doha asian games

RasGas Magazine Issue 17 Winter 2006/2007
Issue 17 Winter 2006/2007
Vision
Shaping Qatar's future
Gastech 2006
Tomorrow's energy:
RasGas raises its profile
AKG
Reaping the benefits
of home supply
Doha
Asian
Games
Sporting success,
lasting historic legacy
shipping
taqteer
finance
expansion
Editorial
Legacy of the games
Now the 15th Asian Games have come to an end and the torch has been handed
over to the next hosts, Qatar can start to build on its spectacular achievements.
At the closing ceremony, HH The Heir Apparent Sheikh Tamim Bin Hamad Al Thani
expressed this when he said: “We are keen that the flame which we extinguish
tonight will continue to glow in our heart.”
Front cover: Khalifa Stadium, Doha, Qatar
Photography: Anthony Terrot
Editor-in-Chief
Abdulla Hashim
Editor
Carol Pascoe
Editorial Assistant
Alisar Al Sheikh
Contributing Editors
Sinéad Mangan-Mc Hale
Mike Corkhill
Alex Forbes
Orlando Kimber
Editorial Team
Erin Murphy
Samah Derhally
Photography
Anthony Terrot
Qatar Studio
Manfred Erber
Boo Beaumont
Al Watan
Edited and produced by:
RasGas Company Limited
Public Relations Department
PO Box 24200
Doha
State of Qatar
Tel: +974 4923210
Fax: +974 4923490
www.rasgas.com
Designed by East Publishing
www.eastpublishing.com
© RasGas Company Limited 2007
All statements and expressions contained
herein are the sole opinions of the writers and
editors and do not necessarily represent the
opinions of RasGas Company Limited.
0 RasGas MAGAZINE
Qatar staged the biggest, best and most widely reported Asian Games ever. Its
impressive success on the sporting field was matched only by the meticulous, fiveyear planning leading up to the event. Qatar has acted as flag bearer for the whole
of the region, and the legacy of the Doha games looks set to last. Never before had
a Middle Eastern country or region staged an event on this scale. Now that Qatar
has done it, others will follow.
Qatar is leading in other ways too, as Saad Al Kaabi observes in this issue. Qatar
Petroleum's Director of Oil and Gas Ventures reflects on Qatar’s phenomenal
growth in less than two decades and assesses its future potential, describing it as
a ‘miracle in the making’. He attributes this growth to exceptional vision, teamwork
and transparency, supported by strong commercial partnerships.
One such close working relationship is the one between Qatar Petroleum and
ExxonMobil. Their ever-growing range of projects includes the recently inaugurated
Al Khaleej Gas (AKG). In this issue we report from Ras Laffan Industrial City on
the start of gas production for the home market. Using much of the technology
developed for LNG production, gas from AKG will bring significant economic and
environmental benefits to the people of Qatar.
Elsewhere in this issue we take a closer look at RasGas' highly successful Foreign
Exchange Hedging programme, preview the latest developments in shipping and
provide an update on the Qatarization programme. We also look forward to the
completion of the first RasGas expansion project (RGX) in March. Together with
Qatar’s existing LNG projects, RGX will make the nation the undisputed leader
in world LNG, ahead of major-league producers such as Indonesia, Malaysia and
Algeria.
In the meantime, RasGas’ impressive record of technological innovation in LNG was
recognised with a prestigious ‘Oil Oscar’ at Gastech 2006 in Abu Dhabi. RasGas
was awarded the title ‘Gas Company of the Year’ at the international conference,
one of the key events in the industry calendar. As one of the exhibitors, RasGas
was represented on the Qatar stand, where the innovative design incorporated the
concept of the 2006 Asian Games. As this issue shows, the spirit of the games
lives on – in 2007 and beyond.
Dr Mohammed Al Sada
Managing Director
RasGas MAGAZINE
Contents
10
04 News
RasGas supports ASD’s new
Fine Arts Centre; HOA for new
hydrocarbons technology centre;
bids invited for Ras Laffan C; firstever Scholarship and Sponsorship
Forum; Ejnan joins the RasGas fleet
06 THE RASGAS
EXPANSION PROJECT
14
Now almost complete, the RasGas
expansion project (RGX) has set
the pace for the next exciting wave
of expansion at RLIC
10 Vision
Saad Al Kaabi, QP Director of Oil
and Gas Ventures, sees dedication,
empowerment, accountability and
teamwork as the key to continuing
success
26
14 The road to Doha
The torch relay for the 15th Asian
Games in Doha was one of the
most ambitious and extensive ever
undertaken
16 Doha Asian
Games 2006
Saad Al Kaabi, Director of Oil
and Gas Ventures, QP (top); Dr
Mohammed Al Sada carrying
the Olympic torch at Ras Laffan
(middle); and the successful
start up of AKG-1
18 Foreign Exchange
Hedging
RasGas’s Foreign Exchange Hedging
programme – the largest in Qatar
– has helped avoid higher costs on
several projects
20 AKG and beyond
Gas from AKG (Al Khaleej Gas)
will bring significant economic
and environmental benefits to the
people of Qatar
22 People power
The RasGas Taqteer programme is
developing human assets that will
benefit Qatar for decades to come
24 Shipping
LNG shipping is on the cusp of
a new era with a wave of new
carriers entering service
26 Gastech 2006
RasGas joined the world’s key
energy players at the 22nd
international conference for the
LNG, LPG and natural gas industries
The phenomenal success of the
15th Asian Games creates a lasting
legacy for Doha, Qatar and the
whole region
RasGas MAGAZINE 0
News
RasGas signs agreement with ASD
Following a cooperation agreement with the
American School of Doha (ASD), RasGas will help
finance the development of a new arts centre
and support the school’s scholarship fund for
young Qatari nationals.
The new 630-seat Fine Arts Centre, due to
open in September 2007, will serve as a focal
point for drama, art and music at the school as
well as providing an important venue for the
performing arts in Doha. In addition to the new
building, RasGas’ donation will help support the
ASD Scholarship fund, developed to encourage
Qatari families to send their children to the
school. “The American School of Doha is tied
to the progress and growth of Qatar,” says Ed
Ladd, ASD Director. “Having Qatari students at
the school opens a door to Qatar and the larger
Islamic world for our expatriate students.”
More than 200 guests, including the US
Ambassador, Mr Chase Untermeyer, attended
the official ceremony held in November at ASD.
Dr Mohammed Al Sada, RasGas Managing
Director, who signed the agreement, said: “In
support of HH Sheikh Hamad Bin Khalifa Al Thani,
The Emir of Qatar’s vision, RasGas is an active
player in the drive to raise the overall standards
of education in Qatar.”
0 RasGas MAGAZINE
Top: Celebrating the
signing of the cooperation
agreement between
RasGas and the
American School Doha.
Above: Touring the ASD
construction site
Sharing knowledge
Introducing students to the
potential business and service
opportunities in Doha, RasGas
and some of Qatar’s most
prominent business leaders
recently gave a series of guest
presentations at Carnegie
Mellon University Qatar.
RasGas gave an informative
presentation on the history
and value of corporate social
responsibility (CSR), which
highlighted some of the more
unusual aspects of RasGas’
own CSR programme, such as
employee involvement and
‘payforward’.
“Bringing in respected
business professionals who
are active in the community
is a great way to inspire our
students to get involved in
projects that benefit others,”
says John Robertson, Assistant
Dean for Academic Affairs.
“Students have the opportunity
to learn that making a
difference in society means
more than having a successful
career; it means taking an
active role in their community.”
News
Presenting
RasGas gifts to
students at the
Rehabilitation
Centre
Open day success
As part of its Corporate Social Responsibility
(CSR) programme, RasGas worked with local
contractors to support an open day held by the
Qatar Society for Rehabilitation and Special Needs
in October 2006. Over 100 students, their
families and volunteers from the Rehabilitation
Centre for Boys joined RasGas employees to
view a selection of the students’ creative work.
As well as the provision of financial support
to worthy causes, a key element of the RasGas
CSR programme is the hands-on involvement of
employees, who volunteer to work or play with
students and children. The ‘payforward’ element
of the programme meant that many of the
contractors who work on a professional basis for
RasGas were also involved in the open day.
The Qatar Society for Rehabilitation and
Special Needs is a non-government funded
organisation that provides integrated care for
children and young adults with special needs and
disabilities. “The open day has been a wonderful
experience for all concerned,” said Jassim
M Alhajiri, the society’s spokesman, “and on
behalf of everyone associated with the Qatar
Society for Rehabilitation and Special Needs,
I would like to thank RasGas for their support.”
First annual forum
for students
Students of RasGas’ Scholarship and Sponsorship
Programme recently had the chance to ask
questions and find out how the programme
is continuously improving at the first annual
Scholarship and Sponsorship Forum.
RasGas provides the Programme to Qatari
students as part of its commitment to its National
Development Programme. Addressing the
forum, Dr Al Sada, RasGas Managing Director,
reminded the students of their responsibilities
as ambassadors of the company, but underlined
the continuous support of RasGas in achieving
these goals.
The relaxed and informal event, held in
January, also featured interesting contributions
from Dr Eiman Al Ansari, Senior Education
Programme Co-Coordinator who chaired the
forum, and Sheikh Khalid Al Thani, Deputy
Manufacturing Manager of Operations Group,
a former student and now a senior employee
of RasGas.
Sheikh Khalid Al Thani
sharing his experiences
with students
New hydrocarbons
technology centre
Qatar Petroleum and ExxonMobil Chemical
Qatar, a subsidiary of ExxonMobil Corporation,
signed a heads of agreement (HOA) in
November 2006 to carry out studies for a
proposed $3 billion petrochemical complex in
Ras Laffan. It would include a 1.3Mta steam
cracker and associated derivative units,
including polyethylene and ethylene glycol.
Signing the HOA, the Second Deputy
Premier and Minister of Energy and Industry,
HE Abdullah bin Hamad Al Attiyah, said: “Qatar
has embarked on ambitious programmes to
utilise and develop hydrocarbon resources. This
project will create a very strong position for
Qatar to become one of the world’s leaders in
the chemical business.” He added that by 2012
Qatar’s total production of petrochemicals will
reach some 28 million tonnes.
Minister Al Attiyah and Michael J Dolan,
President of ExxonMobil Chemical
Company at the signing
Bids invited for
Ras Laffan C
International developers have
been invited to submit
pre-qualifications for the Ras
Laffan C independent water and
power project (IWPP). Upon
completion, the C Station will be
the largest co-generation plant
in Qatar, with capacity of 2,600
MW of power and 40 million
gallons a day of desalination
(g/d). Developed on a fast-track
basis, it is due to have 1,600
MW and 20 million g/d of
capacity on stream by April 2009.
Ras Laffan C will involve a
new joint venture company
established to implement the
IWPP on a build-own-operatetransfer basis for an initial
period of 25 years; 60 per cent
of the new company will be
owned by local partners,
expected to be Qatar Electricity
& Water Company (QEWC) and
Qatar Petroleum (QP).
Ejnan joins the
RasGas fleet
Named after an island off the west
coast of Qatar renowned for its
beautiful white sand, the Ejnan
is the latest addition to RasGas’
growing LNG cargo fleet.
The Ejnan was launched by Mrs
Barbara Wolahan on 13 January at
the Samsung Hyundai Industries
(SHI) shipyard in Korea. It completes
a remarkable chapter in RasGas’
relationship with SHI, who delivered
the first ever conventional LNG
carrier, the Fuwairit, to RasGas in
January 2004.
With a cargo capacity of
145,000m3, the Ejnan is
the seventh and last of the
conventional-sized ships to be
chartered by RasGas. Owned by
the Japanese Consortium and
Nakilat, it will be operated by NYK.
The ship arrived in Ras Laffan on
1 February 2007.
RasGas MAGAZINE 0
RasGas Expansion
Setting the pace
Completion of the first
RasGas Expansion Project
makes Qatar a leader in LNG
0 RasGas MAGAZINE
RasGas Expansion
Each of the three natural gas liquefaction trains
in the first RasGas Expansion (RGX) project was a
milestone in its own right. Together they represent
one of the largest and most innovative LNG
projects ever completed – setting the pace for
the mega-trains now under construction at Ras
Laffan Industrial City. Alex Forbes reports.
In March this year, at what is rapidly becoming
the largest concentration of natural gas-based
industry in the world, His Highness Sheikh
Hamad Bin Khalifa Al Thani, the Emir of the State
of Qatar, will preside over a ceremony that will
mark a defining moment in the development of
Qatar as a gas-producing and exporting nation.
The inauguration by HH The Emir, of the
RasGas LNG Train 5 will mark the completion of
an impressive portfolio of major projects that
make up the massive undertaking known as the
first RasGas Expansion project – or RGX.
Together with Qatar’s existing LNG projects
– the first phases of RasGas and Qatargas –
RGX will give the nation a position of leadership
in world LNG. Combined nameplate LNG
production capacity in Qatar will rise to 30.7
million tonnes per annum (Mta), well ahead of
the other producers such as Indonesia, Malaysia
and Algeria.
The RGX project also adds significant new
dimensions to RasGas beyond its base LNG
business. With the completion of the Al-Khaleej
Gas (AKG1) project, RasGas now supplies
domestic sales gas to fuel the country’s
development. RasGas LNG Trains 4 & 5 produce
a lean LNG, which provides product variety and
marketing range for LNG, while allowing the
extraction of LPGs for sales. As part of the RGX
project, new LPG storage and export systems
were built. The RGX project portfolio also
included a major new helium facility, launching
Qatar and RasGas into the global helium
business.
So how did a nation of fewer than a million
people come to dominate such a key and fastgrowing part of the global natural gas industry?
Qatar’s story begins in the early 1970s, with
the discovery of a huge gas-bearing geological
structure in the Arabian Gulf.
At that time it was impossible to foresee that
Qatar’s North Field would turn out to be the
world’s largest non-associated gas field, with
proven reserves today of more than 900 trillion
cubic feet (Tcf) of natural gas, making Qatar the
world’s third-largest holder of gas reserves.
“Getting the development under way took
enormous courage” says Dr Ibrahim B Ibrahim,
whose many roles include being Vice Chairman
of RasGas and Economic Adviser to the Emir.
“To become credible in the minds of potential
LNG buyers, notably in Japan, Qatar needed to
invest around a billion dollars in constructing
a port,” says Dr Ibrahim. But there was no
guarantee that Qatar would then win enough
long-term contracts to supply LNG to justify
such an investment. Nevertheless, the nation
took a leap of faith and constructed port
facilities and infrastructure at what is now called
Ras Laffan Industrial City.
Qatar at that time recognised a need for
expertise and technology to develop its LNG
facilities. So it set out to attract suitable business
partners. It succeeded in attracting Mobil (now
part of ExxonMobil), Total and a number of
Japanese companies, but only, says Dr Ibrahim,
after keen negotiations between all parties.
With the required elements for LNG
development in place, Qatar launched two
LNG ventures. Qatargas started as a three-train
6 Mta project – since debottlenecked to 10
Mta. Serving primarily the Japanese market,
it delivered its first cargo in 1997. RasGas,
a two-train 6.6 Mta project serving primarily
Train 3, the first train under the
RasGas Expansion Project
RasGas MAGAZINE 0
RasGas Expansion
the market in South Korea, delivered its first
cargo in 1999.
This was an excellent start, confounding the
sceptics who doubted that Qatar would ever
become a major LNG player. But the Emir’s
vision was that Qatar needed to become a much
bigger player to really capitalise on its huge gas
resources. And so it was that the concept of the
RasGas expansion came into being.
His Excellency Abdullah Bin Hamad Al Attiyah,
Second Deputy Prime Minister, Minister of
Energy and Industry and Qatar Petroleum
Chairman clearly set out the nation’s vision for
LNG development in those early days.
Qatar's ambitious plans were greeted with
a degree of scepticism by many in the LNG
industry. They found it difficult to envisage how
Qatar would find sufficient markets to fulfil its
LNG ambitions, given its location. It was hard
to see how LNG from the Gulf would be able
to compete in markets served by pipelines or
by LNG suppliers much closer to home. This
scepticism was soon to turn to admiration
as Qatar moved close to obtaining its goal of
producing 77 Mta by 2010.
A major sales and purchase agreement was
signed in 1999 with a new Indian company
called Petronet LNG, established by four major
0 RasGas MAGAZINE
Indian state-owned enterprises. The agreement
was for 7.5Mta for a 25-year period, setting the
scene for a long-term business partnership.
Meanwhile, Qatar was exploring the potential
of advances in LNG technology.
Dave Marchak, RasGas Venture Manager
and Ching Thye Khoo, Project Manager for the
RGX offshore and onshore projects, describe
how, with the use of new technologies and an
innovative LNG plant configuration, RasGas,
supported by its shareholders Qatar Petroleum
and ExxonMobil, pursued a design for
a liquefaction train with much larger capacity
than those in operation at that time. Building
and completing three essentially similar trains in
quick succession allowed for the maximising of
project execution synergies and the immediate
transfer of lessons learned.
The impact that this would have on unit costs,
along with the relatively low cost of producing
gas from the North Field, meant that Qatar could
start to consider looking at markets in Europe.
Then came another milestone: in 2001
RasGas signed a major supply deal with Italian
gas company Edison for 4.6 Mta for a 25-year
period commencing 2008.
Together, the deals with Petronet and Edison
were enough to convince Qatar Petroleum and
ExxonMobil to expand the RasGas project by
adding another two trains, each with capacity of
4.7 Mta, enough to take total capacity to 16 Mta.
It was not long before a decision was taken to add
a third such train, taking total capacity to 20.7 Mta.
The RGX project was initiated in 2001
when EPC contracts were signed with CMS&A
– Chiyoda, Mitsui, Snamprogetti & Almana – for
onshore workscope and with J Ray McDermott
for the offshore scope. The inauguration of Train
5 in March 2007 will mark the completion of all
major projects in the RGX portfolio.
Each of the three huge liquefaction trains at
the heart of the RGX project has turned out to
be special in its own way, both technologically
and commercially.
The first – RasGas Train 3 – was the largest
operational liquefaction train in the world
when it was commissioned in early 2004. With
capacity of 4.7 Mta, it was 40 per cent larger
than the previous largest train.
Moreover, Train 3 marked the first passage
of LNG into India; its first cargo landed at Dahej
on the west coast of India in January 2004.
This was a market that many established players
had failed to break into. Qatar’s success, says Dr
Ibrahim, was an early sign that it was approaching
the LNG business in its own unique way.
RasGas Expansion
Underlying these
achievements was a
unique and continuous
learning process.
This ensured that
lessons learnt during
construction of Train 3
contributed to the
success of Train 4, while
lessons from Trains 3
and 4 contributed to
the success of Train 5.
Train 4, inaugurated by the Emir in November
2005, was the first in the Middle East to
be dedicated to markets in Europe. It meant
also that Qatar began 2006 with nameplate
capacity of 26 Mta – enough to make it the
world’s largest de facto producer of LNG in
2006, when Indonesia still had more capacity
than Qatar, but not enough gas to utilise it
fully. Train 4 was also the first application of
acid gas reinjection in Qatar. A key addition to
Train 4 in the midst of project execution was an
NGL-recovery project. This allowed RasGas and
Qatar to produce lean LNG for the first time,
and also to export LPGs.
The new Train 5, says Khoo, will be the fastest
train of its size ever to be constructed. Train
5 was completed with an outstanding safety
performance that was five times better than
the industry norm. In addition Train 5 is the
most environmentally friendly LNG train RasGas
has built, added Marchak: it is the first train to
incorporate a Dry Low NoX technology on all
its gas turbines, which will dramatically reduce
emissions to the atmosphere.
Underlying these achievements was a unique
and continuous learning process. This ensured
that lessons learnt during construction of Train
3 contributed to the success of Train 4, while
lessons from Trains 3 and 4 contributed to the
success of Train 5. As the construction periods
of the three trains overlapped, this was no easy
matter. Doug Smith, Offshore Project Manager,
explained how the systematic application of
lessons learned ensured that Train 5 exceeded
all expectations in achieving an unprecedented
level of quality.
The benefits are obvious in the time that it
took to construct the trains. The first two each
took 33 months. When it came to Train 5, says
Khoo, RasGas and its main contractor, CMS&A,
were confident it could be done in 30 months.
In fact, mechanical completion was achieved on
25 October 2006, just under 28 months from
EPC award, a new world record for a large-scale
LNG train.
To really appreciate the scale of this
achievement, you need to visit Ras Laffan
Industrial City to see for yourself just how large
these trains are. They are still among the largest
in the world and undoubtedly the prime focus of
the RGX development.
That said, the LNG trains are only part of the
RGX story. The expansion project also involved
constructing the offshore production facilities
that supply raw gas and liquids, as well as
the first phase of the Al Khaleej Gas (AKG-1)
processing plant that now supplies sales gas to
the home market. Along the way, RGX involved
construction of a major helium production
facility, and innovative projects to extract natural
gas liquids from LNG and to reinject acid gas.
Having broken new ground in so many ways,
the RasGas Expansion Project exemplifies
RasGas’ vision 'To Be The Pacesetter', and paves
the way for the next wave of expansion at Ras
Laffan City. Six mega-trains, each with capacity
of 7.8 Mta, by far the largest in the world, are
currently being built, two by RasGas and four by
sister company Qatargas. When completed, in
2010, these mega-trains will raise Qatar’s LNG
production capacity to 77 Mta, making it by far
the world’s largest producer of LNG.
RasGas MAGAZINE 0
Vision
As Director of Oil and Gas Ventures, Saad Sherida Al Kaabi holds
a critical position in the development of Qatar’s gas reserves and
manages, together with his team of six managers, all commercial
agreements, evaluation and planning, technical services,
exploration, production sharing and service facilities as well as
Qatar Petroleum’s (QP) operated oil development interests. With
the responsibility for the entire asset portfolio of oil and gas for
QP including the reservoir development plan, the assignment of
reserves and securing government support, he relies on his quiet
authority and his courteous manner, so typical of many senior
Qataris, to get the job done. He also oversees a directorate of more
than 400 highly skilled staff and reports directly to HE Abdullah Bin
Hamad Al Attiyah, Second Deputy Prime Minister of Energy and
Industry and QP Chairman and Managing Director
Shaping
the future
10
RasGas MAGAZINE
I call it shaping the future. No one in the oil and gas industry
worldwide has taken a gas field from 0.8 to 24 billion cubic
feet per day in, let’s be generous, 20 years. Two years
ago the capacity was 4 billion; by 2012 that will increase
six-fold! Qatar will then be the third-largest marketed
gas producer in the world, with only the USA and Russia
in front. In addition the petrochemical side is increasing
in leaps and bounds. It’s a magnificent achievement,
especially if you also consider all the complex agreements
and engineering procurement contracts (EPCs) in place
to implement our vision. Our vision for the future is one
of sustainable development. Our goal is to sustain the great development we have achieved in such a short time.
This is all a direct result of the vision of His Highness the
Emir of Qatar, Sheikh Hamad Bin Khalifa Al Thani and HE
Abdullah Bin Hamad Al Attiyah, whose guidance of QP and
excellent achievements since his appointment as Minister
of Energy and Chairman and Managing Director of QP will
be the talk of generations to come. Their investment in
Ras Laffan many years back and their consistent vision,
excellent leadership and support are what have made this
achievement possible. There’s no question that our commercial
partnerships are also essential to realising the vision. As
a small country, we knew from the outset that we didn’t
have the technical capabilities, manpower and resources we
needed; so a strategy was set to bring in the best partners,
create a good environment for investment, and establish
transparency, ethics and best practices for law and contracts
Vision
RasGas MAGAZINE
11
Vision
at the heart of the State. There is no one I know who will
fight corruption and stand up for good ethics more than
Minister Al Attiyah. It is he who has instilled the discipline of
ethics and transparency in QP. As a result we have a stable
environment, an inviting atmosphere and every company
in the oil and gas industry now wants to work in Qatar.
Without teamwork we would not have got anywhere.
We’ve been very fortunate to have great people working
with us at all levels of the company and in all our venture
projects. Our achievements, the efficiency of our
operations and the level of attention given to health,
safety and the environment in all our operations are
a testimony to this teamwork and dedication. I believe
that we have the elite of the oil and gas industry working
with us in Qatar; no matter where you look you’re going
to find the best in any discipline – nationals or expatriates.
We have a great appreciation of and sincere gratitude to
all our colleagues from more than 50 countries who are
working in the industry to achieve the objectives of this
nation. We know that being far from home is not easy,
but hope that the hospitality of the Qatari people and
the good work environment will help to compensate
for that.
RasGas is an excellent illustration of the highest
standards of collaboration. By the year 2012 RasGas will be
responsible for the development and operation of around
40 percent of the planned production from the North
Field, so we take great comfort in the fact that RasGas has
12
RasGas MAGAZINE
North Field Production growth showing actual
and planned output from 1991 to 2012 Vision
AKG-1 while under construction
exceptional management and staff, who deliver pacesetting
projects. This is not mere opinion, but demonstrable too:
RasGas has already delivered Trains 1 to 4, AKG1 and
now Train 5 in pacesetting mode. This is an outstanding
success. Moreover, the start-up and operational activities
have been exceptional: the drilling and reservoir groups,
who have served Qatar in RasGas, QatarGas II Project and
other appraisal activities, have continuously performed to
the best standards, pioneered new technologies and also
achieved excellent results. All of us in QP recognise the
hard-working men and women of RasGas and sincerely
appreciate their dedication.
Using by-products from the North Field developments
as a catalyst for huge petrochemical and industry growth
will make Qatar a leader in most sectors of the downstream
industry. Developments include major petrochemical
crackers, such as QChem2 at Ras Laffan. We’ve also signed
the heads of agreement for one of the largest mixed-feed
crackers in the world – using LPG and ethane – which we’ll
build with ExxonMobil. Methane will be used as feedstock
for steel manufacturing and aluminium smelting and will also
supply fertiliser, fuel additive and other smaller industries.
QP is a major shareholder in all these developments.
Domestic projects such as the massive building
programme in Lusail, the general expansion of industry and
our need for electricity and water desalination means that
there’s a huge increase in demand for power in the country.
As a corporate strategy, we have secured reserves for this
vital sector for years to come.
A new venture, Qatar Petroleum International (QPI),
was recently created to lead our development effort in
various international energy projects and transform QP
from being exclusively local into a global energy player. QPI
has invested with our partners in LNG terminals outside
Qatar such as Rovigo, on Italy’s North Adriatic coast, South
Hook in Wales and Golden Pass in Texas, which will provide
regasification services for Qatargas and RasGas. QPI will
be looking to invest in feasible projects overseas in the
upstream, downstream and power sectors.
So to conclude, our mission at QP is to be a major
provider of safe, reliable and environmentally friendly
energy products and contribute to the secure supply of
global energy needs, while at the same time meeting all the
energy needs of the Qatari economy. If we can meet the
commitments and obligations to our customers in a safe
and timely way, then that will be a job well done.
On a national scale, Qatar is striving towards higher
ground. Sustaining this development is only achievable
through a highly skilled work force, and the initiative of Her
Highness Sheikha Mozah Bint Nasser Al Misnad (through
the formation of Qatar Foundation) will ensure that we
have graduates of the highest calibre. When these students
come to build on the foundation that has already been laid,
in a business environment of dedication, empowerment,
accountability and teamwork, both they and Qatar are
bound to succeed.
RasGas MAGAZINE
13
Torch Relay
For nations competing in
the 15th Asian Games in
Doha, the lighting of the
games cauldron was
the climax of the most
impressive torch relay
in the event’s history.
For Qatar, hosting the
games for the first time,
it was a moment of
particular pride and joy
Leaving Qatar on 8 October, Sheikh Joaan Bin
Hamad Al Thani, the Torch Relay Ambassador
who accompanied the Asian Games Torch on its
travels, began his marathon voyage to spread the
message of the games and encourage nations to
‘follow the flame’. The relay’s first destination was
New Delhi; from there it travelled through Korea,
the Philippines, Japan, China, Indonesia, Thailand,
Iran, Oman, the UAE, Kuwait and Bahrain, before
finally returning to Qatar. During his epic journey
Sheikh Joaan visited 15 countries and regions and
covered a distance of more than 50,000km. On
the way nearly 2,500 torchbearers joined in the
relay, carrying the flame for a distance of up to
500 metres each.
The torch arrived back in Qatar on 26
November amid great celebration and immense
pride and excitement about the forthcoming
games. HH the Emir Sheikh Hamad bin Khalifa
Al Thani and his wife HH Sheikha Mozah Bint
Nasser Al Misnad welcomed Sheikh Joaan back
as he stepped off the dhow which had carried
the torch from Bahrain to Qatar. Over the next
Lighting up the
Asian Games
14
RasGas MAGAZINE
five days more than 1,000 Qatari residents of 67
nationalities – men, women and children – joined
the last leg of the relay as it travelled through the
host country.
At Ras Laffan Industrial City the Asian Games
2006 Flame was welcomed by cheering crowds.
RasGas was honoured to be among those
selected to take part in history in the making. Four
torchbearers from RasGas – including Managing
Director, Dr Mohammed Al Sada – participated in
the relay, entering into the spirit of the games.
On 1 December the last leg of the relay journey
began with the flame’s triumphant arrival at
Khalifa Stadium. Following a spectacular opening
ceremony, the flame was carried into the stadium
by world champion bowler Salem Bu Sharbak
for its final lap. It passed from star footballer
Mubarak Mustafa to shooter Nasser Al Attiya,
to legendary middle-distance runner Mohamed
Suleiman to former football international Mansour
Muftah and then to former international sprinter
Talal Mansour. The final challenge of the relay
was proudly accepted by Sheikh Mohammed Bin
Hamad Al Thani, the Qatari equestrian captain.
Astride his horse, he saluted the Emir and, to gasps
of amazement and support from the 40,000
spectators, ascended the steep ramp to the top
tier of seats, where he was met by a slowly rising
cauldron. The flame leapt from the torch to signify
the start of the 15th Asian Games.
As the torch burned brightly and strongly,
it reflected not only the enduring spirit of the
games, but also the effort, pride, cheers, tears
and pure pleasure of what have been hailed the
best ever Asian Games.
Torch Relay
The Asian Games Torch
travelled more than
50,000km, carried by
more than 2,500 torchbearers as competing
Asian nations followed the
flame to the triumphant
15th Asian Games in Doha
THE MESSAGE OF THE TORCH
While the design of the torch has
evolved over the years, the flame remains
a powerful symbol of the ideals and cultures
of the participating countries. The Doha
2006 torch was created to encapsulate
the warmth of the Asian sun, with an everburning desire for friendship through
the continent.
Designed by the Creative & Visual Profile
Team of Doha Asian Games Organising
Committee (DAGOC), the torch – able to
withstand winds of up to 60 kilometres
per hour – is elegant and light in design.
Inspiration for the design was drawn from
the curvaceous horns of the Arabian Oryx
– the endangered national animal that
inspired Orry, the official games mascot –
and the maroon and white colours of Qatar’s
national flag.
The emblem of the 15th Asian Games
appears on the top of the torch, with the
Olympic Council of Asia’s sun icon embossed
on the maroon middle section, so that the
flame represents its core.
RasGas MAGAZINE
15
Asian Games
Raising
the bar
The success of the 15th Asian Games has not only
put Doha on the world’s sporting map, but raised
the profile of Qatar and the whole region
16
RasGas MAGAZINE
Asian Games
Qatar’s increasingly impressive role on the
international stage is now beyond question.
As well as an enviable record in the world’s
energy circles, Qatar has gained a reputation
for progressive and sustainable reforms in the
social, economic and political arenas. However,
these economic and social achievements dim in
comparison to the greatest success Qatar has
ever experienced – the 15th Asian Games.
According to the Doha Asian Games Organising
Committee (Dagoc): “Qatar’s success on the
field delighted its entire people and has left a
legacy for the whole country and the wider Middle
East. The 15th Asian Games was not just about
putting Doha on the map in a sporting sense,
but Qatar acted as flag bearer for the whole of
the region. Never before had a Middle Eastern
country and region staged anything on this scale.
Now Qatar has done it, others will follow.”
Setting the scene for the most impressive
Asian Games in history took five years and the
highest standards of planning by Dagoc, under
the chairmanship of HH the Heir Apparent
Sheikh Tamim Bin Hamad Al Thani. The
preparations included major investment in the
development of appropriate sporting arenas
such as the impressive Khalifa Stadium; major
road and building construction and development
throughout Doha to transport and accommodate
the games and its guests; impressive branding and
advertising; and a sustained publicity campaign.
The scale of the torch relay, which was
accompanied by Sheikh Joaan Bin Hamad Al
Thani, reflected the importance the Royal family
were placing on the success and enjoyment of
the games. The relay – the longest and most
extensive ever staged in the history of the
games – passed through 15 countries and
covered over 50,000km.
In the weeks leading up to the games, Qatar
residents and visitors were treated to colourful,
eye-catching billboards, banners and flags,
including giant ‘wraps’ on 32 of Doha’s most
prominent buildings. Powerful sporting images
celebrated the various activities scheduled.
The opening ceremony of the 15th Asian
Games on the night of 1 December was
a spectacular success, attended by over
40,000 guests. HH the Emir Sheikh Hamad Bin
Khalifa Al Thani officially opened the games in
a breathtaking ceremony which celebrated
Qatar’s history and culture, the spirit of the
games and a bold vision of the future. It was
directed by David Atkins, the Australian artistic
director responsible for the ceremonies at the
2000 Sydney Olympics.
The Doha Asian Games witnessed some
record-breaking moments of sporting history.
Kazakhstan rowers Torlopov and Kaltenberger
became the first paddlers to win the same canoekayak event at three consecutive Asian Games.
Records were broken in the swimming pool
too, where Takashi Yamamoto of Japan became
the first male swimmer to win gold in the same
event at three consecutive games after winning
the 100m butterfly final. However, the most
successful swimmer was undoubtedly Park Tae
Hwan, the Korean teenager who was named
Samsung Most Valuable Player of the 15th Asian
Games after winning seven medals and smashing
two Asian records.
Choi Jun Sang of Korea won the individual
dressage and team gold, defending both titles
and giving the horse and rider combination their
fourth Asian Games equestrian gold medal.
At the Khalifa International Tennis and Squash
Complex large crowds of Indian fans cheered
on Leander Paes. Champion Paes took his Asian
Games haul to six medals in singles and doubles,
including four golds in the doubles. This ensured
Paes his place in the history books as the first
male player ever to have won four gold medals
in singles and doubles events combined, but add
in his gold and bronze in team events and his
record is even more impressive.
In a fitting finale to the 15th Asian Games
Doha 2006, the 428th and last gold medal was
presented to host nation Qatar as men’s football
champions, following their 1-0 victory over Iraq
at Al Sadd Sports Club.
Qatar won an impressive 32 medals in total
– nine gold, 12 silver and 11 bronze. This is
almost double the previous best tally of 17
medals won by Qatari athletes at the last games
held in Busan, Korea.
Thousands of people streamed into Khalifa
Stadium for the closing ceremony to say thank
you and bid farewell to the athletes, officials
and spectators who had made the games such
a resounding success. Summarising the 15th
Asian Games in his closing speech, HH the Heir
Apparent Sheikh Tamim Bin Hamad Al Thani said,
“We are keen that the flame which we extinguish
tonight will continue to glow in our heart.”
As Doha’s games came to a spectacular finish,
the torch and games flag were handed to the next
hosts, Guangzhou in China. The 15th Asian Games
Doha 2006 may be over, but the legacy lives on.
"We are keen that
the flame which we
extinguish tonight
will continue to
glow in our hearts"
HH the Heir Apparent Sheikh Tamim Bin
Hamad Al Thani
Tribute to Qatar’s volunteers
The Doha Asian Games Organising
Committee has praised the 16,000
volunteers from over 100 nationalities
resident in Qatar as the real success
story of the 15th Asian Games. At the
unveiling of a special tribute containing
the names of all the volunteers, Abdulla
Khalid Al Qahtani, Director General Dagoc,
acknowledged them as “the faces of Qatar
and the ambassadors of the country”.
He concluded that the volunteers’ efforts,
dedication and professionalism had made
the Doha Asian Games a role model for
the world.
RasGas MAGAZINE
17
Finance
The international scope and sheer scale
of RasGas exposes the business to a
variety of financial risks from fluctuations
in foreign currency exchange and interest
rates. However, RasGas has measures in
place to manage the possible impacts of
this exposure, including the largest foreign
exchange hedging programme in Qatar
Dollars, euros
and yen
18
RasGas MAGAZINE
The RasGas Finance Group, led by Tom Mc Hale, Finance
Group Manager, stewards a conservative risk management
policy, developed in conjunction with its shareholders.
The aim is to minimise any potential increases in foreign
currency liabilities under RasGas’ major construction
contracts or in variable interest rates in particular
debt instruments.
One of the key financial tools used by RasGas and
other international companies to manage expenditure
denominated in foreign currencies is foreign exchange
hedging. At its simplest foreign exchange hedging is
a series of financial transactions designed to reduce the risk
of an increase in US dollar costs, for example, because of
exchange rate fluctuations in major contracts denominated
in other currencies, such as the euro or yen. By protecting
the base, or home, currency against the appreciation of the
foreign currency, foreign exchange hedging helps to reduce
or eliminate uncertainty.
Credit-rating agencies take a positive view of
a company’s hedging activities, provided they are used
prudently to reduce risk and not for speculative purposes.
The RasGas hedging challenge
In July 2006, the Treasury Department of the RasGas Finance
Group successfully executed the largest foreign exchange
hedging programme undertaken in the State of Qatar.
Finance
Under its Trains 6 and 7 EPC contract RasGas had
significant foreign exchange exposure, because of Japanese
yen and euro payment obligations built into the contract.
Left unprotected, this exposure would have posed
a financial risk to the overall cost of the project.
RasGas and its shareholders therefore decided that the
optimum solution was to fix 70 per cent of the possible
adverse movement of Japanese yen and euros to the US
dollar by selling dollars forward to purchase these foreign
currencies at agreed rates with credit-worthy banks. The
cost, higher than current ‘spot rates’, accounted for the
higher interest rate differentials in Japan and Europe during
this period. The benchmark used to measure the risk was
the spot rate for these currencies at the time the board
sanctioned the project.
While the project was led by the RasGas Finance Group,
it was designed in close cooperation with Qatar Petroleum
and ExxonMobil shareholders to ensure that it also
reflected their risk profiles. Moreover, the close working
relationship with the RasGas Venture Group led by Dave
Marchak, steward of the Train 6 and 7 projects, contributed
to the success of the programme.
To manage the foreign exchange risk RasGas designed
a foreign exchange hedging programme to purchase
yen and euros under 60 ‘forward contracts’ covering
a three-year period. A forward contract is an obligation
of the buyer, or seller, to deliver a specified commodity
or financial assets on a specified date at a specified price
known at the time of the contract.
Once RasGas and its shareholders had decided to
undertake the foreign exchange hedging programme,
a review of financial institutions was carried out to identify
the world-class counterparty banks. The key factor was
that the chosen banks needed to have a strong presence
and transactional history in the State of Qatar. Moreover,
the number of banks had to be large enough to ensure the
most competitive and efficient bidding process. RasGas
was confident that five banks was the optimum number
for this particular deal. Three of the banks selected were
international and two were Qatari.
Bidding was extremely competitive for each of the 60
contracts and RasGas was pleased to see that, despite stiff
competition from larger international banks, Qatari banks
won a majority of the total deal value, demonstrating
their competitiveness.
Through this landmark programme RasGas reduced its
foreign exchange exposure significantly against the boardsanctioned project rates. The recent strength in the euro
in particular serves to underline the benefits of hedging. If
RasGas and its shareholders had not had the foresight and
expertise to put the foreign exchange hedging programme
The RasGas Treasury team in the
‘dealing room’ monitoring and
recording foreign exchange rates
and competitive bidding over the
five day programme.
“The resounding success of the 2006 RasGas
Foreign Exchange Hedging programme
is attributable to clear goals, the highestcalibre staff, detailed planning and the
indomitable RasGas ‘team spirit’ that
allows us to conquer any challenge!”
Tom Mc Hale, RasGas Finance Group Manager
in place, the costs of the Trains 6 and 7 EPC project would
have been appreciably higher.
Sealing the deals
Bob Main, RasGas Treasurer, worked closely with his team
(Mahdi Mahmoud, Mahmoud El-Dehaibi, Murali Pillai,
Abdulaziz Al Kuwari, David Lunn, Stan Chrusciel and Ms
Hayat Al-Ghafri) to design the foreign exchange hedging
programme and develop the infrastructure required to
execute it.
So that dealing could be handled systematically, the 60
forward contracts were divided up and bid out over five
days. This ensured that the total amounts being bid each
day were not substantial enough to move the international
foreign exchange market adversely.
One of the conference rooms in the Ras Laffan
administration building was temporarily converted into
a dealing room, with dedicated communication lines to each
of the participating banks and screens that displayed upto-the-minute foreign exchange rates from Reuters and
other financial information providers. The team designed
the facilities specifically to allow their colleagues from
other RasGas departments to observe this unique event.
Tools and procedures were also developed that allowed
the team to receive, log and assess the continually updated
bids from the participating banks for each contract.
One of the most outstanding members of the team
was Ms Hayat Al-Ghafri who, as a young trainee and
student at The College of the North Atlantic, Qatar, was
completing her summer programme in the RasGas Treasury
Department. She was assigned the role of ‘controller’
demanding adaptability, quick thinking and responsiveness
in a high-pressure situation. While it was a unique learning
opportunity for any student, she proved to be a vital
member of the team.
RasGas MAGAZINE
19
AKG Inauguration
The inauguration of the Al Khaleej Gas (AKG)
project marked the start of gas production for
the home market. Using much of the technology
developed for LNG production, gas from AKG will
bring significant economic and environmental
benefits to the people of Qatar. Alex Forbes
reports from Ras Laffan Industrial City
Technology has played a central role in the
astonishing success of Qatar’s gas development,
but until recently the focus was on exporting
LNG. Now Qatar Petroleum and its partner,
ExxonMobil, have applied much of the
technology they have developed for producing
LNG to supplying lean sales gas to customers
within Qatar itself.
On 9 November 2006 at Ras Laffan Industrial
City His Highness the Emir, Sheikh Hamad bin
Khalifa Al Thani, inaugurated the first phase of
the Al Khaleej Gas project, AKG-1, marking the
start of home market supplies.
Explaining how the project came to be
launched, Qatar’s energy minister, His Excellency
Abdullah bin Hamad Al Attiyah, said that when
Gas skills
turned to home
advantage
20 RasGas MAGAZINE
Qatar’s ambitious development plans were
launched in the late 1990s, “it became clear
that the country was on the threshold of
a decisive stage in its economic and industrial
development, and that more gas would be
required to meet the increasing demand from
various industries”.
Following a review of feasibility studies, a
Development and Production Sharing Agreement
(DPSA) was signed in May 2000 between the
State of Qatar and ExxonMobil Middle East
Gas Marketing Limited (EMMEGML) for the
production of 1.75 billion cubic feet/day (Bcf/d)
of gas from the North Field. The amount was
increased to 2 billion cubic feet/day in June 2006.
When both phases of AKG are completed in
the summer of 2009, the project will supply the
2 Bcf/d of lean gas to fuel power, petrochemical
and other industrial ventures at Ras Laffan City
and elsewhere in the country. It will also produce
substantial quantities of condensate and natural
gas liquids such as ethane, propane and butane.
The first phase of the project (AKG-1) has
been operating for about a year. It produces
up to 750 million cubic feet/day (MMcf/d) of
sales gas, which is being used by Ras Laffan
Power Company to generate power at Ras
Laffan Industrial City, provide fuel for Mesaieed
Industrial City customers, and supply feedstock
to the Oryx GTL project.
AKG Inauguration
The success of AKG further cements the close
working relationship between ExxonMobil and
Qatar Petroleum, which has developed on an
ever-growing range of projects. These include
all seven of the RasGas LNG trains (two large
trains are still under construction), two large
trains that are being constructed as part of
Qatargas II, and of course AKG itself.
Construction and operation of the AKG
facilities are being managed by RasGas
Company Limited (RasGas) under a services
agreement signed with EMMEGML. This makes
both technological and economic sense, since
the production facilities and front-end of the
gas processing plant are the same whether the
gas is used to produce LNG or piped as sales gas
to local customers. It was therefore possible to
utilise technology developed by RasGas for the
offshore production platform and pipelines and
for much of the processing plant.
Like all the RasGas LNG trains so far
commissioned, phase one of the AKG project
was completed on schedule and under
budget. AKG-2 is currently in the engineering,
procurement and construction (EPC) phase.
There have been significant technical
innovations in the offshore production phase of
the project. For example, use of ExxonMobil’s
proprietary Fast Drill Process has increased
drilling rates by over 50 percent, reducing the
time it takes to drill the production wells and
hence overall well costs. A number of reservoir
technologies essential for understanding
subsurface geology and well performance have
also been applied, including Empower reservoir
simulation, 3-D seismic visualisation and well
completion technologies.
Work on the first phase of AKG began in
2003 when QP and ExxonMobil awarded
contracts worth around $1 billion for its
construction. The contract for the onshore
works went to Chiyoda, Mitsui, Snamprogetti
and Al-Mana (CMS&A), a joint venture that has
been constructing the RasGas LNG Trains 3–5
at Ras Laffan Industrial City. CMS&A brings
together the Japanese companies Chiyoda and
Mitsui, the Italian company Snamprogetti, and
a local Qatari company called Al-Mana. The
contract for the offshore works was awarded
to J Ray McDermott, a US company.
AKG-1 uses a mixture of gas that comes
from several wellhead platforms in the Khuff
reservoir of the North Field. Utilisation of
large-bore completions for the wells has
allowed higher well-production rates, which
has reduced the number of wells needed,
representing significant cost savings. To
transport the gas to shore, two 38-inch multiphase subsea pipelines have been laid to Ras
Laffan, each capable of carrying approximately
2 Bcf/d of wet gas. Some of this gas goes to
AKG-1 while the remainder is shared between
RasGas Trains 3, 4 and 5.
The use of multi-phase pipelines is significant.
For the first two LNG trains the project design
included offshore dehydration of the gas. For
subsequent LNG trains and for AKG-1, the
dehydration modules are onshore. When the
gas arrives at the RasGas facilities it enters
the common slugcatcher, which separates the
liquids from the rich sour gas. The latter then
travels to the LNG trains and the AKG-1 Gas
Processing Unit (GPU). The GPU carries out
several functions including acid gas removal,
regeneration gas treating, dehydration,
Opposite. AKG-1 processing facilities.
Left. Transportation of the 60 metre
Demethanizer column. Above. Common
LPG storage and loading facility
“AKG is unique in that all of
the natural gas production
is being consumed within
the country. This project is
intended to provide sufficient
volumes of natural gas to
meet the country’s domestic
need for clean-burning
energy well into the next
decade. It will provide the
fuel to support the growing
infrastructure of projects
that will provide for Qatar’s
industrial development for
years to come”
Mark Albers, President of ExxonMobil
Development Company
mercaptan removal, NGL recovery, dewpoint
control and mercury removal.
A 70,000 barrel/day fractionation plant
removes propane, butane and plant condensate
(pentane-plus) components from the gas stream
to leave lean sweet sales gas which is then
supplied to customers. At present the sales gas
contains ethane, but there are plans to install an
ethane recovery unit to start extracting it by the
end of 2008.
RasGas started up AKG-1 on 2 November
2005 and sold its first gas just five days later.
The scope of AKG-1 included development of
the first phase of common LPG storage and
loading facilities. In May 2006 RasGas sold the
first cargo of LPG, opening up a new source of
revenue for Qatar.
The project will also bring Qatar a number of
environmental benefits, primarily by replacing
some of the oil currently used in various
applications, including electricity generation.
Care has also been taken to minimise the
environmental impact of the project itself.
The major waste streams from processing AKG
gas (acid gas and produced water) are both
re-injected into subsurface reservoirs.
This inauguration added yet another
component to the enormous gas industry
that Qatar is building at Ras Laffan. A tour of
the site revealed that significant progress is
being made on the large LNG trains that will
increase Qatar’s LNG export capacity to 77 Mta
by 2010, representing a third of the world’s
LNG supply.
RasGas MAGAZINE
21
Taqteer
People
power
Over the last 10 years, Qatar has
focused on one goal: to become
a major economic, social and cultural
player on the world stage through
sustainable development. As
a result of sound economic foresight,
planning and implementation, Qatar
is achieving its goals and continues to
raise the standards of expectations for
its growth and development
22 RasGas MAGAZINE
“Comprehensive development
is our main goal in achieving
advancement and prosperity
for our people”
HH Sheikh Hamad Bin Khalifa Al Thani
At the outset of Qatar’s programme of reform was
a commitment from the Emir, Sheikh Hamad Bin Khalifa Al
Thani, and his government that any change must embrace
all areas – social, economic, political and education –
leading to the development of Qataris and enabling them
to make a genuine and effective contribution to the
country’s progress.
Underlying the country’s continuing success is the
ability of its people to become key players in the
national workforce through proper education. Employee
development is now a primary national objective. Under the
direction of His Excellency Abdullah Bin Hamad Al Attiyah,
Second Deputy Premier, Minister of Energy and Industry,
in his role as Chairman of Qatar Petroleum, the first
comprehensive Strategic Qatarization Plan was developed.
Qatarization is not just about employing Qataris; it is a
structured system of recruitment, training, coaching and
career development to source, attract and retain quality
Qataris. It is a vital component of the state’s strategic
development plan, enabling competent Qatari men and
women to hold key permanent positions in support of
the state’s business requirements. At a recent Strategic
Qatarization Plan review, HE Abdullah Bin Hamad Al Attiyah
Taqteer
linked the development of Qatar with the development of
quality, competent Qataris for permanent, responsible and
accountable positions in the energy industry.
The success factors of Qatarization are its emphasis
on quality and gender equality. The continual focus
is on competency: a critical measure of which is the
accountabililty of each and every Qatari to perform
assigned duties and show results. This is only achievable
through a performance-based training and development
programme. It also requires support and commitment from
all levels of management and staff within the organisation.
Developing the roles women play in Qatar’s economic
development is an important part of the Emir’s plan for
progress. Qatarization recognises the important role of
women in the economy and encourages equality in job
opportunities, compensation and training.
Taqteer (Qatarization) for RasGas is an important
strategic objective with a commitment to implement
a quality-driven Qatarization programme. RasGas’
commitment to developing Qatari nationals is part of its
overall conviction that people are RasGas’ greatest strength
and key to its future development and success.
“Taqteer is an important
strategic objective. RasGas
has implemented many
initiatives and development
to enable our nationals to
grow into future leaders in
diversified fields”
Mohammed Al Sada, RasGas Managing Director
RasGas' Taqteer continues to evolve to meet the growing
needs of the company and its national workforce. It is
carefully implemented and evaluated under the direct
supervision of the Qatarization Development Committee,
chaired by Dr Mohammed Al Sada, RasGas Managing
Director, and consisting of the RasGas Executive
Leadership Team. In 2006, RasGas implemented several
key initiatives to enhance its Taqteer programme. A key
focus was establishing the National Development Team
directed by Erhama Al Kaabi, Employee Development and
Welfare Manager, to act as a separate body to monitor the
company’s performance in meeting its Qatarization targets
and to develop specific initiatives to enable RasGas to
achieve quality Qatarization.
A second initiative has been the establishment of the
University Advisory Committee (UAC), chaired by Nafez
Bseiso, Sub Surface Technical Group Manager. Through
the UAC, RasGas interacts with education providers and
research institutions to establish a mutually beneficial
relationship. A primary objective of the UAC is to create
awareness in the local and international student
community about career opportunities at RasGas, either
on a permanent basis or as interns during their studies.
As a result of the UAC efforts, the summer of 2006 saw
the successful roll-out of a formal summer internship
programme offered to over 40 students.
A third programme, the National Development
Programme (NDP), is a competency-based, on-the-job
development programme that has enabled Qatari nationals
to operate in key roles across the organisation. This
programme involves structured learning and support to
enable employees to build knowledge, skills and experience
to build competence in a key role within a specific discipline.
Employees on the National Development Programme are
developed through real work roles with clearly defined
responsibilities and accountabilities.
“The Operations Group takes
great pride in playing a large
role in the development of
national employees”
Hamad Al Muhannadi, Operations Manager
In order to give nationals exposure to international
operations, RasGas has established a learning attachment
programme with each of its major projects. There are
currently three under way in Houston and Tokyo, with
up to 30 young nationals taking part.
Another significant Qatarization initiative is the RasGas
Scholarship Programme introduced in 2004. RasGas
provides opportunities for scholarship to gifted high
school graduates and undergraduate students. RasGas
currently has 24 scholarship students studying both
locally and overseas with the first batch of students due
to graduate in 2008. In order to maintain the relationship
between RasGas and these students the First Annual
Scholarship and Sponsorship Forum was held in January
2007. This forum provided the students and their
families with a chance to meet the RasGas executive
management team and also to discuss their career
development at RasGas in general.
The RasGas Taqteer programme will build a legacy
of human assets that will add value to Qatar for many
decades to come.
RasGas MAGAZINE 23
Shipping
A wave of newly built ships is about to transform
the existing LNG carrier fleet
New dawn for shipping
LNG shipping is on the cusp of a new era, with
the ships which represented technological
breakthroughs when they were ordered a few
years ago about to enter service. Advances in
containment system design and propulsion mean
that an industry once regarded as one of the
most conservative branches of the maritime
world is now reinventing itself as one of the
most innovative.
At the time of going to press, the 153,500m3
Provalys was being readied for gas and sea
trials before its delivery to Gaz de France by the
Chantiers de l’Atlantique shipyard. And in Korea,
Samsung Heavy Industries (SHI) is proceeding
with the fitting out of the first ever LNG ship
over 200,000m3 in size, ready for scheduled
completion and handover to the OSG Group in
August 2007.
Provalys is set to be the first large LNG carrier
not powered by a steam turbine to enter service.
The vessel is also the first LNG ship fitted with
GTT’s new CS1 membrane, a cargo containment
system which is an amalgamation of GTT’s two
24 RasGas MAGAZINE
established membrane systems.
The SHI newbuilding for OSG will not only be
the first LNG ship over 200,000m3 to go into
service, but also the first to be powered by a
pair of conventional low-speed diesel engines.
Because the ship is unable to burn cargo boiloff as a propulsion fuel, as with traditional
steam turbine power systems, a high-capacity
reliquefaction plant has been incorporated to
process gas vapour and return it to the tanks
as valuable liquid cargo.
LNG supply chain grows
In addition to containment and propulsion
system breakthroughs and new ship sizes, the
first commercial ship-to-ship transfer of LNG
has recently been carried out. By proving the
efficacy of this operation, the LNG shipping
industry has opened up a further option for LNG
regasification vessels (LNGRVs) and increased
the flexibility of the LNG supply chain.
The LNG supply chain will extend even further
in 2007 with the commissioning of a 7,500m3
Shipping
Opposite: LNG
regasification vessels are
adding greater flexibility to
the LNG supply chain
multipurpose gas carrier designed for LNG
distribution duties along the Norwegian coast.
Finally, following delivery of the first LNGRVs
in January 2005, the ability to deliver LNG
at offshore locations will be enhanced with
a number of groundbreaking projects for the
industry. Furthest advanced are a floating
storage and regasification unit (FSRU) scheme,
involving the conversion of an existing spherical
tank LNG carrier, and the construction of the
first gravity-based LNG terminal. Both projects
are for operation off the coast of Italy.
Economy-of-scale benefits
Since the order for the first Q-flex size LNGCs
of 216,000m3 for OSG in September 2004,
progress has been swift. Today, there are
27 Q-flex ships on order and nine of the
larger 265,000m3 Q-max size. All the ships
will be equipped with twin low-speed diesel
engine propulsion systems and on-board
reliquefaction plants.
Developments in Qatar prompted the Q-flex
and Q-max orders and are helping the LNG
shipping industry to broaden its technological
capabilities. All 36 of these ships are being built
to realise the economy-of-scale benefits that
will arise in shipping large volumes of LNG from
Qatar to markets primarily in Europe and the US.
The Q-flex ships will be able to carry 40 per cent
more cargo, and the Q-max ships 70 per cent
more, than the next biggest LNG carriers afloat.
New import terminals able to receive such
The Q-flex ships will be able to carry 40 per cent
more cargo, and the Q-max ships 70 per cent
more, than the next biggest LNG carriers afloat
large ships are being built in the US, the UK
and Italy, while two of the major Japanese gas
utilities that import LNG are investigating the
possibility of upgrading their existing terminals
to enable the berthing of the new generation of
large ships carrying Qatari exports.
The world’s leading LNG exporter
Qatar only began exporting LNG 10 years ago
and by the end of this year it will have the
capacity to ship approximately 26 million tonnes
per annum (Mta) to customers worldwide.
Actual export volumes for 2006 are expected
to be in the 24.5–25 Mta range. This will make
Qatar the world’s leading LNG exporter, pushing
it ahead of Indonesia and Malaysia.
However, this is only the start for this Gulf
gas powerhouse. Six large LNG production
trains, each with a capacity of 7.8 Mta, are
currently being built at Ras Laffan. Each will
stretch out over the Qatari desert for a distance
of 1 kilometre. The 36 Q-flex and Q-max LNG
carriers currently under construction, plus 20
more such vessels still to be ordered, will be used
to carry the LNG produced by these six ‘Super
Trains’. By the end of 2010 Qatar will have
a total LNG production capability of 77 Mta,
making the Middle East state the world’s largest
LNG exporter by a wide margin.
The designers of the Q-flex and Q-max ships
opted for a twin low-speed diesel engine/
twin-screw arrangement. This was seen as
the optimum way to overcome the technical
challenges posed by the use of a single propeller
for such a large LNG carrier. Powering twin
screws with a traditional LNG carrier steam
turbine system would have required very large
steam-raising plants and a multi-input gearbox,
which helped to swing the decision in favour of
diesel engines.
Enhanced environmental performance
In addition to the Q-flex and Q-max LNG
carriers, with their low-speed diesels, a further
35 conventional-size ships on order will be
propelled by dual-fuel dieselelectric (DFDE)
systems. It means that 50 per cent of the
142 deep-sea LNG carriers currently on order
will have propulsion systems other than
steam turbines.
Besides the space-saving and redundancy
advantages of DFDE propulsion systems,
shipowners are also choosing such systems
because of their greater thermal efficiency, i.e.
approximately 45 per cent as opposed to 30 per
cent for a steam turbine. DFDE propulsion also
offers a reduction in fuel consumption of 3040 tonnes per day compared to steam turbines,
but the resultant lower fuel costs need to be
offset against a higher initial cost for the DFDE
propulsion system. DFDE also offers enhanced
environmental performance through reduced
carbon dioxide emissions and very low nitrogen
oxide emissions.
DFDE and slow-speed diesel propulsion
systems require a new piece of dedicated
equipment not previously used on LNG
carriers: large gas combustion units. These
must be capable of dealing with not only
the large volumes of boil-off gas that would
need to be handled in an emergency, such
as a reliquefaction plant or dual-fuel engine
shutdown, but also those small-volume waste
gas streams emanating from the reliquefaction
plant during the course of routine operations.
Apart from the GCU’s cargo boil-off related
duties, it will also be called upon to dispose of
the gas coming from cargo tanks being warmed
up or inerted prior to inspection.
This feature first appeared in the Autumn 2006
issue of LNG World Shipping.
All statements and expressions in this report
are the opinions solely of the author and do not
necessarily represent the opinions of RasGas
Company Limited.
Left: LNG production train
developments at Ras
Laffan are driving many
of the changes in LNG
shipping
RasGas MAGAZINE 25
Gastech
World-leading oil, gas and petrochemical companies
from 59 countries gathered in Abu Dhabi recently for the
international Gastech conference and exhibition, one of the
key events in the industry calendar. The conference also
hosted the 2006 ‘Oil Oscars’, where RasGas was a winner
Tomorrow's energy
‘Where the technical and commercial gas worlds meet’
is how Gastech 2006 was billed and it lived up to its
promise. The 22nd international conference for the LNG,
LPG and natural gas industries was the largest to date,
attracting more than 300 exhibitors and 2,000 top-level
executives and energy professionals. The conference
was inaugurated by HE Mohammed Bin Dha’en Al Hamili,
UAE Minister of Energy, in the presence of His Excellency
26 RasGas MAGAZINE
Abdullah Bin Hamad Al Attiyah, Second Deputy Prime
Minister and Minister of Energy and Industry, Qatar. Among
the participants were ExxonMobil Corporation, Chiyoda,
Chevron and Shell. HE Yousef Omair Bin Yousef, Secretary
General of the Supreme Council for the UAE and ADNOC
Chief Executive Officer, formally inaugurated the four-day
exhibition, which took place at Abu Dhabi National Exhibition
Centre in December.
As a leading energy company and key player in the
LNG sector, RasGas was one of the Gastech exhibitors. The
Qatar stand, a joint venture between four Qatari companies,
was divided into booths representing Qatar Petroleum (QP),
RasGas, Ras Laffan Industrial City (RLIC) and Qatargas, and
featured an innovative design incorporating the concept
of the Asian Games 2006. At the opening of the stand,
the Secretary General, Mr Ahmed Ali Al Sayegh (CEO of
Dolphin Energy) and Mr Saif Bin Ahmed Al Ghafli (Managing
Director of Adgas) were each presented with a special gift
by Khalifa Al Suwaidi, QP Public Relations Manager.
The RasGas presence over the four days was led by Dr
Mohammed Al Sada, RasGas Managing Director, who also
chaired one of the conference sessions. The programme
addressed recent developments in world energy, oil, steel
and construction markets and examined their implications
for the gas trade. The conference also provided an
opportunity for senior industry decision-makers and
technical experts to meet, exchange views, discover new
ideas and discuss issues affecting the future of LNG, LPG
and natural gas. Delegates were able to take advantage of
several new features at this year’s Gastech, including an IT
zone, GasTV Live, meeting facilities, poster sessions and
a student programme.
Gastech
For the first time in 2006, Gastech also hosted the
prestigious Excellence in Energy Awards. Organised by
Pipeline Magazine, the awards are better known as the
‘Oil Oscars’. RasGas was recognised with a special Gastech
'Gas Company of the Year' award for its enviable record of
technological innovation in LNG. In the presence of senior
executives from leading gas companies across the globe,
Dr Al Sada accepted the award, describing it as “a great
honour and a privilege.” He continued: “From a standing
start RasGas has taken just 13 years to emerge as a leading
player in the global natural gas industry. Since its inception
in 1993, RasGas has developed world-class facilities for
the extraction, storage, processing and export of LNG,
and has entered into long-term agreements to supply
customers around the globe, including Korea, India, Italy,
Spain and the United States.”
In yet another of this year’s Oil Oscars, His Excellency
Abdullah Bin Hamad Al Attiyah was lauded as Industry
Innovator of the Year for the leading role he has played in
the success of Qatar’s natural gas development – not just
LNG but also production of gas for consumption within
Qatar and gas-to-liquids (GTL) projects. HE Al Attiyah,
Chairman of national oil and gas company Qatar Petroleum.
The award was accepted on behalf of the minister by Dr
Ibrahim B Ibrahim, Economic Adviser to the Emir and Vice
Chairman of RasGas.
Dr Al Sada stressed the importance of the “excellent
guidance and vision” of His Highness the Emir, Sheikh
Hamad Bin Khalifa Al Thani, in Qatar’s astonishingly
successful programme of LNG development. “The journey
has been challenging, exciting and rewarding,” he added,
“and I am happy to share with you the unique success
Above: The Qatar stand was
a joint venture representing
QP, RasGas, RLIC and Qatargas.
Left: Dr Mohammed Al Sada
receiving the Gastech 'Gas
Company of the Year' award
of RasGas in the LNG business. I am proud to say that
expansion has not deterred RasGas and its partners from
its commitment to safety, and the protection, preservation
and conservation of the environment.”
The next Gastech will be held in Bangkok, Thailand, in
March 2008.
RasGas MAGAZINE 27