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QPI’s Role in the

Global Gas Market

Presented byMohd Hitmi Al-HitmiExecutive Director, Gas & PowerQatar Petroleum International Limited

7th Doha Natural Gas Conference & ExhibitionMarch 10, 2009Doha, Qatar

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This presentation and the content hereof was prepared for the Doha Natural Gas Conference March 9-12, 2009.

Neither QPI nor any of its employees makes any warranty, expressed or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information disclosed herein. Reference herein to any specific company(s) does not necessarily constitute or imply its endorsement, recommendation, or favoring by QPI. The opinion of the author expressed herein does not necessarily state or reflect those of QPI or QP or otherwise and shall not be used for endorsement purposes.

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GLOBAL GAS MARKET OUTLOOK

Source: Based on information from Goldman Sachs Research estimates.

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GLOBAL GAS MARKET OUTLOOK

Source: BP Statistical Review of World Energy 2008.

LNG equivalent: 6.3b tons 6.5b tons 11.7b tons 11.8b tons 48.1b tons 59.2b tons

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GLOBAL GAS MARKET OUTLOOK

Source: BP Statistical Review of World Energy 2008.

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GLOBAL GAS MARKET OUTLOOK

Source: BP Statistical Review of World Energy 2008.

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GLOBAL GAS MARKET OUTLOOK

Source: BP Statistical Review of World Energy 2008.

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Supply & Demand Drivers:

• Global economic downturn will moderate demand growth in the short term.

• New conventional gas production along with incremental LNG supply coming online will exert downward pricing pressure.

• Future demand growth will resume, but underpinned by environmental considerations and new gas-fired electric generation.

GLOBAL GAS MARKET OUTLOOK

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Investment Drivers:

• Regional supply and demand patterns will dictate type and magnitude of investments.

• Regional differences will also influence conventional gas development/pipeline opportunities vs. LNG infrastructure development.

GLOBAL GAS MARKET OUTLOOK

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Investment Drivers:

• LNG markets will continue to respond to regional supply, demand and pricing.

• Pricing basis differentials will narrow among regional LNG markets.

• LNG pricing linkage to oil markets evolving.• Investment returns may depend on first-to-

market advantage and securing long-term supply contract positions.

GLOBAL GAS MARKET OUTLOOK

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• First-to-market advantage compromised due to credit markets drying up.

• Tightening of project financing hindering project development efforts.

• Shortage of liquidity will push financing costs for projects.

GLOBAL FINANCIAL CRISIS &INVESTMENT CHALLENGES

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• Lack of debt financing may force companies to resort to more expensive equity financing to successfully complete projects.

• Equity markets bearish and raising additional equity would be challenging.

• Companies may have resort internal cash position or joint ventures to preserve capital and spread risk.

• Investment opportunities abound, but would require rigorous selection criteria.

GLOBAL FINANCIAL CRISIS &INVESTMENT CHALLENGES

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• QPI in unique position with QP as parent that has successfully monetized gas reserves – even during periods of depressed energy pricing.

• Experience in project development will be replicated by QPI.

QPI’S APPROACH TO OVERCOME INVESTMENT CHALLENGES

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• QP maintains a strong credit rating that will enable QPI to tap credit markets for future investment.

• QPI will focus on value investing, especially in the current market conditions.

QPI’S APPROACH TO OVERCOME INVESTMENT CHALLENGES

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• QPI’s investment objective is to maximize the entire gas value chain.

• Investment focus to include:– Upstream oil & gas– Midstream gas & power– Downstream, including petrochemicals

QPI’S APPROACH TO OVERCOME INVESTMENT CHALLENGES

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• Investment “partnerships” in gas value chain may involve Qatargas, RasGas, Tasweeq and others.

• Fuel resources may include:– LNG– LPG– Others

QPI’S APPROACH TO OVERCOME INVESTMENT CHALLENGES

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Representative investment portfolio to include:– Selective E&P investments– North American/European LNG terminals– Selective European/Asian power development– Far Eastern downstream projects

QPI’S APPROACH TO OVERCOME INVESTMENT CHALLENGES

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Conclusions:

• Investment opportunities abound in current environment, but would require stringent screening.

• QPI well-positioned to take advantage of these opportunities.

• QPI to focus on attractive opportunities in entire gas value chain.

QPI’S ROLE IN THE GLOBAL GAS MARKET

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THANK YOU

QPI’S ROLE IN THE GLOBAL GAS MARKET