GDF Suez to seek Middle East E&P opportunities

Doris Leblond
OGJ Correspondent

PARIS, Oct. 16 -- GDF Suez says it plans to participate in natural gas exploration and production and LNG services in the Middle East, where it has a history of participation in energy and environmental services. It has signed a cooperation agreement with Qatar Petroleum International to look for joint projects outside of Qatar.

Jean-Marie Dauger, head of the GDF Suez's global gas and LNG division, said he also was hopeful for participation in Qatar E&P. "We are looking to anchor our presence in hydrocarbon production," he said.

Before its merger with Gaz de France, Suez had invested more than $1 billion since 1994 as a stakeholder in gas-powered electricity projects, seawater desalination, wastewater reuse, water service and sewerage management in major cities, and service for urban networks. Its largest projects are in Qatar and Saudi Arabia, the latest contract, signed Oct. 15, being a multiutility joint venture with Qatari Diar and Barwa to serve new cities' development in Qatar and the region.

The Middle East, with proved gas reserves and demand growth, is in position to grow stronger as an LNG supplier, said GDF Suez Chairman and Chief Executive Officer Gerard Mestrallet at a recent press conference devoted to its Middle East policy. He said he did not see exports being hampered by increasing local requirements.

GDF Suez is the leading LNG importer and buyer in Europe, the second largest methane terminal operator in Europe, and the No. 1 LNG supplier in the Atlantic Basin. It plans to increase by 30% its contracted LNG volumes.

Yemen in 2005 signed a contract to supply GDF Suez with 2.55-million tons/year of LNG for 20 years from the Yemen liquefaction plant. That represents 40% of the plant's capacity. The LNG plant is due on stream in early 2009.

Qatar supplies 110 LNG cargoes/year to the Zeebruggen, Belgium, terminal in which GDF Suez maintains a controlling stake.