Significant Gas Reserves

Known natural gas reserves are expected to cover around 60 years of consumption at the current rate.

Although many gas fields are far from consumer regions, the gas can be liquefied, which reduces its volume by a factor of 600. That means it can be shipped by LNG carrier over very long distances. Once it reaches its destination, the liquefied natural gas (LNG) is regasified in dedicated units.

The Liquefied Natural Gas (LNG) Boom

Since 2000, liquefied natural gas has emerged as a crucial component of global gas supply. The industry is enjoying sustained growth — nearly 8% a year between 2000 and 2010 ¹. In 2010, its share of marketed world gas production amounted to 9.5% ². And there is every reason to believe that demand will continue to rise. Markets particularly appreciate LNG’s transportation flexibility, which is comparable to liquid hydrocarbons.

Producing countries are supporting the growth of this industry, which broadens markets and generates new revenue streams. LNG development can also help to reduce flaring of associated gas.

We became involved in LNG very early on, acquiring an interest in the world’s first liquefaction plant, in Algeria in the 1960s. Today, we are present across the LNG value chain, from upstream exploration, production and liquefaction to midstream shipping, regasification and marketing.

The Yemen LNG liquefaction plant.

Thanks in part to the ramping up of the Yemen LNG and Qatargas 2 plants, commissioned in 2009, we grew our LNG production by nearly 40% in 2010.
With operations in most major production areas and in the main LNG markets, we are now the world’s second-ranked LNG operator among international oil companies ³.

Our involvement in several liquefaction and regasification facilities clearly demonstrates our commitment to LNG growth, to meet the needs of European and Asian markets sustainably.

Ethane, from Gas to Plastic

Used in the petrochemical industry, ethane is derived from natural gas. It can be transformed into ethylene, which is then polymerized to produce polyethylene (plastic). This feedstock is an alternative to the petroleum-derived naphtha commonly used in petrochemicals.

The ethane cracker of the Qatargas 2 complex in
Ras Laffan, Qatar

Total is active in this diversification with investments in the Qatofin project in Qatar. The facility consists of three separate, complementary units that cover the entire production chain:

• The Ras Laffan steam cracker, which produces ethylene. Inaugurated in May 2010, it is one of the largest in the world, with an annual production capacity of 1.3 million metric tons.
• A gas pipeline, which carries the feedstock to the site where it is polymerized.
• A 450,000-metric-ton-per-year polyethylene production unit in Mesaieed located 110 kilometers further south.

Since its commissioning in 2010, the Ras Laffan steam cracker, in which we have a 22% interest, has been helping us to reduce the percentage of naphtha in our supply. This diversification is in part a response to demand for plastics that is significantly outpacing the growth in oil production.

1. Cedigaz
2. Cedigaz
3. Based on upstream and midstream LNG portfolios