1. A Foundation for Growth
Qatar’s LNG Strategy,
A Foundation for Growth
Doha Conference on Natural Gas
Faisal Al Suwaidi
Chief Executive Officer
Qatargas Operating Company Ltd.
10-March, 2009
Good morning Excellencies, ladies and gentlemen. It is a great pleasure to address my colleagues located here in Doha, and the many visitors that have travelled great distances to attend this event. I look forward to the opportunity to meet so many new participants in our industry and to build stronger relationships with the long-term participants in the LNG industry. I would also like to give my thanks to Bill Bullock who has worked hard to make this panel discussion interesting and useful to each of us here today. Additionally, I look forward to hearing from the speakers on this panel.
My presentation today is titled :
“Qatar’s LNG Strategy, A Foundation for Growth”.
I will begin with a look at:
Qatar’s LNG developments
Our strategic approach to marketing LNG.
Then I will describe how we view the future for Qatar LNG

2. The Development of Qatar’s LNG Industry
In 17 years Qatar has evolved from a small oil producer to one of the most influential suppliers in LNG. While Qatargas was founded in 1984, the first major agreement was made in 1992, when the State of Qatar committed to construct the $1 billion Ras Laffan LNG port. By 1996, the Qatargas project had loaded its first LNG cargo. This was followed in 1999 with the first LNG cargo loaded from RasGas, Qatar’s second successful LNG project.
1995 Kogas SPA
1999 First Cargo
1992 Chubu SPA
1996 First Cargo
1992 Port Construction
Commitment
1996 Start-up
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3. On the Path to 77 MTA RasGas Qatargas Trains 6-7 Trains 1-3 Trains 4-5
Now in 2009, we have:
8 LNG production trains in operation with a combined production capacity of 30 million tonnes per annum,
The first mega train with 7.8 million tonnes per annum of LNG capacity commissioning and on the verge of loading the first cargo,
Another 5 mega trains under construction with 39 million tonnes per annum of capacity,
Much is required to develop such a large-scale LNG industry. However, Qatar has achieved its success to date, not just by developing train after train to produce LNG, but by following a strategy born in the 1990’s and refined over the ensuing years.
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4. Qatar Advantage Huge Reserves (900 TCF) Strong Government Support
Strong Partnerships / Shareholders
Financing Strength
World Class Infrastructure & Operations
The strategy began to evolve in the last decade. As natural gas became the fuel of choice in the power and industrial sectors worldwide, Qatar recognized it had a massive geographic reach into which it could sell LNG. We began to build relationships with new customers around the world.
We also recognized every buyer had a long list of needs that cannot normally be met by all suppliers. Qatar’s strategy was to develop a market based package that plays to our strengths. This approach would create a more competitive overall supply proposal than any of our competitors could offer in each market in which we chose to compete.
Given these Global LNG Supply opportunities and Qatar’s capabilities we began to recognize and develop the “Qatar Advantage”.
This advantage consisted of the tremendous gas reserves, strong support from the Qatari Government, and a steadily growing economy and stable investment climate. The combination attracted the capital required to develop the new projects and gave customers confidence to make long-term commitments.
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5. LNG Marketing “Game Changer” 2002
Qatargas 2 Train 4
Then in 2002, Qatar took a step that “Changed the Face of the LNG Industry”.
QP along with ExxonMobil launched Qatargas 2. This revolutionary project would incorporate the largest ever LNG trains and ships combined with a world class import terminal in the UK.
Thanks to the structure, the shareholders were fully aligned through the value chain ensuring optimal returns to the investors.
Subsequently, the model was replicated for two more trains at Qatargas and two trains at RasGas.
Total joined Qatargas 2, and Conoco Phillips and Shell joined QP in launching Qatargas 3 and 4 respectively. ExxonMobil and QP are partners in Ras Laffan 3.
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6. Laffan Refinery
The new trains are also capable of producing LPGs in addition to the LNG and with the development of a condensate refinery at Ras Laffan, Qatar will also market refined products in addition to condensate from the North field.
Looking forward, in the next few years we will not only be striving to commission all the new facilities in the safest manner possible but, reliably as well. We will not sacrifice safety or long-term reliability and therefore are taking every measure to minimize start-up risks.
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7. Global Market Reach - One of the KeysUS
~25%
Mexico
Golden Pass
Belgium
Japan
India UK
Italy
China
Office
Qatar Owned Terminal
3rd Party Receiving Terminal
JLO
Thailand
Kuwait
SHG
~35%
~40%
Adriatic
South Hook
UAE
Taiwan
Korea
Ras Laffan
Spain
France
With these new trains come the new markets we have reached, like:
The UK
USA (both Gulf of Mexico and East Cost)
France
Mexico
China
Thailand
Dubai
and Kuwait.
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8. Global Market Reach - One of the Keys
South Hook LNG Terminal, Wales, U.K. US
~25%
Mexico
Golden Pass
Belgium
Japan
India UK
Italy
China
Office
Qatar Owned Terminal
3rd Party Receiving Terminal
JLO
Thailand
Kuwait
SHG
~35%
~40%
Adriatic
South Hook
UAE
Taiwan
Korea
Ras Laffan
Spain
France
For example, pictured here is the 15.6 million tonne per annum South Hook LNG Terminal which will begin to operate coinciding with the first production of LNG from Qatargas Train 4.
This terminal will be capable of receiving LNG from Qatargas 2 on the QFlex and QMax ships. It is just one of the terminal projects Qatar is developing in the Mediterranean and Atlantic Basin.
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9. Global Market Reach - One of the KeysUS
~25%
Mexico
Golden Pass
Belgium
Japan
India UK
Italy
China
Office
Qatar Owned Terminal
3rd Party Receiving Terminal
JLO
Thailand
Kuwait
SHG
~35%
~40%
Adriatic
South Hook
UAE
Taiwan
Korea
Ras Laffan
Spain
France
Our new trains are not just about new markets.
We have grown and deepened our relationships with the two largest LNG buyers in the world.
Japan and Korea, will also be receiving additional LNG from Qatar’s new mega-trains.
Strong Demand for LNG
Reliable and Creditworthy Customers
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10. Qatar’s LNG Strategy US
~25%
Mexico
Golden Pass
Belgium
Japan
India UK
Italy
China
Office
Qatar Owned Terminal
3rd Party Receiving Terminal
JLO
Thailand
Kuwait
SHG
~35%
~40%
Adriatic
South Hook
UAE
Taiwan
Korea
Ras Laffan
Spain
France
The Qatar LNG strategy now incorporates the concept of diversity…
Diverse markets, diverse partners and diverse products.
Diverse Markets, Diverse Partners, Diverse Products
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11. Global Market Volatility
Crude Oil Price – West Texas Intermediate
At the same time we are starting up these new projects, we are facing an increasingly volatile economic environment.
Our LNG competitors are commissioning a significant amount of new and expanded capacity as well.
This growing global LNG supply, coupled with currently lower and uncertain energy prices will put additional responsibilities on our teams to ensure the LNG is delivered reliably and safely where it is needed most.
This effort will help smooth the introduction of new LNG supplies into the market.
Full Price Cycle in 7 Years
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12. Global Market Access Crude Oil Price – West Texas Intermediate
As a result of following a sound strategy, Qatar is well positioned for these challenges with flexible LNG contracts and terminal capacity in the liquid Atlantic Basin markets coupled with ample shipping capacity, capable of delivering LNG to all markets.
By the end of the decade Qatar with have:
26 Conventional Ships
31 QFlex and
14 QMax
For a total of 71 LNG ships
Note:
Full Price Cycle in 7 Years
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LNG Ships
Conventional
QFlex
QMax
Total
Qatargas 12 19 13 44
RasGas 14 1 27 26 31 71

13. Foundation for Growth Enormous Reserve of the North Field
Wise Vision for Developing Qatar’s resources
Applying New Technology to Achieve Lower Costs
Multi-phase Development for the LNG Projects
Strategy: Diversity of Markets, Partners and Products
To complete this brief look at the Qatar LNG story, I will summarize what I believe are some of the key factors that form the foundation for growth.
First, the enormous natural gas reserve is without question the starting point.
The wise vision and responsible management of the North Field’s development has guided us to the point where we are today and will carry us well into the future.
Qatar is a leader in technology and a pioneer in the development of large liquefaction trains. Additionally, the fleet of ships, delivered and under construction, are the largest in the world with the lowest unit cost to deliver LNG. The scale and technology employed to produce and deliver LNG provides an efficiency that is unmatched in industry and allows us to compete in every market around the globe.
Multi-phase LNG project developments have provided the opportunity to gain valuable operating and commercial experience in Qatar and the channels to develop new and fruitful relationships with partners and buyers, which have facilitated the final success factor.
A strategy of diversity of markets, partners and products has positioned Qatar to weather the uncertainty in our emerging global market today. This strategy is a must for the future, as Qatar serves in its role as the safest, largest, most reliable and responsible LNG supplier to the world.
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14. Thank you
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