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WORLD NEWS
Qatar biggest refinery in the world
Qatar decided to build the biggest refinery of liquefied natural gas (LNG) in the world. Its cost is estimated at $14 billions for a production of 77 millions of tons of LNG. Qatar’s minister of petroleum stated that the “essential part of the production of both factories will be sent to USA”. USA will receive directly from Qatar 25 to 30% of the needs in LNG.
The project is developed by Qatar Petroleum (70%) and ExxonMobil Ras Laffan III Limited (30%), which is a subsidiary of the American company ExxonMobil. Qatar is the 3rd country in the world in terms of natural gas reserves with more than 25,000 billions of cube meter.
Qatar Petroleum plans the construction of a petroleum refinery inTunisia.
20-06-2008
Qatar Petroleum is currently finalizing a feasibility study concerning the construction of petroleum refinery inTunisia, said the Minister of Energy Afif Chelbi, on 19th June.
The consortium will build, operate and manage this refinery near the cost city Skhira, 340 km away from the capital. The reinforcement of the capacities of refinery treatment processes is aligned with the Tunisian programs aiming at extending the activities of petroleum and gas exploration in order to offset the reduction of gas and petroleum reserves, to reduce fuel imports and to meet the growing demand.
The global petroleum industry is currently experiencing a good period: the oil price is rocketing, the refining margins are rising and the profits are going straight up. The unique uncertainty of the sector is to know if the situation is economic or if this reflects a deep structural change.
The fundamentals of the markets seem to be solid. The demand growth is supported and fed by the compulsive consumption of the emerging countries, in particular China. Only Europe achieves to control its consumption.
Concerning the offer, the tensions are various. The oil production capacities are quite saturated. Especially as a lot of events disturb the production (strikes, hurricanes, etc.) and as Iraq comes back very slowly on the global petroleum scene. The refining capacities are also saturated and, moreover, not always adapted to the needs of light products.
Thus, the conditions seems gathered so that this latent oil shock carries on, even worsens, to the profit of oil companies. These resume the initiative after a long period of wait and see policy. Indeed, they have sub-invested downstream and rationalised the refining during the 90’s, causing, in part, the living tensions currently in force.
The oil companies invest intensely the upstream sector looking for new areas and by interesting in the non conventional crude oil (extra heavy, bituminous shale). They are also in a logical approach of lobbying towards USA which did not yet open their production to foreign capitals. Even refining returns to global expenses near $50 billions in 2004. The post oil era is also one of their preoccupations.
The renewable energies are thus a development axis which presents, moreover, the advantage to turn green their image sometimes disputed. But it is also the natural gas, with an intense growth trend, which offers the best opportunities.
Financially, the sector has never been so fine. The growing turnover of the first 20 global companies was 27% in 2004 while their cumulated profit achieved the record of $135 billions. The year 2005 will be, undoubtedly, even better. The sudden rise of market capitalisations and the plenty of cash flow defend new operations of rapprochement.
