Power in Qatar

[Qatar4Ever]

January 2006
Almost all Gulf economies are seeking to reform and liberalise their power sectors. Some have placed their faith in gas fired independent power producers (IPPs), while others have opted to make desalination plants a key element of their generation mix. Qatar, for instance, is relying almost entirely on independent water and power producers (IWPPs), fed by domestic gas reserves, to provide new generating capacity.

Until 2000, Qatar's entire power sector, through generation, transmission and distribution, was owned by the government. However, in May 2000, all assets were transferred to the new Qatar Electricity and Water Corporation (QEWC) and the Qatar General Electricity and Water Corporation (Kahramaa). While other governments in the same position have sought to sell their power companies outright to foreign firms or awarded long-term management contracts, Doha opted to create a genuinely Qatari private company in the form of the QEWC.

The government continues to hold a 43% stake in the firm but the remaining equity is held by a wide variety of domestic investors with the government planning to further erode its own holding in the future. Despite the growing role of other private investors in power generation, QEWC still plays the leading role in the sector and holds equity in several IWPPs. The 750MW Ras Laffan IWPP opened in November 2004 at the Ras Laffan gas and industrial complex. The $700m plant is owned by AES of the US (55%), QEWC (25%), Qatar Petroleum (QP) (10%) and Gulf Investment Corporation (GIC) (10%). GIC is jointly owned by the six member states of the Gulf Cooperation Council (GCC) and was set up to invest in infrastructural projects across the region. The plant is fed with water by a 60km pipeline with a huge three metre diameter and, despite the complexity of combined water and power schemes, Ras Laffan was completed very rapidly.

At the opening ceremony, Abdullah bin Hamad Al Attiyah, the minister of energy and industry, said: "The Ras Laffan Power and Water Plant has the distinction of being a fast-track project. It started generating power in March 2003, almost a year to the date of laying its foundation stone, and started producing water last May. It is considered part of the country's long-term plan to ensure a continuous supply of cost effective electricity and water." The plant will mainly supply the Ras Laffan industrial zone, although surplus production will be used to supply the rest of the country.

A second IWPP is being constructed on the same site and will also be fed with gas by QP. The contract for the $900m Ras Laffan B was signed towards the end of 2004 and the first tranche of generating capacity is expected to come on stream by the start of 2007. Initial capacity of 600MW will then be stepped up to 1,025MW within two years. In March, the project consortium, led by QEWC, with a 55% stake, in association with International Power (40%) and Chubu Electric (5%), signed a 25-year take or pay power and water purchase agreement with Kahramaa for the plant's entire output. Project funding was provided by 80% debt and 20% equity. The two Ras Laffan plants are part of a wave of large scale IWPPs being developed across the region.

The two plants complement the existing 1,030MW Ras Abu Fontas B desalination plant, brought back on stream following an overhaul by Alstom in June 2002. However, additional generating capacity of 567MW should be added by 2007 as part of a fast-track development programme. Turnkey contracts to carry out the work have been awarded to two consortia, led by General Electric and Fisia. In October this year, Kahramaa signed a new 25-year power and water purchase deal with QEWC to cover the additional capacity. Kahramaa has revealed that the next IWPP will probably be a 1,000MW facility, built at Mesaieed Industrial City by 2010. The contract for the plant will be awarded under a competitive bidding process.

Electricity and water production costs on desalination plants have fallen substantially over the past decade and although power production costs are still higher on WPPs than on advanced gas fired plants, the need for more water production means the government in Doha along with other Gulf governments are prepared to create a regulatory environment that includes power purchase agreements (PPAs) that pay a premium for electricity from IWPPs. Water supply is such a major security issue that the government believes it is worth structuring the market so that power production effectively subsidises water desalination. While a greater degree of power sector liberalisation is likely in Qatar over the next few years, the need for water security means that this structure is likely to remain in place and further IWPPs will almost certainly be developed.

Nevertheless, dedicated gas fired plants are also to be developed using Qatar's massive gas reserves. In December 2004, Norwegian firm Norsk Hydro revealed it had agreed a deal with QP to construct a gas fired plant at Mesaieed Industrial City, as part of its wider agreement to develop a $3bn aluminium plant. QP will take a 51% controlling stake in the venture, with Norsk Hydro owning the remaining 49% equity. The plant, initially with a generating capacity of 1,000MW, will be fed by associated gas. Abdullah bin Hamad notes: "Qatar is a strategic location for this project and has proven natural gas reserves of more than 900 trillion cubic feet, representing secure and competitive supplies for power production. The policy of the Qatari government is to utilise the country's natural resources for economic and industrial development.

Participation in a project for primary aluminium production fits this policy." Growth in the gas sector has certainly driven the Qatari economy over the past few years and gas exports have also been buoyed by record oil receipts but unlike in many other countries in the region, the government has made the most of its success to fund diversification projects. Qatar's growing petrochemical, fertiliser and liquefied natural gas (LNG) enterprises all consume large amounts of electricity, so demand is set to rise rapidly over the next decade. The country's economic culture has also changed, so the private sector is now playing a far more substantial role. Once each of the IWPPs is complete, national generating capacity will stand at 4,304MW, up from just 1,095MW in 1990.

Until 2000, Qatari citizens were entitled to free electricity, but this allocation has now been sharply reduced and as the result of a more commercial culture, customers must pay for all power use above a certain level. Residential consumption currently accounts for 69% of all power demand but this figure is expected to fall over the next decade, probably to around 50%, as a result of rising industrial consumption. Meanwhile, total demand for electricity is expected to increase by 10% a year over the next five years. Aside from the construction of new plants, the biggest project in the Qatari power sector is the development of the Gulf Cooperation Council (GCC) power grid. The first phase of the grid development is scheduled to connect Qatar with Saudi Arabia, Kuwait and Bahrain by 2008. But while the physical infrastructure required to create the grid is being put in place, it is unlikely cross-border trading will become a major factor in the Qatari power sector for a long time to come. Some bilateral deals could be signed but a massive cultural shift will be required if state power companies and IPPs are able to treat the region as a single market.

Even competition within each member state remains limited at present. However, all six governments are committed to putting the required regulatory changes in place in order to create a genuine power pool and all are banking on power sector cooperation to drive regional cooperation as a whole.

A combination of gas fired generation and desalination technology is likely to provide the basis of power generation for a long time to come. Qatar's North Field is the biggest non-associated gas field in the world and the country also possesses the international community's third biggest gas reserves. It is unsurprising that the government is keen to make the most of domestic natural resources. While the well-publicised Dolphin scheme is distributing gas to the UAE, Oman, and possibly even to Pakistan, for power generation, the Al Khaleej Gas venture (AKG) distributes local gas domestically. If power trading with the GCC region does eventually take off, Qatar is well placed to make a killing.

© The Middle East 2006

[Qatar4Ever]

While the well-publicised Dolphin scheme is distributing gas to the UAE, Oman, and possibly even to Pakistan, for power generation, the Al Khaleej Gas venture (AKG) distributes local gas domestically. If power trading with the GCC region does eventually take off, Qatar is well placed to make a killing.

That's right baby !! A killing i tell u !!

And before you can say "u can fill this gap with any short short yet catchy phrase" Qatar will supply energy to the households of the worlds greatest and strongest economies.

Probably some j-a$$ is going to tell me.. no no but you gotta diversify .. :bash:

[dave550]

They say we are doing well with our diversification plan, but still, all the other plans are related to petroleum or gas in some way or another e.g. petrochemicals. Even the other plants need a whole lot of power and our only source of energy and water in Qatar are these few Power and Desalination plants that rely 100% on Natural Gas, so where is the diversification. What we've to do is that we should do Scenario Planning by generating forecasts for future conditions and analyze the effective ways that we can respond to them. Hence, contingency plans are needed for this kind of situations when we can not use our sources anymore for whatever reason.

[Qatar4Ever]

Dude why couldnt you just come out and say "what will we do if we no longer have the gas?" rather than have me look up contingency plans future conditions and all that stuff !! keep it simple.

now me keeping it simple !! We've got to much gas and money that we dont even need to think "what if sh!t happens!"

Sad but true !!

[dave550]

This is good that we have enough gas. I have even read somewhere that only the North Field has enough gas for heat in the United States for the next 100 years. Can you imagine that. But still plan B is always important. I mean what if Iran takes this field, cause they have already claimed it to be theirs and not just that they even have another name for it, guess what "7aqel janoub fares" loooool

[Qatar4Ever]

south pars gas field
i was thinking about the same thing today.. u know this najad dude.. not the friendleast of ppl.. and i dont think u can really talking works with him !!

[dave550]

I know, he really scares me. I mean what if he really is developing nuclear weapons like everybody is saying. I think that he would definitely use it agaist the GCC. He scares me.

[Qatar4Ever]

He would never use it against us, never !! But just having it he can push us around all he wants.

Its like someone with a gun asking for your wallet !! He probably wont shoot u but u still give him ur wallet !

[dave550]

How do you know!! Did they not use force against Iraq b4. Plus, you know how there is a lot of hatred against our counties.

[prsn41ife]

How do you know!! Did they not use force against Iraq b4. Plus, you know how there is a lot of hatred against our counties.
wtf are you talking about? iraq attacked iran.

Irans side of the south pars oil field and qatar side of the north field. this map shows the whole field, and as you can see, iran is only working on its side of the border.

http://www.offshore-technology.com/projects/southpars/images/image6.jpg

i dot know what you guys are talking about, iran is oil drilling in its side of the border.

[shayan]

hahaha dont need to fear iran ahmadinejad wont atack you (he will maybe install a pupet mullah in Bahrein and Kuweit) but he wont hurt you :D

[dave550]

How do u know Shayan!! didn't these Mullahs lie to you guys before and you are their own people. Whatever gonna happen to us then, you know we are friends now, but when you be so powerful who knows what will happen!!

[prsn41ife]

iran is already the most powerful country in the region besides israel. what is happening now? nothing. what will happen if iran gets nukes? nothing.

besides, i really dont believe iran is after nukes.

[Qatar4Ever]

I always thought iran was predictable and no matter how much we hate or love it we knew that the mullahs who ran the country were smart enough to know whats best for the them and the region. you could talk to them and they always sought the economical benefit of iran.

Now this guy. He's a different story. Not only does he not have any political background he doesnt seem to be knowing what he is doing and is acting on emtional implses.

It wasnt long ago that an iranian offical said that if any american attack were to come from arabian soil, iran would target arab oil fields.

What is to stop najad from coming out of tv and saying qatar has been sucking to much gas from this field we will limit how much gas tehy can produce !! This will bring all investments and qatar's gas industry to a halt.

Thank god our customer base who heavily depend on our gas are Japan, soon China, Beligum, Italy and France.. excluding UK and US.

These countries have always taken a middle stand when it comes to iran, they may be our only choice to take any sense into Najad or pressure iran incase they decide to wonder off !!

Regardless, I doubt iran will ever attack. Note I never said they will, I just said they can put serious pressure on Qatar if it ever got nukes !!

[shayan]

think again dude ahmadinejad said that he will stop the flow of oil if iran becomes under atack and quess what the street of homeruz is in irans hands so they can cut of oil flow enytime they want...

But your right the international comunity wont let you get under atack (qatar has a deal with the UK signed in 1935 in which the UK says that she will always protect qatar against foreign assult. So Qarar4Ever your wrong on the excluding UK part because there is writen on black and white that they will protect you :). I dont hope that ahmadinejad will atack you but you just cant look in a mad mens head....
But still nuclear energy is irans right but not under this regime, first iran needs to become a democracy and than iran can have nuclear energy and everything but not at this point, its just to dangerous!

[Qatar4Ever]

U got what I said wrong. I never said Iran would attack Qatar. I said it would pressure Qatar and cause much economical distress.

Second, if Iran decides to stop producing and exporting oil, then their stupid and it would also mean their lose. However no why in hell would they be able to take power of the strait of hermouz and stop other gulf arab countries from producing oil. If iran, which has military might to do so for a couple hours, does decide to do that then it would be cutting more than 50% of the worlds oil supply if not more.

Trust even new zealand would be on irans back !! There wont be no little UN meetings and cnn interviews it will be all out war against iran both economical and warfare and militarly. Cause such an event would just bring all world economies to a stop.

And the reason I didnt include UK was becuase I meant to mention the countries who usually hold a neutral stand when it come to the mideast rather than UK and US.

[prsn41ife]

Second, if Iran decides to stop producing and exporting oil, then their stupid and it would also mean their lose. However no why in hell would they be able to take power of the strait of hermouz and stop other gulf arab countries from producing oil. If iran, which has military might to do so for a couple hours, does decide to do that then it would be cutting more than 50% of the worlds oil supply if not more.

iran will stop oil shipping from the Persian Gulf, but iran has pipelines to europe and asia on land, iran will still be able to export, but it will trap the USA in the Persian Gulf which is what it will do if the USA attacks.

and iran has the power to close off the strait of hormuz within minutes, by covering all of it with mines. and iran has anti ship missiles all over the Persian Gulf, and these anti ship missiles cannot be stopped, they are Chinese and Russian made specifically for use against the USA navy.

so basically, teh USA would make a big mistake by attack because it will cause the economies of the Arab Persian Gulf states to have their oil export cut off, and it will mean the possible defeat of the USA's Persian Gulf fleet.

[dave550]

Wow, I hope nothing of this happens and Iran and the whole gulf stays in peace.

[dave550]

Ahmadinejad-Qatar-Ties
President Ahmadinejad considered the "existence of an appropriate atmosphere for expressing viewpoints" the prerequisite for "holding dialogues among countries", adding "If one side would keep on talking and the other side would merely have to listen it would not be called a dialogue."
He added, "The era of colonialism and literature of threats has long been over and Iran is not going to retreat in confrontation with threats, since it has the required means for defending itself." Qatar's First Deputy Prime Minister and Minister of Foreign Affairs Sheikh Hamad bin-Jassim ale-Thani, too, during the meeting while expressing his country's will to broaden ties with Iran to best possible level, said, "Iran and Qatar enjoy old friendly relations."
He added, "Throughout Iraq's eight-year war against Iran Manama never backed up Baghdad, nor did we ever confirm Saddam's warmonger moves."
He emphasized that relying on its consultations with Tehran, Qatar is after defusing tension around Iran's nuclear program.

The Qatari top official said, "Islamic Republic of Iran's declaration of its stands and logical argumentation to prove its legitimate right to have access to nuclear energy reminds us of the confrontation of Prophet Moses (PBUH) in his confrontation with Pharaoh."
Qatar's First Deputy prime Minister expressed dissatisfaction over the low level of his country's economic ties with Iran and asked for broadening of ties in that field, arguing, "Qatar considers stability and advancement of Iran its own progress and stability."
He added, "Doha does not feel any threats from Iran, and no threat from Qatar would ever be posed against Iran."
Sheikh Hamad meanwhile referred to the president's previously made invitation for a visit by Emir of Qatar to the Islamic Republic of Iran, announcing that his country's Emir would in near future visit Iran.

The Qatari Foreign Minister at the end delivered Emir of Qatar's invitation for an official visit to Qatar to President Ahmadinejad.


Tehran, Jan 23, IRNA
Ahmadinejad: Iran willing to maintain excellent ties with Qatar (Part II)

[Qatar4Ever]

prsn im sorry to tell you this but seriously man !! Where do you get your info from ??

Look I understand your from iran and love iran. But your miles away from the point and seem to be going on and on and making no sense at all !! i mean where do you bring your info ?? Iran pipeline to europe ?? Asia.. who and how will USA be trapped in the arabian gulf ?? Mines in the straight of hormuz ??

Man !! I dunno what to tell u!!

Im afraid i gotta tell you that its pointless not just to argue but to have even a discussion with u !!

Sorry hope you dont take it personally..

[prsn41ife]

prsn im sorry to tell you this but seriously man !! Where do you get your info from ??

Look I understand your from iran and love iran. But your miles away from the point and seem to be going on and on and making no sense at all !! i mean where do you bring your info ?? Iran pipeline to europe ?? Asia.. who and how will USA be trapped in the arabian gulf ?? Mines in the straight of hormuz ??

Man !! I dunno what to tell u!!

Im afraid i gotta tell you that its pointless not just to argue but to have even a discussion with u !!

Sorry hope you dont take it personally..
news, and articles.

there is an pipeline from azerbaijan to europe.

there is a pipeline to turkey.

there is going to be a pipeline from iran to european mainland through turkey.

and there is the planned iran pakista india pipeline that is planned.

http://www.lib.utexas.edu/maps/middle_east_and_asia/iran_petroleum_facilities_2004.jpg

http://www.satribune.com/archives/dec30_jan05_03/inset_gaslines.jpg

http://www.eia.doe.gov/emeu/cabs/caspian_natural_gas_pipelines.jpg
follow the red line, one goes to turkey, one goes to azerbaijan, there is one into turkmenistan, and i already told you about the other projects.

so i suggest, you dont make comments like the one above before you do the research yourself. you disgust me, plain and simple.


and the USA wont be trapped in the arabian gulf, because it doesnt exist.

i suggest you get smarter before you try and discuss with me. ;)

so either you apologise to me, or you dont ever try and contradict me, its your choice.

[prsn41ife]

still waiting for your apology qatar4ever....

[Qatar4Ever]

u dumbass dont teach me about pipeline or anythign about oil and gas I work in this industry and my whole education background is based on the oil and gas industry.

The online pipeline is the gas pipeline going to turkey, which is very old, unrealable pipeline and probably the one in azerbigan. Thats it, there is no oil pipeline to europe there is no gas pipeline to europe. Just cause turkey has a sh!tty pipeline with iran and happens to have one with the rest of europe doesnt mean iran oil and gas can reach europe.

And do you think Europe will ever have a pipeline with iran ?? man i swaer u know nothing.

And the Arabian Gulf my friend it exists. U can call it Perisian gulf if you love, but our lives, thanks to god, is filled with success and prosperity that we could care less about names. Its really sad that a great nation like iran with a great historical empire like that of perisia is overally obssed over a name. It seems irans are a failure at everything that the only thing they can compete on is a name. sad.

To be frank, i didnt look at the pic u posted coz i know they mean nothing. Looking at them now i cant stop laughing

is this the best u can come up with

http://www.eia.doe.gov/emeu/cabs/caspian_natural_gas_pipelines.jpg How proffesional !!

[prsn41ife]

EU to finance Iran-Europe gas pipeline study
21-10-02 An EU energy official confirmed that feasibility studies on the construction of a pipeline in Greece to export Iranian gas through Turkey to Europe would start in November. The official said the EU would finance the $ 10 mm (£ 6.4 m) study. He claimed to be unaware of US pressures on Greece and EU to block the project.
"The US embargo doesn't apply to the EU. Talks are going on," he said.

Iran meets about 8 % of Europe's oil needs, whereas gas exports stands at zero. Iran started gas exports to Turkey early this year for the first time since the 1979 Islamic revolution. However, Turkey stopped its imports in June, demanding lower price.
The quarrel between the two neighbours has been settled and exports will be resumed in the near future

:sleepy: you bore me, i need a challenge.

and its not only iran that fights for names. Japan, China, and South Korea have been fighting over the name "sea of Japan" for decades now.

and no, the arabian gulf doesnt exist, i dont see it on any maps :dunno:

[prsn41ife]

and here is a more recent one for you, do you still want to tango?

$5.5bn Iran-Austria pipeline wait
Iran: Thursday, January 12 - 2006 at 09:38
Austrian-based energy firm OMV says a decision to build a gas pipeline between Iran and Europe will be taken by the end of 2007, the head of OMV Gas, Otto Musilek, told Deutsche Welle radio. OMV plans to build a 3,300-km gas pipeline at a cost of $5.5bn from Iran to Austria via Turkey and the Balkan states. It would deliver up to 30bn cubic metres of gas a year.

how much longer do you wanna keep this up? just admit you were wrong.

[prsn41ife]

And here is a map all about Europe and pipelines, can you see the proposed ones?:

http://www.inogate.org/images/maps/GAS_map.gif

now, you still feel like you need to argue with me about this., because you are obviously wrong. THERE ARE PROPOSED PIPELINES FROM IRAN TO THE EU, FROM IRAN TO INDIA AND PAKISTAN, THE TURKEY IRAN PIPELINE IS GOING TO BE EXPANDED, AND IRAN IS ALSO GOING TO SUPPLY GAS TO GEORGIA!

[shayan]

isnt qatar the country with the 3rd biggest natural gas reserves?? Thats kinda cool because Qatar has a really low poppulation that means a lot of money for little people :D

[dave550]

Yes Shayan it is kindda cool. As a matter of fact Qatar today announced that the grouth was 20.8% in 2005 and hopefully it is going to be higher in 2006. Isn't that great. This is just what we and the region needs.

[prsn41ife]

qatar is going to be the richest country in ten years.

[shayan]

I think it will be the richest in between 3 and 7 years...

[Shayan_m]

that means a lot of money for little people :D

And a big mouth for guys such as Qatar4ever !

[Qatar_Blue]

And a big mouth for guys such as Qatar4ever !

There is no need for anyone to throw words here.

(Qatar4ever we love you)

[prsn41ife]

u dumbass
^^ tell that to your beloved friend :D

[shayan]

Hahaha yeah with money comes arogance but well i´m happy for the qataries there must be a resson why they have all this natural weath maybe qatar has a bigger purpose in the world, i only hope that qatar will start a huge aid programm for poor african countries or something like that. That would be great.

[dave550]

In fact yes Shayan. Qatar is already contributing to help out poor countries all over the world each year. And I am not just talking about the Government which is now rebuilding entire villages with its amenities in Pakistan, but also the people give generously all the time. Whenever something happens in the Islamic world u'll see that they have arranged places to donate and these places get sooo crowded. I remember when Afghanistan was under attack some people went and donated their cars and all their jewelery, these people went home walking afterwards. Even some people donated their Salaries for a month just to help. Same thing when the earhtquake of Iran happened. If you think about it, these are more than just donations, they are mostly given to people who we feel close to like the ones who suffered from the earthquake in Bam.

[prsn41ife]

^^ yea, i know dubai has a fund like that but i didnt know that qatar had one. good to hear.

[dave550]

Check this out. http://www.reachouttoasia.qa/output/page1013.asp

[Shayan_m]

In fact yes Shayan. Qatar is already contributing to help out poor countries all over the world each year. And I am not just talking about the Government which is now rebuilding entire villages with its amenities in Pakistan, but also the people give generously all the time. Whenever something happens in the Islamic world u'll see that they have arranged places to donate and these places get sooo crowded. I remember when Afghanistan was under attack some people went and donated their cars and all their jewelery, these people went home walking afterwards. Even some people donated their Salaries for a month just to help. Same thing when the earhtquake of Iran happened. If you think about it, these are more than just donations, they are mostly given to people who we feel close to like the ones who suffered from the earthquake in Bam.

RESPECT !!!

[shayan]

yeah really good! Its really nice to hear that at least some nations care about the poor. Same with holland, holland is the only nation in the world that puts away 1 precent of its GDP for the poor in nations all around the world (thats like 4 billion euro´s). Does Qatar have a really close community with every family knowing one a nother?

[dave550]

Not as much as before but I can still say yes. And about Holland it is a different situation. When it comes to giving I personally would give someone closer to me first, because if we were in need the first people who are going to feel bad for us and we are going to turn to for help would be god and then you:-)

[dave550]

Exxon Mobil pins big hopes, big money on tiny Qatar
By Deepa Babington and Odai Sirri
DOHA, Qatar (Reuters) - Dispatched to Qatar five years ago, Exxon Mobil Corp. executive Wayne Harms remembers his first reaction to the assignment was: "Where?"

Few seemed to know much about the tiny Gulf state, and a local travel guide warned him it was the most boring place in the Middle East.

Today, Qatar has vaulted into the energy world's big league. Its construction crane-dotted skyline still struggles to draw tourists, but it has hooked a much bigger fish: Big Oil.

Barely the size of Connecticut, Qatar is home to the world's third-biggest gas reserves after Russia and Iran, and has emerged as a new frontier in Big Oil's quest for natural gas to boost reserves and make up for flagging production elsewhere.

Royal Dutch Shell, ConocoPhillips and France's Total are among the big names who have invested in Qatar, but the major with perhaps the most at stake here is Exxon, the world's largest publicly traded oil company.

Qatar forms not only the backbone of Exxon's natural gas ambitions, but will be a key driver of overall production growth in the coming years for the Irving, Texas company.

"This country would probably be in the top three, maybe top five countries for us to have the most money invested in by the end of the decade," Harms, who oversees Exxon's operations in Qatar, said in an interview. "It's on a steep growth profile."

Through its stakes in two mega-projects, Qatargas and Rasgas, Exxon has already invested billions of dollars to develop Qatar's natural gas reserves into super-cooled liquefied natural gas (LNG) to be shipped to Europe, Asia and the United States.

And it plans to spend billions more over the next few years on other initiatives including a petrochemicals complex and a $7 billion project developing a cleaner diesel fuel.

A BIG PIECE

Even as Qatar shapes Exxon's future, critics say the company's widespread clout is leading to something of an "Exxon Mobilization" of the country.
Exxon's reach extends deep in the fast-growing nation, where it sponsors tennis tournaments, horse races and prominent community initiatives.

"When you are this big and powerful, it can be a double-edged sword," said a top Western oil official, who declined to be named. "It creates some frustration because people think they are too powerful."

Harms dismisses those concerns, saying Exxon is happy with the relationship it has with Qatar. In Exxon's trademark low-key style, the company's office in Doha does not even boast a large sign bearing its name.

Low-key or not, Qatar's influence on Exxon's operations is already massive -- years before hitting peak production.

In 2004, Qatar accounted for almost all the reserves the company managed to replace that year - a key figure watched by analysts as an indication of long-term prospects.

Qatar's big impact on Exxon's reserve replacement ratio is expected to continue over the next couple of years as new trains from its LNG projects come on-line, Harms said.

"We're in a phase right now in the company where Qatar is a big piece," he said. "Last year it was a very high percentage of reserve replacement and it'll probably be that way for a while because we're spending a lot of money and building a lot of projects here."

By the end of the decade, Qatar will account for 30 percent of Exxon's natural gas production -- no small amount in a company that is already the world's largest non-government producer of natural gas.

A SHORT LIST

Qatar did not show up on Exxon's radar just because of its vast energy wealth.

The country set itself apart from Middle Eastern peers like Saudi Arabia by actively seeking out investment from Western oil majors. It also boasts a strategic location and offers political stability and the assurance that contracts will be honored to the letter, says Harms.

"You give me countries with those three things and the list is very, very short," he said.
Qatar's key attraction is its lack of surprises -- particularly important at a time when Europe frets about the recent gas dispute between Russia and Ukraine that has threatened natural gas exports into the region.

Still, business in Qatar is not without risks.

Natural gas prices are at historic highs now as demand soars and supply declines in key markets like the United States.

A drop in prices could make LNG exports from Qatar uneconomic -- shipping costs alone account for more than half the cost of natural gas sent to the United States, Harms said.

Then, there's the question of security, although so far Qatar has not suffered from the kind of major attacks that have plagued other countries in the Middle East.

"So the track record is really good. But if I'm worried about something then sure, those are the kinds of things that I'm worried about," said Harms. "Maybe it's unfounded worry."

[Qatar4Ever]

Ah my good old little friend prsn. Why do you have the urge to prove yourself desperatly. My friend, im telling you that your wrong. Simple as that!

A pipeline from Iran to Europe is nothing more than.. to put it simple.. BS!

I hope you dont misunderstand me and think im saying this because I dislike Iran or you and plz dont take it personally either. But when it comes to oil and gas, I know more than you and instead of being a stubborn kid you could listen for once in your life to others and you might learn something.

Pulling out stupied maps which say nothing, or one or two articles that are no more than two paragraph long, which your probably googled, doesnt make you an expert. Infact it just goes to show how desperate you are to prove yourself right.

Now if you'd love to "tango" well its my pleasure. Sit back, read on and hopefully you'll learn a thing or two. And plz trust me when I tell you this, you know nothing of oil and gas and I surely know much more than you.


EU to finance Iran-Europe gas pipeline study
21-10-02 An EU energy official confirmed that feasibility studies on the construction of a pipeline in Greece to export Iranian gas through Turkey to Europe would start in November. The official said the EU would finance the $ 10 mm (£ 6.4 m) study. He claimed to be unaware of US pressures on Greece and EU to block the project.
"The US embargo doesn't apply to the EU. Talks are going on," he said.

Iran meets about 8 % of Europe's oil needs, whereas gas exports stands at zero. Iran started gas exports to Turkey early this year for the first time since the 1979 Islamic revolution. However, Turkey stopped its imports in June, demanding lower price.
The quarrel between the two neighbours has been settled and exports will be resumed in the near future

Thank you first for your five year old source. The pipeline was suppose to start back in Nov. of 2002. Five years on I still havent seen any pipeline.

My friend, Iran does have a gas pipeline which export natural gas to Turkey.
However, recently Iran has cut its Turkish supplies by a quarter due to severe winter in Iran.

Turkey does not want to rely on Iranian gas for three main reason. First, the pipeline built isnt of the best quailty. It isn't a realiable or safe pipeline but it does severe its purpose. Turkey wishs for a better pipeline, however Iran, who has the guess, has leverage over Turkey and can build whatever sh1t pipeline it wishes to build.

Now you'll tell me why doesnt Turkey build a pipeline. Good question, such a pipeline would run well into the millions if not the hundred millions. Turkey would not invest that money, which would probably come as aid from the EU, in a pipeline from a unrealiable country which, as above, cuts its exports by a fourth when it gets colder in Iran. This my friend is reason number two.

Reason number three. Iran exports to Turkey off-spec gas. Meaning Turkey requires gas to be within a certain quality. Iran's gas isnt in that certain quality. Reason being, the gas is made up of a lot of chemicals, iran takes most of the chemicals out, nitrogen, butane.. blah blah.. and sends Turkey gas which is off-specification. Turkey then has repurchase nitrogen and other chemicals, reinject it into the gas from iran to bring the gas into the standerd of quality that Turkey can use.

So my friend, if Turkey, one of two countries that Iran exports gas to, could, they would dump iran.

$5.5bn Iran-Austria pipeline wait
Iran: Thursday, January 12 - 2006 at 09:38
Austrian-based energy firm OMV says a decision to build a gas pipeline between Iran and Europe will be taken by the end of 2007, the head of OMV Gas, Otto Musilek, told Deutsche Welle radio. OMV plans to build a 3,300-km gas pipeline at a cost of $5.5bn from Iran to Austria via Turkey and the Balkan states. It would deliver up to 30bn cubic metres of gas a year.

Sit tight my friend. You have more to learn. I will try to keep it short and sweet.

See the oil and gas industry almost always involves politics. Its not always what the most economical thing to do but its what give a certain nation the most political advantage. Countries that export oil and gas use it as a power tool to influnce world politics, as Iran is currently doing.

Got that point. Keep it in mind coz its going to come up soon.

Now in Europe there is a very severe winter. Germany is seeing temps 20C below zero. Russia even worse. PPl are dying in Ukrine, almost 500.
So brrrrrr.. cold! How do european warm themselves. With natural gas, something not only does qatar and iran have a lot of, but Russia also.

Ok keep this second point in mind.

Ukarine recently elected orange govt which is a pro-western country. Its elected govt won by embracing the west at the cost of Russia. Russia wants to continue its influence on eastern europe. Eastern europe dont like russia anymore. Eastern europe gets very cold during the winter. Russia exports a lot of eastern european gas. Eastern europe need this russian gas to keep them warm in winter, and russia needs these eastern european countries to be good little girls and remain within the russian political and economical influence.

Now, what if a country like ukarine decides to go its own way ??

It was reported that over 500 deaths in ukarine alone due to cold winter and russia has cut its gas supplies to ukarine. Russia hiked the prices of gas from $50 per 1000 m3 to over $250 per 1000 m3. Ukarine didnt pay up and russia turned off the valve.

However, and this is where your Austria iran story comes in my friend, Much of russian gas goes to countries like italy, germany and austria via pipeline through ukarine. Ukarine goes ahead and steals this gas, coz they cant pay russia for it and theyve got ppl dying. What happens, no more russian gas going to austria and italy.

The western govt realize that ukarine is nto to blame. they are dying due to cold weather, and the west isnt going to aid ukarine in paying over$250 per 1000 m3 for russain gas. What they can do is apply political pressure on russia in every possible way.

This is why Germany and Italy, both considered european powerhouses are with talks with Gazprom trying to solve this situation of gas shortage. But what about Turkey, what about Austria, what about luxumborg. This countries dont ahve enough political power to pressure russia and an economical boycott of russia would do them harm.

Tdaaaaaaaaaaaaaaaaaaaaaaaaah.. they turn to the media. This here my friend, and notice the date of your article, three days after west europe didnt ahve no more gas, countries like austria come out in public.

They say, we will turn to hydro power instead of russian gas, we will turn to nuclear instead of russian gas, they even say we will turn to iran gas instead of russian gas. They do that in order and in hope of putting some sort of pressure or threat to Gazprom and Russia so that Russia continues to supply europe with gas and cheap gas. Russia has proven its unrealiable and would have no problem using gas as a political tool. Austria, and trust me i know the company you mentioned, try to play this media game.

See here is why you find article like pakistan will have a pipeline all the way from qatar or austria will have a pipeline from iran. A pipeline wont happen, but they do that in order to exert some sort of economical and political influence.

Another thing, your map, which is also wrong coz maps of pipelines, accurate ones, are never made public. Besides, it doesnt show what your saying. You need to learn how to read it right.

See it shows pipelines, the blue lines, going into Turkey. Then pipeline from Turkey into Europe. Meaning Iran will export gas to turkey at it would be upon Turkey to decide whether to push forward the gas to europe or not. Just like russia, ukarine and western europe.

Another thing, even if turkey decideds to allow to push gas through, and see i say push through not a pipeline through, this wont necessarily mean that iran gas molcules will show up in austrain homes. It doesnt work like this.

Put it simple. Turkey needs 100 apples(gas). It gets 25 from russia, 25 from iran, 50 domestically. Its a mild winter, and it turns out turkey needed 90 apples. 10 extra apples in turkey storage and pipeline. It decides to sale the ten extra apple to western europe, regardless of where the apples came from.


Last but not least my dear friend, i tell you that you are wrong not me. a one paragraph article and a map doesnt make you right am afraid. I really wish you dont take posts personally that way you could become a more informed and better debated person but unfortuantly you fail to show any sign of that. I hope you learned something about the oil and gas industry and no hard feelings.

P.S. It would be cheaper for iran to ship LNG to west europe than to pipeline it. We have rule of thumb, if its over 2,000 km (pipeline) its waste of money.

And plz try not to be obbsed and PM just to remind me to reply to you, I gotta life man !!

[Qatar4Ever]

Shayan-M, Im not the one with big mouth. Really Im not, it just that my friend here is unware of something and I hope I educated him.

Hopefully there will be topics which i know nothing about and you or anyone else will educate me to so i can be more informed a less of a fool.

[Qatar4Ever]

lol.. prsn i just read your second PM.

Your such an adorable kid. Im sorry if i hurt your feeling, come here let me give you a hug !!

Ok enough I wont argue with you baba, finish Iran will build a pipeline to Europe, Canada and even Brazil.

You guys close the topic, there are maps here that show blue lines. Isnt this enough for you all !!

[Qatar4Ever]

"So the track record is really good. But if I'm worried about something then sure, those are the kinds of things that I'm worried about," said Harms. "Maybe it's unfounded worry."

Truly unfounded worries !!

[shayan]

well i hope that iran wont export one drup of oil under these mullahs. SO i hope your right Qatar4ever (eventhough i doubt it, but still i´m hoping your right)

[prsn41ife]

qatar4ever, just keep trying as hard as you can as long as it makes you feel better;)

:rofL:

[Qatar4Ever]

I dont need to feel better about myself when i know im way better !! u adorable little boy.