Registration document 2007 - Total.com

Asia Pacific
The Hazira re-gasification terminal, located on the west coast of
the Gujarat state in India, was inaugurated in April 2005. It has an
initial capacity of approximately 3.4 Bm 3 per year. Since May
2005, TOTAL has held a 26% interest in this merchant terminal
whose activities include taking delivery of LNG, re-gasification
and natural gas marketing. TOTAL has agreed to provide up to
26% of the LNG for the Hazira terminal. Due to market
conditions, in 2005 and 2006 the Hazira terminal was essentially
operated on the basis of short-term (spot) contracts, both for the
sale of gas on the Indian market and the purchase of LNG from
international markets. Twelve cargos were delivered in 2006,
compared to three in 2005.
Middle East
In Qatar, pursuant to heads of agreement signed in February
2005, TOTAL signed purchase contracts in July 2006 for up to
5.2 Mt/y of LNG from Qatargas II (second train) over a 25-year
period. This LNG is expected to be marketed in France, the UK
and North America. In December 2006, TOTAL concluded an
agreement to acquire a 16.7% interest in the second train of
Qatargas II.
In Yemen, through its wholly-owned subsidiary Total Gas &
Power Ltd, TOTAL, signed an agreement in July 2005 with
Yemen LNG Ltd (in which TOTAL has a 39.62% interest) to
purchase 2 Mt/y of LNG over a 20-year period, beginning in
2009, to be delivered to the United States.
In Iran, as part of the agreements for the Pars LNG project (in
which TOTAL has a 40% interest), Total Gas & Power Ltd signed
a long-term purchase agreement for approximately 3 Mt/y of
LNG. This agreement is conditioned upon the final investment
decision for the project regarding the construction of two
liquefaction trains, each with a capacity of 5 Mt/y.
Africa
In Nigeria, train 4 of Nigeria LNG Ltd (NLNG), a company in
which TOTAL holds a 15% interest, began operations in
November 2005, followed by train 5 in February 2006. These two
additional trains, with a liquefaction capacity of 4 Mt/y of LNG
each, increased the total nominal capacity of the plant to
17.9 Mt/y. TOTAL took delivery of its first LNG shipment from
Nigeria in January 2006, under a contract providing for 0.23 Mt/y
of LNG over a 20-year period.
In July 2004, in connection with NLNG’s decision to build a sixth
gas liquefaction train at its Bonny plant (Nigeria), TOTAL, through
its subsidiary Total Gas & Power, purchased an additional 0.9 Mt/y
of LNG over a 20-year period to be added to the initial 0.23 Mt/y
from other trains. Deliveries from train 6 are scheduled to start in
2007. TOTAL also conducted negotiations for a LNG purchase
contract for an additional 1.375 Mt/y over a 20-year period to be
supplied by another new train (train 7). The agreement is expected
(1) Source : Poten & Partners - LPG IN WORLD MARKETS – Yearbook 2006.
Business overview
Gas & Power - Upstream
2
to be signed in the first half of 2007 and is subject to final
investment decision for the new train, which has a planned
capacity of 8.5 Mt/y and is scheduled to begin deliveries early in
the next decade.
In October 2006, TOTAL acquired a 17% interest in the Brass
LNG project to construct two liquefaction trains, each with a
capacity of 5 Mt/y, scheduled to begin deliveries in 2011. In
connection with the acquisition of this interest, in July 2006
TOTAL signed a preliminary agreement with Brass LNG Ltd
setting forth the principal terms for a LNG purchase contract for
1.65 Mt/y over a 20-year period, destined mainly for North
America and Western Europe. As is the case for purchase
contract for train 7 of NLNG, this purchase contract for Brass
LNG would also be subject to final investment decision for the
project, which is scheduled to begin deliveries early in the next
decade.
Trading
TOTAL’s subsidiary Total Gas & Power Ltd has been trading LNG
cargos since 2001. This activity provides TOTAL with flexibility in
the supply of gas to its main customers. Suppliers are the main
liquefaction plants which produced more LNG than they were
required to deliver under their long-term sales agreements
(Nigeria, Oman, Abu Dhabi, Algeria and Egypt). The customers
for these cargos are located primarily in France, Spain and Asia
(India, Japan and Taiwan). TOTAL sold nineteen spot cargos in
2006, compared to thirteen in 2005 and seven in 2004.
Liquefied Petroleum Gas (LPG)
The Gas & Power division conducts LPG (butane and propane)
trading and marketing activities.
In 2006, TOTAL traded and sold 5.8 Mt of LPG (butane and
propane) worldwide (compared to 5 Mt in 2005 and 4.8 Mt in
2004), of which approximately 1.2 Mt in the Middle East and
Asia, approximately 1 Mt in Europe on small coastal trading
vessels and approximately 3.7 Mt on large vessels in the Atlantic
and Mediterranean regions. Nearly half of these quantities
originated from fields or refineries operated by the Group. LPG
trading involves the use of six time-charters and approximately
60 spot charters. In 2006, this activity represented approximately
11% of worldwide seaborne LPG trade (1) .
In 2006, TOTAL continued the construction, launched in
November 2003, of a LPG importation and storage unit located
in Visakhapatnam, on the east coast of India in the state of
Andhra Pradesh. This terminal is expected to start commercial
operations mid-2007 and has a planned storage capacity of
60,000 tons and a planned off-take capacity of 1.2 Mt/y. TOTAL
has a 50% interest in this project in partnership with Hindustan
Petroleum Company Ltd.
TOTAL – Registration Document 2006 39