Download the magnificent seven

RasGas Magazine Issue 22 Spring 2008
Issue 22 Spring 2008
The
magnificent
seven
New Q-Flex carriers expand
the RasGas fleet
vision
Ali Al Hamadi, Tasweeq
CEO, on the value of
synergy in marketing
Strengthening
the supply chain
The first RasGas
Supply Forum
A safer Qatar
Launch of child car
seat campaign
rgee
industrial city
CSR
Shipping
Editorial
RasGas Magazine Issue 22 Spring 2008
RasGas: the energy to achieve
Issue 22 Spring 2008
THE
MAGNIFICENT
SEVEN
New Q-Flex carriers expand
the RasGas fleet
VISION
Ali Al Hamadi, Tasweeq
CEO, on the value of
synergy in marketing
STRENGTHENING
THE SUPPLY CHAIN
The first RasGas
Supply Forum
A SAFER QATAR
Launch of child car
seat campaign
RGEE
INDUSTRIAL CITY
CSR
SHIPPING
Front cover: access stairs to storage tanks
for Train 6
Editor-in-Chief
Abdulla Hashim
Editor
Carol Pascoe
Managing Editor
Sinéad Mangan-Mc Hale
Editorial Assistant
Alisar Al Sheikh
Contributing Writers
Neil Marathe
Kate O'Neill
Charlene White
Editorial Team
Erin Murphy
Samah Derhally
Emad Soliman
Adi Rahi
Photography
Manfred Erber
Anthony Terrot
Qatar Studios
Edited and produced by:
RasGas Company Limited
Public Relations Department
PO Box 24200
Doha
State of Qatar
Tel: +974 492 3214
Fax: +974 492 3490
www.rasgas.com
Designed by East Publishing
www.eastpublishing.com
© RasGas Company Limited 2008
All statements and expressions contained
herein are the sole opinions of the writers and
editors, and do not necessarily represent the
opinions of RasGas Company Limited.
02 RasGas MAGAZINE
RasGas’ spirit of growth and ambition comes through loud and clear in this issue’s
round up of 2007, with highlights in every sphere. Going forward, RasGas shows
every sign of building on these achievements. We are committed to ensuring that
our expansion plans are implemented in line with RasGas Elements for Excellence
(RGEE), our operations integrity management system. Regular internal and external
audits of RGEE will identify any business risks that need addressing and any
long-term system enhancements required.
When His Highness Sheikh Hamad Bin Khalifa Al Thani, the Emir of the State of
Qatar, inaugurated RasGas’ fifth natural gas liquefaction train in March 2007,
it marked a turning point in Qatar’s energy industry development. The launch
of Train 5 took the country’s LNG production capacity to 30.7 million tonnes per
annum, a remarkable achievement in which RasGas continues to play a major
role. Within two years, when Trains 6 and 7 are both on-stream, Qatar will supply
around 30 per cent of the world’s LNG, of which RasGas will ship around half.
In this issue of the magazine, we have been fortunate to interview Ali Al Hammadi,
CEO of one of Qatar’s newest businesses, Qatar International Petroleum Marketing
Company (Tasweeq). Tasweeq was established by the Qatari government to be the
sole independent marketer of regulated products to all customers outside Qatar.
Tasweeq is an exciting new company and one that we are proud to be working with.
Still looking ahead, this issue celebrates the addition of seven new Q-Flex vessels
to the RasGas fleet, which are set to play a strategic role in our future expansion
plans. These plans include our ongoing relationship with Fluxys, our European
partner, and there are interviews with Erwin Van Bruysel, Distrigas CEO, and Sophie
Dutordoir, Fluxys CEO, a sponsor of one of the new vessels, who share their views
on the future potential for LNG.
Meanwhile RasGas continues to develop its relationships with suppliers and
vendors. The inaugural RasGas Supply Forum, held recently in Doha, exemplifies
RasGas’ best-practice approach to supply-chain management. The event provided
a chance for RasGas’ suppliers to find out about our growth plans and was a unique
opportunity for them to network with other suppliers from around the world.
RasGas’ achievements amount to more than improving and growing its business.
The company also nurtures a deep sense of corporate and social responsibility, as
can be seen in our new child seat awareness campaign. Launched to coincide with
GCC Traffic Week, our latest Corporate Social Responsibility initiative aims to raise
public awareness of the importance of installing and using child car seats correctly.
By focusing on children’s car safety, we can help protect the next generation.
As this issue reveals, RasGas is channeling its ‘energy to achieve’ in several spheres
to help put Qatar in a position of undisputed leadership in world LNG.
Hamad Rashid Al Mohannadi
RasGas Managing Director (CEO)
RasGas MAGAZINE
Contents
06
04 News
The world’s largest logo; Tembek
breaks world record; Trains 6 and
7 on schedule; 13th Conference
for Gas in the Middle East; SAP
milestone for Adriatic LNG;
Gastech 2008
06 Best of 2007
14
24
A round-up of RasGas’ outstanding
achievements in operations, health
and safety, CSR, education and
exhibitions during the past year
08 Vision
16 Fluxys
Sophie Dutordoir, Fluxys CEO,
discusses the benefits of Fluxys’
relationship with RasGas
18 Operational
excellence
Why regular audits of the RasGas
Elements for Excellence (RGEE)
programme are vital for continuing
improvements to operations
22 RasGas Supply
Forum
Ali Al Hamadi, Tasweeq CEO,
reflects on the value for synergy
in the marketing of a complex
mix of energy products, and on
the company's plans for growth,
innovation and profitability
At the first event of its kind,
RasGas brought together suppliers
from all over the world – with
benefits for everyone involved
12 Distrigas
How Qatar’s pioneering industrial
city is gearing up for significant
growth in 2008 and beyond
RasGas Magazine talks to Erwin
Van Bruysel, Distrigas CEO, one
of RasGas’ key partners in Europe,
about the fast-growing global LNG
market
14 Shipping
The RasGas LNG fleet has
significantly expanded this year
with the addition of seven new
Q-Flex ships within a week
24 Mesaieed
Industrial City
26 CSR
With a record for health and safety
second to none, RasGas is now
promoting a safety culture in wider
Qatari society with a new child car
seat awareness campaign
RasGas Train 5, inaugurated
in 2007; a new Q-Flex tanker
for the RasGas fleet; and a
bird's-eye view of Mesaieed
Industrial City
RasGas MAGAZINE 03
News
It's a Guinness world record!
RasGas achieved another first recently, when
it entered the official Guinness World Records
for creating the world’s largest hand-print
painted logo.
The massive RasGas logo, measuring
2,500 square metres, was proudly unveiled
during the RasGas Employee Forum on 26 March
by RasGas’ Managing Director (CEO), Hamad
Rashid Al Mohannadi. It was created by over
SAP milestone for
Adriatic LNG
After two years of development, SAP has
successfully been implemented at the Adriatic
LNG (ALNG) Terminal in Italy. ALNG is a
regasification terminal jointly owned by Qatar
Petroleum, ExxonMobil and Edison. It chose
SAP as its corporate Enterprise Resource
Planning (ERP) software to run its business,
and the RasGas IT Department has been
providing the necessary ongoing development
and daily support.
A recent ALNG customer satisfaction survey
of SAP users revealed that the RasGas IT
Department is providing excellent support,
even outside normal working hours. This is a
particularly impressive result, considering the
many challenges that the project team faced.
These included tailoring the SAP software
to meet ALNG’s particular needs and local
statutory requirements; providing remote
support with different time zones; establishing
an Enhanced Virtual Private Network (EVPN)
connection to the Milan office; and multiple
language support for English and Italian.
04 RasGas MAGAZINE
1,400 RasGas onshore and offshore employees
in Qatar. His Excellency Minister of Finance
and RasGas Chairman, Yousef Kamal, and other
RasGas board members also took part.
“The hand-printed RasGas logo is a visual
representation of the hard work and dedication
of the many RasGas employees who have left
their mark and contributed to our success,”
commented Mr Al Mohannadi. “Entering the
Guinness World Records shows that RasGas
enjoys record-breaking of all kinds! This was
a fun yet proud achievement for RasGas and all
our employees.”
RasGas’ unique achievement was officially
announced at an evening event at the New Qatar
Exhibition Centre in Doha, which also provided
the perfect opportunity for employees to relax
and socialise with their colleagues.
Trains 6 and 7
right on track
Not only did RasGas achieve 96 per cent
reliability in its plant operations in 2007, but
Trains 6 and 7 remain on schedule to start
production in early 2009 and the latter part
of 2009, respectively.
Speaking to the Qatar Tribune, RasGas
Managing Director (CEO) Hamad Rashid Al
Mohannadi said that adequate protection
measures had been factored in during the
estimation and finalisation process for Trains 6
and 7, and ruled out any project cost overrun
or delays. He pointed out that the latest
technologies are being used to develop the new
trains, which would result in lower unit costs of
production and less impact on the environment.
RasGas also achieved record LNG production
last year, with 317 cargoes loaded. The results
confirm RasGas’ position as one of the most
reliable and fastest-growing energy companies
in the world.
News
Impressive
presence
at Gastech
The Thai Energy Minister was a
VIP visitor to the Qatar stand at
Gastech 2008, where RasGas
was represented along with
Qatar Petroleum, Qatargas
and Ras Laffan Industrial City.
Lieutenant General Poonpirom
Liptapanlop was welcomed by
RasGas Managing Director (CEO)
Hamad Rashid Al Mohannadi and
other dignitaries. She praised the
effective Qatari participation
in the conference expressing a
desire to visit the state of Qatar
and Ras Laffan Industrial City. The
23rd International Conference
and Exhibition for the LNG,
LPG and Natural Gas Industries
(GasTech 2008) was held in
March in Bangkok, Thailand.
Developing
the gas sector
in Qatar
Global demand for energy will make natural
gas the second most important source of
energy in the world within 10 to 15 years,
RasGas Managing Director (CEO) Hamad
Rashid Al Mohannadi told delegates at the
13th Conference for Gas in the Middle East,
held in Doha in March.
Giving the opening speech on behalf
of His Excellency Abdullah Bin Hamad
Al Attiyah, Vice President of the Council
of Ministers and Minister of Energy and
Industry, Mr Al Mohannadi said that with the
continuing support of His Highness Sheikh
Hamad Bin Khalifa Al Thani, the Emir, Qatar
is implementing a multi-dimensional
strategy for developing its LNG industry.
The conference also heard how Qatar is
planning to expand its operations to meet
the growing world demand for natural gas,
both through expanding its LNG fleet and
building new terminals in the UK, Italy
and USA.
LNG cargo breaks
records
In January Tembek entered the record books
when it became the first Q-Flex sized ship to
deliver a full cargo of LNG to any terminal in
the world. The 216,000 cubic metre (cu.m)
capacity vessel arrived at Pyeong Taek terminal
in South Korea with a cargo of approximately
212,000 cu.m of LNG for RasGas’ long-term
customers KOGAS.
Senior RasGas representatives, headed
by Mr Nasser Al Naimi, RasGas Commercial
and Shipping Manager, attended an onboard
ceremony to celebrate the occasion with senior
KOGAS Shipping and Terminal representatives.
“Through close cooperation with our sister
company Qatargas, RasGas and the State of
Qatar have made history by delivering the
first fully-loaded Q-Flex cargo anywhere in
the world. To be able to deliver this cargo to
KOGAS, our first and longest standing customer,
is particularly pleasing and further enhances
our reputation as a world-renowned and
market leading LNG supplier of choice.”
Mr Al Naimi also presented gifts to KOGAS and
the ship’s captain on behalf of RasGas.
RasGas MAGAZINE 05
2007 Review
Train 5 Inauguration
•M
arch: RasGas celebrates the inauguration
of Train 5 by HH Sheikh Hamad Bin Khalifa
Al Thani, the Emir of Qatar [1]. The project
is one of the largest LNG expansions
ever. With a production capacity of 4.7
million tonnes per annum (Mta), Train
5 makes Qatar the world's leading LNG
producer with a total production capacity
of 30.7 Mta. The project is completed
within budget and achieves an impeccable
safety performance. Constructed three
months ahead of schedule in under 28
months, Train 5 sets a new world record
for a plant of this size. It also marks a
technological milestone. Incorporating Dry
Low NoX technology, it will dramatically
reduce emissions to the atmosphere. A
new advertising campaign promotes the
record-breaking achievements of Train 5
and its ability to deliver clean, efficient fuel
to world markets
2007
an outstanding year
1
In every field of RasGas’ activities,
2007 was characterised by growth,
ambition and achievement. The
company confirmed its commitment
to innovation, safety and reliability,
and reinforced its status as a world
leader in LNG production. Here
are just a few highlights from a
landmark year...
2
Corporate Achievements
• January: RasGas' annual ISO audit is
successful and it retains certifications for
ISO 9001:2000, ISO 14001:2004 and
OHSAS 18001:1999 standards
• March: RasGas makes its first delivery of
LNG to Distrigas, at the Fluxys terminal in
Zeebrugge, Belgium [2]
• March: A new long-term agreement is
signed with KOGAS
• April: Dr Mohammed Al Sada, RasGas
Managing Director, is appointed HE
Minister of State for Energy and Industry
Affairs. Mr Hamad Rashid Al Mohannadi
takes up the role of RasGas Managing
Director (CEO)
• June: RasGas and EDF Group (France)
sign a mid-term LNG supply agreement
for up to 3.4 Mta
• July: RasGas and Petronet LNG (India)
sign a sale and purchase agreement for
1.25 Mta [3]
• October: HE Abdullah Bin Hamad Al
Attiyah, Qatar's Deputy Premier and
Minister of Energy and Industry, is named
Oil Executive of the Year 2007
3
4
Corporate Social
Responsibility
• February: The annual RasGas Pro Am
Golf Tournament and gala dinner raises
QR350,000, which is donated to the
Qatar Society for the Rehabilitation of
Special Needs
• June: RasGas donates QR500,000 to
enable young Qatari students to attend a
language course in the UK
• August: RasGas donates QR150,000
to Al Amal Hospital, which provides
specialist care to those with blood
disorders and cancer [4]
06 RasGas MAGAZINE
5
2007 Review
• October: RasGas supports Qatar Red
Crescent Eid celebration in Lebanese
refugee camps, helping to distribute food
parcels and gifts to families in need
• November: RasGas supports Dhreima,
the Qatar Orphan Foundation, in
producing a unique series of Eid
greetings cards
Shipping
• January: The Ejnan becomes the 11th
LNG vessel to join the RasGas fleet
• February: The Al Daayen becomes
the 12th LNG vessel to join the RasGas
fleet [5]
• May: The Al Jassasiya becomes the 13th
LNG vessel to join the RasGas fleet
6
7
8
Safety, Health and
Environment
• January: Implementation of RasGas'
innovative leak detection and repair
(LDAR) programme to tackle emissions
• March: RasGas Shorebase Department
achieves 10 years without a lost-time
incident (LTI)
• April: Five RasGas safety officers,
including three Qatari nationals,
receive certificates from the British
Safety Council
• May: RasGas and SCENR achieve a 24
per cent reduction in gas flaring at Ras
Laffan, far exceeding expectations
• June: RasGas launches comprehensive
heat-stress prevention programme for
employees and contractors
• June: Shutdowns of Trains 3 and 4 (and
Train 5 in October) conclude with no LTIs
• July: Al Madinah Health Centre, built by
RasGas, opens at Ras Laffan Industrial
City providing a dedicated medical
service for up to 60,000 workers
• July: Common Offplots Projects chalk up
10 million man-hours without an LTI
• September: RasGas Expansion Projects
celebrate 30 million man-hours without
an LTI
• October: Staff on the RasGas Alpha
platform reach nine consecutive years
without an LTI [6]
• October: RasGas Venture Group achieve
37 million man-hours without an LTI
Exhibitions and conferences
• January: At Petrotech 2007, RasGas
representatives present several
technical papers
• April: RasGas exhibits at the LNG 15
conference and exhibition in Barcelona [7]
• September: RasGas demonstrates its
comprehensive emergency management
services and state-of-the-art rescue
equipment at the 2007 Civil Defence
Exhibition and Conference in Doha
• November: RasGas participates in the
inaugural Qatar Career Fair [8]
• December: In Rome, Hamad Rashid Al
Mohannadi, RasGas Managing Director
(CEO), gives the keynote address at the
CWC Annual World LNG Summit
9
University Advisory
Committee (UAC)
• July: RasGas' Subsurface Group hosts an engineering workshop at Texas A&M
University at Qatar
• September: RasGas funds Texas A&M
University at Qatar to research wireless
communications for drilling wells
• December: RasGas co-sponsors Education
Week at the International Petroleum
Technology Conference in Dubai [9]
RasGas MAGAZINE 07
Vision
Tasweeq, the Qatar International Petroleum
Marketing Company, delivered its first cargo on
2 January this year. Ali Al Hamadi, CEO, reveals the
story behind a truly innovative marketing enterprise
Selling
Qatar to
the world
Tasweeq literally means ‘marketing’ in Arabic, and that is
the focus of this operation. The company was set up by
Emiri decree in July 2007 as the sole export marketer of
Regulated Products manufactured in Qatar, to support
the country’s increasing natural gas and oil production.
Regulated Products are co-products of liquefied natual
gas (LNG), gas-to-liquid (GTL) and flowing gas production
operations. They currently include condensates, liquid
petroleum gas (LPG), refined products and sulphur, and
specifically exclude LNG, GTL products and crude oil. The
Qatari government owns Tasweeq 100 per cent – our
mandate is to be the sole buyer of Regulated Products
produced for export by any entity in Qatar and the sole
seller to potential international customers.
The production and delivery of LNG, GTL and pipeline
gas requires not only extensive coordination of LNG
shipping and gas pipeline operations by the respective
producers, but also the timely sale and lifting of the
Regulated Products. The increase in the volume of natural
gas processed in Ras Laffan Industrial City brings significant
operational, logistical and marketing challenges, as the
Regulated Products must also be exported through the
very large but busy port of Ras Laffan. Fortunately the
Qatari government had the foresight to establish Tasweeq
to ensure the timely lifting of natural gas by-products and
to maximise value to all projects and their shareholders.
Imagine: a world without Tasweeq
If you look at the challenges that would face operators
in Ras Laffan if Tasweeq didn’t exist, you get a clearer
picture of the value of our company. With 13 entities
projected to be producing Regulated Products for export
from Ras Laffan, including all the RasGas and Qatargas
ventures, each with an independent need to ensure the
timely lifting and export of their Regulated Products, there
was significant potential for duplication of infrastructure,
08 RasGas MAGAZINE
Vision
RasGas MAGAZINE 09
Vision
By the end of the decade Qatar will
produce 14 million tonnes per year (Mta)
of LPG, 4 Mta of sulphur and 700,000
barrels per day of condensates
facilities and organisation. But the commercially astute
operators worked together to develop a shared facilities
strategy that encompasses storage, loading and operational
elements. These synergies have saved the operators up to
eight billion dollars.
With maximum synergies captured for the storage
and loading infrastructure, the remaining challenge was
marketing. A prerequisite for smooth LNG, GTL and
natural gas operations is reliable export of the Regulated
Products from these facilities, which in turn is dependent
on marketing activity that ensures the product is sold and
delivered without reaching storage constraints. So the next
step was to evaluate the coordination of the marketing
and export of these valuable by-products – a Technical
Committee was established by the government in 2005 to
review the situation, and to recommend and develop the
most efficient system.
I was asked to chair this committee. Three expert
colleagues and I looked at the scale of the problems at
current and expected levels of production – to give some
perspective, by the end of this decade Qatar is expected
to produce 14 million tonnes per year (Mta) of LPG, 4 Mta
of sulphur and 700,000 barrels per day of condensates
(almost 25 per cent of global condensate production). The
logistics involved in shipping both LNG and these volumes
of Regulated Products through Ras Laffan port meant
that the traditional approach of selling on a ‘free on board’
(FOB) basis was not a feasible option.
Qatar also needed the flexibility to sell products on a
delivered basis into the international marketplace, so a
key element of the committee’s task was to examine the
international legalities involved, including anti-trust and
anti-competition laws in markets such as Europe and
the United States. While many would assume that Qatar
Petroleum (QP), the state-owned oil and gas company, is
the natural marketer, one of the committee’s findings was
10
RasGas MAGAZINE
that the marketing of these products should be undertaken
by an independent company.
In addition to looking at the external requirements,
the Technical Committee consulted with companies
operating at Ras Laffan – the concerns of these
organisations and their shareholders were reflected in
the report presented to the government. The industry
participants acknowledged the Qatari government’s
proactive initiative to resolve the future logistical
challenges, and made a constructive contribution.
The creation of Tasweeq
The committee recommended that a new company, Qatar
International Petroleum Marketing Company (Tasweeq),
should be created under a new Qatari law that requires
companies producing Regulated Products for export to sell
only to Tasweeq. Tasweeq would then, in its own name, sell
these products in the global market on competitive terms
to achieve maximum market value. In January 2007 the
government directed the Technical Committee to establish
the company as recommended.
Tasweeq is required to maintain its independence from
producers and to operate as an arms-length commercial
business. In addition to ensuring reliable lifting of product,
Tasweeq’s mandate is to maximise the value of Qatar’s
natural gas by-products for the benefit of the state and
producers alike. To ensure our objectivity and to reassure
Qatar’s natural gas operators, we are legally obliged to
Celebrating the first cargo sold
by Tasweeq in January 2008
Vision
Tasweeq has chartered four
dry bulk ships dedicated to
delivering sulphur
treat all parties equally and to operate our business in
accordance with a business model designed to support
value capture and the fair treatment of all producers. To
provide further reassurance, compliance with the new law
must be verified by an independent third party.
We began operations this year, buying and delivering
our first cargo on 2 January. To date we have awarded
a substantial number of contracts for condensate and
have almost sold out of projected supplies of LPG for
2008. By the end of April 2008 6.5 million tonnes
of product (200-plus cargos) had been delivered on
time, with all payments made on time according to the
sales agreements. While Tasweeq is a global marketing
company selling to one of the world’s highest-value
markets, we see strong demand for all of our products
in the traditional ‘east of Suez’ growth markets: Japan,
Korea, China and India.
Rising in the east
Japan remains the most important LPG destination, while
field condensates have a broader reach, from Middle East
refiners to the refining centres of Japan, Korea, China and
Singapore. Sulphur is used to produce fertiliser, and we
have seen remarkable growth in demand in high-population
developing countries such as India and China, pushing market
spot prices from well below $100/tonne a few months ago
to as much as $700/tonne in early 2008. Refined products
exports are modest at the moment before the Laffan
refinery starts up, but we believe those products will have
many destinations in and around the Gulf area.
We currently have four dry bulk ships on charter
from Qatar Gas Transport Company (Nakilat). These are
dedicated to delivering sulphur. The largest vessel has a
cargo carrying capacity of up to 45,000 tonnes.
I believe in recruiting the best professional staff. We
are building a team of Qatari and international experts to
manage Tasweeq’s operations, and while these are early
days in our development, we have ambitious expansion
plans: we aim to establish a liaison office in Singapore by
the end of 2008, and will be looking at the possibility of
opening a London office shortly afterwards. Although
our initial marketing efforts will be confined to the four
regulated-product categories, we are currently considering
the possibility of assisting in the marketing of Qatar’s
crude oil in some capacity. Tasweeq is a ground-breaking
company not only in the manner in which it markets a
country’s natural resources, but in developing new and
innovative ways of managing the marketing process.
Tasweeq has developed QTrades, a new automated system,
purpose-built to support the unique marketing, sales and
delivery process of all our products.
I am very proud of our accomplishments in such a
short period, and I firmly believe that we will continue to
add increasing value to Qatar. Tasweeq will be a reliable,
efficient and responsible marketer of Regulated Products
for all the gas operators in Qatar.
RasGas MAGAZINE
11
Distrigas
Distrigas is one of Europe’s major gas
marketers. It has more than 75 years in the
energy business and has been trading in LNG
for 20 years, making it a European pioneer
in the industry. RasGas Magazine talked to
Erwin Van Bruysel, Distrigas CEO, about the
company’s current and future plans
Building links
with Europe
Could you briefly describe Distrigas’ business activities
in Europe, both today and historically?
In relative terms, Distrigas is ranked as the seventh biggest
gas company in Europe. The company was founded in 1929
by a British firm, Imperial Continental Gas Association,
and started its operations in the town gas business in the
Brussels area. With the development of the natural gas
industry in the 1960s, Distrigas became the Belgian natural
gas wholesaler. Distrigas started to import natural gas in
1966 from the Netherlands and from Norway in 1977. In
1975, Distrigas signed one of the first European long-term
LNG supply contracts with Algeria and decided to build a
new LNG terminal at Zeebrugge, which was commissioned
in 1987. Distrigas was among the pioneers of the LNG
industry in Europe.
Historically, Distrigas was active both in the gas
transportation and the gas merchant business. When the
European gas markets were liberalised, Distrigas was split
in 2001 into a regulated gas transport company (Fluxys)
and a non-regulated merchant company (Distrigas). Today
Distrigas sells natural gas in Belgium, its home market, and
in France, the Netherlands and Germany.
12
RasGas MAGAZINE
What are your main distribution areas and, as
competition increases in the European energy sector,
how does Distrigas plan to remain competitive?
Distrigas is marketing natural gas to three categories of
customers: industry, power generation and resellers (selling
the natural gas in the retail market).
Belgium is our home market where we still have a
predominant market share. As competition increases in
Belgium, Distrigas is selling natural gas outside Belgium in
one or more of the three customer segments above and it
is now active in France, Germany and the Netherlands. For
instance, Distrigas is supplying about 140 customer sites
in France and is the first gas marketer after the national
incumbents, Gaz de France and Total, in the industrial
segment in France.
Distrigas buys its gas under long-term supply contracts
with regular price reviews, in order to maintain the
competitiveness of its gas portfolio. The gas prices are
also escalated with competing forms of energy (mainly oil
products) and optimised, thanks to our arbitrage-trading
activities. Distrigas’ supply portfolio is also diversified from
a technical point of view, consisting of pipeline gas and
LNG. In this respect, Distrigas has probably one of the most
balanced long-term supply portfolios in Europe.
The LNG share
in the global
natural gas
supply to
Europe will
proportionally
increase in the
next five years
and should
raise from 10 per
cent in 2005 to
15 per cent
in 2010
How has the sales and purchase agreement with
RasGas helped you to meet the growing demand for
LNG in Europe?
The start of deliveries in 2007 under our new LNG supply
contract from Qatar, which was signed in 2005, marks a
significant milestone in Distrigas’ history. This new contract
is first and foremost a long-term supply contract which
provides firm deliveries from a very reliable supplier and, as
a result, constitutes a further reinforcement of Distrigas’
portfolio diversity. As I said, such diversity is essential to
preserve Distrigas’ competitiveness as a reliable long-term
supplier of gas to its customers. The RasGas LNG supply
contract will be the basis of our relationship until beyond
2025 and I am convinced that additional volumes shall be
added to this solid foundation and contribute to cover the
future needs of our customers in Europe.
The two greatest global concerns when addressing
energy supplies are security of supply and the sourcing
of environmentally friendly supplies. How do you feel
these concerns can be addressed?
A well-diversified supply portfolio is the cornerstone of
security of supply. In that respect Distrigas buys around
40 per cent of its natural gas from within the European
Union and another 40 per cent from Norway, so that 80
per cent of its supplies are originating from within Europe
and delivered by pipeline. The remaining 20 per cent is LNG
from Qatar, a reliable and experienced world-class LNG
producer with the world’s third-largest gas reserves, and
enjoying a stable political climate under the auspices of His
Highness the Emir.
Regarding the sourcing of environmentally friendly
supplies, it is unquestionable that natural gas is, by far,
the cleanest and most environmentally friendly of all fossil
fuels. Here also, Qatar is a partner of choice for Distrigas,
being an LNG producer attributing great importance
to environmental issues in Qatar and through the LNG
supply chain.
Mrs Magda Naudts, wife of Mr Erwin Van Bruysel,
Distrigas CEO, was sponsor to Al Khuwair, one
of the seven RasGas Q-Flex ships launched in
February 2008
With the coming on-stream of RasGas Train 5, Qatar is
on target to become the world’s largest LNG producer
and exporter with production capacity of over
30 million tonnes per year (Mta). The expansion in
natural gas projects will result in Qatar’s LNG production
capacity reaching 77 Mta by 2010. What impact do you
think this growth will have on the energy market?
Qatar is already viewed as the leading LNG producer in
the world and that role will obviously become more and
more important with the ongoing expansion project. Qatar
is becoming the number one LNG export country and is
bringing significant additional supplies to a growing market,
as well as constituting a further diversification source,
especially for Europe. I am convinced that Qatar is willing
to play this prominent leading role in the LNG business by
maintaining the highest level of reliability in its operations
and by managing its tremendous growth with the same
standards of quality and commercial creativity which it has
demonstrated so far.
Distrigas
There has already been a dramatic increase in the
demand for environmentally-friendly fuel such as LNG.
What are your views on the further development of the
market for LNG and natural gas in general in Europe in
future years?
Natural gas demand has been growing by an average 2–3
per cent per year over the last years. We can reasonably
anticipate the same growing pace in the coming years.
However, political decisions with regard to environmental
measures post-Kyoto, development of alternative energy
sources, energy conservation, and closure or non-closure
of nuclear plants may potentially have an enormous impact
on future demand for natural gas.
In our view, LNG and pipeline gas will continue to
complement each other in future, both providing natural
gas for the end consumer. Natural gas is said to be the fuel
of choice of the 21st century, being the cleanest fossil
fuel and the necessary link to any new forms of renewable
energy.
LNG will undoubtedly play an important role in
contributing to cover this growth and transition. As a
result, the LNG share in the global natural gas supply to
Europe will proportionally increase in the next five years
and should raise from 10 per cent in 2005 to 15 per cent
in 2010. In absolute terms, LNG contributed to 55 billion
cubic metres (bcm) of European supply in 2006 and should
contribute about 75 bcm a year in 2010 and could reach
125 bcm per year in 2015. Qatar will obviously cover a
major share of this growth.
Distrigas recently took part in the naming ceremonies
for three Q-Flex ships joining the RasGas LNG fleet.
What impact will the expansion of LNG fleets with
substantially larger LNG carriers have on market
demand?
From an LNG buyer’s perspective, the expansion of the
RasGas fleet with Q-Flex and Q-Max vessels is a positive
factor to the extent that it will make more LNG supplies
available at a lower transportation cost, and so it is a
positive development for the industry.
However, such development should not be detrimental
to the supply chain flexibility, as it will unavoidably require
more LNG storage capacity at the discharge facilities and
not all terminals may be accessible for these large vessels.
This potential downside should, however, be compensated
by an increase in the terminalling capacity in Europe in the
coming years.
RasGas MAGAZINE
13
Shipping
With seven Q-Flex carriers launched in the space of
a week, RasGas’ expansion plans have moved up a
notch. The new generation of mega tankers are set
to play a key role in helping RasGas deliver Qatari gas
to its growing global customer base – and ensure
compliance with the latest international safety and
environment measures
Smarter shipping
In a fast-changing world, demand for liquefied natural gas
(LNG) continues to soar. In Europe alone, the import market
for natural gas is estimated to grow dramatically by 2020.
Overall gas reserves in Europe are in decline and the continent
is increasingly dependent on sources outside its borders.
Globally, the two greatest energy concerns are security of
supply and the sourcing of environmentally friendly supplies.
On both counts, LNG is likely to play a greater role in coming
years, particularly in view of the ambitious environmental
targets set by the EU and the Kyoto Protocol.
RasGas currently produces 20.7 million tonnes per annum
(Mta) from its five LNG trains. By the end of 2009 – when
Trains 6 and 7 are both online – production is expected to hit
approximately 37 Mta. RasGas is also gearing up to enable
Qatar to meet its plans to export double its current LNG
production to a total of 77 million tonnes per year by 2010.
For RasGas, however, the challenge is not simply to supply
enough LNG to meet the needs of a rapidly expanding market,
but also to ensure that it is delivered safely and reliably to
customers throughout the world. With the global distances
increasing between sources of natural gas and the end users,
new investments in infrastructure and the LNG supply chain
are essential.
14
RasGas MAGAZINE
This is why in February 2008 RasGas chartered seven
Q-Flex LNG carriers from Qatar Gas Transport Company
(Nakilat). The Q-Flex ships are a new generation of LNG
mega-ships with a cargo-carrying capacity of 216,000 cu.m
– approximately 50 per cent larger than conventional ships
and the largest currently chartered by RasGas. This increase
in capacity will bring greater efficiencies when RasGas
begins LNG delivery from Trains 6 and 7 to global markets
by the end of the decade. Indeed, it could be argued that the
advancement in gas transportations such as the Q-Flex is a
key driver behind the global gas demand, because such ships
allow the linking of geographically isolated markets.
An important consideration for RasGas in all its operations
is conservation of the environment. The Q-Flex ships score
highly in this regard too, featuring new technology that allows
LNG to be transported in an environmentally friendly way.
With approximately 40 per cent lower energy requirements
and carbon emissions than conventional vessels (because of
economies of scale created by the size and efficiency of the
engine), the Q-Flex ships offer RasGas safe, efficient and
reliable LNG cargo delivery.
The addition of these seven huge LNG ships to the RasGas
fleet simultaneously is a major milestone in the company’s
Shipping
history – expanding RasGas’ LNG fleet by nearly 50 per cent.
It now has 20 vessels in total, ranging in size from 138,000
cu.m to 216,000 cu.m. The first four ships were formally
named at a ceremony on 20 February 2008. Built by Samsung
Heavy Industries (SHI) at the Goje Island shipyard, South
Korea, the ships are owned by Teekay Nakilat (III Corporation)
and will deliver LNG mainly to markets in the Far East and
United States. Mr Hamad Rashid Al Mohannadi, RasGas
Managing Director (CEO) attended the ceremony along
with VIP representatives from Nakilat, ExxonMobil and one
of RasGas’ customers, Distrigas, reflecting the importance of
the occasion.
The addition of these seven huge
LNG ships to the RasGas fleet
simultaneously is a major milestone
in the company’s history – expanding
RasGas’ LNG fleet by nearly 50 per cent
The remaining three Q-Flex ships were launched the
same week. Built at the Daewoo Shipbuilding and Marine
Engineering Co Ltd (DSME) at the Goje Island shipyard,
they are owned through a joint venture between Nakilat and
J5, a Japanese consortium. RasGas invited Sophie Dutordoir,
Fluxys CEO, to sponsor the Al Aamriya, demonstrating the
close cooperation between the two companies. RasGas’
long-term agreements with Distrigas and Fluxys (see RasGas
Magazine issue 19), the independent operator of the natural
gas transmission grid in Belgium, are vital to supplying Qatari
LNG to the doors of European consumers.
The seven new ships are due to enter service between
April and June 2008. Under the terms of the Time Charter
Agreement, RasGas will charter each vessel for a period of 20
to 25 years. This new generation of Q-Flex carriers, together
with their smaller conventional cousins, will continue to play
a strategic role in delivering LNG from existing and future
facilities at Ras Laffan industrial port to RasGas’ customers
around the world.
RasGas Managing Director (CEO) Hamad
Rashid Al Mohannadi with the captains of
four of the new Q-Flex tankers
A typical Q-Flex ship: facts and figures
Shipbuilder
Daewoo Shipbuilding and
Marine Engineering (DSME)
Ship owner
Nakilat and J5 (a Japanese
consortium)
Ship chartered
Ras Laffan Liquefied Natural Gas
Company Ltd (RasGas)
Year built
2008
Containment system
GTT No 96 membrane system
Class
Lloyds Register
Intended sphere of operations
Worldwide
Length
315 m
Breadth
50 m
Depth
27 m
Cargo capacity (100 per cent)
216,280 cu.m
Number of cargo tanks
5
Cargo pumps
10 sets
Average speed in knots
19.5 kts
RasGas’ new Q-Flex ships
Name of ship
Sponsor
Al Kharsaah
Hamad Rashid Al Mohannadi, RasGas
Managing Director (CEO)
Al Huwaila
Mrs Sherry Swiger, wife of Mr Andrew Swiger,
President, ExxonMobil Gas and Power
Marketing Company
Al Shamal
Mrs Ruth Billings, wife of Mr Ron Billings,
Vice President Global LNG, ExxonMobil Gas
and Power Marketing Company
Al Khuwair
Mrs Magda Naudts, wife of Mr Erwin Van
Bruysel, Distrigas CEO
Murwab
Nasser Al Naimi, RasGas Group Commercial
and Shipping Manager
Al Aamriya
Sophie Dutordoir, Fluxys CEO
Fraiha
Mrs Angela Trotter, wife of Mr Keith Trotter,
RasGas Shipping Manager
RasGas MAGAZINE
15
Fluxys
To celebrate the launch of the
Al Aamriya, the new RasGas Q-Flex
ship sponsored by Fluxys, RasGas
Magazine asked Sophie Dutordoir,
Fluxys CEO, about the benefits of the
company’s relationship with RasGas
Supply
and demand:
Fluxys delivers
Could you briefly describe the business activities of
Fluxys, both today and historically?
Fluxys is the Belgian gas transmission system operator
and our expertise goes back to the early 20th century.
In the late 1960s, following the discovery of the Dutch
Groningen natural gas field, Fluxys was the first in Europe
to import natural gas. And ever since, through our ‘first
mover’ approach, we have been developing our grid
as a crossroads for international gas flows in northwest Europe.
Our business is providing capacity and capacityrelated services for both pipe gas transmission and LNG
terminalling. With 18 gas exchange locations at the border,
the Fluxys grid is one of the best interconnected gas
systems in Europe. Currently, on behalf of our shippers, we
move some 17 billion cubic metres (bcm) of natural gas
every year for delivery into the Belgian market. On top of
this, shippers have booked long-term capacity of about
80 bcm per year for border-to-border transit to other
end-user markets. In short, we can move to other enduser markets more than four times as much natural gas as
we deliver to our domestic market. Fluxys offers storage
services as well, from our LNG peak-shaving facility and an
underground storage facility.
And, of course, there is our LNG terminal in the
North Sea port of Zeebrugge. Back in 1987 we were
one of the first operators to commission an LNG terminal
in north-west Europe, and the facility’s throughput
capacity is currently being doubled from 4.5 to 9 bcm
per year, following capacity subscription agreements
with Qatar Petroleum and ExxonMobil in 2004. First
deliveries of LNG from Qatar under this agreement
started in early 2007. Zeebrugge also harbours the
Fluxys-operated Zeebrugge Hub, one of the leading
international short-term markets for natural gas on the
European continent.
16
RasGas MAGAZINE
The Fluxys LNG terminal is directly connected to the
Fluxys transmission grid, with access to an extensive
European market. What competitive advantage does
this give Fluxys?
The bottom line advantage of the Zeebrugge LNG terminal
is the destination flexibility Fluxys can offer from the
facility. LNG shipped into Zeebrugge can be redelivered as
natural gas either to the Belgian market or at the border for
destination markets in all directions: the United Kingdom,
the Netherlands, Germany, Luxemburg, France, and through
France also Italy and Spain. Our terminal is indeed directly
connected to our grid, which has two major pipelines
running through the Zeebrugge area as well: a pipeline for
cross-border gas flows from Norway through Belgium
to France and southern Europe, and a pipeline for crossborder gas flows either heading west to the UK or east to
eastern Europe. The Zeebrugge LNG terminal is also directly
linked to the Zeebrugge Hub, with currently 72 members
and an annual net traded volume of some 40 bcm per year.
All in all the gas infrastructure in the Zeebrugge area offers
a physical throughput capacity of 47.5 bcm per year, which
corresponds to the capacity needed to deliver 10 per cent
of the natural gas consumed in western Europe.
Fluxys
Fluxys’ indicative
investment
programme for
2007–2016 shows
spending of
€1.7 billion, with
projects covering
transmission,
storage and LNG
terminalling
Acting as a key link between LNG producers and
LNG consumers, what are the challenges facing gas
transporters such as Fluxys?
As gas demand forecasts for the next two decades show
an impressive rise throughout Europe, transmission system
operators like Fluxys are facing the challenge of huge
investments to provide the market with sufficient capacity.
Fluxys’ indicative investment programme for 2007–2016
shows spending of €1.7 billion, with projects covering
transmission, storage and LNG terminalling.
The two greatest global concerns when addressing
energy supplies are security of supply and the sourcing
of environmentally friendly supplies. How do you feel
these concerns can be addressed?
We are, of course, proud to be part of the gas industry,
which provides end-user markets with an environmentally
sound fuel that produces fewer greenhouse gases than
other fossil fuels. As for security of supply, our focus
always has been to head for as much diversification as
possible. Belgium is a 100 per cent importer of natural gas
and we have developed our infrastructure so as to facilitate
imports from as many sources as possible. Our LNG
terminal provides access to LNG sources worldwide and
our grid provides access to all sources flowing natural gas
into the north-west European market through pipelines.
Besides, as our infrastructure serves as a crossroads for
international gas flows, we are also part of the chain
offering security of supply to other end-user markets in
western Europe.
With the coming on-stream of RasGas Train 5, Qatar is
on target to become the world’s largest LNG producer
and exporter with production capacity of over 30 million
tonnes per year. The expansion in natural gas projects
will result in Qatar’s LNG production capacity reaching
77 million tonnes per year by 2010. To accommodate
this anticipated growth potential, what are your future
expansion plans – both for your Zeebrugge facilities
and for future gas distribution into Europe?
As LNG becomes increasingly important in Europe’s security
of supply, we launched an open season market consultation
in late 2007 to assess the level of demand for additional
capacity at the Zeebrugge LNG terminal. We find that
this open season presents a highly attractive opportunity
for LNG companies to reserve capacity at a key strategic
location, providing access to end-user markets in both
continental Europe and the United Kingdom.
Response from the market is promising, with no less than
15 companies having expressed non-binding interest by
mid-February 2008. Depending on the outcome of this
open season consultation, the project might include the
construction of a second berthing jetty, additional LNG
storage tanks and/or additional regasification capacity.
For example, the construction of a second jetty, two LNG
storage tanks of 155,000 cubic metres (cu.m) each and
sufficient additional regasification capacity would result in
additional annual throughput capacity of about 9 billion
cu.m of natural gas. As the current capacity enhancement
at the terminal will double its throughput capacity to 9 bcm
of natural gas per year, this possible second enhancement
would again double its throughput capacity to 18 bcm of
natural gas per year.
Opposite: Sophie Dutordoir,
Fluxys CEO, names Al Aamriya in
February 2008; above, the Fluxys
gas terminal at Zeebrugge,
Belgium
There has already been a dramatic increase in the
demand for environmentally friendly fuel such as LNG.
What are your views on the further development of the
market for LNG and natural gas in general in Europe in
future years?
Natural gas demand in Europe is estimated to increase
by 30 to 35 per cent in the period 2005–2020, with
150 to 215 bcm of natural gas still to be contracted. As
overall gas reserves in Europe are in decline, the supply
gap will increasingly be filled with supplies from more
distant production fields. And the more Europe’s reliance on
gas imports grows, the more the importance of LNG will
increase. Apart from the additional volumes to be delivered
into the European market, LNG also represents a key part
of any diversified gas portfolio serving base load, spot and
peak requirements.
You recently acted as a sponsor to one of the larger
RasGas LNG ships. What impact will the expansion of
LNG fleets with substantially larger LNG carriers have
on Fluxys?
It is our goal to offer our clients the possibility to unload
at the terminal the largest LNG ships in circulation. In
this regard a permit application has been introduced to
receive Q-Flex vessels in our existing LNG dock. And, if
we are to build a second jetty following the open season
consultation, we will be looking into solutions to receive
Q-Max vessels.
RasGas MAGAZINE
17
RGEE
RGEE: the drive
to minimise risk
In November 2007 RasGas underwent its first
external assessment of the RasGas Elements
for Excellence operations integrity management
system. The results demonstrated RasGas’
commitment to reducing risk and building
a culture of awareness and accountability
18
RasGas MAGAZINE
RGEE
RasGas MAGAZINE
19
RGEE
As worldwide demand for energy supplies
increases, there’s growing concern that pressure
on energy companies to boost production may
affect safety standards. Risk exists in all walks
of life, but in the oil and gas industries a careless
mistake can be catastrophic to human life and
the environment. Indeed, crises in exploration
and production activities have taught the energy
sector many hard lessons – one result is that
the risk management skillset is now an essential
element of production companies’ operations.
RasGas has experienced unprecedented
growth over the last decade, and is still in rapid
growth mode. At the heart of its development
plans is a core commitment to operate in line
with RasGas Elements for Excellence (RGEE),
the company’s operations integrity
management system.
The thinking behind RGEE is that risks can’t
be eliminated, but they can be minimised by
systematic risk assessment and management
techniques. Effective leadership is critical to
the successful implementation of RGEE, as are
commitment and accountability. So RasGas
managers from the highest level down are
charged with visibly supporting and leading RGEE
and are accountable to employees, shareholders
and stakeholders alike.
Regular assessment
To ensure the success of RGEE, the system is
communicated and supported at every level
of the organisation – roles and responsibilities
are assigned and exercised with clear goals, so
that performance can be measured effectively.
And by creating workable RGEE procedures
and practices, the company encourages active
employee involvement.
But setting up operations integrity systems
is only a first step. It’s the regular assessment
and fine-tuning of those systems that sets
industry standards.
rasgas managers from
The highest level down
are charged with visibly
supporting and leading rgee
Assessments – internal and external – are an
integral element of RGEE. Internal assessments
are carried out by personnel drawn from across
the company, including representatives of
senior management, while external assessments
provide the objectivity of teams that exclude
RasGas employees.
During these regular assessments, the
teams focus on two aspects of RGEE operations:
status and effectiveness. Status evaluation
20 RasGas MAGAZINE
examines the quality of documentation and
stewardship. Assessors conduct face to face
interviews with the ‘owners’ of particular
systems and review supporting documents.
Effectiveness review, meanwhile, determines
how well the system and its accompanying
procedures are being used in the workplace.
Again, interviews play a significant role in the
process, although this time the assessors are
interested in the responses of systems users
rather than owners.
External specialists
In November 2007 RasGas underwent an
external assessment, carried out by ExxonMobil,
a RasGas shareholder. Conducted by a
multidisciplinary team of 11 specialist integrity
management staff, the assessment lasted for
two weeks. As the RasGas workforce includes
more than 50 nationalities, a multinational
review team was assembled, with eight
nationalities represented.
The assessment was a success. More than
200 RasGas employees were interviewed
across all departments and more than 3,000
documents reviewed. Site visits included Alpha
Platform, Wet Gas #4 Wellhead Platform, Trains
1 to 5, the utilities area, LNG loading area and
support facilities, and among the interviewees
were the RasGas Managing Director (CEO) and
members of his Executive Leadership Team.
Participation at such a senior level is critical
to the success of any integrity management
system, so the inclusion of senior RasGas
executives in the assessment was essential.
"At rasgas we
recognise the need
for a comprehensive
integrity
management
system and we
have developed a
strong culture of
safety awareness
throughout the
whole company.
RGEE is how we do
business in RasGas"
Hamad Rashid Al Mohannadi,
RasGas Managing Director (CEO)
RGEE
A brief history of integrity
management
The story of integrity management systems begins in the
United States, where in 1992 the Occupational Safety
and Health Administration (OSHA) introduced its Process
Safety Management Programme. The goal of its 14
strands was to prevent or minimise the consequences
of catastrophic accidents caused through the release of
chemicals. The programme requires a holistic approach
that integrates technologies, procedures and practices,
creating multiple barriers of protection.
For the oil and gas sector, the impetus behind the
development of integrity management systems came
from the Piper Alpha disaster in 1988, in which 167
people lost their lives. The inquiry into the disaster
produced the Cullen Report, one of whose primary
recommendations was that operating companies should
be required to implement safety management systems
that ensure safe design and operation of offshore
installations. Such systems, the report specified, should
draw on quality assurance principles similar to those of
BS 5750 and ISO 9000, elements of which are included
in the RGEE system. The Cullen Report’s recommendations
were accepted immediately by the British government
and the new regime that resulted has influenced the
development of integrity management systems around
the world.
RGEE meets, and in some cases exceeds, the
specifications and goals expressed in the OSHA
regulations and the Cullen Report.
The assessment acted as a ‘fresh eyes’ review
of RasGas practices, designed to identify any
high-risk gaps that need addressing and to
determine any long-term improvements to RGEE
systems. An additional objective on this occasion
was to review the role and value of the internal
assessment process.
RasGas’ five LNG trains currently produce
20.7 million tonnes per annum of liquefied
natural gas, so the company naturally sets high
store on incorporating the lessons learned from
each start-up in the construction and operation
of the next train. In the normal course of events,
unpredictable incidents do occur, but it’s the
way that RasGas investigates, reports and
follows up on these incidents that ensures the
effectiveness of operational integrity at the
company’s sites. The ‘lessons learned’ concept
is a critical element of RGEE and contributed to
the successful completion of the last three trains
under budget and ahead of schedule. An example
is the incorporation of lessons learned from plant
start-up incidents in a comprehensive process
that ensures appropriate design modifications
for future projects.
One further benefit to RasGas from the
external assessment was the structured forum
it provided for the company to learn from the
assessors’ experiences. Among the successful
work practices discussed were the B-Safe
behaviour-based safety programme, the
involvement of management in on-site safety
walks, off-the-job SMS safety communications,
a comprehensive heat stress programme, the
plant environmental inspection programme and
a process for annually assessing the skills of
maintenance contractors.
A positive result for RasGas
On completion of the assessment, the assessors
produced a detailed report for the Managing
Director (CEO) and his Executive Leadership Team.
The result was a very positive one, indicating
that all required components of the system are
in place. RasGas’ integrity management system
was originally adapted from ExxonMobil’s
own system, but a significant indication of its
successful evolution was the knowledge that
some RasGas work practices will in future be
incorporated into the ExxonMobil approach.
Open communication channels are essential
for achieving continuous improvement,
and communicating the assessment results
throughout the organisation was a high priority
for RasGas. Through departmental roadshows
and other communications all employees were
briefed on the results of the RGEE assessment
and on the resulting actions the company
intends to take.
This last element is another good indication
of a successful integrity management system.
Too often, companies undertake assessments as
a mere paper exercise, failing to update systems
to adjust to changing technology, health and
safety regulations, and environment concerns.
At RasGas, there is no danger of this: the
company is committed to operating a dynamic
and effective operations integrity programme.
Now the first external assessment is
complete, there are follow-up actions to carry
out and improvements to be made to the RGEE
systems. These steps are under way and RasGas'
drive to minimise risks will become even more
effective. RGEE will continue to make a powerful
difference to the way the company operates.
RasGas MAGAZINE
21
Supply Forum
Building strong
supplier relationships
For the first time in its history,
RasGas recently invited
suppliers from all over the
world to gather in one place.
The RasGas Supply Forum
provided a unique opportunity
for them to learn about the
company and prepare to
become lasting and active
partners for its operational
requirements as well as its
long-term expansion plans
22 RasGas MAGAZINE
A business needs strong working relationships with its
suppliers, service providers and customers if it is to provide
goods at the right price and at the right time. As RasGas
prepares to meet its goal of producing 37 million tonnes (Mta)
of liquefied natural gas (LNG) by the year 2010, the need for
a reliable and professional supply chain management is vital.
Building lasting and dynamic relationships with its suppliers
– ensuring they have a clear understanding of RasGas’ current
and future needs – will help realise this impressive goal.
What is supply chain management?
Supply chain management is a process that is both
internal and external to an organisation. Coordination and
collaboration with supply chain partners such as suppliers,
service providers and customers as well as statutory
authorities is central to successful supply chain management.
The aim is to ensure efficiency throughout each phase of
the supply process and to exercise control and oversight
of activities connected with the supply chain. The process
includes materials sourcing and procurement, inventory
Supply Forum
management, and logistics during the development,
implementation, contingency planning and troubleshooting
phases. Supply chain management acts to prevent problems,
helps anticipate where and when they may occur, and aims
to have solutions at-the-ready when issues do arise. As
companies increasingly move to sourcing raw materials and
services from outside providers, particularly in the energy
sector, the supply chain becomes ever more complex. There
needs to be coordinated and transparent management
of supplier functions in order to maintain efficiency and
effectiveness. A key component of today’s successful supply
chain management is the establishment of a value network
– a dynamic, coordinated web of inter-organisational
relationships that includes suppliers and clients.
A best practice is developed by a
group of expert users who share
their knowledge and experience to
define the best method of operating a
common process
Ralph Drayer, ex-Chief Logistics Officer, Proctor & Gamble
The RasGas way
A good example of RasGas’ dedication to best practices in
supply chain management is the RasGas Supply Forum held
recently in Doha, Qatar. The first event of its kind hosted
by the company, it was an overwhelming success with
more than 250 international, regional and local attendees,
including RasGas Managing Director (CEO), Hamad Rashid
Al Mohannadi and Management Services Group Manager,
Ahmed S Al Kuwari.
The goals of the forum were to improve supplier
understanding of the RasGas supply chain, to bolster
relationships with key suppliers and to provide an opportunity
for questions and feedback from suppliers. At the forum,
RasGas’ senior management, including Nafez Bseiso,
Subsurface Group Manager; Dave Marchak, Venture Group
Manager; Ali Al Marri, Supply Manager; and Fahad Al Khater,
Operations Business Manager, detailed RasGas’ expectations
of suppliers and its expansion plans, and gave an insight
into the company’s business ethics. In addition, RasGas
showed its appreciation to suppliers for the role they play
in the company’s success by offering them a unique
networking opportunity.
together a diversity of expertise and experience. It provided
an opportunity for professionals from many different fields
to share their insights on topics of concern to RasGas. This
in turn brought to light issues and concerns that may not
otherwise have come up under normal circumstances. The
participants were able to build on each other’s ideas, ultimately
creating a more comprehensive understanding of the issues
and challenges that confront the RasGas supply chain, both
now and going forward. Identifying potential challenges
allowed suppliers to consider ways that they may be able to
work together to meet RasGas’ needs and address problems
before they emerge. This approach is central to best practice
in supply chain management.
Looking ahead
Lastly, the opportunity to learn about RasGas’ expansion
activities provided suppliers with ample time to ensure that
sufficient quantities of high-quality products are ready when
needed. This lead time should also allow vendors and suppliers
time to fully consider RasGas’ needs as well as developing
products and solutions to meet its changing requirements. At
the same time, it gives suppliers an opportunity to consider
issues not only in relation to their own area of expertise but
also taking into account the roles and offerings of other
suppliers in the supply chain.
The Supply Forum is a clear example of RasGas’ forward
looking approach to best practices in supply chain management.
By bringing together key constituents in the supply chain,
RasGas is readying its suppliers and service providers to
become lasting and active partners for its operational
requirements as well as its long term expansion plans.
RasGas management
team hosting the inaugural
RasGas Supply Forum
One forum, many benefits
One strategic benefit of the Supply Forum was the
opportunity it provided for face-to-face communication
between RasGas executives, senior management and
suppliers. The interpersonal nature of the forum meant that
there were immediate and communication-rich answers
to questions, feedback to follow-up questions, and
requests for clarification and expansion. This clearer
understanding will enable each supplier to optimise its role
in the supply chain.
The diversity of the forum produced a variety of supplier
perspectives and experiences to be shared. By listening to
other participants, attendees were able to gain a better
appreciation of their relationship within the overall supply
chain, broaden their understanding of RasGas’ needs, and
deepen their awareness of the challenges they will face as
partners – not merely purveyors – with RasGas as it expands.
Another benefit of the forum was the chance to bring
RasGas MAGAZINE 23
Qatar's Industrial Cities
The changing face of
Mesaieed
Home to more than 13,000 residents who make
up its diverse, multicultural community, Mesaieed
has transformed itself over the years from a
simple port facility exporting crude oil into one
of Qatar’s key industrial cities. Several stages
of its multi-billion Qatari Riyal (QR) growth plan
have already been completed, and more exciting
projects are in the pipeline
Take a short drive 40 kilometres south of Doha,
the capital of Qatar, and it is hard not to notice
the billowing refinery, petrochemical plants,
steel plants, burgeoning town expansion and
increasing hive of activity that is Mesaieed
Industrial City. Host to a variety of high-profile
industries, Mesaieed has an oil refinery, fertiliser
complex, several petrochemical complexes, a
natural gas liquids plant and steel mill. It also has
an oil-receiving terminal and a fully equipped –
and growing – international port (currently the
largest in Qatar).
Mesaieed was one of the first purpose-built
industrial cities in Qatar, established on the salt
flats or ‘sabkhah’ of Qatar’s east coast in 1949.
Initially functioning as a tanker terminal for
24 RasGas MAGAZINE
Qatar General Petroleum Corporation (QGPC),
now known as Qatar Petroleum (QP), it was
the country’s first deep-sea port. Mesaieed’s
primary aim is to develop as a sustainable city
to attract investment and it is managed by
Mesaieed Industrial City Management (MIC).
MIC was set up by QP in 1996 to act a single
point authority for all businesses in Mesaieed.
It is responsible for developing and implementing
a strategic plan for the development of an
eco-industrial complex with supporting port
and town expansion.
Over the last decade, MIC has led an ambitious
multi-billion QR renovation and development
plan for the area. As a result the settlement
has expanded significantly to accommodate
the influx of plant and people. The first stage
of Mesaieed’s residential expansion, which
includes over 1,500 housing units, is almost
complete. The second stage of development,
currently commencing construction, will see
another 5,225 residential units constructed
to accommodate more than 18,000 people.
Once completed, this new town expansion will
almost triple the township’s current population
and will provide a fully serviced community with
educational, healthcare and recreational facilities.
Continuing growth
The second stage of development also includes
the construction of an elementary and senior
school, kindergarten, several club houses,
a cultural centre, mosques, cafés, parks,
playgrounds and sports facilities to complement
the current township. To accommodate
this extensive growth, the area’s existing
infrastructure and utilities networks are also
being upgraded.
According to MIC’s strategic plan, the
construction of a new business park is also in
the planning in a bid to attract new emerging
A new QR22 billion worldscale deep-water port is to be
built on the northern side of
Mesaieed Industrial City
Qatar's Industrial Cities
Around 2,200 ships pass
through Mesaieed port
each year and its activities
focus mainly on the export
of LPG, petrochemical
products, fertilisers and
aluminium
In less than 50 years, the salt flats of Qatar's east coast
have been transformed into a successful, bustling industrial
city for some of Qatar's major industry players
some Major industries in Mesaieed
Qatar Petroleum’s Natural Gas Liquids
Complex
QP began producing natural gas liquids (NGL)
from its NGL plants in the 1970s. The complex
currently contains four major NGL processing
plants and an off-plot facility for product
storage and export.
Qatar Petroleum Refinery
QP Refinery is wholly owned by Qatar
Petroleum. It produces liquefied petroleum
gas (LPG), naphtha, gasoline, jet fuel, diesel
and fuel oil.
Qatar Petrochemical Company Ltd (QAPCO)
QAPCO established in 1974 as a joint
multinational venture to utilise associated and
non-associated ethane gas from petroleum
production. It produces ethylene and lowdensity polyethylene (LDPE).
Qatar Fertilizer Company (QAFCO)
QAFCO is the only fertiliser producer in Qatar
and is a key player in the international market.
Total annual production is 6,150 tonnes per
day of ammonia and 8,700 tonnes per day of
urea, making it the world’s largest single site
producer of urea.
technology enterprises such as research,
warehousing and light industrial, as well as
government institutions and educational
establishments.
So, despite its relatively small population,
the significance of Mesaieed cannot be
underestimated. In addition to the major industry
operating in the area, commodities imported
and exported through Mesaieed port alone
reportedly account for around 60 per cent of the
country’s GDP. Around 2,200 ships pass through
Mesaieed port each year and its activities focus
mainly on the export of LPG, petrochemical
products, fertilisers and aluminium.
That is expected to change on a significant
level again following the recent announcement
that a new QR22 billion world-scale deep-water
port is to be built on the northern side of the
industrial city. Spread over 20 square kilometres,
the new port will be equipped to handle the
world’s largest ships, each laden with up to
12,000 containers. The new Doha port will exist
side-by-side with the existing MIC-managed
port and will include facilities for general cargo,
offshore supply vessels, a vehicle terminal for the
importation of vehicles and a large dock terminal.
It will also look to maximise its synergies with the
wider industry in and around Qatar to provide
opportunities for future investments, both in the
short and long term. In addition to commercial
activities, the port will also provide facilities for
the Qatari navy and coast guard.
Qatar Chemical Company (Q-Chem)
Q-Chem is a joint venture between QP and
Chevron Phillips Chemical Company. Its
facility is capable of producing 36,000 Mta
sulphur, 500,000 Mta ethylene, 453,000
Mta high-density polyethylene (HDPE) and
47,000 Mta of 1-Hexene. Its products are
exported worldwide from the existing dock
facilities at MIC.
Qatar Fuel Additives Company (QAFAC)
A joint venture which began operation in 1999.
The plant is designed to produce methanol and
methyl tertiary butyl ether (MTBE) for sale to
customers worldwide.
Qatar Vinyl Company (QVC)
The plant was established to produce
intermediates in the PVC liquid industry. In
addition, QVC will produce liquid caustic soda,
a product used in various industrial applications
such as paper and soap.
Qatar Steel Company
Qatar Steel Company is a Qatari Shareholding
Company originally incorporated in 1974 as a
joint venture between the State of Qatar, Kobe
Steel and Tokyo Boeki. The plant generates
an annual production of 1.2 million tonnes
of molten steel and a rolling mill capacity of
740,000 tonnes per year.
Qatar Plastics Products Company (QPPC)
QPPC produces heavy-duty plastic bags, sheets
and other plastic products for industrial
purposes.
Qatar Lubricants Company (QALCO)
QALCO is the first plant of its kind in Qatar. It
covers local demand for lubricants and exports
excess product to Saudi Arabia, Bahrain and
Yemen.
Qatar National Navigation and Transport
Company (QNNTC)
The largest company of its kind in Qatar, its
business focuses on ship repair and marine.
Qatar Construction Company (QCON)
An arm of Qatar Shipping Company, QCON is
the major offshore and onshore construction
company in Qatar. It serves the needs of the oil
industry in Qatar and the Middle East region.
RasGas MAGAZINE 25
Corporate Social Responsibility
Safer on
the roads
With its new Car Seat
Safety campaign,
launched during GCC
Traffic Week, RasGas is
urging parents to put
children and safety first
in 2008
26 RasGas MAGAZINE
In a car crash at just 30mph, a child who isn’t
wearing a seat belt will be hurled inside the car
(or ejected through the car window) with a force
30–60 times their body weight. For a small child
it’s the equivalent of falling from a fourth-floor
window. The impact of an unrestrained child
could also kill or seriously injure the driver or
front seat passenger.
The stark facts make uneasy reading. But over
10,000 road accidents were reported in Qatar
last year and 199 people were killed as a result,
of which nearly a quarter were children.
The safest way for children to travel in a car
is in a properly fitted child seat appropriate to
their weight and size. It’s estimated that putting
a child in a car seat cuts the risk of injury or
death by at least 50 per cent. It is not safe for
an adult to hold a child or baby on their lap, even
if they are using a seat belt around both of them.
The impact of a car crash would force the child
from their arms, no matter how hard the adult
tried to hold on. For the same reason it is also
dangerous to fasten one seat belt around two
children in a vehicle.
The State of Qatar has developed a twopronged approach to improving children’s road
safety. On the one hand, a big education drive
by the Traffic and Patrols Department is helping
to make drivers and families more aware of
child safety issues, while on the other road
safety laws are being strictly enforced to reduce
reckless driving and the growing number of
accidents. The number of traffic violations in the
four months before the introduction of the new
traffic laws on 2 October 2007 was 244,722,
compared to 178,371 violations since that
date. Statistics show that the number of road
accidents has gone down by about 13 per cent
in the same period.
More than 10,000 road
accidents were reported in
qatar in 2007, and a quarter
of the 199 people killed were
children
Corporate Social Responsibility
Qatar is one of the first of the Gulf countries
to enforce the new rules. Article 55 of the new
law contains special road safety requirements
for children, including the provision of car seats,
and there are financial penalties for anyone who
fails to comply. Similar laws have proved to be
effective in countries around the world. In the
UK, wearing a seatbelt in the front seat of a
car was made compulsory in 1983 and in the
back seat in 1991. RoSPA (Royal Society for the
Prevention of Accidents) calculates that more
than 50,000 lives have been saved as a result.
New, stricter regulations relating to children’s
car seats were introduced in September 2006.
Before that almost 8,000 children were killed or
injured in car accidents every year in the UK. The
new regulations are expected to cut this figure
by 2,000 – more than a quarter. Today, many UK
hospitals do not let parents drive their new baby
home from hospital unless they see the infant is
safely strapped into a suitable car seat.
However, even in countries where seatbelt
legislation has successfully reduced the number
of children injured or killed in road accidents,
many car seats are still not fitted or used
appropriately. In Qatar RasGas is a strong
supporter of the National Campaign for the
Prevention of Road Accidents and is committed
to raising public awareness about the importance
of using child seats correctly. For this reason,
it launched a high-profile Car Seat Safety
campaign to coincide with the start of GCC
Traffic Week in March.
RasGas has always promoted a strong safety
culture in its business activities, taking pride in an
outstanding record in safeguarding its employees
from accident or injury in the workplace. Now,
with this new campaign, it is turning its attention
to help develop a safety culture in wider Qatari
society. Safety is an important element of
RasGas’ Corporate Social Responsibility (CSR)
programme, which is dedicated to improving the
welfare and wellbeing of all Qatar’s people. The
new Car Seat Safety campaign is leading the way
in this area, actively helping to save children’s
lives by promoting the safe use of child car seats.
As part of the campaign, RasGas will donate
a total of 300 car seats to parents of new-born
babies over the course of the next 12 months.
It will provide a new baby seat for the first 25
babies born each month at Hamad Hospital in
Doha. RasGas has also produced an information
leaflet to raise public awareness of the issue. The
leaflet contains clear instructions in English and
Arabic and pictures showing parents and carers
how to choose and install the most appropriate
car seat for their child.
Throughout 2008 RasGas will continue to help
raise public awareness of road safety issues in
Qatar. However, it’s still important that parents
and other adult drivers set the right example for
children. By wearing their own seat belts on every
trip, they send the right message to children and
ensure that the next generation of Qataris get
into good road safety habits from an early age.
Children’s car safety
Before starting a journey, parents or
carers should:
• Check that the baby seat, child seat or
booster cushion fits the make and model
of their car
• Check that whatever seat is installed is
appropriate to the child’s height, weight
and age
• Check that the seat is properly fitted
into the vehicle before use and that
manufacturer’s instructions have
been followed
Remember:
• A rear-facing child seat should never be
used in the front of a car fitted with
an airbag
• Child restraints need to be properly fitted
on every journey
• Children up to the age of 11 still need
a child seat
Throughout 2008 Rasgas will continue to
raise public awareness of road safety issues
in qatar
Wearing a seat belt or
placing your child in a
properly fitted car seat
can significantly reduce
your child's risk of injury
or death
RasGas MAGAZINE 27
RasGas Magazine Issue 22 Spring 2008
Issue 22 Spring 2008
The
magnificent
seven
New Q-Flex carriers expand
the RasGas fleet
vision
Ali Al Hamadi, Tasweeq
CEO, on the value of
synergy in marketing
Strengthening
the supply chain
The first RasGas
Supply Forum
A safer Qatar
Launch of child car
seat campaign
rgee
industrial city
CSR
Shipping