Global Environmental Challenges to LNG Projects

Paul Bosma, Job HottentotRene Jacobs, Matthew Swatton

Shell Global Solutions International BV

7th Doha Natural Gas Conference

10th march 2009

Three Hard Truths for the Energy System

• World energy demand is accelerating

• Supply will struggle to

keep pace

• Environmental pressuresare increasing

No More “Easy” Oil & Gas

• Remote location, harsh climate

• Deep Water

• “Tight Gas”

• Depleted fields

• Sour gas

• High N2, CO2 content

Photographs courtesy of SEIC, Orman Lange

Environmental Pressures

In a “Business as usual” world CO2 from energy rises dramatically

Source: Shell International BV

2007 2025 2050

North America EuropeLatin America Asia & OceaniaMiddle East & Africa

28 Gt/yr

48

65

Natural Gas

• Cleanest fossil fuel

• As LNG, has a low “carbon footprint” across its value chain

• Has a firm position in tomorrow’s energy mix

Pollutant Natural Gas Oil Coal Carbon Dioxide 117,000 164,000 208,000 Carbon Monoxide 40 33 208 Nitrogen Oxides 92 448 457 Sulfur Dioxide 1 1,122 2,591 Particulates 7 84 2,744 Mercury 0.000 0.007 0.016

Fossil Fuel Emissions 1 (lbs per MMBtu of energy input)

1) Source: EIA Natural Gas Issues & Trends

0

(4) Gas LiquefactionRemoval of contaminants, NGLsextraction

Cooling to –161oC at atm.pressure

(5B) LNG Transport–161oC, atmospheric pressure

(6) RegasificationReturn to gaseous state

(1) Gas Exploration & Production

(3) Gas Transport

Industry

Space heating/cooking

(5A) Onshore Pipeline Gas TransportHigh pressure, ambient temperature

(2) Gas Treatment Oil/water/solids removal

(7) Gas Transport & Distribution

High pressure, ambient temperature

Power

The Natural Gas Value Chain

Shell’s Approach to HSSE Assurance

Addressing the Environmental Factors• Land take,

Coastline

• Water Use & Effluent

• Noise

• NOx & SOx

• Spills

• Flaring

• Greenhouse Gases

Examples of Environmental Solutions• Careful Site

Selection

• Air Cooled Plant

• Dry Low NOx

Burners

• Range of Sulphur Solutions

Photographs courtesy of Woodside, GE Energy

Greenhouse Gases

• Energy Efficient Operation

• Combined Heat & Power

• Aeroderivative Gas Turbine

• CO2 Capture & Storage

Photographs courtesy of Gorgon LNG, GE Energy

Specification or limit

Operator target

BEFORE APC APC ONLINE

SETPOINT MOVED

CLOSER TO LIMIT

Specification or limit

Operator target

BEFORE APC APC ONLINE

SETPOINT MOVED

CLOSER TO LIMIT

Concluding Remarks

• Energy sector is undergoing transformation

• Minimise environmental impact in local, regional & global context

• Control framework & systematic approach needed to deliver results

• Technology & innovation have a crucial role

Thank you for your attention