Transcript www.dohagascon.com.qa

50 Years Experience in
the LNG Industry
Beauvais (experimental vessel) - 1958
Gaz de France energY - 2006
The Global Integrated Model:
a Key-Player for Value Creation
Jean-Luc COLONNA
Senior Vice President, LNG
7th Doha Natural Gas Conference and Exhibition – 9-12 March 2009
Doha, 10 March 2009
Presence and partnerships in Qatar
GDF SUEZ has been involved in Qatar through several long-term
activities and major projects including significant investments:
• 2005: Doha West sewage water treatment plant
• 2006: Doha Lusail sewage transfer and treatment system
• 2008: Representative Office in Doha; MoU signed with
Qatar Petroleum International (QPI)
• 2008: Ras Laffan C project [US$ 3,700 M investment]
– Biggest independent water and power project (IWPP)
of the country: production capacity of 2,730 MW (power
production) and 286,000 m3/day (water desalination)
– Partnership with Mitsui, Yonden, Chubu, Qatar Petroleum
and Qatar Electricity & Water Company
• 2008: Marafeq Qatar
– Multi Utility Company in the field of energy services (inc. district
cooling), water (inc. desalination), waste water, power transmission
and distribution, gas supply (LPG), solid waste, etc.
– Partnership with Qatari Diar and Barwa
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Doha, 10 March 2009
Hard times have arisen for global economy…
• Financial crisis started in end 2007 and has worsen since then into a
global economic crisis
• Developed countries will
experience recession in 2009
whereas developing countries
should see a reduction of GDP
growth rate
• Industrial production dropped
steeply by the end of 2008
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Doha, 10 March 2009
… troubled times for gas demand
• Demand reduction
– Had already been underway since 2006: high energy prices have made industry
keenly aware of necessity of energy efficiency
– Widespread recession reduces current gas demand in the industrial and power
sectors and even to a small extent in the domestic sector
– Decline of industrial production casts doubt on the rate of future gas demand growth
– Duration & depth of crisis and pace of recovery are key-issues
• Security of supply
– Russian supply transiting via Ukraine totally stopped for two weeks, with major
impact in South-Eastern Europe
– Negative impact on gas supply reputation – questioning if gas is a reliable source of
energy
– Greater consideration given to fuel diversity (coal, nuclear)
• Energy Efficiency and Carbon Policies
– EU and US decisions to strengthen energy efficiency and carbon policies could favour
nuclear power, renewables and clean coal, and reduce gas demand
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Doha, 10 March 2009
Where will flexible LNG flow?
• Compared with the last 2 years, Asia will not be a destination for flexible LNG
– Asia will not be able to absorb all LNG coming on-stream in 2009-2012 (+70 mtpa)…
– … and should not need significant spot/short-term supply
• Flexible LNG volumes should be more than sufficient to satisfy European needs
– LNG terminal capacity is available to receive flexible LNG…
– … but pipeline Take or Pay obligations limit the demand for flexible LNG in particular
during summer time
– and European liquid markets are not very deep
• Therefore the remaining volumes will probably need to go to the US…
– Deep and liquid markets
– Large idle LNG regasification capacities
• … but at what price?
– Development of cheap unconventional gas means US does not need to import LNG
– US the 'last resort' market for LNG…
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Doha, 10 March 2009
Europe, the "new" LT destination for LNG?
• Reliable gas market offering visibility, based on LT relationships between counterparts
• Mature low growth gas market… but declining indigenous gas production
– Requiring increasing gas imports
– Expecting the strongest world wide medium term growth in LNG imports
• Europe already has LNG infrastructures that can handle more LNG on the short/mid term
– Spare capacity in existing terminals
Gas production and imports in Europe
– New terminals coming on stream 2009
• Renewed interest of the European Commission
and of several European countries
– Diversity and security of supply = major issues
Annual LNG imports: +64 bcm between 2007 and 2017
600
500
400
300
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100
Net LNG imports
Net pipe imports
Dry gas production
0
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00
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– Intending to promote LNG projects
Europe gas demand and production (bcm)
– Expansion of existing terminals
[CERA]
700
• Fast-track opportunities and solutions exist
CERA - Global fissures scenario
– Floating terminals, expansion of existing infrastructures
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Doha, 10 March 2009
GDF SUEZ – Bringing confidence to the LNG business
• Strong positions all along the LNG value chain
- Worldwide Group's gas supply ~100 bcm/year
- Highly diversified and stable customer base (geography, type of markets,
indexation)
- Long-term contracts with producers
- Financial strength and creditworthiness
• Technical and commercial expertise
through
- Development of some of the core technologies
on which the LNG industry is based and
continued commitment to R&D
- Group investment and presence all along
the LNG value chain
- Development and operation of Group's assets
- Design & Engineering consultancy services to the LNG industry
- Ad hoc partnerships
GDF SUEZ's main gas consumption / markets
GDF SUEZ's main gas consumption / markets
with access to regasification capacities
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REDISCOVERING ENERGY