the oil & gas year qatar 2015

QATAR 2015

THE OIL & GAS YEAR The Who’s Who of the Global Energy Industry

ww

w.t

heoi

land

gasy

ear.c

om

9781783021123

ISBN 978-1-78302-112-3

Adapt to the volatile marketAbdullah bin Hamad AL ATTIYAHChairmanAL ATTIYAH FOUNDATION FOR ENERGY & SUSTAINABLE DEVELOPMENT

Supply surplusAlistair ROUTLEDGEPresident and General ManagerEXXONMOBIL QATAR

Market leadershipH.E. Seyed Mohammad Hossein ADELISecretary-GeneralGAS EXPORTING COUNTRIES FORUM

ARTICLES | INTERVIEWS | VIEWPOINTS | MARKET ANALYSIS | RESOURCES | PROJECTS | MAPS | INVESTOR SPOTLIGHTS

THE

OIL

&G

AS

YEAR

QATA

R2015

00A_COVER_QATAR_2015.qxp_Layout 1 10/15/15 4:05 PM

Qatar’s North Field, with 24.5 tcm (865 tcf) of natural gas reserves, is the largest non-associated gasfield in the world and was discovered in 1971. After beginning productionfrom the field in 1991, Qatar Petroleum invested in the development of large-scaleliquefaction facilities in partnership with international oil companies through the Qatargasand RasGas ventures to utilise its competitive advantage and access to open seas.Between 1999 and 2010, 14 LNG trains were brought on line, including the largest inthe world. This makes Qatar the largest producer and exporter of the commodity globally,with a total liquefaction capacity of 77 million tonnes per year. The country accountedfor 31.9 percent of global LNG trade in 2014 with exports totalling 76.4 million tonnes.

Phot

o co

urte

sy o

f Ras

Gas

00A_COVER_QATAR_2015.qxp_Layout 1 10/15/15 4:05 PM

6 THE YEAR IN REVIEW

7 ARTICLE: The new face of Qatar Petroleum. The state-owned hydrocarbons giant undergoes a restructuring effort

9 RESOURCE: Qatar Petroleum’s companies and investments10 INTERVIEW: Abdullah bin Hamad Al Attiyah, Al Attiyah

Foundation for Energy & Sustainable Development11 RESOURCE: Estimated minimum oil prices required to

balance government budgets 12 THE YEAR’S AWARDS13 QATAR AT A GLANCE14 THE INVESTORS INDEX15 AMBASSADORS’ FORUM: A history of collaboration16 THE YEAR IN ENERGY

18 DIPLOMACY & POLITICS

19 ARTICLE: Time to expand. Big bets on infrastructure, both domestic and abroad, are driving Qatar’s economy

21 VIEWPOINT: Market leadership. H.E. Seyed Mohammad Hossein Adeli, Gas Exporting Countries Forum

22 INTERVIEW: Jérôme Ferrier, International Gas Union22 IN TRANSIT: Qatar yearly LNG exports by regional

destination, 201423 INTERVIEW: Keejong Chung, South Korean Ambassador

to Qatar23 IN EXPORTS: Qatar's exports in 2014 by type

24 EXPLORATION & PRODUCTION

25 ARTICLE: Qatar’s upstream consolidation. The country aims to boost production at home and abroad

27 PULLOUT MAP: Blocks, fields and hydrocarbons infrastructure – 2015

28 GEOLOGY REPORT: Beneath the surface. An exploration of the Arab Gulf Basin

30 INTERVIEW: Alistair Routledge, ExxonMobil Qatar30 IN PRODUCTION: Qatar’s gas production and consumption32 PROJECT HIGHLIGHT: Barzan Gas Project33 ARTICLE: Qatar’s potential redeveloped. New projects are

in the works to halt production decline34 PROJECT HIGHLIGHT: Al Shaheen field35 RESOURCE: Al Shaheen oilfield infrastructure36 COMPANY PROFILE: Dolphin Energy37 COMMENT: Natural adaptation. Potential changes to LNG

pricing37 MAP: Dolphin Energy regional pipeline network

38 COMPANY PROFILE: Total E&P Qatar39 IN THE REGION: Natural gas production and consumption40 ARTICLE: The tortoise and the hare. Iran is primed for gas

development following its nuclear deal

42 THE YEAR’S FOCUS: LNG Outlook

43 ARTICLE: Competition heats up. LNG projects in the US and Australia change market dynamics

45 COMPANY PROFILE: RasGas45 IN EXPORTS: LNG exported by selected countries in 2014 46 PROJECT HIGHLIGHT: Jetty Boil-off Gas Recovery project47 COMPANY PROFILE: Qatargas48 PROJECT HIGHLIGHT: Plateau Maintenance Project49 INTERVIEW: Gary Sykes, ConocoPhillips Qatar49 IN TRAINS: Qatari LNG plants50 COMPANY PROFILE: Nakilat51 MARKET ANALYSIS: A position of advantage. Gopal

Balasubramaniam, KPMG52 RESOURCE: LNG wholesale and retail supply chain53 PULLOUT MAP: World LNG Outlook – 2015

54 OILFIELD SERVICES

55 ARTICLE: Status quo. Qatari oilfield services companies focus on maintaining upstream output

56 VIEWPOINT: Modern approach. Ross White, Baker Hughes57 ARTICLE: Services survive in the Gulf. The GCC services

sector remains largely unscathed through low oil prices58 COMPANY PROFILE: Gulf Drilling International58 IN COMPARISON: Qatari rig count and Brent Crude

price, January 2014-July 201559 INVESTOR SPOTLIGHTS: Delta Corporation,

Schlumberger Overseas, Al Shaheen Weatherford, National Oilwell Varco

60 RESOURCE: Enhanced oil recovery techniques

62 DOWNSTREAM & INDUSTRY

63 ARTICLE: Refined expansion. Niche products are driving Qatar’s downstream sector

63 IN CAPACITY: Capacity of existing and planned facilities at Qatar's QP and Laffan refineries

64 COMPANY PROFILE: Muntajat64 IN PRODUCTION: Qatar’s chemicals and petrochemicals

production, 2003-2013FOLDOUT MAP: Qatar’s sphere of influence

CON

TEN

TSQ

ATA

R 20

15

1

QATAR 2015

The Who’s Who of the Global Energy Industry THE OIL & GAS YEAR | QATAR 2015

18Diplomacy & PoliticsQatar’s extensive financial reserves and sta-ble political environment are poised to carrythe market through the oil price downturnfor at least the medium term. The govern-ment is holding to large-scale domestic andinternational energy investments, aiming toexpand oil and gas development both athome and abroad as well as maintain its po-sition at the world’s leading supplier of LNG.

24Exploration & ProductionQatar Petroleum is aiming to expand produc-tion at established oil and gasfields such asDukhan and the North Field, as well as steppingup its international exploration and productionefforts with new investments in countries asfar afield as Canada and the Republic of Congo.Meanwhile, the government is looking to re-structure long-term hydrocarbons concessionsthat are coming up for renewal in order to se-cure greater gains from its resources at home.

The Who’s Who of the Global Energy Industry

THE OIL & GAS YEAR

www.theoilandgasyear.com

01_CONTENTS_QATAR_2015.qxp 10/15/15 4:11 PM Page 1

42The Year’s Focus: LNG outlookQatar exported 76.4 million tonnes of LNG in2014, and the country’s unmatched capacityfor LNG production positions it to remain dom-inant in spite of a changing global market. Evenas rival supplies begin emerging from marketssuch as the US and Australia, Qatar’s establishedinfrastructure gives it an advantage, particularlyduring a period of low commodity prices.

76Power GenerationDemand for power is rising in Qatar alongwith the expansion of the country’s popula-tion and economy. New generation projectssuch as Umm Al Houl Power’s Facility D in-dependent power and water plant are in theworks to satisfy this demand. Power devel-opments abroad are also being given aboost, as investments are made or plannedin Oman, Turkey, Kenya and other markets.

62Downstream & IndustryThe Qatari downstream sector is evolving toadd greater value to local oil and gas re-sources. Although the country has seen twomajor petrochemicals projects cancelled, anumber of new developments are in thepipeline to transform hydrocarbons into nicheand high-value products such as helium andhydrogen. Meanwhile, a carbon dioxide re-covery unit at the Mesaieed methanol plantwill raise output by 90,000 tonnes per year.

65 INVESTOR SPOTLIGHTS: Gulf Cryo Qatar, Qatar Plastic Products Company, Tasweeq, Industries Qatar

66 INTERVIEW: Marjo Louw, Sasol67 ARTICLE: GTL takes flight. Qatar stands as a gas-to-

liquids hotspot67 RESOURCE: Fischer-Tropsch GTL Process68 COMPANY PROFILE: Qatar Shell 69 MAP: Existing and planned GTL plants worldwide70 PROJECT HIGHLIGHT: Laffan Refinery 270 IN OUTPUT: Qatar’s refined products output, 2004-201471 ARTICLE: Roll with the punches. Qatar revises petrochemicals

plans in response to low oil prices71 IN PRODUCTION: Qatar’s downstream production

capacity by product segment, 201372 PROJECT HIGHLIGHT: QAFAC carbon dioxide recovery

plant74 COMPANY PROFILE: Gasal75 IN THE REGION: Refinery capacity and throughput

76 POWER GENERATION

77 ARTICLE: Power up. An expected rise in electricity demand leads to new projects

77 IN POWER: Qatar’s electricity capacity and demand78 COMPANY PROFILE: Kahramaa78 IN ENERGY: Energy consumption in Qatar by use, 201379 MAP: Qatar’s power and desalination plants80 PROJECT HIGHLIGHT: Facility D independent water

and power plant81 COMPANY PROFILE: Nebras Power Company82 INTERVIEW: Arnaud Berthet, Engie82 IN CONSUMPTION: Gas consumption of IWPP in Qatar83 COMMENT: On the wire. Qatar’s power generation ambitions84 VIEWPOINT: Asset digitisation. Ghassan Barghouth,

Schneider Electric84 IN ENERGY: Qatari energy use by industry, 2012-201385 COMMENT: Facing the cyber threat. Qatar tackles a new

security frontier86 INVESTOR SPOTLIGHTS: Marubeni Corporation, Qatar

Electricity & Water Company, ABB, Siemens

88 ENGINEERING & CONSTRUCTION

89 ARTICLE: New opportunities. Maintenance contracts and upgrades are key to the stabilisation of the sector as oil prices remain low

90 VIEWPOINT: Priority shift. Syed Najeeb Akhtar Jaffery Etimaad Qatar

91 INTERVIEW: Syed Ali Aghfar Rizvi, Descon Engineering Qatar92 INTERVIEW: Sarah Kent, Kentech92 IN TOTAL: Flaring by sector in Qatar, 2012-201393 COMMENT: Brownfield benefits. Low oil prices make less

capital-intensive projects more attractive to the country’s EPC market

94 COMPANY PROFILE: Qatar Kentz95 INTERVIEW: Michael Rau, Manweir96 INTERVIEW: Shizuka Ikawa, Chiyoda Almana Engineering97 COMMENT: Greener pastures. Toxic waste and gas emissions

reduction objectives inspire new projects98 COMPANY PROFILE: STFA Group99 INVESTOR SPOTLIGHTS: Fata Gulf; JGC Middle East,

Doha Branch100 INTERVIEW: Chakib Nayfe, Medgulf Construction101 COMPANY PROFILE: Doha Petroleum Construction

Company102 INTERVIEW: Emmanuel Fontan, Technip102 IN DEVELOPMENT: Qatar’s largest industrial

construction projects103 INVESTOR SPOTLIGHTS: Voith Industrial Services

Qatar, Al Jaber Engineering, Target Engineering Qatar

104 SERVICES & SUPPLIES

105 ARTICLE: Steady as she goes. A risk of market saturation in Qatar’s services sector is countered by a variety of brownfield opportunities

106 INTERVIEW: Eyas Al Homouz, Jaidah Energy106 IN CONTRACTS: Value of GCC construction contracts, 2014107 COMPANY PROFILE: United Safety108 COMPANY PROFILE: Stork Oryx Turbo Machinery Services109 INVESTOR SPOTLIGHTS: SPIE Oil and Gas Services,

Emerson Process Management, Aamal Qatar, Al Shaheen Holding

110 INTERVIEW: Saleem R. Bitar, Huawei Middle East111 INTERVIEW: Ullattil Achu, Dyarco International Group112 INTERVIEW: K. Viswanath, Brunel Middle East & India113 INVESTOR SPOTLIGHTS: CanAm Safety, Pretect, Gulf

Helicopters Company114 COMPANY PROFILE: Madina Group WLL 115 INVESTOR SPOTLIGHTS: Al Rabban Holding, Cape East116 ARTICLE: Shut down, start up. Gerrit Jan Pieterson, Anabeeb116 INVESTOR SPOTLIGHT: Applus+ Velosi117 IN THE REGION: LNG imports and exports in the Middle East

CON

TENTS

QATA

R 2015

2

QATAR 2015

The Who’s Who of the Global Energy IndustryTHE OIL & GAS YEAR | QATAR 2015 www.theoilandgasyear.com

The Oil & Gas Year is audited by BPA Worldwide


118 MARINE & LOGISTICS

119 ARTICLE: Infrastructure overhaul. Government money is pouring into new projects

120 MAP: Qatar’s freight and transport infrastructure121 PROJECT HIGHLIGHT: Hamad Port Project122 COMPANY PROFILE: Nakilat Damen Shipyards 123 INTERVIEW: Michel Deleuran, Milaha123 IN TOTAL: Milaha’s fleet by type, February 2015125 COMPANY PROFILE: Nakilat-Keppel Offshore & Marine126 PROJECT HIGHLIGHT: Manateq Special Economic Zones127 MAP: Hamad Port and Umm Al Houl Economic Zone128 COMPANY PROFILE: Halul Offshore Services Company128 IN THE WATER: Halul Offshore’s fleet130 INTERVIEW: Abdulsalam Srour, Ruwais Marine Services130 IN COMPARISON: Number of commercial vessels

entering the Doha Port, 2013-2014131 INVESTOR SPOTLIGHTS: Deugro Qatar, Nakilat

SvitzerWijsmuller, Doha Marine Services

132 BANKING, FINANCE & LEGAL

133 ARTICLE: Bank on it. Qatar’s economy remains stable 134 INTERVIEW: Abdullah bin Saoud Al Thani,

Qatar Central Bank135 MARKET ANALYSIS: New project financing. Charles

Carlson, Standard Chartered Qatar135 IN TOTAL: Share of government hydrocarbons revenues 136 INTERVIEW: Rashid bin Ali Al Mansoori, Qatar Exchange

137 MARKET ANALYSIS: Old markets, new markets. Yousuf Al Jaida, Qatar Financial Centre

137 IN TRADE: Qatari balance of trade against oil prices138 INTERVIEW: Essa Al Mannai, Quantum Global Solutions

140 RESEARCH & EDUCATION

141 ARTICLE: Nose to the grindstone. An innovation drive 142 INSTITUTION PROFILE: Gas and Fuels Research Center143 INTERVIEW: Samer Adham, GWSC143 IN CONSUMPTION: Water use by sector144 INSTITUTION PROFILE: Gas Processing Center144 IN EMISSIONS: Qatari greenhouse gas emissions by sector145 COMPANY PROFILE: ExxonMobil Research Qatar146 ARTICLE: Carbonate reservoir challenges.

Philippe Julien, Total Research Centre – Qatar146 IN RESERVES: Oil, gas and carbonate reserves, 2014147 COMPANY PROFILE: MO-RTC148 VIEWPOINT: Managers wanted. Laoucine Kerbache, HEC

Paris in Qatar149 INVESTOR SPOTLIGHTS: Texas A&M University at Qatar,

QEERI

150 EXECUTIVE GUIDE

151 ACCOMMODATION156 EVENTS158 ACKNOWLEDGMENTS160 IN BRIEF

CON

TENTS

QATA

R 2015

4

QATAR 2015The Who’s Who of the Global Energy Industry

THE OIL & GAS YEAR

The Who’s Who of the Global Energy IndustryTHE OIL & GAS YEAR | QATAR 2015

118Marine & LogisticsQatar’s government has pledged $200 billionfor projects to increase the country’s land, seaand air transport capacity. Developments suchas the new $7.4-billion Hamad Port, the cre-ation of three special economic zones and theconstruction of around 900 kilometres of newroads promise a boost for Qatar’s oil and gasindustry, with the improvement of infrastruc-ture and easing of congestion in shipping.

132Banking, Finance & LegalWhile the slump in global oil prices has leftQatar without new additions to its roster of hy-drocarbons financing projects, the country hasextensive resources and solid financial buffersin place to weather a drop in oil and gas rev-enues. A mid-2015 Qatar National Bank reportforecast a 138-year stretch for the country’sgas reserves at current rates of production.Meanwhile, an upgrade to “emerging market”status confirms Qatar’s economic momentum.

88Engineering & ConstructionEngineering and construction contractors inQatar are shifting their focus to brownfieldwork as the country’s market matures. Projectshave been undertaken to maintain and up-grade Qatar’s existing upstream facilities, suchas the $2.3-billion Plateau Maintenance Project,designed to prop up production at Qatargas1’s LNG trains, and the $1.5-billion Laffan Re-finery 2 upgrade project, which will double thefacility’s output when it is complete in 2016.

www.theoilandgasyear.com

Publisher: Emmanuelle Berthemet Editor-in-Chief: Gilles Valentin Regional Director: Ioana Marins Country Directors: Cristina Capatina, Karen Kumbasar Country Editor:Albéric Mongrenier Managing Editor: Simon Johns Production Manager: Alex Mazonowicz Chief Sub-Editor: Amanda Towle Deputy Chief Sub-Editor: Suzanne CarlsonWeb Editor: Angus Foggie Co-ordinating Sub-Editor: Jordan Schultz Sub-editors: Leyla Amur, Jessica-Elise Turner Austin, Anna Bergstresser, Jessenia Chapman, JohnHoughton-Brown, Sarah Juptner, James Kiger, Mehveş Konuk, Laura Moth, Ernie Piper, Matthew Vance Contributors: Ian Ackerman, Barış Altıntaş, Nick Ashdown, SerenAybaş, Noah Blaser, Aylin Erman, Hermione Gee, Max Harwood, Sofija Janosevic, Lewis King, Victor Kotsev, Mike Kuser, Alexander Lewis, Samantha North, Sergio Rojas, DavidWilson, Patrick Wrigley Creative Director: Begum Alpay Co-ordinating Art Director: Melis Tüzün Art Directors: Javier González, Ahmet Sağır, Didem Tereyağoğlu Circulation& Communication Director: Laura Carr HR: Ece Özmen, Begüm Yurttaş Head of Finance: Hasan Meriç Printing: APA Uniprint Production: The Oil & Gas Year, Ltd. ISBN 978-1-78302-112-3 E-mail [email protected] visit www.theoilandgasyear.com Cover: photograph courtesy of Applus+VelosiThe Oil & Gas Year is a trading name of The Oil & Gas Year Ltd. Copyright The Oil & Gas Year Ltd. 2015. All rights reserved. No part of this publication may be reproduced, storedin a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopied, facsimiled, recorded or otherwise, without the prior permission of TheOil & Gas Year Ltd. The Oil & Gas Year Ltd. has made every effort to ensure that the content of this publication is accurate at the time of printing. However, The Oil & Gas YearLtd. makes no warranty, representation or undertaking, whether expressed or implied, nor does it assume any legal liability, direct or indirect, or responsibility for the accuracy,completeness or usefulness of any information contained in this publication.

Exploring knowledgeExtracting intelligenceRefining communicationINTERNATIONAL


7 The new face of Qatar Petroleum 10 Adapt to the volatile market

Abdullah bin Hamad AL ATTIYAHChairmanAL ATTIYAH FOUNDATION FOR ENERGY & SUSTAINABLE DEVELOPMENT

12 The Year’s Awards

THE YEAR IN REVIEW


THE

YEA

R IN

REV

IEW

ART

ICLE

7


ARTICLE

In September 2014, Al Kaabi was appointed tothe newly created position of president and CEOof state-owned QP. At a time when the price ofBrent crude was on a downward slide but still above$100 per barrel, the move marked a shift withinthe national oil company. Previously, Mohammed

bin Saleh Al Sada, minister of energy and industry,had been the face of QP. Under his leadership, thecompany and the government body ran concurrently,almost as a single entity. The change will give QPgreater autonomy, though Al Sada will retain a sym-bolic role as chairman.

RESHUFFLE: Al Kaabi, former director of oil andgas ventures, has reorganised the industrial giant torealise the company’s objective of becoming a globalforce among national and international oil companies,on par with the hydrocarbons industry’s leaders.

Established in 1974, the hydrocarbons giant hadgrown to a point where its size was making itdifficult to manage because of non-core businessinterests. Numerous departments and a decentralisedmanagement have hampered the company’s efficiency.QP’s restructuring initiative has been an effort tostreamline the company’s processes by simplifyingthe internal structure and merging departments.

“We are in a period of oversupply in the industry,and we must be very efficient as an organisation.While we have no control over markets and prices,we do have control over our costs and expenditure,”Al Kaabi said in a June 2015 QP press release.

On June 23, 2015, Al Kaabi announced that therestructuring, initiated in late 2014, was completeand that there were no plans to extend the process.“It is normal for leading companies to frequentlyreorganise in order to meet the requirements of theever changing competitive environment and deliver

on their new strategic objectives, which is what QPdid,” the president and CEO said.

As QP subsidiaries continue to review their in-ternal structures, further changes are expected totake place over the next year. QP is also relinquishingits management responsibilities of land allocation

in the Mesaieed Industrial City.

UPSTREAM FOCUS: While QP has reaffirmedits commitment to upstream operations, ad-ditional growth in the gas industry is restrictedby an ongoing moratorium limiting explorationat Qatar’s North Field. The play holds theworld’s largest non-associated gas reserves atan estimated 24.5 tcm (865 tcf).

Although the moratorium limits opportu-nity, progress has been made on Qatar’s latestgas mega-project, the Barzan gas development.As of August 2014, 95 percent of train 1 was

completed. The first train is scheduled to come online in 2015 and train 2 is expected to start up by in2016. The natural gas facility is expected to produce45.3 mcm (1.6 bcf) of gas daily for sale.

Qatar’s healthy natural gas market has allowedit to concentrate on oil development. Oil productionhas severely declined in recent years, falling from845,000 to 709,000 barrels of oil per day (bopd)between 2007 and 2014, according to OPEC figures.Crude oil production in August 2015 was down toan average of 643,000 bopd.

While this decline is primarily a result of reservoirmismanagement and falling production at theDukhan onshore oilfield, the depletion of otherQP-operated offshore developments, such as thoseat the Maydan Mahzam and Bul Hanine fields, hasalso played a significant role in the country’s atten-uated oil production. In July 2014, QP announcedplans to invest around $11 billion until 2028 drilling150 new wells in Bul Hanine to more than doublethe field’s production by 2020, to 90,000 bopd.

QP is also assessing redevelopment plans forDukhan and Maydan Mahzam fields. Productionstood at around 225,000 bopd at the Dukhan fieldand 22,000 bopd at Maydan Mahzam in 2013.

However, the global oil price slump will un-doubtedly affect the execution of the government’sexpansion projects. No announcements related tothese developments have been made since July2014. However, Abdullah Al Attiyah, the formerminister of energy and industry, told TOGY that he

DETAILAL KAABI WASAPPOINTEDPRESIDENTAND CEO OF QP INSeptember2014

QPANNOUNCEDTHECOMPLETIONOF ITSCORPORATERESTRUC-TURING INJune 2015

QATAR’SNORTH FIELDHOLDSAROUND24.5 tcmOF NON-ASSOCIATEDGAS RESERVES

IN

Qatar Petroleum (QP) supervises and drives Qatar’s energy industry. In the last quarter of 2014,the company initiated a restructuring programme that ended in June 2015. As a result of lowoil prices worldwide, QP has streamlined its activities and is consolidating its internationalpresence under the leadership of president and CEO Saad Sherida Al Kaabi.

The new face of Qatar Petroleum

QP’s restructuring was seen as necessaryto increase organisational efficiency,which had been hindered by the extentof its non-core business interests anddecentralised operating structure.

02_THE YEAR IN REVIEW_QATAR_2015.qxp 10/15/15 4:24 PM Page 7

expects that the project costs will go down in directproportion to the slumping price of oil.

A RENEWAL OF OIL: While plans to ramp up pro-duction are in motion, one of the company’s explo-ration and production-sharing agreements is up forrenewal. In 2012, QP and Total announced thatthey would renew their partnership for the Al Khalijoilfield starting in 2014. The renewal followedthe expiration of the licence, which producesclose to 25,000 bopd. QP now assumes a 40-percent share for 25 years.

QP and Danish hydrocarbons explorationand production company Maersk Oil seemedlikely to renew their alliance at the Al Shaheenoilfield. The play accounts for more than 40percent of Qatar’s total oil production. Maerskhas operated Al Shaheen – one of the nation’slargest fields – since 1992.

In May 2015, QP invited international oilcompanies, including Maersk Oil, to bid forthe planned 2017 concession renewal, indicatingQP’s desire for better terms via competitive bidding.

“The future operation and development of theAl Shaheen oilfield is of critical strategic importanceto the optimum exploitation of the natural resourcesof the state of Qatar. Therefore, the selection of ourpartner in this endeavour will be based on suchpartner’s ability to offer the best technologicalsolutions for the field’s development combined withthe best financial return to the state,” Al Kaabistated in a QP press release.

PETROCHEMICALS PLANS: Falling oil prices haveresulted in the cancellation of Qatar’s Al Sejeel andAl Karaana petrochemicals developments in Sep-tember 2014 and January 2015, respectively. Bothendeavours were no longer deemed economicallyfeasible. Following the cancellations, QP announcedthat it would redistribute previously allocated feed-stock for existing downstream projects in Qatar.

For example, ethane reserved for Al Karaanawould be dispensed to entities such as QP subsidiariesthe Qatar Petrochemical Company, the Qatar Chem-ical Company and the Ras Laffan Olefins Company.

INTERNATIONAL EXPANSION: QP’s large-scale re-structuring has also resulted in the absorption ofQatar Petroleum International (QPI), the company’sforeign investment arm, which was created in 2007.

“QPI has delivered on its mandate by securing amulti-billion-dollar portfolio of global investmentswith leading international companies. This strategictransition combines the strength of both companiesto become a fully integrated international energyplayer,” Nasser Khalil Al Jaidah, former CEO ofQPI, said in a QP press release.

Noting the company’s international aspirations,Al Kaabi announced that QPI’s investments werebeing evaluated and foreign production acquisitionswould follow restructuring and integration.

QP has plans to introduce export capabilities atits Golden Pass LNG import and regasification ter-minal at Sabine Pass, Texas. A joint venture betweenQP (70 percent), ExxonMobil (17.6 percent) andConocoPhillips (12.4 percent), the Golden Passproject was completed in 2010.

In 2012, QP and ExxonMobil decided to add anexport terminal to the Golden Pass facility and shipup to 15.6 million tonnes of LNG yearly, taking 70-percent and 30-percent stakes, respectively.

The project, dubbed Golden Pass Products, isexpected to cost $10 billion. A joint venture betweenUS company CB&I and Japan’s Chiyoda Corporationwas awarded the front-end engineering and designcontract for the facility in July 2014. After the com-pany’s internal restructuring was completed in June

2015, Al Kaabi confirmed that QP was now waitingfor the necessary permits from the US administrationbefore beginning construction in 2016.

THE VIEW FORWARD: The oil price slump has high-lighted the need for companies to remain lean anddiversify their business interests to stay competitivein a tumultuous industry. As the price per barrelcontinues to fluctuate, businesses are attemptingto plan for sustained low oil prices.

With an estimated 25.7 billion barrels of oil inproven reserves, according to the BP StatisticalReview 2015, QP’s restructuring and commitmentto upstream activities, at home and abroad, is aprudent move in the current economic environment.

Previously known for its gas export capabilities,QP is turning increasingly to oil activities as ameans of boosting its long-term profitability andcontributions to government revenues.

The company remains state controlled and op-erates throughout the entirety of Qatar’s hydrocarbonsvalue chain, via subsidiaries and joint ventures.This has exposed the company to risk and has hadthe added effect of limiting the development of theprivate sector in the oil and gas industry.

By capitalising on the totality of the country’shydrocarbons resources while concurrently divestingunnecessary interests, QP hopes to cement itsposition as an industry giant in spite of the slump.

THE YEA

R IN REVIEW

ARTIC

LE

8

ARTICLE


Qatar Petroleum has built up a robust downstream sector over the past decade

In July 2014, QP announced plans toinvest around $11 billion to drill 150new wells at Bul Hanine until 2028.The programme is expected to more

than double the field’s production.

DETAILQATAR’S OILPRODUCTIONFELL FROM845,000TO709,000bopdFROM 2007 TO 2014

THE GOLDENPASSPRODUCTSPROJECT ISEXPECTED TOCOST$10 billion

QP OPENEDBIDS FOR APARTNERSHIPAT ITS ALSHAHEENOILFIELD INMay 2015

IN


THE

YEA

R IN

REV

IEW

RESO

URC

E

9


QATAR PETROLEUM’S COMPANIES AND INVESTMENTS*

METALS

Qatar Steel - 51% Qatalum - 50%

LNG

QATAR PETROLEUM

RasGas Operating Company - 70%RasGas 1 - 63%RasGas 2 - 67.05%RasGas 3 - 70%Barzan Gas Company - 93%

South Hook CHP (Wales) - 67.5%Long Son Petrochemical (Vietnam) - 25%

Nebras Power - 20%CQ Energy Canada - 40%

Total E&P Congo - 15%Total E&P Mauritania - 20%

Parque das Conchas (Brazil) - 23%Heron 2 Power Plant (Greece) - 25%

RasGas

ABROAD

Qatar Steel International - 25.5% Algerian Qatar Steel - 24.99%

Qatar Steel Dubai - 51%

DOWNSTREAMAND

PETROCHEMICALS

Qatargas

QATEX - 51%

Al Shaheen Weatherford - 50%

Al Shaheen Holding - 100%

Gulf InternationalServices - 10%

SEEF - 8% Pearl GTL - 51% Gasal - 30.5% Oryx GTL51%

Al Shaheen GE Services - 50%Pii Group - 50%Pii North America - 50%

Qatar Fuel AdditivesCompany - 25.5%

Qatar FertiliserCompany - 38.25%

Qatar Melamine - 62.95%

Qatar Chemical Company - 38.39%Qatar Chemical

Company 2 - 38.39%

Gulf Formaldehyde - 26.78%

Qatar VinylCompany - 66.9%

Polyolefin Company Singapore - 14.7%Tetra Chemicals Singapore - 14.7%

Petrochemical Corporation of Singapore - 24.5%

ASTAD - 50%

United Helicharters - 3.6% Gulf Helicopters Oman - 7% Redstar Turkey - 4.9% Almaha Aviation - 9.2%

Qatar Petroleum -Shell Petrochemicals Singapore - 49%

SERVICES

Arab Refining - 36.68%

Egypt Refining - 27.95%AMWAJ - 10%Al Koot - 10%Gulf Drilling International - 10%Gulf Helicopters - 10%

Ras Laffan OlefinsCompany - 33.05%Qatar Petrochemical

Company - 40.8%

*This is a simplified version that represents Qatar Petroleum’s key companies and investments.

Industries Qatar - 51%

Mesaieed PetrochemicalHolding Company - 74.27%

Qatar Plastic Products Company - 13.59%

Qatofin - 25.97%

South Hook LNG - 67.5%South Hook Gas - 70%QTL Hungary - 100%QTL Italy - 100%Adriatic LNG - 22.05%Golden Pass LNG - 70%

LNG terminals

Qatargas 1 - 65%

Qatargas 4 - 70%Qatargas 3 - 68.5%Qatargas 2 - 67.5%

Laffan Refinery 2 - 84%Laffan Refinery - 70%

Qatargas Operating Company - 70%

Qatargas Downstream - 65%

© 2015 The Oil & Gas Year Ltd., The Oil & Gas Year Qatar 2015. All rights reserved.


How has Qatar become the largest LNG pro-ducer and exporter in the world?In 1992, Qatar was a minor oil-producing stateand one of the smallest in OPEC, producingabout 350,000 barrels of oil per day. That year,the price of oil averaged $19.30 per barrel.

These were challenging times for the globalenergy industry. It was at this time when wemade the decision to ramp up the developmentof our natural gas production, which is basedon resources in the North Field, the largestnon-associated gasfield in the world. The NorthField holds almost all of Qatar’s total gasreserves of 24.5 tcm (865 tcf ).

The ambitious progress of our LNG industrynecessitated the development of cutting-edgetechnology and large capital expenditures.This approach paid off. Japanese utilitiesprovider Chubu Electric Power signed a long-term LNG sale-and-purchase contract as Qatar’sfirst customer in 1992. Companies in SouthKorea, China, India, Thailand, Spain, the UKand Belgium followed suit, securing long-termdemand for Qatar’s LNG production.

Since then, the country has been able tobring 14 LNG trains on line, with a combinedproduction capacity of 77 million tonnes peryear. Qatar as a country has mastered theentire LNG value chain, from extraction to liq-uefaction and marketing of the product. TheQatar Gas Transport Company, known as Nakilat,boasts the largest LNG fleet in the world, with61 vessels. The company delivers LNG fromQatar to markets around the world.

How has Qatar diversified its production toextract value from its hydrocarbons reserves?Qatar has been able to attain value from itsoil reserves, which are estimated to be 25.7billion barrels. The country produces about700,000 barrels of oil per day and the necessaryinvestments are being made to sustain thisproduction. With around 1.3 million barrels ofoil equivalent of condensates and natural gasliquids produced every day, Qatar’s total liquidproduction averages 2 million barrels per day.

The country has diversified its hydrocarbonsindustry by becoming the largest producer ofgas-to-liquids in the world. The Pearl and Oryxplants have a combined production capacity

of around 170,000 barrels per day, along withadditional production of LPG and condensates.

Qatari natural gas contains relatively largequantities of helium, which must be separated.We are the second-largest producer of heliumand the top exporter worldwide. We have fur-ther expanded downstream, using our naturalgas to produce electricity for the country anddevelop a solid petrochemicals sector.

In what ways can Qatar build on experienceto further develop its energy industry?The country has already accomplished thenecessary infrastructure, experience and know-how across all sectors of the energy industry,paving the way for future developments.

Qatar has developed its own model forthe hydrocarbons industry under the leadershipof the Ministry of Energy and Industry andstate-owned Qatar Petroleum, and with thesupport of major international oil companies.

Mohammed bin Saleh Al Sada, minister ofenergy and industry, and Saad Sherida AlKaabi, president and CEO of Qatar Petroleum,will continue to drive the Qatari industryforward and position the country as a majorglobal provider of hydrocarbons. Qatar islocated halfway between Europe and Asia,enabling it to contribute to the long-term en-ergy demands of both regions.

How have changes in the global hydrocarbonsindustry impacted Qatar, particularly in lightof the downturn in oil prices?Qatar can easily live with the price of oil below$60 per barrel and with lower natural gasprices. State revenues from the energy industryhave always been invested wisely in the coun-try’s economy to diversify the industry. TheQatar National Vision 2030 aims to find thebalance between a hydrocarbons-based anda knowledge-based economy.

Commodity prices are cyclical, and industryplayers always adapt accordingly. We canforget about oil at $100 per barrel for the nextdecade and live with it as long as Qatar andthe industry adapt to the new situation. Thenecessary steps have been taken, and theQatari government has based its new budgeton the price of oil being between $45-50.

THE YEA

R IN REVIEW

INTERVIEW


10

INTERVIEW

Abdullah bin Hamad Al Attiyah, chairman of the Al Attiyah Foundation for Energy &Sustainable Development, talks to TOGY about Qatar’s position in the LNG marketand how the country has reacted to fluctuations in the oil and gas industry throughdiversification. Al Attiyah, former minister of energy and industry and managingdirector of state-owned Qatar Petroleum, set up the foundation in 2015.

Adapt to the volatile market

IN FIGURES

Qatar’s natural gas reserves in 2014

24.5 tcmQatar’s oil reserves in 2014

25.7 billionbarrelsQatar’s LNG exports in 2014

76.4 milliontonnes

Abdullah bin HamadAL ATTIYAH ChairmanAL ATTIYAH FOUNDATION

Qatar is locatedhalfway betweenEurope and Asia,enabling it tocontribute to thelong-term energydemands of bothregions.


THE

YEA

R IN

REV

IEW

11

INTE

RVIE

W

INTERVIEW


This is a conservative estimate showing thatQatar is rationalising its expenses and con-centrating on major projects that bring addedvalue to the country. Qatar Petroleum has alsogone through a period of change to adapt tothe new market outlook, and I am confidentthat the right steps have been taken.

Qatar has been a member of OPEC since1961. How has OPEC reacted to the changesin the oil industry during the past few years?The fall of commodity prices is just a conse-quence of the changes in the energy industryat the global level. Over the past few years,the US has ramped up production to becomea major producer of both oil and natural gas.The US has been able to do this by developingits unconventional resources.

The market has been flooded with addi-tional production coming from existing andnew players in North America as well as playersin other parts of the world. At the same time,global economic growth slowed down, as didthe demand for oil in major consuming coun-tries such as China and India.

In the first quarter of 2015, global oil pro-duction averaged around 94.6 million barrelsper day, while the demand was 93 millionbarrels per day in the same period. OPEC pro-duced about 33 percent of the entire output.

The market share of the organisation is notwhat it used to be. OPEC has lost part of itsability to influence as a swing producer. Itnow has no interest in cutting production.This is what OPEC did in the 1980s, a movethat resulted in losses in the organisation’smarket share, while prices did not pick up.

What are some potential challenges OPECmay face in the near future?The background has changed as producersand consumers are more diverse, meaningthat new producers will emerge. OPEC will re-main a source of stability in global oil marketsin this era of greater competition and willcontinue to play a major role in the dialoguebetween consumers and producers. OPECmembers will continue managing and co-or-dinating their levels of production.

Now that Iran may ramp up its oil produc-tion after nuclear negotiations may lead tothe lifting of sanctions, the country might ac-count for a greater share of OPEC’s output.This may be the organisation’s next challenge.

However, I believe that OPEC will be ableto put politics aside and adapt to these changesin the hydrocarbons industry. Furthermore,Iran’s production will increase progressively,and growing markets in Asia and elsewherewill absorb the country’s additional volumes.

Qatar isrationalising its

expenses andconcentrating on

major projects thatbring added value

to the country.

ALGERIALIBYA

IRAQ

KUWAIT

IRAN

SAUDI ARABIA

OMAN

UAEQATAR

BAHRAIN

YEMENFiscal breakeven oil price, 2014

Estimated breakevenoil price, 2015

OPEC basket price

$132.7 $119.2

$96.29

2014

$55.21

2015*

*third quarter

$213.7 $124.8

$104.6 $68.1$57.4 $49.4

$95.1 $107.4

$102.3 $87.2

$106.3 $95.9

$74 $73.8

$56.2 $64.1

$120.6 $99.8

$160 $157


Estimated minimum oil prices required to balance government budgets in the Middle East and North Africa ($ per barrel)

Source: IMF


THE YEA

R IN REVIEW

THE YEA

R’S AWA

RDS – Q

ATAR 2015

12

THE YEAR’S AWARDS – QATAR 2015


In late 2015, RasGas is bringing on line the first of two natural gas trains associated with the $10.4-billion Barzan Gas Project. Construction of the new gas extraction facilities in Qatar’s North Field,the world’s largest non-associated gasfield, started in 2011. Total production from the project’s twintrains is expected to reach 45.3 mcm (1.6 bcf) of natural gas per day once it reaches full capacity in2016. Most of the natural gas produced from the plant will be marketed domestically for powergeneration and water desalination purposes to meet the growing demand of Qatar’s population.

On April 28, 2015, Qatargas and RasGas officially inaugurated the Jetty Boil-off Gas RecoveryProject. The estimated $1-billion endeavour, which began operations in October 2014, enables thecollection and discharge of boil-off gas from LNG ships during loading at six LNG berths at RasLaffan Industrial City’s port. After the gas is compressed, it is sent back to Qatargas and RasGas’LNG trains for use as a fuel source or reconversion into LNG. This system will allow for a reductionin flaring by 90 percent and carbon dioxide emissions by up to 1.6 million tonnes annually.

On June 2, 2015, the Qatar General Electricity & Water Corporation, also known as Kahramaa,awarded K1 energy, a consortium of Japan’s Mitsubishi Corporation (98.5 percent) and TokyoElectric Power Company (1.5 percent), a $2.5-billion contract for the construction of the 2.52-GWgas-fired Facility D independent water and power plant. The plant’s desalination capacity will beabout 517 million litres per day and it will be the largest facility of its kind in the Middle East.Construction is expected start in October 2015 and is slated for completion by the end of 2018.

After opening Muntajat BV, the new Netherlands-based headquarters of its marketing network,the Qatar Chemical and Petrochemical Marketing and Distribution Company, known as Muntajat,successfully transferred all of Qatar’s chemicals products to its portfolio in 2015. The firm openedits Vietnam office in the second half of 2015 and now has offices in 20 countries. Muntajat sellsand distributes more than 10 million tonnes of Qatari chemicals and petrochemicals productsworldwide every year. It plans to establish a network of warehouses to reduce delivery times.

In April 2015, Maersk Oil Qatar announced plans to quadruple the number of Qatari citizensemployed in leadership positions at the company by 2017. In 2014, this figure increased by 12percent. As of the beginning of 2015, the company’s Qatari employees numbered 215, accountingfor 23 percent of its total workforce. Maersk Oil Qatar spent about $962 million on local goodsand services in 2014, which represents 63 percent of its total yearly expenditures. Maersk Oil isthe operator of the behemoth offshore Al Shaheen field, Qatar’s largest oil producing field.

MAN OF THE YEAR

Saad Sherida AL KAABI

In September 2014, Saad Sherida Al Kaabi was appointed to the newlycreated position of president and CEO of Qatar Petroleum (QP), amove that demonstrated a shift in the national oil company. Al Kaabiinitiated a restructuring programme in late 2014 to streamline thecompany’s processes and simplify its internal structure, underliningthe need to promote efficiency in an environment of depressed oilprices. As part of the restructuring, QP divested itself of non-corebusiness ventures and absorbed its foreign investment arm. Thereorganisation is meant to make QP a global force in the internationalhydrocarbons landscape, on par with the world’s leading companies.

EFFICIENCY INITIATIVE OF THE YEAR

UPSTREAM PROJECT OF THE YEAR

POWER GENERATION PROJECT OF THE YEAR

EXPANSION STRATEGY OF THE YEAR

LOCAL CONTENT DEVELOPMENT OF THE YEAR


THE

YEA

R IN

REV

IEW

QAT

AR

AT A

GLA

NC

E

13

QATAR AT A GLANCE


POLITICAL

Official name: State of Qatar

Population: 2,194,817 (2015)

Official language: Arabic

Political system: Constitutional emirate

Head of state: Emir Sheikh Tamim bin Hamad Al Thani

ECONOMY

Currency: Qatari riyal ($1:QAR3.65)

GDP: $212 billion (2014)

Share of oil and gas in nominal GDP: 51.1 percent (2014)

Major trading partners: China, Japan, South Korea, the UAE, India

GEOGRAPHY

Area: 11,586 square kilometres

Capital: Doha

Natural resources: Natural gas, oil, fish

ENERGY

2014 natural gas reserves: 24.5 tcm (865 tcf)

2014 natural gas production: 177 bcm (6.25 tcf)

2014 oil reserves: 25.7 billion barrels

2014 oil production: 709,000 barrels per day

Sources: CIA World Factbook 2014, General Secretariat for Development Planning,OPEC Annual Statistical Bulletin 2014, BP World Statistical Review 2015, Qatar Na-tional Bank Monthly Monitor (July 2015)

Gulfof

Bahrain

Arabian Gulf

HawarIslands

(Bahrain)

DOHA

Al Ruwais

Al Khor

Dukhan

Al Rayyan

Al Wakrah

Mesaieed

BAHRAINBAHRAIN

QATARQATAR

SAUDI ARABIASAUDI ARABIA

Kilometres

0 2010 40

National capital

Port

CityInternational boundary Maritime boundary Main roads



THE YEA

R IN REVIEW

THE IN

VESTORS IN

DEX

14

THE INVESTORS INDEX


Source: Survey conducted by The Oil & Gas Year in Qatar between January 2015 and July 2015

The Qatar 2015 Investors Index

The Qatar 2015 Investors Index rating of84.1 percent indicates a positive outlook forthe country’s hydrocarbons industry, in spiteof the domestic impact of the downturn inworld energy markets. In a context of politicalinstability in the Middle East, the countrystands as one of the top destinations for in-vestments and for companies to do business.

More than 97 percent of respondents de-scribed business conditions in Qatar’s oil andgas industry as favourable, and 76.5 percentbelieved it would improve over the next year.

FORWARD THINKING: The 94.1 percent ofrespondents that agreed 12 months from thesurvey’s date would be a good time to investreflects relatively high expectations and the

likelihood of a business upswing in the nearfuture. Investors remain fairly confident inthe strength of Qatar’s industrial base, as 73.5percent thought that it is a good time toinvest in the country, and 82.3 percent thoughtthat their company’s revenue would increaseduring the following 12 months.

The positive financial outlook, in spite ofthe global fall in oil and gas prices, suggestscompanies’ efforts towards efficiency andstreamlining are coming to fruition.

LOCAL CHALLENGES: While a strong senseof confidence prevails, 52.9 percent of re-spondents described doing business in Qataras difficult. A lack of clarity on governmentpolicy and the strategy of the national oilcompany are mainly to blame. Still, 29.4 per-cent thought industry policies were pro-busi-ness, and 44.1 percent rated them pro-business,but restrictive. Almost two-thirds of investorsconsidered it difficult to start an oil and gasbusiness in Qatar. Contributing factors includedadministrative barriers, a saturated marketand a shortage of highly skilled workers.

SAFE HAVEN: Investors remained relativelyconfident in industry policies, proceduresand tendering processes, as 61.8 percentagreed they were transparent. Qatar also ap-peared relatively untouched by regional geopo-litical concerns, suggested by the 66.7 percentof respondents that rated the country as stableand the remaining 33 percent that rated it

highly stable. Once again, Qatar stands asone of the top choices among investors, withappeal both in the short and the long term.

ABOUT THE INDEX: The TOGY Investors Indexis designed to measure confidence among oiland gas investors as expressed in their level ofspending in any given market. The index isvalued based on the responses of major oil andgas executives in this market. The survey consistsof five attitudinal questions in which participantsare asked to give positive or negative responses.

A reading above 50 on the index representsa positive perception among oil and gas investors,while scores of less than 50 suggest a negativeoutlook. The Qatar 2015 Investors Index is basedon the responses of 34 oil and gas executives.

Difficult52.9%

Easy47.1%

How would you rate the ease ofdoing business in this country?

Very easy 0 %Easy 47.1 %Difficult 52.9 %Extremely difficult 0 %

How would you rate the level oftransparency in this oil and gasmarket?

Very transparent 2.9 %Transparent 61.8 %Not transparent 35.3 %Corrupt 0 %

0 20 40 60 80 100

Abu Dhabi (2015)

Kuwait (2014)

Iraq (2014)

Saudi Arabia (2014)

Qatar (2015)

Oman (2015) 69.1

84.1

88.5

90.2

93

95

BY MARKET

How would you describe thepolicies of this government vis-à-vis the oil and gas industry?

Pro-business 29.4 %Pro-business, but restrictive 44.1 %Anti-business, but accommodating 26.5 %Anti-business 0 %

How would you rate the ease ofstarting an oil and gas businessin this market?

Very easy 0 %Easy 14.7 %Difficult 64.7 %Extremely difficult 20.6 %

How would you rate the level ofpolitical and economic stabilityin this oil and gas market?

Highly stable 33.3 %Stable 66.7 %Unstable 0 %Highly unstable 0 %

RESPONSEIN

84.1


THE

YEA

R IN

REV

IEW

AM

BASS

AD

ORS

’ FO

RUM

15

AMBASSADORS’ FORUM


Qatar began developing strong ties with countries in Europe, Asia and the Americas starting in the early 1990s. The Middle Easternnation has attracted foreign investors to support the development of its energy industry and has continuously aided the growthof its partners’ economies through deliveries of hydrocarbons and various foreign investments.

To strengthen bilateral co-operation, His Highness the Emir Sheikh Tamim bin Hamad AlThani paid his first official visit to India in March 2015, where he met Prime Minister ShriNarendra Modi and Minister of Petroleum and Natural Gas Shri Dharmendra Pradhan.

During this visit, six agreements and memorandums of understanding were signed tofurther strengthen bilateral relations and promote investment in India from Qatar. Qataricompanies are encouraged by the governments to increase their involvement in India’snational development strategy, ‘Make in India’, by participating in projects related to the newindustrial corridors, such as the one between Delhi and Mumbai.

Bilateral trade between India and Qatar stood at nearly $17 billion between 2013 and2014, of which $16 billion was in the import of energy-related products from Qatar. Qatar isthe largest supplier of LNG to India. Since 2004, India has been importing 7.5 million tonnesof LNG from Qatar per year under a 25-year sales and purchase agreement signed betweenRasGas of Qatar and Petronet of India in 1999. In addition to that, India bought more than 5million tonnes of Qatari LNG on spot markets and under short-term contracts in 2014.

Qatar is also India’s 10th-largest oil supplier, providing it with about 5 million tonnes ofoil per year. The Gulf nation also supplies India with fertiliser products, such as urea. TheQatar Chemical and Petrochemical Marketing and Distribution Company, known as Muntajat,opened an office in Mumbai in 2014, affirming its commitment to the Indian market.

Qatar is a major supplier of energy resources to Japan. With 16 million tonnes of LNGdelivered per year, which accounts for 18 percent of our LNG imports, the country is thesecond-largest supplier of LNG to our country. Qatar is also Japan’s third-largest oilsupplier and produces 11 percent of our total oil imports.

Seeking economical LNG prices and securing needed LNG from producing countriesat the global level are important challenges for Japan’s future energy policy. Maintainingstable and reliable energy supply is the most important factor for Japan’s energy security,and Qatar is our most reliable and stable partner. Qatar proved that it is ready to respondto emergency situations after the Tohoku earthquake in 2011, when it shipped additionalLNG to Japan. Japan was a member of the international consortium that developed Qatar’sLNG industry from the initial stage as pioneer, investor, financier, off-taker and engineeringcontractor starting in the mid-1980s. This helped to enhance our excellent relationship.

His Highness the Emir Sheikh Tamim bin Hamad Al Thani paid an official visit toJapan in February 2015 and met with Prime Minister Shinzo Abe.

Both sides expressed their intention to strengthen ties and diversify the domains oftheir bilateral co-operation. Japanese companies will participate in new projects in Qataras both investors and contractors, and they are encouraged to take part in projectssupporting the 2022 FIFA World Cup and the Qatar National Vision 2030.

The UK-Qatar relationship was successful in 2014. Two-way trade exceeded £5 billion, andQatari government investment in the UK was more than £30 billion. The highlight was thevisit to the UK of His Highness the Emir Sheikh Tamim bin Hamad Al Thani.

In the energy industry in particular, the relationship is strong and continues to grow. InNovember 2013, the UK and Qatari energy ministers signed a bilateral energy communiquéin Doha, followed by further meetings in London in June and October 2014. In March 2015,Stephen Lovegrove, permanent secretary at the UK’s Department of Energy and ClimateChange, visited Qatar for high-level talks with Qatari ministers and senior officials. Qatar is akey partner for the UK’s energy security and our most important LNG supplier. In 2013,Qatar provided 18 percent of total UK gas imports, and LNG overall met 13 percent of totalUK gas demand. Qatar’s South Hook LNG terminal at Milford Haven in the UK has thecapacity to supply 20 percent of total UK gas demand.

Gas will continue to play a key role in the UK energy mix. There will be increased demandfor electricity generation as we will reduce the use of coal to meet international climatechange targets, and several nuclear power plants will come off stream in the 2020s. Decliningdomestic production will lead to increased import dependency, which will be met by bothLNG and pipeline gas. This highlights the importance of Qatari LNG to the UK. Britishcompanies have played a key role in helping Qatar deliver its 2030 National Vision as well.

Sanjiv ARORAIndian Ambassador to Qatar

Shingo TSUDAJapanese Ambassadorto Qatar

Nicholas HOPTONUK Ambassador toQatar

A history of collaboration


the oil & gas year qatar 2015

Documents