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South Hook LNG Terminal

Presentation to BERR-EEF Event 18th February 2008

Mohammed Al-Naimi

Director & General Manager


Qatar Overview

North Field• World’s largest non-associated gas field• Gas reserves of 900+ TCF : equivalent to

– ~ 250 years UK demand– ~ 150 Morecambe gas fields

Existing Facilities/Projects• 8 LNG trains (31 MTA)• Contracted supply to Japan, Korea, Europe, India• Overtook Indonesia in 2006 as largest LNG exporter

Future Projects• 6 additional LNG trains (46 MTA)

Qatar • Population 0.8M• Area 11,400 km2

• Rapidly growing economy – Over 25% growth since 1994– GDP of $15 billion projected to double over next 10

years– Among the highest per capita GDP in the world

QATAR

North Field

Doha

UAEKSA

~ 60 miles


Qatargas II Supply Chain

Qatargas II Project Scope

Mega-project employing step-out technologies and economies of scale to offset distance disadvantage. Key components include:

– Gas from world’s largest gas field

– Two 7.8 million MTA trains will be the largest ever constructed; 60% larger than any to date

– A fleet of 14 large LNG ships; 70% larger than any ever built

– Receiving terminal in the U.K. to re-gasify and deliver 2.1 BCFD

GasProduction

Gas Treating &Liquefaction

LNGShipping

LNGRegasification

Gas LNG LNG Gas to

Pipeline


Drilling/Offshore Development Plan

• 30 wells• Three unmanned wellhead platforms• Two wet gas pipelines (34” and 38“) to shore (lengths of ~80 km & ~105 km)• Power, communication and control from QG complex.


Onshore Processing

• Each train almost 1km long• Capacity of 7.8 mta each (c.f. 4.7 mta for current world scale plant)• Scale up of existing technologies

– Waste heat recovery– Low NOx burners

• Required to keep QGII Onshore Project going…..– 25,000 people– Cable stretching from Doha to London– Every month….31,000,000 gals of water; half million eggs; 180 tons of rice; 3,000,000

litres of diesel– Every month ...1200 trucks of sand; 300 trucks of cement; 90,000 bars of soap


Qatar Infrastructure Sharing

• $5.5 Billion of facilities being jointly constructed/used• Common Sulfur: Qatargas II execution, 12,000 tonnes/day• Common LNG Tanks/Berths: Qatargas II execution, 56 mta• Common Condensate SPM: Qatargas II execution• Common Condensate Tanks: RasGas execution, 500,000 barrels per day• Common LPG: RasGas execution, 14 million metric tons per year• Facilities to be shared by 12 LNG Trains, gas, GTL, and energy ventures in Ras Laffan

Common Sulphur – 12,000 t/d Common Lean LNG – 56 MTA


Ships

Pipeline

Gas

• Highly efficient new-build ships to be deployed– Scale increase– Twin screw slow speed diesel– On board re-liquefaction – “sell what you load”

• Q-flex (8 ships) – 50% increase in cargo capacity• Q-max (6 ships) – further 25% increase in cargo capacity• 30% cost of service reduction


South Hook LNG Terminal Development

Production Capacity• Receive, store and re-gasify 15.6 MTA LNG• Send out 2.1 BCFD natural gas • 20% current UK gas demand

Facilities Description• Upgrade and refurbish existing marine jetty• All conventional technologies

– 5x155 km3 full containment LNG storage tanks– Submerged Combustion Vaporizers (SCVs)

• Pipeline extension/reinforcement to national gas grid being built and operated by NGG

Permitting• All major permits obtained• Secondary permits on track• EU exemption granting full access obtained Economic Advantages

Outside N. Sea shipping lanesShortest sailing distance to UKNatural deepwater harbour (minimal dredging)Skilled local labour availability


South Hook LNG Project Update

Aerial View of LNG Tanks and Re-gas Area

Re-gas PlantNitrogen Plant

Jetty Refurbishment

Status

Phase I: 93% complete

Phase II: 86% complete

Phase I: start-up Gas Summer 08


Pipeline

• Visual Impact– Reduced by tank design, construction of bunds, positioning and landscaping• Land– Re-development and remediation of a former brown-field site, continuous monitoring undertaken• Air– Low emitting LNG vaporizers used: very low levels of nitrogen oxides and carbon dioxide • Water– Submerged Combustion Vapouriser’s [SCV’s] design chosen over open-rack system– Low nitrate levels in SCV effluent– Reverse osmosis to reuse water– Complex water run off management system to minimise sediment entering Haven– Fuel bunkering not undertaken on site to prevent spills

Environmental Mitigation Measures


Gas to

Pipeline

Visual Impact

• Minimising visual intrusiveness of the facility was a key requirement of the permitting authorities and other stakeholders

• Achieved by– Creating a hollow in which the tanks are positioned by removing 1.5 million cubic metres of spoil– Tanks wider and squatter than industry norms– Creation of strategically placed bunds– Landscaping– Tanks positioned so only the two lead tanks are visible


Gas to

Pipeline

• Legally binding Section 106 Agreement with Pembrokeshire Coast National Park Authority - 110 acres of site left for nature conservation Unique eco-system - access to the area is restricted.

• Artificial badger sett created• Kestrel nesting boxes installed • Management Plan under development

Conservation Area


South Hook LNG Project – Summary

• $1.6 Billion dollar mega-project

• Part off $13 billion full value chain

• Largest LNG Terminal in Europe– capacity is approx. 20% of UK natural gas demand

• Key element of Qatar’s plan to become the leading player in LNG world markets

• Important to UK natural gas supply security and diversity policy goals

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