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LiqueFieD NATurAL GAS


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The benefits of a

clean energy source2

The LNG market

4

Liquefaction

8

Shipping

14

Regasification

16

Trading and

marketing20

Total, innovating

in LNG technology22

Totals LNG

activities worldwide24


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1

Ov th last two dcads, lfd natal gas has gown n mpotancto bcom a vtal lmnt n th global natal gas balanc.

Consmpton of LNG s gowng vy stongly by abot 7% p ya

and dspt th conomc downtn that bgan n 2008, ts sha of th gas makt

s sng stadly as wll. LNG mt aond 7% of wold gas dmand n 2008 and

ths fg s pojctd to s to naly 11% n 2015.

Th tadtonal LNG makts (Nothast Asa, eop and Noth Amca) as wll

as mgng makts (inda, Chna and Soth Amca) claly appcat

th advantags of an ngy soc that s at onc ngy-ffcnt, clan, andas asy to tanspot as ld hydocabons.

in ths contxt of stong gowth, Total, whch was among th LNG ndsty

pons, s backd by vy sold postons n th pstam and downstam

sgmnts of th gas chan.

O objctv s to ncas o LNG podcton by dvlopng nw pojcts.

in ths spct, 2009 has bn a watshd ya fo Total: th stat-p of two

majo lfacton pojcts qatagas 2 and Ymn LNG wll n th shot tm

allow th Gop to boost ts LNG podcton by 50%. Oth pojcts nd

way o nd stdy n Nga, Angola, Astala, rssa and ian wll pmt

th pst of podcton gowth thogh th dcad 2010-2020.

O ablty to gaant sals fo o lfacton pojcts s a dcsv advantag

n mtng ths objctvs, whch s why w hav bn stngthnng

o downstam LNG psnc. Total has acd ntsts n fo cvng

tmnals n inda, Mxco, Fanc and th untd Kngdom and has svd

lag-scal gasfcaton capacty n a tmnal n th untd Stats.

W a now stdyng fth mpot tmnal pojcts, ncldng on n Coata

ntndd to spply Sothn eop.

By consoldatng o potfolo of cstoms n ths gowng makts and

scng physcal accss to makts as wll, w a n a poston to pchas

LNG oslvs, thby facltatng th lanch of nw pstam pojcts.

Jean-Marc Hosanski

Senior Vice President, LNG

Total Gas & Power


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Gas-fd pow plants not only hlp to mt stadly xpandngdmand fo lctcty, wth savngs n constcton tm and captalcosts, bt wth cognaton and combnd-cycl tchnologs,thy also hav lmtd nvonmntal mpact bcas thy a xtmlyngy ffcnt. Ths mans that mo sabl ngy s podcdfom lss natal socs. Lvagng natal gas socs sthfo a ctcal challng.

THE BENEFITS OF A CLEAN ENERGY SOURCEGlobal dmand fo natal gas s gowng fast than dmand footh fossl fls, lagly bcas of ts nvonmntal advantags.Combston of natal gas dos not podc havy nbndcomponds and also gnats lss gnhos gas mssons,thanks to ts hgh hydogn contnt.

2


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Maintaining integrity

evythng abot an LNG pojct choc of sts fo th

lfacton plant, loadng faclts and gasfcaton

tmnal; szng of pmnt; slcton of tchnologs to

b sd s caflly stdd so as to ns optmm asst

ntgty. Mtoologcal xtms and ssmc sks a

also dly takn nto accont. Optmm safty dstancs

a calclatd fo ach plant st, povson s mad fo

pmannt montong, and mgncy pmnt, sch as

tnton tanks and f-fghtng systms to cb th

consncs of a potntal lak, a always ncldd.

Total s pa tc patng n a nmb of advancd sach

pojcts to mo accatly assss sks and thby

mpov faclts dsgn, opatng pocds and,

wh ncssay, vacaton condtons. Th Gop also

contbts to th ndstys ntnatonal ntatvs to

nhanc LNG shppng and stoag safty thogh ts

patcpaton n th Socty of intnatonal Gas Tank

and Tmnal Opatos (SiGTTO), whch ovss

complanc wth stngnt constcton and opatng

standads fo LNG cas and tmnals.

Patrice Lecomte

Senior Vice President,

Health , Safety,

Environment & Sustainable

Development,

Total Gas & Power

The applicationof the highest safety

standards in the design and

construction of the facilities,

constantly improved risk

management and the

promotion of a strong safety

culture in our operations are

basic rules and imperat ives.

Total implements

internationally recognized

safety management systems

that demand constant

vigilance and a commitment

to progress.

Safety throughout the LNG chain

Podcton, handlng, tanspotaton and stoag of LNG and ths s tof all nflammabl sbstancs nvolv navodabl sks. So all possbl cas takn dng pojct dsgn and daly opatons to mantan th hghst

possbl safty standads.

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THE LNG MARKETLNG tad has gown at a makabl pac.

Tadd volms hav ncasd at an avag at of aond 7% a yafom 2000 to 2008 and xcdd 230 bllon cbc mts n 2008.

LNG, helping to interconnect gas markets

Th wol d gas makt s st l l bas ca ll y gonal and

chaactzd by long-tm contacts and dffnt pcng

fomlas n ach zon, bt ths gonal spaaton s now

waknng.

Ths s bcas cagos of LNG, nlk p pln gas, can

b asly dvtd to a nw dstnaton, wth th stong

ncas n logstc capacty n th past fw yas (LNG

cas and gas tmnals) now fth nhancng

flxblty. Thfo t s possbl to abtat btwn

dffnt mpot makts and sll at th bst pc.

Th LNG sgmnt ths plays a balanc ng ol btwn

wold gas makts. So fa, ths abtag phnomnon

nvolvs only lmtd volms of gas bt ts mpotanc

wll gow as th sha of LNG n wold gas consmpton

ncass. Ths wll slt n a mch stong colaton

btwn makts that w pvosly ndpndnt.

indd, ths can alady b obsvd btwn th untd

Stats (Hny Hb) and th untd Kngdom (NBP).

4


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In Asia

LNG satsfs naly all gas dmand n Japan, Soth Koa

and Tawan, whch togth accont fo aond two-thds ofth wold makt.

Nothast Asa s a mat makt, long domnatd by

natonal and gonal mpot monopols bt now

xpncng swpng changs fom ncasd comptton

btwn gonal plays. As monopoly postons a bng

challngd mo and mo, a nd has asn fo mo

flxbl and dvs spply mchansms, wth mo mphass

on shot- and mdm-tm contacts n patcla.

Th Chns and indan makts off xtaodnay gowth

potntal fo th LNG ndsty n Asa.

in Chna, dmand fo gas s gowng fast and nth th

contys dynamc domstc podcton no ts pplnmpot contacts can mt cnt nds. in ths favoabl

contxt, LNG mpots a xpctd to ncas by an

stmatd 15% a ya. Chna s now scng ts mpo ts

va a gowng nmb of long-tm LNG pchas

contacts and s bldng th ncssay cvng

faclts.

in inda, th stady gowth of ngy dmand and

nsffcncy of domstc gas socs, at last n th

shot tm, a spng ntst n LNG, patclaly fo

pow gnaton.

At psnt, LNG acconts fo 10% of gas dmand (and

22% of mpots). Bt ths pcntag s ncasng

stadly and LNG consmpton s pojctd to ncas

vy sgnf cantly n th comng yas, sng fom

57 bllon cbc m ts n 2008 to 130 bll on n 2015.

Makt l bal zaton s modl ng th l andscap.

Nw cstoms a mgng, nmos cvng

tmnals a bng blt, and vn thogh long-tm

contacts a st l l th l, th s stong gow th n

shot-tm and spot tads.

In Europe

New opportunities an new markets

Th latv mpotanc and th ol playd by LNG dff sgnfcantlyn th th man makts: Asa, eop and Noth Amca.Nvthlss, LNGs gowth potntal n ach gon s hgh, fo a vaty

of asons. At th sam tm, nw makts a mgng.

Masaki Yamaa

LNG Marketing Manager,

LNG Div ision, Total Gas & Power

In the early 2000s, the first signs of de regulation

in Japans energy sector, strong growth in Asian LNG

markets and stif fer competit ion among LNG producers

led Total to strengthen i ts LNG marketing presence

in Japan. An LNG off ice was set up in Tokyo to capita lizeon the proximity of the LNG players in Northeast Asia

(Japan, South Korea and Taiwan), which is still the

biggest import market in the world, and to leverage

new growth opportunities in the reg ion.

The specific mission of the Tokyo office is to analyze

market trends, identi fy new opportunit ies for shor t,

medium and long-term supply contracts, and make

appropr iate market ing recommendations to other

Total units, working closely with the LNG team in Paris.

Our local presence also means that Total can respond

faster to new trading opportunities, in cooperation

with Total Gas & Power Ltd.

5

Japan, a thirst for LNGJapan has bn th wolds lagst mpot of LNG

fo naly 40 yas.

in 2008, th conty accontd fo 40% of th global

makt, mpotng 69 mllon mtc tons, p 3% fom

2007. Wth 2/3 of mpots sd fo pow gnaton

and 1/3 fd nto th gd fo ndstal, commcal

and hoshold s, LNG cntly mts a lttl mo

than 13% of Japans pmay ngy nds. Gvn thscontys ngy scty and nvonmntal concns,

Japans LNG mpots a bond to ncas vn

fth n th comng dcads. To handl th gowng

mpot volms, Japan a l ady boasts 27 LNG

cvng tmnals (a cod that s lkly to stand fo

som tm) and addtonal facl ts a now nd

constcton.


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6

The Unite States: regulator

of global LNG flows?

Wth th stat-p of nmos nw LNG pojcts lanchd

n th md-2000s n qata, Ymn, rssa, indonsa,

avalabl volms of LNG wll ncas spctaclaly

n 2010-2012/13. in som makts, ths wll tmpoaly

lad to a spply spls. Gvn th flxblty and th

consdabl sz of th uS gas makt (th tms lag

than th wold LNG makt), th untd Stats wll no

dobt play a ky ol n absobng a sgnfcant pat of

ths LNG volms. Ths addtonal nflow of LNG wll

sv, among oth thngs, to dv ncmntal makt

gowth. it can also b xpctd to pompt nw comptton

btwn gas and coal as fl fo pow gnaton, as

wll as a confgaton of domstc gas podcton

(shtdowns of th last poftabl gas flds).

Convsly, f dmand fo LNG w to s (and pcs

wth t), th spply-sd flxblty njoyd by th untd

Stats wold nabl ths conty to f p antts of

LNG fo oth makts to by.

untl cntly, LNG playd only a magnal ol n Noth

Amcas ovall nata l gas consmpton, wth annal

mpots flctatng btwn 10 and 25 bllon cbc

mts, dpndng on dmand and th pc of local

ppln gas. Howv, th staton s volvng apdly. in

th last fw yas spply has dvsfd (npt of non-

convntonal gas) and majo gasfcaton capacty has

bn addd. Factong n th stady gowth n gas dmand

n ths zon, as wll as th mpotant ol bng playd by

non-convntonal gas (at tactv at vayng pcs) n u.S.

domstc gas podcton, dmand fo LNG s xpctd

to ach 40 to 70 bllon cbc mts by 2015.

In North America (Canaa, Unite States, Meico)

40%A BOOMING ENERGY SEGMENTToday, LNG accounts for more than a quarter of theinternational gas trade, a figure that is forecast to riseto by 2015. Volumes are

projected to grow by

around 7% a year.


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26,218BCF (Billion cubic feet)

Totals proved reserves

of gas at the end of 2008

7

TOTAL ANd LNG: A SUCCESS STORY OF NEARLY 50 YEARS

The LNG industry was born at Skikda in Algeria during the 1960s with a project

intended to supply the UK and French markets. Involvement in this world first gave

the Group an early lead in LNG expertise. A few years later, Total was also a player

in the LNG boom in Asia and the Middle East triggered by Japans decision to give

preference to LNG. The Group was thus involved in construction of the Bontang

plant in Indonesia and the Adgas project in Abu Dhabi. Both plants started up in

1977 and were decisive steps in the Groups gas strategy. Total subsequently

participated in major projects in Qatar, Nigeria, Oman, Norway and Yemen and

gradually broadened its port folio of activities to become a leading LNG player.

in th Sothn Con (Agntna, Bazl, Chl), gas mpots

a stll vy modst and manly sd to mt swng

dmand dng th cold months. Bt th Sothn Con

s skng to sc and dvsfy ts gas spply and cold

ncas gas mpots n th comng yas. On patclaty

h s th gons stong ntst n offsho gasfcaton

faclts, whch nvolv both shot constcton lad

tms and lss havy captal nvstmnt.

South America: an emerging market

5.4%Totals share of the world LNG market in 2008. The

Group marketed 9.15 million metric tons of LNG, making

it one of the top three international companies in this

market.


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LIQUEFACTIONCololss, odolss and non-toxc LNG manly consstsof mthan (mo than 75%) along wth than, popan,btan and ntogn (lss than 1%).

Gas is transporte from the fiel by ppln thn

pocssd to mov ld condnsats, acd (CO2,

H2S and oth slf componds) and wat. in addton,

ts mcy contnt, whch can cood th alloys sd

n pmnt fo sbsnt stags of th pocss, s

also movd.

The LNG has to meet st ngnt commc a l

spcfcatons that can vay dpndng on th dstnaton

makt. Ths spcfcatons ncld hatng val

and Wobb ndx, whch chaactzs th combston

popts of th gas.

Heay hyrocarbons (condnsats) and any lfd

ptolm gas (popan and btan) a solatd va

pcoolng and factonatng n a ss of dstllaton

pocsss. Th gas thn ndgos hat xchangs n a

ss of fgaton cycls, bcomng ld at aond

-160C. Thn t s stod at atmosphc pss ntlt s loadd on an LNG ca.

Liquefaction plants comps dffnt sctons fo th

sccssv opatons, whch ncld gas pfcaton,

lfacton and stoag as wll as pot nfastct.

Th pmnt sd s vy lag, ng spc f c

mat a l . Appoxmatly 10% of th natal gas

avng at a lfacton plant s consmd fo ts ownopatons.

8


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Abs orb er & R ege ner atoreed Gas

K.O.D.

PropaneRefrigeration

MCRRefrigeration

DeethanizerDepropanizerDebutanizer

FractionationC5+

LPG

LNG

H2O & Hg Removal

CO2

S cr ub Co lu mm Ma in Hea t E xc han ge r Bo il of f

H2S & CO2Removal Dehydration Cooling Liquefaction Storage

H2S

LN G

LP G

LNG takes up 600 times

less space than natural

gas in its gaseous

state but contains

the same amount of

energy. So LNG can

be transported at

atmospheric pressure

at a temperature of

-160C aboard purpose-

built ships to terminals

where it is regasifiedand fed into the natural

gas transmission grid.

9

Christophe Thomas

Head of the LNG department ,

Strategy, Business development, Engineering

and R&D d ivision,

Total Exploration & Production

Total enjoys an international reputation for its LNGprofic iency, acquired dur ing many years of act ive

technical participation in a large number of LNG projects

involving a variety of technologies, in many dif ferent

countries. For more than 40 years now we have been

involved in all the main technological advances, that have

taken the industry from the first small ADGAS and

Bontang liquefaction trains to the large-capacity trains

now operational in Qatar.

Alternative liquefaction processes are now challenging

the near-absolute domination of the C3-MR process

originally developed by Air Products & Chemicals Inc.

(APCI). An outstanding characteristic of Total is

our involvement in projects using the five or six main

processes currently available on the market. We are

determined to maintain complete freedom of choice,

which doesnt prevent us from working on improvements

to enhance process ef ficiency.

Given the capital-intensive nature of the LNG projects,

we have to be more rigorous than ever in the preliminary

phases preceding the investment decision. Nevertheless,

forecast future demand for LNG naturally encourages

Total to consider liquefaction projects in increasingly

difficult locations such as the Barents Sea that require

us to devise innovative technological solutions such

as modular plant construction and transfer systems

that can be used in the open sea.

Units making up a liquefaction plant


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10

Totals net LNG prouction in 2008 ae up to more than9 million metric tons. Wth th stat-p of two majo Mddl eastlfacton pojcts, qatagas 2 and Ymn LNG, th GopsLNG podcton wll ncas by 50% n th shot tm. Ths wll lft thGop nto a hgh lag, stngthnng o poston as a ladngplay n th LNG ndsty and a majo podc n th Mddl east.

As a p on of qa ta s ga s nd st y, Total was th

dv bhnd qatagas (l at to bcom qatagas 1) n

1984. Wth ts th tans and an ovall capacty of

9.9 mllon mtc tons p ya aft dbottlnckng,

qatagas s contnng to xpand v a th qatagas 2, 3

and 4 pojcts nvolvng dffnt ntnatonal patns.

Th am has bn to man th wolds lagst spp l

of LNG.

qatagas 2, th wolds f st ntgatd pstam/

downstam pojct, was nagatd on 6 Apl 2009.Th pojct nvolvs th nmannd of fsho plat foms,

two lfacton tans ach wth a capacty of 7.8 mllon

mtc tons p ya, 14 q-Flx (215,000 cbc mts) and

q-Max (265,000 cbc mts) LNG cas, and th Soth

Hook gasfcaton tmnal n th untd Kngdom.

Total s a 16.7% patn n th scond tan of qatagas 2,

alongsd th natonal company qata Ptolm (65%)

and exxonMobl (18.3%). Th Gop also has an 8.35%

shaholdng n th Soth Hook tmnal and has

contactd wth qatagas 2 to pchas 5.2 mllon mtc

tons of LNG p ya fo a pod of 25 yas. Ths LNG

wll play a sgnfcant ol n mtng Totals gas spplycommtmnts n th Atlantc Basn (Fanc, untd

Kngdom, Noth Amca).

Qatargas 2, the worls first integrate LNG project


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11

Ymn LNG s by fa th most ambt os pojc t

v ndtakn n ths conty and Total s playng

th ladng ol. Th Balhaf lfacton plant on

Ym ns soth coast has two t a ns wth a

combnd capacty of 6.7 mllon mtc tons p

ya. Th fdgas s podcd n th cntal

gon of Mab, 180 klomts ast of Sanaa,

and tanspotd to th coast va a 320-klomt

ppln. Aft naly fo yas of constcton

wok, Ymn LNG statd ts commssonngopatons n smm 2009.

As th lagst shahold n Ymn LNG

Company Ltd, Total (39.62%) s pojct lad,

playng an actv pat n ts dvlopmnt. Th

Gop povdd assstanc n al l ky aas

(tchncal, maktng, fnanc) and scondd

psonnl to occpy ky postons n th company,

ncldng that of Gnal Manag.

Tota l Gas & Pow has also sgnd a long-tm

sals and pchas agmnt wth YLNG to lft

2 mllon mtc tons of LNG p ya ov 20 yas.

Most of th gas wll b shppd to Atlantc Basnmakts.

Yemen LNG: a newcomeron the LNG scene

One of Totals top priorities in all projects is to

minimize the impact of its activities on the environment

and the local communities. The site location for the

Yemen LNG liquefaction plant was chosen after

studies carried out in consultation with stakeholders

(local communities, the authorities, international

experts). The plant and associated infrastructure

were designed for minimized impact on biodiversity

and marine currents. Total also helped to implement

a Coastal Zone Management Plan devised by the

World Bank to conserve the Gulf of Aden coastline.

At the same time, sustained efforts were made to

integrate all project activities into the local socio-

economic fabric. Starting in 2006, Yemen LNG

implemented a wide-ranging recruitment and training

program for local technical personnel. The company

has set up its own training center and trained some

200 technicians and operators (among others) who

will be working at the plant. Yemeni nationals already

account for nearly two thirds of all Yemen LNG

personnel and the company aims to raise this to

90% in time. The same attention is being paid to

gender diversity, and women already account for

more than 25% of the personnel at Yemen LNGs

head office in Sanaa.

AN ExEMPLARY PROJECT


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12

in Jly 2007, Total and Gazpom sgnd an agmnt

fo th fst phas of dvlopmnt of th gant Shtokman

gas and condnsats f ld n th Bants Sa. inFbay 2008, th Shtokman patns st p a nw

company, Shtokman Dvlopmnt AG (Total 25%), to

dsgn, constct, fnanc and opat ths fst phas

of dvlopmnt. engnng stds a cntly

nd way. Th fst phas of dvlopmnt tagts a

podcton of 23.7 bllon cbc mts of gas p ya,abot half of whch (7.5 mllon mtc tons p ya) s

to b xpotd n th fom of LNG.

Shtokman (Russia)3

A jo nt po jct of Sonangol (22.8%), Chvon (36.4%),

BP (13.6%), en (13.6%) and Total (13.6%), Angola LNG

wll pocss assocatd gas fom ol-podcng offsho

blocks (Total e&P Angola opats som of ths offsho

flds and holds a stak n oths) and fom gas flds

ddcatd to th pojct.

Th gas fom offsho f lds wl l b collctd and ppd

to a lfacton plant cntly nd constcton nZa povnc. Th plant wll podc p to 5.2 mllon

mtc tons of LNG p ya, along wth assocatd lds,

and podcton stat-p s plannd fo 2012.

Svn LNG cas chatd by th pojct wll tanspot

th LNG to th Glf LNG engy gasfcaton plant now

nd constcton na Pascagola n Msssspp (untd

Stats). Onc gasfd, th LNG wll b sold to th

pojct patns commcal sbsdas n th untd

Stats. Total Gas & Pow Noth Amca wll pchasand makt Totals sha of th gas.

Angola LNG (Angola)1

Total s a 24% pa tn n th ichthys of fsho gas fld,

locatd n th Bows Basn abot 200 klomts off th

nothwst coast of Astala. Total and ts patn inpx

(76%, opato) hav lanchd basc ngnng stds

fo th dvlopmnt of th ichthys fld and th constcton

of a lfacton plant na Dawn, 850 klomts to th

ast. Ths stds wll b th bass fo contacts to bld

th podcton, pocssng, tanspot and lfacton

nfastct. Th dvlopmnt schm wll ncld

sbsa wllhads connctd to a Cntal Pocssng

Faclty basd on a sm-sbmsbl platfom, a Floatng

Podcton Stoag and Offloadng nt (FPSO) fo th

condnsats and a gas ppln to th lfacton plant,

whch wll b blt na Dawn. Th plant wll ntally hav

2 tans wth a combnd capacty of abot 8.4 mllon

mtc tons p ya of LNG, bt povson wll b mad to

ncld 4 addtonal tans. Th Dawn plant wll also

podc 1.6 mllon tons p ya of LPG (btan and

popan) as wll as condnsats.

Th ichthys plant s xpctd to opat fo abot 40 yas

and wll mak a sgnfcant contbton to th local conomy,

mployng mo than 2,000 popl dng th constcton

phas and abot 300 popl onc th plant s opatonal.

Th ichthys pojct s xpctd to go nto podcton halfway

nto th dcad 2010-2020, and th LNG shold b

shppd to Asan makts, manly Japan.

Ichthys LNG (Australia)2

Top priority for Total is to increase its LNG prouctionand dvlop nw lfacton capacty. Sval nw pojcts and constcton o nd stdy.

3

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13

Total has a 15% ntst n th Nga LNG lfacton

plant on Bonny island. Th plant, whch alady nclds

sx tans, has a podcton capacty of 22 mllon mtc

tons p ya. Stds fo a pojct to add a 7 th tan

wth a capacty of 8.5 mllon mtc tons p ya a nd

way. Total Gas & Pow has sgnd a 20-ya pchas

agmnt wth Nga LNG to lft 1.375 mllon mtc

tons p ya of th LNG podcd by th ft tan 7.

Nigeria LNG train 7 (Nigeria)5

Total s a 17% pa tn al on gs d N g as na t on al

company NNPC, en and ConocoPhlps n th Bass

LNG pojct n th Ng Dlta (Nga). Th pojct

nvolvs two tans, ach wth a capacty of 5 mllon

mtc tons p ya, and wll xpot most of ts LNG

podcton to th eopan and Amcan makts.

Fdgas wll com fom th pstam gas opatons of

pojct patns, wth Total havng th ght to povd

half th gas. Th plant s xpctd to stat podcng n

th mddl of th dcad 2010-2020.

Dtals of gas spply fo th pojct a cntly bng

fnalzd. Th ngnng stds hav bn compltd

and ppaaton of th plant st s nd way. Total Gas

& Pow wll b among th bys of th LNG podcd.

Brass LNG (Nigeria)4

Total s lad patn fo th Pas LNG pojct n ian, wth

an ntst of 30%(1). Th oth patns a Ptonas and

th natonal ol company NiOC. Th pojct nvolvs th

constcton of a lfacton plant 60 klomts nothwstof Assalyh. Th plant, wth two tans podcng 5 mllon

mtc tons p ya ach, wll tak fdgas fom Block 11

of th offsho Soth Pas fld, whch wll b dvlopd

nd a by-back agmnt, wth Total also patcpatng

n th dvlopmnt. Half th LNG wll b xpotd to th

Asa-Pacf c Bas n and hal f wl l b shppd to eop.

Basc ngnng stds hav bn compltd anddscssons a nd way wth NiOC on th contactal

famwok.(1) Company stmats aft LNG bys ntd th pojct

Pars LNG (Iran)6


16/28

deicate technologies

Th nd to tanspot lag volms of lfd gas ov long

dstancs, at vy low tmpat and n condtons of th

tmost safty nvolvs majo tchncal constants. in patcla,

LNG cas th most ffcnt nslaton possbl,

both to pvnt th LNG fom wamng p and to potct th

adjacnt vssl stcts fom xcssv chllng.

As a slt, only abot a dozn shpyads woldwd a

abl to bld LNG cas. Ths vssls, costng btwn

$200 mllon and $250 mllon ach, a th most xpnsvcago shps n th wold.

Wold LNG shppng capacty s gowng fast, wth a

flt of 305 vssls n opaton and 76 nwblds on

od n Jn 2009. Th majo Soth Koan shpyads

domnat th bldng makt. Th s also a tnd

towads lag vssls; th standad sz has sn fom

125,000 cbc mts to 165,000 cbc mts, and a

nmb of vssls wth capac ts angng fom 215,000

cbc mts (q-Flx) to 265,000 cbc mts (q-Max)

hav bn blt fo th qata pojcts n whch Total sa stakhold.

14

Total has gand vy sold xpnc n ths ky lnk n th LNG chanthogh ts patcpaton n a lag nmb of pojcts. Saftymnts and th gowng mpotanc of contollng tanspotatonn a mo flxbl LNG makt hav ld th Gop to bcom modctly nvolvd n shppng.

SHIPPING

Moss Rosenberg LNG

carriers feature

self-supporting spherical

cargo containment

systems. These tanks are

made of thick aluminum

plates that are welded

and insulated. They are

attached to the ships

double hull using a steel

skirt at the spheres

equator, equipped

with a thermal brake made

from a special alloy.

MOSS ROSENBERGLNG CARRIERS


17/28

TOTAL ANd LNG CARRIERS

1973: Sgnat of th fst long-tm

chat agmnt fo a Total pojct

(ADGAS/LGSC)

1986: Fst spot chat agmnt,

fo a cago fom Bontang n indonsa

fo dlvy to Boston (wold dstanc

cod fo th LNG ca Pollenger)

1990: Fst acstons of vssls (Gastor

and Nestor) fo an el f pojct (Nga LNG)

2002: Sgnat of a fst long-tm agmnt

dctly by a Total sbsday (Total e&P

Nog fo Snhvt LNG)

2002: Fst shot-tm chats by th

London tadng tam (Hyundai Oceanpia,

Oman-Zbgg)

April 2006: Dlvy of thArct ic Lady,

a 147,000-cbc-mt LNG ca,

th fst vssl chatd by Total tslf to

tanspot th Gops podcton of LNG fom

Snhvt n Noway.

March 2009:Ymn LNG, wh Total s

th lad shahold, bgns long-tm chat

of fo 160,000-cbc-mt LNG cas.Total psonnl spvsd constcton.

Since 1995, through its stakes in variousLNG schemes Total has been involved in numerous

LNG transport operations and we have acquired

expertise in developing new projects. With Snhvit

we reached a new milestone, chartering our first vessel(Arctic Lady), which will form the basis of a fledgling

fleet that is expected to grow as new projects are

undertaken. A large team of experts was also set up

to supervise the construction of the four LNG

carriers on charter to Yemen LNG.

In addition, the increase in LNG trading has created

a need for short-term charters.

Totals Vetting Department is actively involved

in verify ing that our shipping operations comply with

the most stringent safety standards. Six Total experts

are in the fie ld on a daily basis, supervising fleets

and ship-owners to ensure that the vessels are

in prime condition and the crews fully trained.

Membrane LNG carriers use a technology developed by

Gaz Transport & Technigaz, in which Total has a 30% stake.The LNG is contained by a thin double metal barrier, or

membrane, that creates liquid-tight containment barriers

and maintains its mechanical properties at low temperature.

Loads are transferred to the double hull by the insulation,

which protects the structure from the cold. The tank shape

is designed to make optimal use of the available space on

the vessel.

MEMBRANE LNG CARRIERS

An increasingly strategic challenge

Wth th dvlopmnt of long LNG chans and

tanspotaton to v mo mot dstnatons,

shppng acconts fo an ncasng sha of LNG

ndsty captal xpndt and opatng costs. in

addt on, contol l ng tanspotaton cats val

bcas plays can dct shps to tak advantag

of g ona l p c d f f ncs th ogh a b t ag

tansactons, whch a gowng apdly.

Howv, th gowth of th LNG sgmnt dpnds on

compans mantanng an xcllnt shppng safty

cod and complyng wth vy stngnt standads

concnng shpbldng and cw alfcatons.

Jacques Besse

Vice President LNG Shipping,

Total Gas & Power

15


18/28

REGASIFICATIONTotal has gasfcaton capacty n all th man gas makts:Noth Amca, eop and Asa. Ths dct accss to a nmbof dffnt makts has allowd th Gop to consoldat tsdownstam potfolo. it s also a ky advantag fo th dvlopmnt

of nw lfacton pojcts.

16


19/28

LNG receiing terminals comps

offloadng nstallatons, cyognc

stoag tanks, pmps and LNG

gasfcaton nts.

The LNG is heate from -160C

to jst abov 0C at hgh pss

(btwn 60 and 100 bas), sally

sng sawat pcolaton hat

xchangs, a tchn that s

hghly ngy ffcnt. Th LNG

can also b hatd by bnng

som of th gas.

When the gas leaes the terminal,

ts hatng val s adjstd by

blndng wth oth stod gass

bfo t s gas f d and, f

ncssay, by addng ntogn,

btan o popan bfo th gas

s fd nto th dstbton gd.

Securing access to consumer markets

rgasfcaton logstcs a ctcal to scng accss

to nd makts.

Th stps takn by th Gop dmonstat Total s

commtmnt to stngthnng ts psnc n ths vtal

lnk of th LNG chan and a pat of an ovall pocssdsgnd to sc otlts fo th Gops podcton

fom th Mddl east, th Glf of Gna, nothn eop

and th Asa-Pacfc gon.

Ths s why Tota l, whch alady ss th B lbao and

Baclona tmnals n Span, has acd ntsts o

svd capacty n a nmb of tmnals n th wolds

man consm gons: indas Haza tmnal,

opatonal snc 2005; Mxcos Altama faclty, whch

cam on stam n lat Sptmb 2006; and n eop,

th Soth Hook tmnal (untd Kngdom), whch bcam

opatonal n 2009, and th Fos Cavao tmnal (Fanc),d to go nto svc n lat 2009. Total s also stdyng

a pojct fo a thd eopan facl ty, n Coata.

in th untd Stats, Total has sgnd p fo lag-scal

svd capacty at th Sabn Pass tmnal n

Losana, on th Glf of Mxco.

17


20/28

SABINE PASS (UNITED STATES)

Capacity subscribe

by Total: 10 bcm/year

Oerall capacity:

26 bcm/year (Phase 1)

then 40 bcm/year (Phase 2)

Start-up:September 2008 (Phase 1)

then 3r quarter 2009 (Phase 2)

As of April 2009, Total has 10 bil lion

cubic meters per year of regasification

capacity in the Sabine Pass terminal,

built and operated by a subsidiary

of Cheniere Energy Inc. The facility

can accommodate the biggest LNG

carriers currently operating (up to

265,000 cubic meters) and is equipped

with three 160,000-cubic-meter

storage tanks (Phase 1). Two more

similar storage tanks will be available

by the end of the 3 rd quarter 2009,

when Phase 2 is due to be completed.

In addition, Total has also reserved

equivalent capacity in a downstream

pipeline. This gasline will tie the terminal

into a number of natural gas trunklines,

thereby securing access to the main

gas markets in the northeast United

States. Total has also signed up for

0.06 bcm capacity in salt-cavity

storage facilities located at the endof the pipeline.

SOUTH HOOK(UNITED KINGDOM)

Totals equity interest: 8.35%

Capacity: 21 bcm/year

Start-up: 2009

The South Hook terminal in Milford

Haven (Wales) is the largest

regasification complex in Europe and

can accommodate todays biggest LNG

carriers (Q-Flex: 215,000 cubic meters,

and Q-Max: 265,000 cubic meters).

Total has an 8.35% interest in the

terminal, alongside Qatar Petroleum

(67.5%) and ExxonMobil (24.15%).

The terminal, with a total capacity

of 21 billion cubic meters per year,

is designed to regasify production

from Qatargas 2. It will receive

Totals share of production from the

second Qatargas 2 train, that the

Group plans to market in the United

Kingdom.

South Hook can fulfill up to 20% of

Britains overall gas needs, offering

the country (and indeed Europe as a

whole) a much more secure and

diversified supply of gas.

SOUTH HOOK SABINE PASS HAZIRA

18

BLENdING INTO THE LOCAL ENvIRONMENT

The South Hook terminal has five storage tanks each holding

155,000 cubic meters of LNG that is maintained at a temperature

of -160c thanks to double concrete walls. The tanks, 41 meters

high and 100 meters across, have been built in a small valley amid

cliffs so as to minimize their visual impact: a very successful idea

because they are hardly visible from the nearest village. At peak

construction, nearly 2,400 people were employed at the site, 40%

were recruited locally. Once the terminal is fully operational,

80 people, mostly recruited locally, will be employed at the site,

where about 160 LNG carriers are expected to come in per year,or one every two days.


21/28

ALTAMIRA(MEXICO)

Totals equity interest: 25%

Capacity: 6.7 bcm/year

Start-up: 2006

Located on the east coast of Mexico,

the Altamira regasification terminal

came on stream in fall 2006. With a

jet ty and two 150,000-cubic-meter

storage tanks, its initial capacity is

6.7 billion cubic meters per year.

The site configuration will allow

construction of the third storage

tank, which would double the

capacity of the terminal. The natural

gas from Altamira is sold to the

Mexican electricity utility, under a

long-term contract, to supply several

gas-fired thermal power plants.

FOS CAvAOU (FRANCE)

Totals equity interest: 29.8%

Capacity: 8.25 bcm/year

Start-up: late 2009 (e)

This terminal, in Frances Fos-sur-

Mer industrial zone on the Cavaou

peninsula, is being built by the Socit

du Terminal Mthanier de Fos Cavaou

(STMFC), a joint-venture subsidiary of

GDF Suez and Total. The facility will

have three 110,000-cubic-meter tanks,

and regasification will be carried out

by three seawater regasifiers (this

technology prevents CO2

emissions).

The new terminal will mainly handle

Totals Middle East production.

HAZIRA(INDIA)

Totals equity interest: 26%

Capacity: 5 bcm/year

Start-up: 2005

Indias second regasif icat ion

terminal, Hazira is located in Gujarat

state on the countrys northwest

coast. Designed to handle 5 billion

cubic meters of gas per year, it

may later be expanded to process 8

billion cubic meters per year. Gas

arriving at Hazira is sold directly to

end-users (power companies, industrial

users, fertilizer manufacturers) as well

as to local gas companies.

AdRIA LNG (CROATIA)

Totals equity interest: 25.58%. Capacity: 10 bcm/year

Start-up: 2015 (e)

In October 2007, Total became a shareholder in a new company,

Adria LNG, set up to carry out studies for construct ion of an LNG

import terminal on the coast of Croatia. The other partners in the

venture are E.ON Ruhrgas (31.15%), OMV (25.58%), RWE (16.69%)

and Geoplin (1%). The terminal is expected to be built on the islandof Krk on Croatias northern Adriatic coast. This terminal, located at

the door to Central Europe, will be very well placed to serve Italy and

Germany as well as markets in the immediate region.

ALTAMIRA FOS CAvAOU

19


22/28

TRAdING ANd MARKETINGTh globalzaton of ngy makts has adcally tansfomdmaktng pactcs n th LNG ndsty: th oppotnts fo tadnghav xpandd consdably, th nmb of plays has ncasdand bsnss modls hav bn adaptd vy apdly to th nwnvonmnt. LNG now acconts fo 27% by volm of wold gas tad.

A changing enironment

Th gd co nt ac t al lat ons hps th at pv o sly

govnd spply agmnts a stad ly b ng

wttn. Bys a now skng gat flxblty n

tms of pcng fomlas and cago dcton class

and both bys and podcs pf a combnaton

of long-tm, shot-tm and spot contacts. Ths

nv onmn t s mo condc v to a b t ag

tansactons, wth th gowng nmb of spot dals

now accontng fo 15% of woldwd tad.

New marketing skills in an enironment requiringrapi response

Fom th stat, Total alzd jst how mpotant LNG

wold bcom n th ntnatonal gas tad pct.

Bldng on ts cognzd xpts n tadng cd ol

and ptolm podcts, Total s now consoldatng tsLNG tadng opatons on both sds of th Atlantc

Basn and n th Pacfc zon too.

Th Gops objctv n tms of LNG maktng s to

optmz th flows fom ts woldwd potfol o by

lvagng th tadng sklls that hav bn acd

and consoldatd ov th last fw yas.

20


23/28

Total s consoldatng ts potfolo of pchass fom podcsand sals to consmng conts wth th am of maktngmo than 100 cagos (vssls of all szs) p ya n 2010.

Patrick dugas

LNG Trading Manager,

Total Gas & Power Limited,

United Kingdom

We handle all types of LNG transactions for the Group,

including direct purchase of LNG cargos at loading

por ts or receiving terminals, ship char ter ing, capacity

rese rvat ion at regasif icat ion facili ties for resale in local

markets, and spot or short-term purchases /sales.

Total has a growing LNG por tfolio, with new LNG plants

star ting up, particularly in 2009 wi th Qatar and Yemen.

Over the years, we have also developed skill in geographical

arbitrage transactions and a lso (mainly for operational

purposes) commodity arbit rage (pipe line/ liquef iedgas arbitrage ). Our a im here is to optimize our use

of available volumes depending on the constraints and

opportunities in the marketplace at any given time.

21


24/28

TOTAL, INNOvATING IN LNG TECHNOLOGY

Total s patcpatng n nmos LNG sach pojcts focsdmanly on mpovng safty, optmzng th thmal ffcncy of th LNGchan and dcng costs. To fth nhanc compttvnss,

Total has also lanchd r&D pogams on actal lfacton pocsss,dvlopmnt of socs n challngng gogaphc nvonmntsand nnovatv nfastct fo LNG tansf and stoag.

22

Meeting the growing challenges of resource eelopment

rsach h has th man thsts:

Fstly, offsho lfacton. Ths s a vy topcal thm

fo Total, whch s lookng closly at th concpt of a floatng

offsho lfacton plant and has awadd a contact to a

ladng spcalst ngnng company fo th concptal

dsgn of a floatng LNG plant (offsho lfacton faclts

on a floatng hll) and an nnovatv LNG tansf systm

opatng n opn-sa condtons.

On two pcomng lfacton pojcts Total also

poposs to s modla constcton tchns, whch

hav sgnfcant advantags n mot sts and/o thos

wh wok s patclaly dffclt o costly.

Lastly, th pomsng otlook fo Actc gas svs has

pomptd Total to stdy possblts fo stablshng LNGplants n sv clmatc condtons, wh challngs

ncld, among oths, vy wd tmpat angs and

sas that a c-bond a lag pat of th ya.


25/28

23

Simplifying transfer systems

Two oth ams of Totals r&D a to s mplf y LNG tansf

systms and to ns that cnt systms can b sd

n a gat ang of nvonmnts.

Total has wokd on th dvlopmnt of an LNG tansfsystm that can b sd n opn-sa condtons. Th

systm ss a flxbl LNG pp and a lght connct/

dsconnct appaats that ncopoats th safty

systms sd n convntonal LNG tmnals.

Th Gop s also a patn n th Floatng LNG Ln

Jont indsty Pogam lookng at an aay of at tactv

soltons fo tansfng LNG at sa wthot th nd fo

ovhad tansf (loadng boom wth flxbl LNG ln).

And fo a nmb of yas now, Total has bn actvly

sppotng a pojct to dvlop a pp-n-pp-typ

sbsa cyognc tansf ln. Ths nvonmnt-fndly,cost ffctv solton has bn chosn fo th Bass

LNG pojct n Nga.

Improing LNG storage systems

Stoag whth at th lfacton st o at an mpot

tmnal s a vtal lnk n th LNG chan. Total s nvolvd n

a nmb of sach pogams to mpov safty, nslaton

and constcton tchns of cyognc stoag tanks.

Lnd ock cavn stoag has th potntal to sto lag

volms of LNG wth only mnmal sfac faclts d.

Gostock, a company n whch Total has a 50% sha, has

hlpd to tst a 15-cbc-mt plot nt n Soth Koa.

Th plot has now valdatd th concpt and cavn stoag

s xpctd to mov to th commcal phas.

Atomaton and standadzaton of th constcton of

mmban tanks has gnatd nw ntst n ths

tchn, manly fo s n pojcts n dffclt zons (th

Actc ) o cont s wth hgh labo costs (Asta la ).

evalaton of nw constcton mthods has also ld tonw soltons that can b optmzd to st st condtons

o avalablty of local labo. Fo xampl, constcton of a

dobl-walld conct nvlop can dc th amont

of spcal stl d, as wll as spcal wldng

tchns, ths allowng a pojct to s local manpow.

Improing energy efficiency along the whole LNG chain

Fo both fnancal and nvonmntal asons, lfacton pojcts ngnng stdsthat allow th managmnt of ach nw pojct to antfy tchncally fasbl gans and s howthy stand p to th cnt conomc alts of th LNG makt and th constcton makt.

Total s also valatng tchns that cold mpov th ngy ff cncy of cvng tmnalswhl dcng gnhos gas mssons and covng th ngy contand d to xtmcoolng dng lfacton.


26/28

SABINE PASSUSA

ALTAMIRAMexico

17

16

FLowS

REgASIFICATIoNTERMINALS

LIquEFACTIoN

PLANTS

TOTALS LNG ACTIvITIES WORLdWIdE

24

Reasificatin terminals

Site 15HAZIRA(India)

16ALTAMIRA(Mexico)

17SABINE PASS(USA)

18SOUTH HOOK(United Kingdom)

19FOS CAVAOU(France)

20ADRIA LNG(Croatia) Projectunder study

Tota capacity 5 Bcm/year 6.7 Bcm/year 26 Bcm/year (phase 1)

40 Bcm/year (phase 2)

21 Bcm/year 8.25 Bcm/year 10 Bcm/year

TOTAls equity

interest

26% 25% Capacity suscribed

by Total: 10 Bcm/year

8.35% 29.8% 25.58%

Commissioned/

panned

2005 2006 2008 2009 End 2009 (e) 2015 (e)

Liefactin plants

Site 1ADGAS(Abu Dhabi)

2BONTANG(Indonesia)

3QATARGAS(Qatar)

4NIGERIA LNG(Nigeria)

5OMAN LNGQALHAT LNG(Oman)

6SNHVIT LNG(Norway)

7QATARGAS 2(Qatar)

8YEMEN LNG(Yemen)

Tota capacity 5.6 Mt/year3 trains

22.2 Mt/year8 trains

9.9 Mt/year3 trains


OLNG : 7.2 Mt/year2 trainsQLNG : 3.7 Mt/year1 train

4.2 Mt/year1 train


6.7 Mt/year2 trains

TOTAls equity

interest

5% Total supplied

40.8% ofthe gas in 2008

10% 15% 5.54% (T1/T2)

2.04% (T3)

18.4% 16.7%

in the second train

39.62%

Commissioned/

panned

1977 1977 1996 1999 2000 (T1/T2)

2005 (T3)

2007 2009 2009


27/28

SouTH HooKUnited Kingdom

FoS CAVAouFrance ADRIA LNg

Croatia

HAZIRAIndia

NIgERIA LNg (train 7)Nigeria

BRASS LNgNigeria

ANgoLA LNgAngola

PARS LNgIran

ICHTHYS LNgAustralia

BoNTANgIndonesia

qATARgAS 2Qatar

qATARgASQatar

ADgASAbu Dhabi

YEMEN LNgYemen

oMAN LNgqALHAT LNgOman

NIgERIALNg Nigeria

SNHVIT LNgNorway

6

SHToKMANRussia11

4

3

1

8

5

2

19

20

18

15

14

10

7

12

13

9

9ANGOLA LNGAngola)nder construction

.2 Mt/yeartrain

3.6%

012 (e)

Prjects and extensins nder stdy

Site 10ICHTHYS LNG(Australia)

11SHTOKMAN(Russia)

12BRASS LNG(Nigeria)

13NIGERIA LNGtrain 7 (Nigeria)

14PARS LNG(Iran)

Tota Capacity 8.4 Mt/year 2 trains 7.5 Mt/year 10 Mt/year

2 trains

8.5 Mt/year

1 train

10 Mt/year2 trains

TOTAls equity

interest

24% 25% 17% 15% 30%

(Company estimatesafter LNG buyers

entered the project)


28/28

TOTAL S.A.2, plac Jan Mll

La Dfns 6 al:Euros5,867,52

0,185.00.RegisteredinNanterre:RCS542051180.PrintedinFrance.October2009.Designedby:StudiosMenthe&Chocolat.Photocredits:AllrightsreservedTotal.M.Roussel,Th.Gonzalez,L.Zylberman,

e,LerenEiliv,Statoil/Total,L.Sauser,L.Stephane,S.Rivoallon,T.Haga,A.Picard,M.Richards,S.Williams,P.Dugas,Total/Camel,STMFC/Altivue,GettyImages(A.Baxter),D.R.,X-Bycourtesyof:S

HI,Cheniere.Illustration:Nando.

LiqueFieD NATurAL GAS

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