quest ccs project

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GREENHOUSE GAS MANAGEMENT PATHWAY QUEST IS BEING ADVANCED ON BEHALF OF THE ATHABASCA OIL SANDS PROJECT, A JOINT VENTURE AMONG SHELL CANADA (60 PER CENT), CHEVRON CANADA LIMITED (20 PER CENT) AND MARATHON OIL CANADA CORPORATION (20 PER CENT)  JANUARY 2010 PROJECT OVERVIEW

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8/3/2019 Quest CCS Project

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GREENHOUSE GAS MANAGEMENT PATHWAY

QUEST IS BEING ADVANCED ON BEHALF OF THE ATHABASCA OIL SANDS PROJECT, A JOINT VENTURE AMONG SHELL CANADA (60 PER CENT),

CHEVRON CANADA LIMITED (20 PER CENT) AND MARATHON OIL CANADA CORPORATION (20 PER CENT)

 JANUARY 2010

PROJECT OVERVIEW

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“The Quest CCS project wouldcapture and store more than onemillion tonnes of CO2 each year.That’s like taking175,000 NorthAmerican vehicles off the road.”

— Peter Voser, Chief Executive Officer, Royal Dutch Shell plc.

CARBON CAPTURE AND STORAGE (CCS): ONE OF THE PATHWAYSTO REDUCE CARBON DIOXIDE (CO

2) EMISSIONS

To continue meeting the world’s growing energy demand, while reducing greenhouse gas (GHG) emissions, severa

pathways must be pursued. CCS is one of the key pathways that Shell is progressing along with energy efficiency, low CO2

fuel options, and advocating more effective CO2

regulations to reduce global GHGs.

Shell Canada Energy, on behalf of the Athabasca Oil Sands Project, a joint venture among Shell Canada Energy (60 per cent),

Chevron Canada Limited (20 per cent) and Marathon Oil Canada Corporation (20 per cent), is advancing Quest. Quest is a fully

integrated CCS project, meaning it would capture, transport, inject, store and monitor CO2. Over one million tonnes of CO2 pe year would be captured per year from the Scotford Upgrader. This 98% pure CO2

would then be transported safely by pipeline

to an injection location north of Shell Scotford and stored permanently more than two kilometres deep under thick layers o

impermeable geological formations.

PROJECT STATUS & PLANS

Shell has conducted feasibility studies and drilled test wells to outline development options. Several important steps are stil

needed before a final capital investment decision is taken on Quest. That investment decision will ultimately depend on a

range of factors, including the outcome of a structured consultation process with stakeholders, the results of appraisa

activities and detailed integrated studies, as well as the ability to meet all regulatory requirements. Construction would only

begin after all of these aspects have been addressed successfully, with the aim to start operations around 2015.

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2008 2009 2010 2011 2012 2013 2014

Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4

Planning & Public Engagement

TASK

Expected Regulatory Process

Engineering & Construction

2015

Q1 Q2 Q3 Q4

Commissioning and Startup

PROPOSED DEVELOPMENT STAGES

1. Preliminary Project Development 

This includes locating deep, subsurface geological formations suitable for storing CO2, technical feasibility studies,

technology screening and development of project proposal.

2. Project Development

Shell will continue development work, consult with the public and other key stakeholders, and prepare detailed engineerin

designs and plans. Shell will ensure that project plans adequately address the concerns of local communities.

3. Regulatory and Internal Approvals

Shell will seek necessary provincial and federal regulatory approvals, investment approval from the

Athabasca Oil Sands Project owners and satisfy its own internal approval process.

4. Construction Schedule

When all approvals are received, construction would take approximately three years followed by project

commissioning and start-up.

Pipeline Route

The proposed pipeline route (shown above in orange) will travel aproximately

100 kilometres north of Shell Scotford to the chosen injection locations.

Quest CCS Project is located next to Shell Scotford

in the Industrial Heartland Region, approximately

five kilometres northeast of Fort Saskatchewan, A

Smoky Lake

Andrew

Lamont

Ft. Saskatchewan

ShellScotford

BruderheimGibbons

Redwater

Radway

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Shell's highest priority is safety. Shell is involved in development work for numerous CCS projects around the world,

and can bring forward the resources required for the successful design, implementation and operation of a safe

integrated CCS project in Alberta. Shell will use industry best practices to design, construct, operate and maintain

the Quest facilities to meet the highest safety standards.

Design: Shell will use its industry-leading expertise in subsurface geological mapping of deep reservoirs to ensure

that the proposed CO2

storage formation meets all the requirements for safe and permanent storage of CO2.

Response Plan: Shell has an existing Emergency Response Plan (ERP) for the Scotford Upgrader. If the Quest CCS

Project is approved, the construction and operation of the new infrastructure will be incorporated into Shell’s existing

ERP. Residents and public land users near the pipeline will participate in a separate consultation process specifically

for developing this ERP.

Pipeline Safety: Thousands of kilometres of CO2

pipelines are in safe and reliable operation in North America

today, mostly in the United States. Shell is familiar with both the construction and operation of CO2 pipelines, which

have been in use since the early 1970s in the enhanced oil recovery industry in Texas and New Mexico. The pipeline

for Quest will be designed to meet the latest safety specifications. In the unlikely event of a leak, valves will be

closed automatically to isolate the section of the pipeline, minimizing any release of CO2. In addition, the pipe-

line will have routine aerial surveillance, gound surveillance and Shell will cooperate with other pipeline

owners who share the same utility corridor.

Injection Safety: Particular attention is paid to well design, operations and abandonment for CO2

injection

schemes. For Quest, the injection of dry CO2, and the selection of corrosive-resistant casing and cement materials

will be used to ensure the long-term integrity of the wells. During operations, well tests and monitoring will be

conducted. Injection pressures will conform to regulatory requirements and be maintained at levels that ensure

the injection formation and overlying seals maintain their mechanical integrity. Once injection stops, a closure

period of continued monitoring will take place and then wells will be plugged and abandoned to ensure the

long-term containment of the stored CO2. These construction techniques and operations will ensure protection

of shallower oil and gas reservoirs, and usable groundwater and the health and safety of local communities.

Safety in Storage: Safety in storage is based primarily on adequate data collection and analysis to character-

ize and select the preferred storage formation and injection and monitoring site. In the case of Quest, the

proposed injection formation is about 2 kilometres deep and located below layers of thick, impermeable, continu-

ous seal rocks, which will prevent CO2

from escaping. The CO2

will be trapped within the tiny pore spaces

between the grains of the sandstone rock formation and by dissolving into the brine of the saline aquifer. Shell

will use its industry-leading expertise in subsurface geological mapping to ensure that the design and operation

of the proposed CO2

storage formation meets all the requirements for safe and permanent storage of CO2.

Safety

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Scotford Upgrader Amine Unit & Compressor

Carbon capture and storage (CCS) is a process that uses proven technologies to capture, transport, inject, store and monitor CO2 in geological formations deep underground. Quest will use existing technology that has been used safely and reliably in otherapplications in Canada and elsewhere around the world.

Capturing and compressing CO2 from the Shell Scotford Upgrader

CO2

will be captured from three hydrogen manufacturing units at the Scotford Upgraders.

An absorber vessel will use an amine solvent to capture the CO2

from the process stream.The CO

2will be released from the amine by heating.

CO2

will be compressed and dehydrated into a dense fluid for safe pipeline transport.

The CO2

fluid will be transported by pipeline to the storage site.

1

2

3

4

H2

CO2

AMINE UNIT COMPRESSOR

2 3

4

H2

1

CO2

Hydrogen Unit

CO 2 CAPTURE AT SHELL SCOTF

Capture

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The facilities at Scotford will capture CO2

from the upgrader’shydrogen plants where the CO

2will be separated and

compressed into dense fluid, allowing for pipeline transpor tation.

The CO2

will be transported by pipeline (16 inches in diameter)from the Scotford Upgraders to injection location(s) within 100 kmfrom Scotford. The pipeline runs north from Scotford, following theexisting rights-of-way wherever possible. Safety, landowner input,environmental, geographical, and technical issues will all be takeninto consideration to determine the final route.

Shell will contact landowners and community leaders to discussand gather input about the proposed pipeline route, surveys,construction and reclamation activities.

CO2 Pipeline Overview

Segments canbe isolated

automatically

 A pipeline transports theCO2 within 100 kmfrom Shell Scotford

to injection wellsIte(s)

Pipeline

Line Break Shut-off Valves

BURIED CO2

PIPELINE

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2

3

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Typical Water Well

SURFACE CASINGUp to 3 barriers of borehole steel

casing, each cemented in place to

surface, ensure that the injected

CO2

safely reaches the deep

storage formation and that the

shallow groundwater is protected.

Typicalgroundwater

aquifer down toapprox 150 m

Tubing   I   N   J   E   C   T   E   D

   C   O   2

SurfaceCasing

Cement

IntermediateCasing

MainInjectionCasing

 WELLHEADInjection

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STORAGE

Shell proposes to inject the CO2 2 km (2,000 m) underground into the

deepest saline aquifer formation in

 Alberta. This formation, known as the

Basal Cambrian Sands (BCS), is

approximately 900 m deeper than the

hydrocarbon deposits in the area and

some 1800 m deeper than the groundwater.

SEALS

There are multiple, impermeable shale and salt sealing

rocks above the storage formation that ensure the injected

CO2 remains trapped deep underground.

SHALE SEAL

STORAGE FORMATION

Perforationsallow CO

2to

penetrate theformation

Packer Assembly

PRECAMBRIANBASEMENT(GRANITE)

UPPER LOTSBERGSALT

SHALE

BASALCAMBRIAN

SANDS

LOWER LOTSBERGSALT

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Several types of rock formations are suitable for CO2

storageincluding saline aquifers and deep porous rock formationscontaining naturally occurring salt water. To obtain the highestlevels of CO

2storage containment and capacity, the most

suitable formations are usually selected at depths of 800

metres or more, where pressures and temperatures of the rockkeep the injected CO

2fluid in a dense phase. The identifica-

tion, assessment and development of a suitable storage forma-tion on the basis of rock characteristics of capacity, injectivity,containment and monitoring involves proven technologies andpractices used by the petroleum industry over many decades.Shell has used this experience to conduct appraisal and studyactivity over a region around Scotford and has identified theBasal Cambrian Sand (BCS) and the multiple overlying layersof continuous impermeable seals as the preferred storagesequence in the area.

Several geologic storage projects have already successfullystored millions of tonnes of CO2

for many years, withoutdetectable leaks. Three large-scale CCS projects have beenin operation for over 5 years or more and many new projectsare planned for start-up in the coming years. One project hasbeen operating in the Weyburn oilfield in Saskatchewan since2000. This project uses a pipeline to transport CO

2captured

near Beulah, North Dakota and then injects it into the Wey-burn field for enhanced oil recovery. The In Salah project inAlgeria extracts CO

2from produced gas and injects it back

into the ground, and the Sleipner CCS project in the Norwe-gian North Sea injects CO

2for storage in a saline aquifer.

Shell now plans tocomplete the appraisalwell, geophysical datagathering and studies to confirm the technical suitability of asite for injection, storage and monitoring north of Scotford.

The appraisal well program will also include small flow teststo further assess injectivity rates. Seismic survey data will beused to further assess the location of wells.

Monitoring 

Quest will use measuring, monitoring and verification (MMV)technologies and systems to ensure the storage site performsas expected. This will require data collection and analysis notonly during CO

2injection but also before and after the startup of

injection. The evaluation of potential MMV tools andsystems is an integral part of the ongoing appraisal and

technical study work of a storage site now being planned. Inaddition both the CO2

capture and pipeline facilities will bepart of the monitoring program to ensure the CO

2is handled

and stored in a safe and secure way.

All this work underpins the responsible implementation of CCSin Alberta – which is gifted with some of the most promisinggeology for CO

2storage in Canada.

CO2 storage and monitoring

SANDSTONE SALINE AQUIFER STORAGE FORMAT(400% Magnifica

Storage & Monitoring

IMPERMEABLE SEAL

CO2

is trapped in tiny poresof the rock and dissolves

in the saline aquifer

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For more information, check out www.shell.ca/quest 

email us at [email protected] or call +1 800 250 4355 for more information.

QUEST: PATHWAY TOWARDS MORE ENERGY AND LESS CO2

Introducing CCS in Alberta will create jobs, stimulate economic activity, establish initial infrastructure and, most impo

tantly, support Alberta and Canada’s drive to address climate change as part of a global effort. In that, the experienc

gained locally through the early implementation of CCS demonstrators such as Quest will prove invaluable in develop

ing the capability and the capacity to enable industrial facilities to reduce greenhouse gas emissions.

Shell is developing and implementing the Quest CCS Project in an environmentally responsible and sustainable way

Shell will work with landowners, the community and appropriate federal and provincial agencies to identify the bes

actions for minimizing any disturbance to landowners, the environment and surrounding communities. Shell will adhere

to all applicable regulations and will conduct the necessary environmental field studies.

The studies will identify areas of concern such as soil composition, vegetation, wildlife, endangered species and bodie

of water.

PUBLIC CONSULTATION

Shell has operated in the Scotford area for almost 30 years, and has a long history of community relations and commun

cation in the region. Shell strives to ensure that project plans adequately address the concerns of local communities.

Shell will undertake a comprehensive public consultation program in support of the Quest CCS Project. Shell believes i

the timely dissemination of information and collaborative approach to discussing concerns with stakeholders.

Shell encourages the public to participate in the consultation process to ensure that we are able to adequately identify

understand and respond to issues and concerns raised by stakeholders.