of long-term LNG purchase
contracts and is building the necessary receiving
facilities.
in india, the steady growth of energy demand and
insufficiency of domestic gas resources, at least in the
short term, are spurring interest in LNG, particularly for
power generation.
than 13% of Japan’s primary energy needs. Given this
country’s energy security and environmental concerns,
Japan’s LNG imports are bound to increase even
further in the coming decades. To handle the growing
import volumes, Japan already boasts 27 LNG
receiving terminals (a record that is likely to stand for
some time) and additional facilities are now under
construction.
biggest import market in the world, and to leverage
new growth opportunities in the region.
The specific mission of the Tokyo office is to analyze
market trends, identify new opportunities for short,
medium and long-term supply contracts, and make
appropriate marketing recommendations to other
Total units, working closely with the LNG team in Paris.
Our local presence also means that Total can respond
faster to new trading opportunities, in cooperation
with Total Gas & Power Ltd.
5

6
In North America (Canada, United States, Mexico)
until recently, LNG played only a marginal role in North
America’s overall natural gas consumption, with annual
imports fluctuating between 10 and 25 billion cubic
meters, depending on demand and the price of local
pipeline gas. However, the situation is evolving rapidly. in
the last few years supply has diversified (input of non-
The United States: regulator
of global LNG flows?
With the start-up of numerous new LNG projects launched
in the mid-2000s – in qatar, Yemen, russia, indonesia, … –
available volumes of LNG will increase spectacularly
in 2010-2012/13. in some markets, this will temporarily
lead to a supply surplus. Given the flexibility and the
considerable size of the uS gas market (three times larger
than the world LNG market), the united States will no
doubt play a key role in absorbing a significant part of
A BOOMING ENERGY SEGMENT
Today, LNG accounts for more than a quarter of the
international gas trade, a figure that is forecast to rise
conventional gas) and major regasification capacity has
been added. Factoring in the steady growth in gas demand
in this zone, as well as the important role being played by
non-conventional gas (attractive at varying prices) in u.S.
domestic gas production, demand for LNG is expected
to reach 40 to 70 billion cubic meters by 2015.
these LNG volumes. This additional inflow of LNG will
serve, among other things, to drive incremental market
growth. it can also be expected to prompt new competition
between gas and coal as fuel for power generation, as
well as a reconfiguration of domestic gas production
(shutdowns of the least profitable gas fields).
Conversely, if demand for LNG were to rise (and prices
with it), the supply-side flexibility enjoyed by the united
States would enable this country to free up quantities of
LNG for other markets to buy.
40 %
to by 2015. Volumes are
projected to grow by
around 7% a year.

South America: an emerging market
in the Southern Cone (Argentina, Brazil, Chile), gas imports
are still very modest and mainly used to meet swing
demand during the colder months. But the Southern Cone
is seeking to secure and diversify its gas supply and could
TOTAL ANd LNG: A SUCCESS STORY OF NEARLY 50 YEARS
The LNG industry was born at Skikda in Algeria during the 1960s with a project
intended to supply the UK and French markets. Involvement in this world first gave
the Group an early lead in LNG expertise. A few years later, Total was also a player
in the LNG boom in Asia and the Middle East triggered by Japan’s decision to give
preference to LNG. The Group was thus involved in construction of the Bontang
plant in Indonesia and the Adgas project in Abu Dhabi. Both plants started up in
1977 and were decisive steps in the Group’s gas strategy. Total subsequently
participated in major projects in Qatar, Nigeria, Oman, Norway and Yemen and
gradually broadened its portfolio of activities to become a leading LNG player.
5.4%
Total’s share of the world LNG market in 2008. The
Group marketed 9.15 million metric tons of LNG, making
it one of the top three international companies in this
market.
26,218 BCF
increase gas imports in the coming years. One particularity
here is the region’s strong interest in offshore regasification
facilities, which involve both shorter construction lead
times and less heavy capital investment.
(Billion cubic feet)
Total’s proved reserves
of gas at the end of 2008
7

8
LIQUEFACTION
Colorless, odorless and non-toxic LNG mainly consists
of methane (more than 75%) along with ethane, propane,
butane and nitrogen (less than 1%).
Gas is transported from the field by pipeline then
processed to remove liquid condensates, acid (CO 2 ,
H 2 S and other sulfur compounds) and water. in addition,
its mercury content, which can corrode the alloys used
in equipment for subsequent stages of the process, is
also removed.
Heavy hydrocarbons (condensates) and any liquefied
petroleum gas (propane and butane) are isolated via
precooling and fractionating in a series of distillation
processes. The gas then undergoes heat exchanges in a
series of refrigeration cycles, becoming liquid at around
-160°C. Then it is stored at atmospheric pressure until
it is loaded on an LNG carrier.
The LNG has to meet stringent commercial
specifications that can vary depending on the destination
market. These specifications include heating value
and Wobbe index, which characterizes the combustion
properties of the gas.
Liquefaction plants comprise different sections for the
successive operations, which include gas purification,
liquefaction and storage as well as port infrastructure.
The equipment used is very large, requiring specific
material. Approximately 10% of the natural gas
arriving at a liquefaction plant is consumed for its own
operations.

Feed Gas
K.O.D.
H2S & CO2
Removal Dehydration Cooling Liquefaction Storage
Absorber & Regenerator H2O & Hg Removal Scrub Columm Main Heat Exchanger Boil off
H2S
CO2
Propane
Refrigeration
Christophe Thomas
Head of the LNG department,
Strategy, Business development, Engineering
and R&D division,
Total Exploration & Production
Total enjoys an international reputation for its LNG
proficiency, acquired during many years of active
technical participation in a large number of LNG projects
involving a variety of technologies, in many different
countries. For more than 40 years now we have been
involved in all the main technological advances, that have
taken the industry from the first small ADGAS and
Bontang liquefaction trains to the large-capacity trains
now operational in Qatar.
MCR
Refrigeration
Deethanizer
Depropanizer
Debutanizer
Fractionation
LNG
C5+
Alternative liquefaction processes are now challenging
the near-absolute domination of the C3-MR process
originally developed by Air Products & Chemicals Inc.
(APCI). An outstanding characteristic of Total is
our involvement in projects using the five or six main
processes currently available on the market. We are
determined to maintain complete freedom of choice,
which doesn’t prevent us from working on improvements
to enhance process efficiency.
Given the capital-intensive nature of the LNG projects,
we have to be more rigorous than ever in the preliminary
phases preceding the investment decision. Nevertheless,
forecast future demand for LNG naturally encourages
Total to consider liquefaction projects in increasingly
difficult locations – such as the Barents Sea – that require
us to devise innovative technological solutions such
as modular plant construction and transfer systems
that can be used in the open sea.
Units making up a liquefaction plant
LPG
LPG
LNG
LNG takes up 600 times
less space than natural
gas in its gaseous
state but contains
the same amount of
energy. So LNG can
be transported at
atmospheric pressure
at a temperature of
-160°C aboard purposebuilt
ships to terminals
where it is regasified
and fed into the natural
gas transmission grid.
9

10
Total’s net LNG production in 2008 added up to more than
9 million metric tons. With the start-up of two major Middle east
liquefaction projects, qatargas 2 and Yemen LNG, the Group’s
LNG production will increase by 50% in the short term. This will lift the
Group into a higher league, strengthening our position as a leading
player in the LNG industry and a major producer in the Middle east.
Qatargas 2, the world’s first integrated LNG project
As a pioneer of qatar’s gas industry, Total was the
driver behind qatargas (later to become qatargas 1) in
1984. With its three trains and an overall capacity of
9.9 million metric tons per year after debottlenecking,
qatargas is continuing to expand via the qatargas 2, 3
and 4 projects involving different international partners.
The aim has been to remain the world’s largest supplier
of LNG.
qatargas 2, the world’s first integrated upstream/
downstream project, was inaugurated on 6 April 2009.
The project involves three unmanned offshore platforms,
two liquefaction trains each with a capacity of 7.8 million
metric tons per year, 14 q-Flex (215,000 cubic meters) and
q-Max (265,000 cubic meters) LNG carriers, and the South
Hook regasification terminal in the united Kingdom.
Total is a 16.7% partner in the second train of qatargas 2,
alongside the national company qatar Petroleum (65%)
and exxonMobil (18.3%). The Group also has an 8.35%
shareholding in the South Hook terminal and has
contracted with qatargas 2 to purchase 5.2 million metric
tons of LNG per year for a period of 25 years. This LNG
will play a significant role in meeting Total’s gas supply
commitments in the Atlantic Basin (France, united
Kingdom, North America).

Yemen LNG: a newcomer
on the LNG scene
Yemen LNG is by far the most ambitious project
ever undertaken in this country and Total is playing
the leading role. The Balhaf liquefaction plant on
Yemen’s south coast has two trains with a
combined capacity of 6.7 million metric tons per
year. The feedgas is produced in the central
region of Marib, 180 kilometers east of Sana’a,
and transported to the coast via a 320-kilometer
pipeline. After nearly four years of construction
work, Yemen LNG started its commissioning
operations in summer 2009.
As the largest shareholder in Yemen LNG
Company Ltd, Total (39.62%) is project leader,
playing an active part in its development. The
Group provided assistance in all key areas
(technical, marketing, finance) and seconded
personnel to occupy key positions in the company,
including that of General Manager.
Total Gas & Power has also signed a long-term
sales and purchase agreement with YLNG to lift
2 million metric tons of LNG per year over 20 years.
Most of the gas will be shipped to Atlantic Basin
markets.
AN ExEMPLARY PROJECT
One of Total’s top priorities in all projects is to
minimize the impact of its activities on the environment
and the local communities. The site location for the
Yemen LNG liquefaction plant was chosen after
studies carried out in consultation with stakeholders
(local communities, the authorities, international
experts). The plant and associated infrastructure
were designed for minimized impact on biodiversity
and marine currents. Total also helped to implement
a Coastal Zone Management Plan devised by the
World Bank to conserve the Gulf of Aden coastline.
At the same time, sustained efforts were made to
integrate all project activities into the local socioeconomic
fabric. Starting in 2006, Yemen LNG
implemented a wide-ranging recruitment and training
program for local technical personnel. The company
has set up its own training center and trained some
200 technicians and operators (among others) who
will be working at the plant. Yemeni nationals already
account for nearly two thirds of all Yemen LNG
personnel and the company aims to raise this to
90% in time. The same attention is being paid to
gender diversity, and women already account for
more than 25% of the personnel at Yemen LNG’s
head office in Sana’a.
11

12
Top priority for Total is to increase its LNG production
and develop new liquefaction capacity. Several new projects are
under construction or under study.
Angola LNG (Angola) 1
A joint project of Sonangol (22.8%), Chevron (36.4%),
BP (13.6%), eni (13.6%) and Total (13.6%), Angola LNG
will process associated gas from oil-producing offshore
blocks (Total e&P Angola operates some of these offshore
fields and holds a stake in others) and from gas fields
dedicated to the project.
The gas from offshore fields will be collected and piped
to a liquefaction plant currently under construction in
Zaire province. The plant will produce up to 5.2 million
Ichthys LNG (Australia) 2
Total is a 24% partner in the ichthys offshore gas field,
located in the Browse Basin about 200 kilometers off the
northwest coast of Australia. Total and its partner inpex
(76%, operator) have launched basic engineering studies
for the development of the ichthys field and the construction
of a liquefaction plant near Darwin, 850 kilometers to the
east. These studies will be the basis for contracts to build
the production, processing, transport and liquefaction
infrastructure. The development scheme will include
subsea wellheads connected to a Central Processing
Facility based on a semi-submersible platform, a Floating
Production Storage and Offloading unit (FPSO) for the
condensates and a gas pipeline to the liquefaction plant,
Shtokman (Russia) 3
5
4
in July 2007, Total and Gazprom signed an agreement
for the first phase of development of the giant Shtokman
gas and condensates field in the Barents Sea. in
February 2008, the Shtokman partners set up a new
company, Shtokman Development AG (Total 25%), to
design, construct, finance and operate this first phase
1
3
6
2
metric tons of LNG per year, along with associated liquids,
and production start-up is planned for 2012.
Seven LNG carriers chartered by the project will transport
the LNG to the Gulf LNG energy regasification plant now
under construction near Pascagoula in Mississippi (united
States). Once regasified, the LNG will be sold to the
project partners’ commercial subsidiaries in the united
States. Total Gas & Power North America will purchase
and market Total’s share of the gas.
which will be built near Darwin. The plant will initially have
2 trains with a combined capacity of about 8.4 million
metric tons per year of LNG, but provision will be made to
include 4 additional trains. The Darwin plant will also
produce 1.6 million tons per year of LPG (butane and
propane) as well as condensates.
The ichthys plant is expected to operate for about 40 years
and will make a significant contribution to the local economy,
employing more than 2,000 people during the construction
phase and about 300 people once the plant is operational.
The ichthys project is expected to go into production halfway
into the decade 2010-2020, and the LNG should be
shipped to Asian markets, mainly Japan.
of development. engineering studies are currently
under way. The first phase of development targets a
production of 23.7 billion cubic meters of gas per year,
about half of which (7.5 million metric tons per year) is
to be exported in the form of LNG.

Brass LNG (Nigeria) 4
Total is a 17% partner alongside Nigeria’s national
company NNPC, eni and ConocoPhilips in the Brass
LNG project in the Niger Delta (Nigeria). The project
involves two trains, each with a capacity of 5 million
metric tons per year, and will export most of its LNG
production to the european and American markets.
Feedgas will come from the upstream gas operations of
Nigeria LNG train 7 (Nigeria) 5
Total has a 15% interest in the Nigeria LNG liquefaction
plant on Bonny island. The plant, which already includes
six trains, has a production capacity of 22 million metric
tons per year. Studies for a project to add a 7 th train
Pars LNG (Iran) 6
Total is lead partner for the Pars LNG project in iran, with
an interest of 30% (1) . The other partners are Petronas and
the national oil company NiOC. The project involves the
construction of a liquefaction plant 60 kilometers northwest
of Assaluyeh. The plant, with two trains producing 5 million
metric tons per year each, will take feedgas from Block 11
of the offshore South Pars field, which will be developed
project partners, with Total having the right to provide
half the gas. The plant is expected to start producing in
the middle of the decade 2010-2020.
Details of gas supply for the project are currently being
finalized. The engineering studies have been completed
and preparation of the plant site is under way. Total Gas
& Power will be among the buyers of the LNG produced.
with a capacity of 8.5 million metric tons per year are under
way. Total Gas & Power has signed a 20-year purchase
agreement with Nigeria LNG to lift 1.375 million metric
tons per year of the LNG produced by the future train 7.
under a buy-back agreement, with Total also participating
in the development. Half the LNG will be exported to the
Asia-Pacific Basin and half will be shipped to europe.
Basic engineering studies have been completed and
discussions are under way with NiOC on the contractual
framework.
(1) Company estimates after LNG buyers entered the project
13

MOSS ROSENBERG
LNG CARRIERS
Moss Rosenberg LNG
carriers feature
self-supporting spherical
cargo containment
systems. These tanks are
made of thick aluminum
plates that are welded
and insulated. They are
attached to the ship’s
double hull using a steel
skirt at the sphere’s
equator, equipped
with a thermal brake made
from a special alloy.
14
SHIPPING
Total has gained very solid experience in this key link in the LNG chain
through its participation in a large number of projects. Safety
requirements and the growing importance of controlling transportation
in a more flexible LNG market have led the Group to become more
directly involved in shipping.
dedicated technologies
The need to transport large volumes of liquefied gas over long
distances, at very low temperature and in conditions of the
utmost safety involves major technical constraints. in particular,
LNG carriers require the most efficient insulation possible,
both to prevent the LNG from warming up and to protect the
adjacent vessel structures from excessive chilling.
As a result, only about a dozen shipyards worldwide are
able to build LNG carriers. These vessels, costing between
$200 million and $250 million each, are the most expensive
cargo ships in the world.
World LNG shipping capacity is growing fast, with a
fleet of 305 vessels in operation and 76 newbuilds on
order in June 2009. The major South Korean shipyards
dominate the building market. There is also a trend
towards larger vessels; the standard size has risen from
125,000 cubic meters to 165,000 cubic meters, and a
number of vessels with capacities ranging from 215,000
cubic meters (q-Flex) to 265,000 cubic meters (q-Max)
have been built for the qatar projects in which Total is
a stakeholder.

An increasingly strategic challenge
With the development of longer LNG chains and
transpor tation to ever more remote destinations,
shipping accounts for an increasing share of LNG
industry capital expenditure and operating costs. in
addition, controlling transpor tation creates value
because players can redirect ships to take advantage
TOTAL ANd LNG CARRIERS
1973: Signature of the first long-term
charter agreement for a Total project
(ADGAS/LGSC)
1986: First spot charter agreement,
for a cargo from Bontang in indonesia
for delivery to Boston (world distance
record for the LNG carrier Pollenger)
1990: First acquisitions of vessels (Gastor
and Nestor) for an elf project (Nigeria LNG)
2002: Signature of a first long-term agreement
directly by a Total subsidiary (Total e&P
Norge for Snøhvit LNG)
2002: First short-term charters by the
London trading team (Hyundai Oceanpia,
Oman-Zeebrugge)
April 2006: Delivery of the Arctic Lady,
a 147,000-cubic-meter LNG carrier,
the first vessel chartered by Total itself to
transport the Group’s production of LNG from
Snøhvit in Norway.
March 2009: Yemen LNG, where Total is
the lead shareholder, begins long-term charter
of four 160,000-cubic-meter LNG carriers.
Total personnel supervised construction.
of regional price dif ferences through arbitrage
transactions, which are growing rapidly.
However, the growth of the LNG segment depends on
companies maintaining an excellent shipping safety
record and complying with very stringent standards
concerning shipbuilding and crew qualifications.
MEMBRANE LNG CARRIERS
Membrane LNG carriers use a technology developed by
Gaz Transport & Technigaz, in which Total has a 30% stake.
The LNG is contained by a thin double metal barrier, or
membrane, that creates liquid-tight containment barriers
and maintains its mechanical properties at low temperature.
Loads are transferred to the double hull by the insulation,
which protects the structure from the cold. The tank shape
is designed to make optimal use of the available space on
the vessel.
Jacques Besse
Vice President LNG Shipping,
Total Gas & Power
Since 1995, through its stakes in various
LNG schemes Total has been involved in numerous
LNG transport operations and we have acquired
expertise in developing new projects. With Snøhvit
we reached a new milestone, chartering our first vessel
(Arctic Lady), which will form the basis of a fledgling
fleet that is expected to grow as new projects are
undertaken. A large team of experts was also set up
to supervise the construction of the four LNG
carriers on charter to Yemen LNG.
In addition, the increase in LNG trading has created
a need for short-term charters.
Total’s Vetting Department is actively involved
in verifying that our shipping operations comply with
the most stringent safety standards. Six Total experts
are in the field on a daily basis, supervising fleets
and ship-owners to ensure that the vessels are
in prime condition and the crews fully trained.
15

16
REGASIFICATION
Total has regasification capacity in all three main gas markets:
North America, europe and Asia. This direct access to a number
of different markets has allowed the Group to consolidate its
downstream portfolio. it is also a key advantage for the development
of new liquefaction projects.

Securing access to consumer markets
regasification logistics are critical to securing access
to end markets.
The steps taken by the Group demonstrate Total’s
commitment to strengthening its presence in this vital
link of the LNG chain and are part of an overall process
designed to secure outlets for the Group’s production
from the Middle east, the Gulf of Guinea, northern europe
and the Asia-Pacific region.
This is why Total, which already uses the Bilbao and
Barcelona terminals in Spain, has acquired interests or
reserved capacity in a number of terminals in the world’s
LNG receiving terminals comprise
offloading installations, cryogenic
storage tanks, pumps and LNG
regasification units.
The LNG is heated from -160°C
to just above 0°C at high pressure
(between 60 and 100 bars), usually
using seawater percolation heat
exchangers, a technique that is
highly energy efficient. The LNG
can also be heated by burning
some of the gas.
main consumer regions: india’s Hazira terminal,
operational since 2005; Mexico’s Altamira facility, which
came on stream in late September 2006; and in europe,
the South Hook terminal (united Kingdom), which became
operational in 2009, and the Fos Cavaou terminal (France),
due to go into service in late 2009. Total is also studying
a project for a third european facility, in Croatia.
in the united States, Total has signed up for large-scale
reserved capacity at the Sabine Pass terminal in
Louisiana, on the Gulf of Mexico.
When the gas leaves the terminal,
its heating value is adjusted by
blending with other stored gases
before it is regasified and, if
necessary, by adding nitrogen,
butane or propane before the gas
is fed into the distribution grid.
17

SOUTH HOOK SABINE PASS HAZIRA
18
SOUTH HOOK (UNITED KINGDOM)
Total’s equity interest: 8.35%
Capacity: 21 bcm/year
Start-up: 2009
The South Hook terminal in Milford
Haven ( Wales ) is the largest
regasification complex in Europe and
can accommodate today’s biggest LNG
carriers (Q-Flex: 215,000 cubic meters,
and Q-Max: 265,000 cubic meters).
Total has an 8.35% interest in the
terminal, alongside Qatar Petroleum
(67.5%) and ExxonMobil (24.15%).
The terminal, with a total capacity
of 21 billion cubic meters per year,
BLENdING INTO THE LOCAL ENvIRONMENT
is designed to regasify production
from Qatargas 2. It will receive
Total’s share of production from the
second Qatargas 2 train, that the
Group plans to market in the United
Kingdom.
South Hook can fulfill up to 20% of
Britain’s overall gas needs, offering
the country (and indeed Europe as a
whole) a much more secure and
diversified supply of gas.
The South Hook terminal has five storage tanks each holding
155,000 cubic meters of LNG that is maintained at a temperature
of -160°c thanks to double concrete walls. The tanks, 41 meters
high and 100 meters across, have been built in a small valley amid
cliffs so as to minimize their visual impact: a very successful idea
because they are hardly visible from the nearest village. At peak
construction, nearly 2,400 people were employed at the site, 40%
were recruited locally. Once the terminal is fully operational,
80 people, mostly recruited locally, will be employed at the site,
where about 160 LNG carriers are expected to come in per year,
or one every two days.
SABINE PASS (UNITED STATES)
Capacity subscribed
by Total: 10 bcm/year
Overall capacity:
26 bcm/year (Phase 1)
then 40 bcm/year (Phase 2)
Start-up:
September 2008 (Phase 1)
then 3 rd quarter 2009 (Phase 2)
As of April 2009, Total has 10 billion
cubic meters per year of regasification
capacity in the Sabine Pass terminal,
built and operated by a subsidiary
of Cheniere Energy Inc. The facility
can accommodate the biggest LNG
carriers currently operating (up to
265,000 cubic meters) and is equipped
with three 160,000-cubic-meter
storage tanks (Phase 1). Two more
similar storage tanks will be available
by the end of the 3 rd quarter 2009,
when Phase 2 is due to be completed.
In addition, Total has also reserved
equivalent capacity in a downstream
pipeline. This gasline will tie the terminal
into a number of natural gas trunklines,
thereby securing access to the main
gas markets in the northeast United
States. Total has also signed up for
0.06 bcm capacity in salt-cavity
storage facilities located at the end
of the pipeline.

HAZIRA (INDIA)
Total’s equity interest: 26%
Capacity: 5 bcm/year
Start-up: 2005
India’s second regasification
terminal, Hazira is located in Gujarat
state on the country’s northwest
coast. Designed to handle 5 billion
cubic meters of gas per year, it
may later be expanded to process 8
billion cubic meters per year. Gas
arriving at Hazira is sold directly to
end-users (power companies, industrial
users, fertilizer manufacturers) as well
as to local gas companies.
ALTAMIRA FOS CAvAOU
ALTAMIRA (MEXICO)
Total’s equity interest: 25%
Capacity: 6.7 bcm/year
Start-up: 2006
Located on the east coast of Mexico,
the Altamira regasification terminal
came on stream in fall 2006. With a
jetty and two 150,000-cubic-meter
storage tanks, its initial capacity is
6.7 billion cubic meters per year.
The site configuration will allow
construction of the third storage
tank, which would double the
capacity of the terminal. The natural
gas from Altamira is sold to the
Mexican electricity utility, under a
long-term contract, to supply several
gas-fired thermal power plants.
FOS CAvAOU (FRANCE)
Total’s equity interest: 29.8%
Capacity: 8.25 bcm/year
Start-up: late 2009 (e)
This terminal, in France’s Fos-sur-
Mer industrial zone on the Cavaou
peninsula, is being built by the Société
du Terminal Méthanier de Fos Cavaou
(STMFC), a joint-venture subsidiary of
GDF Suez and Total. The facility will
have three 110,000-cubic-meter tanks,
and regasification will be carried out
by three seawater regasifiers (this
technology prevents CO 2 emissions).
The new terminal will mainly handle
Total’s Middle East production.
AdRIA LNG (CROATIA)
Total’s equity interest: 25.58%. Capacity: 10 bcm/year
Start-up: 2015 (e)
In October 2007, Total became a shareholder in a new company,
Adria LNG, set up to carry out studies for construction of an LNG
import terminal on the coast of Croatia. The other partners in the
venture are E.ON Ruhrgas (31.15%), OMV (25.58%), RWE (16.69%)
and Geoplin (1%). The terminal is expected to be built on the island
of Krk on Croatia’s northern Adriatic coast. This terminal, located at
the door to Central Europe, will be very well placed to serve Italy and
Germany as well as markets in the immediate region.
19

20
TRAdING ANd MARKETING
The globalization of energy markets has radically transformed
marketing practices in the LNG industry: the opportunities for trading
have expanded considerably, the number of players has increased
and business models have been adapted very rapidly to the new
environment. LNG now accounts for 27% by volume of world gas trade.
A changing environment
The rigid contractual relationships that previously
governed supply agreements are steadily being
rewritten. Buyers are now seeking greater flexibility in
terms of pricing formulas and cargo redirection clauses
and both buyers and producers prefer a combination
New marketing skills in an environment requiring
rapid response
From the start, Total realized just how important LNG
would become in the international gas trade picture.
Building on its recognized expertise in trading crude oil
and petroleum products, Total is now consolidating its
LNG trading operations on both sides of the Atlantic
Basin and in the Pacific zone too.
of long-term, short-term and spot contracts. This
e n v i r o n m e n t i s m o r e c o n d u c i v e to a r b i t r a g e
transactions, with the growing number of spot deals
now accounting for 15% of worldwide trade.
The Group’s objective in terms of LNG marketing is to
optimize the flows from its worldwide portfolio by
leveraging the trading skills that have been acquired
and consolidated over the last few years.

Total is consolidating its portfolio of purchases from producers
and sales to consuming countries with the aim of marketing
more than 100 cargos (vessels of all sizes) per year in 2010.
Patrick dugas
LNG Trading Manager,
Total Gas & Power Limited,
United Kingdom
We handle all types of LNG transactions for the Group,
including direct purchase of LNG cargos at loading
ports or receiving terminals, ship chartering, capacity
reservation at regasification facilities for resale in local
markets, and spot or short-term purchases/sales.
Total has a growing LNG portfolio, with new LNG plants
starting up, particularly in 2009 with Qatar and Yemen.
Over the years, we have also developed skill in geographical
arbitrage transactions and also (mainly for operational
purposes) commodity arbitrage (pipeline/liquefied
gas arbitrage). Our aim here is to optimize our use
of available volumes depending on the constraints and
opportunities in the marketplace at any given time.
21

22
TOTAL, INNOvATING IN LNG TECHNOLOGY
Total is participating in numerous LNG research projects focused
mainly on improving safety, optimizing the thermal efficiency of the LNG
chain and reducing costs. To further enhance competitiveness,
Total has also launched r&D programs on actual liquefaction processes,
development of resources in challenging geographic environments
and innovative infrastructure for LNG transfer and storage.
Meeting the growing challenges of resource development
research here has three main thrusts:
• Firstly, offshore liquefaction. This is a very topical theme
for Total, which is looking closely at the concept of a floating
offshore liquefaction plant and has awarded a contract to a
leading specialist engineering company for the conceptual
design of a floating LNG plant (offshore liquefaction facilities
on a floating hull) and an innovative LNG transfer system
operating in open-sea conditions.
• On two upcoming liquefaction projects Total also
proposes to use modular construction techniques, which
have significant advantages in remote sites and/or those
where work is particularly difficult or costly.
• Lastly, the promising outlook for Arctic gas reserves has
prompted Total to study possibilities for establishing LNG
plants in severe climatic conditions, where challenges
include, among others, very wide temperature ranges and
seas that are ice-bound a large part of the year.

Simplifying transfer systems
Two other aims of Total’s r&D are to simplify LNG transfer
systems and to ensure that current systems can be used
in a greater range of environments.
• Total has worked on the development of an LNG transfer
system that can be used in open-sea conditions. The
system uses a flexible LNG pipe and a light connect/
disconnect apparatus that incorporates the safety
systems used in conventional LNG terminals.
• The Group is also a partner in the “Floating LNG Line”
Joint industry Program looking at an array of attractive
solutions for transferring LNG at sea without the need for
overhead transfer (loading boom with flexible LNG line).
• And for a number of years now, Total has been actively
supporting a project to develop a “pipe-in-pipe”-type
subsea cryogenic transfer line. This environment-friendly,
cost effective solution has been chosen for the Brass
LNG project in Nigeria.
Improving LNG storage systems
Storage – whether at the liquefaction site or at an import
terminal – is a vital link in the LNG chain. Total is involved in
a number of research programs to improve safety, insulation
and construction techniques of cryogenic storage tanks.
• Lined rock cavern storage has the potential to store large
volumes of LNG with only minimal surface facilities required.
Geostock, a company in which Total has a 50% share, has
helped to test a 15-cubic-meter pilot unit in South Korea.
The pilot has now validated the concept and cavern storage
is expected to move to the commercial phase.
• Automation and standardization of the construction of
membrane tanks has generated new interest in this
technique, mainly for use in projects in difficult zones (the
Arctic) or countries with high labor costs (Australia).
• evaluation of new construction methods has also led to
new solutions that can be optimized to suit site conditions
or availability of local labor. For example, construction of a
double-walled concrete envelope can reduce the amount
of special steel required, as well as special welding
techniques, thus allowing a project to use local manpower.
Improving energy efficiency along the whole LNG chain
For both financial and environmental reasons, liquefaction projects require engineering studies
that allow the management of each new project to quantify technically feasible gains and see how
they stand up to the current economic realities of the LNG market and the construction market.
Total is also evaluating techniques that could improve the energy efficiency of receiving terminals
while reducing greenhouse gas emissions and recovering the energy contained due to extreme
cooling during liquefaction.
23

TOTAL’S LNG ACTIvITIES WORLdWIdE
FLowS
REgASIFICATIoN
TERMINALS
LIquEFACTIoN
PLANTS
Regasification terminals
24
Site 15 HAZIRA
(India)
16 ALTAMIRA
(Mexico)
17 SABINE PASS
(USA)
Total capacity 5 Bcm/year 6.7 Bcm/year 26 Bcm/year (phase 1)
40 Bcm/year (phase 2)
TOTAl’s equity
interest
Commissioned/
planned
Liquefaction plants
26% 25% Capacity suscribed
by Total: 10 Bcm/year
18 SOUTH HOOK
(United Kingdom)
16
17
SABINE PASS
USA
ALTAMIRA
Mexico
19 FOS CAVAOU
(France)
20 ADRIA LNG
(Croatia) Project
under study
21 Bcm/year 8.25 Bcm/year 10 Bcm/year
8.35% 29.8% 25.58%
2005 2006 2008 2009 End 2009 (e) 2015 (e)
Site 1 ADGAS
(Abu Dhabi)
Total capacity 5.6 Mt/year
3 trains
TOTAl’s equity
interest
Commissioned/
planned
2 BONTANG
(Indonesia)
22.2 Mt/year
8 trains
5% Total supplied
40.8% of
the gas in 2008
3 QATARGAS
(Qatar)
9.9 Mt/year
3 trains
4 NIGERIA LNG
(Nigeria)
21.9 Mt/year
6 trains
5 OMAN LNG
QALHAT LNG
(Oman)
OLNG : 7.2 Mt/year
2 trains
QLNG : 3.7 Mt/year
1 train
10% 15% 5.54% (T1/T2)
2.04% (T3)
1977 1977 1996 1999 2000 (T1/T2)
2005 (T3)
6 SNØHVIT LNG
(Norway)
4.2 Mt/year
1 train
7 QATARGAS 2
(Qatar)
15.6 Mt/year
2 trains
18.4% 16.7%
in the second train
8 YEMEN LNG
(Yemen)
6.7 Mt/year
2 trains
39.62%
2007 2009 2009

FoS CAVAou
France
19
9 ANGOLA LNG
(Angola)
Under construction
5.2 Mt/year
1 train
13.6%
2012 (e)
18
SouTH HooK
United Kingdom
NIgERIA
LNg Nigeria
qATARgAS
Qatar
4
12
SNøHVIT LNg
Norway
13
6
ADRIA LNg
Croatia
NIgERIA LNg (train 7)
Nigeria
BRASS LNg
Nigeria
9
20
1
3
ADgAS
Abu Dhabi
ANgoLA LNg
Angola
11
7
SHToKMAN
Russia
qATARgAS 2
Qatar
14
8
PARS LNg
Iran
15
YEMEN LNg
Yemen
5
HAZIRA
India
Projects and extensions under study
Site 10 ICHTHYS LNG
(Australia)
11 SHTOKMAN
(Russia)
oMAN LNg
qALHAT LNg
Oman
12 BRASS LNG
(Nigeria)
Total Capacity 8.4 Mt/year 2 trains 7.5 Mt/year 10 Mt/year
2 trains
TOTAl’s equity
interest
2
BoNTANg
Indonesia
10
ICHTHYS LNg
Australia
13 NIGERIA LNG
train 7 (Nigeria)
8.5 Mt/year
1 train
14 PARS LNG
(Iran)
10 Mt/year
2 trains
24% 25% 17% 15% 30%
(Company estimates
after LNG buyers
entered the project)

LiqueFieD NATurAL GAS
TOTAL S.A.
2, place Jean Millier
La Défense 6
92400 Courbevoie (France)
www.total.com
Total S.A. Share capital: Euros 5,867,520,185.00. Registered in Nanterre: RCS 542 051 180. Printed in France. October 2009. Designed by: Studios Menthe&Chocolat. Photo credits: All rights reserved Total. M. Roussel, Th. Gonzalez, L. Zylberman,
M. Dufour, F. Sejourne, Leren Eiliv, Statoil/Total, L. Sauser, L. Stephane, S. Rivoallon, T. Haga, A. Picard, M. Richards, S. Williams, P. Dugas, Total/Camel, STMFC/Altivue, Getty Images (A. Baxter), D.R., X - By courtesy of: SHI, Cheniere. Illustration : Nando.