Al Sada sets out long-term UK energy role for Qatar

Notes and media contacts

Notes:

Who is South Hook Gas?
• South Hook Gas is a participant in the Qatargas 2 project and is a new participant in the UK gas market.
• The Qatargas 2 project is a vertically integrated project to supply gas to the UK. It is the largest of its kind in terms of scale, innovative technology, level of capital investment and level of project finance involved.
• LNG IMPORT: South Hook Gas is the long-term buyer of LNG from the Qatargas 2 project in Qatar.
• PROCESSING: South Hook Gas manages all the primary import and regasification capacity (as well as a System Entry Capacity) at the South Hook LNG Terminal at Milford Haven in Wales.
• GAS SALES: South Hook Gas sells the regasified product - natural gas - to ExxonMobil Gas Marketing on the GB system.
• THIRD PARTY SALES: Our primary role is to handle LNG cargo deliveries from the Qatargas 2 Project in Qatar. If capacity is not required for our primary requirements, we will also seek to maximise the use of Terminal capacity through market offerings.

Who owns South Hook Gas?
• Established in 2004 and based in London, South Hook Gas is a joint venture between Qatar Petroleum (70%) and ExxonMobil (30%). South Hook Gas has been established as a UK company as part of the Qatar Government's commitment to UK.

Importance to UK:
• South Hook Gas is central to the pursuit of the ongoing themes in UK energy policy of competition, diversity and security of supply.
• Effective operation of the gas market in Britain requires that import capacity does not remain idle when there is demand for its use. This is critical for effective competition. And it is critical for security of supply.
• South Hook Gas' objective is to secure the best use of the import capacity at the South Hook Terminal - to ensure that parties with LNG available for import are given full opportunity to bring it to the South Hook Terminal - and in so doing, to contribute to the fullest extent to the UK's ongoing security of energy supply.
• South Hook Gas is a new party that facilitates the provision of a significant amount of additional gas to Great Britain, and increasing the competitiveness of the market.
• With growing gas import dependency as its North Sea reserves gradually decline, South Hook Gas looks forward to having a role in enabling new supplies to the UK by maximizing utilization of the capacity held in Europe's largest LNG terminal. The South Hook Terminal could provide about 20% of the UK's total natural gas requirements.

Contact:
South Hook Gas Company Ltd
2 London Bridge
London SE1 9RA
Tel: +44 (0)20 7234 3500

or

Bachir Mallo
FP7 Doha
4th Floor - Pearl Tower
Al Sadd Street
P.O. Box 13645, Doha, Qatar
Tel : +974 4364385
Fax : +974 4364387