Qatar’s Global LNG bridgesthe Gap from the Reservoir to the Consumer- RasGas Managing Director
Posted: 16 May 2005
Maintaining RasGas’ commitment to strengthen and promote the position of Qatari LNG throughout the globe, RasGas Managing Director, Alex Dodds addressed an audience of worldwide oil and gas executives at the LNG Supplies for Asian Markets Conference, held in Singapore, May 11 – 13, 2005.
The presentation - made on behalf of H.E. Qatar’ Second Deputy Premier and Minister of Energy and Industry, Abdullah Bin Hamad Al-Attiyah - highlighted the key elements and advantages that Qatari LNG could offer worldwide energy consumers including:
* Qatar's World Class Reserve Potential
* Regional / Logistical Advantages
* Strong Governmental Support
* Operational credibility and supply
* Financial Strength
* A leader in technology
* Flawless Execution of the existing SPAs
* A willingness to move downstream
RasGas Managing Director Dodds began by reminding the audience that in 2004 the global economy grew at a rate of 5% and although this figure is expected to slow to 3.5% – 4.0% in 2005 this still implied a significant growth in energy demand. “As such, “natural gas”,” he stated, “is well positioned to capture nearly one third of all incremental energy growth between now and 2020.”
“This growth in demand,” he continued, “will outpace the ability of many regions to source their supplies domestically or import via pipeline thus increasing the need to source gas over longer and longer distances which is where LNG comes in to play. The trend in gas supply and demand has grown by 15% over the last 5 years (3% per year) from just over 260 Bcfd to 300 Bcfd. Projecting future growth to continue at 2.2% will create an excess in demand equivalent to just under 20 Bcfd of gas or roughly 125 million tonnes per annum (MTA) of LNG by 2010. This increase would double global LNG demand by 2010 to 250 MTA and further increase it to over 430 MTA by 2020.”
Continuing he stated: “To economically meet this growing demand for natural gas, the key challenge for the industry will be to develop the scale and infrastructure necessary to bridge the increasing gap between the reservoir and the consumer. Qatar’s Global LNG Strategy extends the boundaries of a LNG development project beyond the typical production and liquefaction scope to include the entire LNG value chain (from reservoir to re-gasification). Integrating and executing such projects requires not only world class gas reserves, but the people and experience to develop the technology and execute the projects required to capture the economies of scale and economically deliver LNG across a diverse range of markets.”
Within his presentation, Dodds also discussed how both RasGas and Qatargas continued to leverage their technical and operational strengths with the financial strength of the State of Qatar and their other shareholders to offer worldwide LNG buyers the flawless execution of long-term contracts and the ability to diversify and consider new opportunities quickly and effectively.
In conclusion, Alex Dodds recapped Qatar’s position by emphasizing: “ Qatar has set new benchmarks in virtually every aspect of LNG project development from the use of new technology, establishment of a new business model, innovative commercial arrangements, and development across the entire LNG supply chain. We believe these innovative solutions mark a ‘New Era in the LNG Industry’.
In response to various press inquiries following his presentation, RasGas Managing Director Alex Dodds stated that RasGas has invested in strategic agreements in Asia, “… agreements that reflect the State of Qatar and His Highness the Emir of Qatar Sheikh Hamad’s endeavors to strengthen relations with the sizeable Asian markets.” Citing his Company’ leading partners in the region, he emphasized the milestone sales and purchase agreements with Korea Gas Corporation (KOGAS) – 4.9 million tonnes per annum (mta) since 1999 and Petronet LNG of India for the sale of up to 7.5 mta, starting 2004. Dodds further highlighted current negotiations to execute the exclusive Heads of Agreement with the Chinese Petroleum Company (CPC) for 3 mta commencing in 2008, stating: “…..discussions are ongoing however it is too early to conclude outcomes at this stage.” Questioned about future RasGas expansion targeting 36.6 mta by 2010, MD Dodds responded that: “While we welcome new customers, current partners would be given consideration in any additional production capacity.”
Posted by Editor Pipeline Magazine
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