1

2

Agenda

• Introduction• Safety & Environment• Plant Optimization• Sulphur Recovery Expansion (SRX)• Debottlenecking• Conclusion• The Future

3

Introduction

0

Qatar

(80 Km)32”

North Field

QatargasQatargas

4

Introduction Contd.

Offshore Onshore

5

6

Qatargas Safety Logo

7

Management Safety Tour

8

• Management commitment at highest levels, monthly SHE Committee chaired by CEO.

• Acknowledgement of staff for safe behaviour and practices.

• Contractors were integrated into Qatargas business and safety culture.

• Team work between Operations, Maintenance, Engineering and Safety to highest standards.

Safety Best Practices

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Safety Performance

LTA Vs LNG Production (MT)

02468

10

1999 2000 2001 2002 2003 2004

LNG Production Lost Time Accidents

Near Miss Reporting

0100200300400500600

1999 2000 2001 2002 2003 2004

10

• Qatargas considers protection of the Environment, a fundamental part of its vision.

Environment

• The largest environmental improvement to date was the Sulphur Recovery Expansion (SRX) Project, where sulphur recovery was increased to 97% and emission reduced by 35% whilst the production increased.

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Sour Gas and Sulfur Emission Trends

-

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900

1999 2000 2001 2002 2003 2004

Feed

gas

H2S

Mol

%

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

Sul

phur

Em

issi

on in

Ton

nes

- Dai

ly

Ave

rage

H2S MOL % Sulphur Emission in Tonnes (Total)

12

Plant flare

13

Jetty Flare

14

15

LNG Production (MMT) Since Start up

2.32

3.92

5.89

7.05 7.377.82

8.23

9.25

0

2

4

6

8

10

12

1997 1998 1999 2000 2001 2002 2003 2004

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Plant Availability & LNG Yield

0

20

40

60

80

100

1997 1998 1999 2000 2001 2002 2003 200413

14

15

16

17

18

Availability LNG Yield

Availability %

LNG Yield (T/MMSCF)

17

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Objective

The SRX Project was commissioned with the objectives to :

• Comply with current environmental regulations with a minimum of 95% sulfur recovery.

• Improve Sulfur Plant operability and reliability.

EPC Investment cost of 60 million US $.

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AGE Unit Under Construction

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LNG Production and Sulfur Emission Trends

0

5

10

15

20

25

30

35

1999 2000 2001 2002 2003 2004

Sul

fur E

mis

sion

T/d

ay

5

6

7

8

9

10

LNG

Pro

duct

ion

in M

TPA

21

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Project Summary

• When completed, the debottlenecking project (DBN) will increase the Plant capacity from 7.2 to 9.5 MTPA using the maximum of sea line capacity (1.6 BSCFD).

• The EPC investment cost of US$ 185 million made this Project very cost effective.

• Trains 2 & 3 and related utilities were safely and successfully completed. Train 1 will be completed in 2005.

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Modified Propane Refrigeration Process

LPPropane

MP Propane

HP Propane

Booster

MR/LP C3 Evap.

C3 Comp.C3 DesuperHeater

C3 Condenser

Evaporator Evaporator

FR 5 C

~~

~

~~~

~ ~

~

~MR/HP C3 Evap

~

~~

~~

~

FR 5 C

New equipment or modified

New piping

MR/MP C3 Evap.

MR

Accumulator

Precooler

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Modified Mixed Refrigerant (MR) Process

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Removal of Propane MR LP Evaporator

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Installation of Propane MR LP Evaporator

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Lifting of Propane Compressor

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Lifting of Gas Turbine

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Gas Turbine Upgrading

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Upgrade of the MR compressors

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LNG Train-2 Performance

Rundown (T/H) Before

200

300

400

500

28/0

8/20

03

29/0

8/20

03

30/0

8/20

03

31/0

8/20

03

01/0

9/20

03

02/0

9/20

03

03/0

9/20

03

04/0

9/20

03

05/0

9/20

03

06/0

9/20

03

07/0

9/20

03

08/0

9/20

03

09/0

9/20

03

10/0

9/20

03

Rundown (T/H) After

2 0 0

3 0 0

4 0 0

5 0 0

02/1

1/20

03

03/1

1/20

03

04/1

1/20

03

05/1

1/20

03

06/1

1/20

03

07/1

1/20

03

08/1

1/20

03

09/1

1/20

03

10/1

1/20

03

11/1

1/20

03

12/1

1/20

03

13/1

1/20

03

14/1

1/20

03

15/1

1/20

03

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Conclusion

In Qatargas, success is measured in terms of safety and environment, customer satisfaction, profitability, efficient and reliable operations and maintenance of a high caliber workforce.

Continuous improvement and an open style of management are leading Qatargas towards achieving its vision to be the world’s leading supplier of LNG.

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35

View of Future Qatargas

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EPC Signing Ceremony for Qatargas II

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Maintenance Best Practices

• Shutdown duration reduced from 28 days to 24 days.

• Same shutdown contractor kept for 3 year period extendable to 5 years.

• Effective implementation of lessons learnt.

• Selective equipment inspection.

• Gas Turbine maintenance contracted to OEM under 18 years contract.

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Maintenance Best Practices

• Acquisition of special tools for all critical equipment.

• All trips are logged, analyzed and corrective action developed, followed up until closure.

• Audits conducted internally, by shareholders and specialized maintenance consultants.

• Shutdowns are considered as projects.

• Selection of contractors not on costs only but on performance and safety records.

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Maintenance Best Practices

• Secured spare parts supply through service agreements with local dealers.

• Risk assessment for critical tasks.

• Integrated teamwork across the organization.

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Gas Turbines Inspection Philosophy before & after 2000

LP/HP Modules Replacement (13 days!)

-24,000 (13 days)48,000 (23 days)

12,000 (5.5 days)24,000 (13 days)48,000 (23 days)

CILTPIMI

FutureNowPast

CI – Combustion Inspection

LTPI – Liner Transition Piece Inspection

MI – Major Inspection