Transcript 7thGas Doha PRESENTATION SCENARIO

7th Gas Doha Conference
LNG Projects & Project Finance
by Dr. Theodore
Today LNG is a Bridge between World Gas Markets
LNG is becoming the driving force, as estimated that by 2020
it will account for more than 40% of international trade in gas
27%
72 fields
14 fields
(5) 16%
1 field
(12) 15%
15%
16%
LNG supplies come primarily from
Qatar, Algeria, Trinidad, Venezuela, Nigeria, Norway, Oman & Australia
The majority of gas consumed by the leading Asian markets, Japan, South Korea & Taiwan
Source: WER 2008, Theodore 2009
Typically, these locations are in remote areas that do not have high
demand for NG making LNG a very economically viable alternative
LNG Chain
5
2
9
1
4
6
8
10
7
3
C
B
A
It begins with natural gas extraction and is sent through a pipeline to a liquefaction facility
LNG projects are highly capital intensive
Average at
least 20-year
supply
contracts
Justify the
finance required
to construct all
the facilities
How Gas Projects can be financed?
Project Finance
on the standalone project itself
(Cash Flow & Collateral /Security over the
project assets)
Corporate Finance
the strength of
the company’s balance sheet
(not effect on sponsors leverage status)
PF offers a number of advantages for the hosts or sponsors
• allow sponsors for JV partnership, especially in
case that they have different credit standing
• allow partnership to sponsors having high
leverage ratio
• allow sharing risks & profits
‘’Project Finance’’ means discipline from all
participants and agreed structure in finance
GCC Project Spending by Sector (USD billions)
PF as a collaborative endeavor of different actors to produce a set of
operational & financial objectives
Economic Recession
Recession can be a medicine for all the economies
(it may hurts when taken, but it brings long-term cures for a host of ills)
• Recession is always a good point to ‘’revaluate’’, to ‘’negotiate’’,
to ‘’Partner’’, to ‘’Diversify’’, to ‘’Insure’’, to ‘’Price’’, to ‘’Invest’’, to
‘’Grow’’
The big investment challenges comes during Recession & the big profits after
• Recession also can water the flowers of innovation, energysaving initiatives, making investments more efficient (balancing
production, operation and finance costs)
Qatar has witnessed steady positive economic growth, to reach
its current position as one of the
strongest economies in the Gulf and worldwide.
As a largely gas-reliant economy and is broadening its economic and
resource structure into an international recognized diversified
economy that performing significantly better than many of its
regional peers.
Qatar has to consolidate its position as a regional and world energy
hub, by developing both hard and soft infrastructure, apply
innovative concepts (education, knowledge, R&D) of development
and structure strong bilateral business/trading links with leader
global trading blocs.
Thank You
Visit:
www.oilandgasworld.net
[email protected]
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