Project Overview - Shell · Project decision by Ministers Decision (45 days) Certificate...

1 Copyright of LNG Canada

Project Overview

Andy Calitz, CEO LNG Canada

Updated June 2015 Unres t r i c ted


Cautionary note

June 2015 Unres t r i c ted

Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves.

Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves. Resources

are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves excluding changes resulting from acquisitions, divestments and year-average pricing

impact.

Resources plays: our use of the term ‘resources plays’ refers to tight, shale and coal bed methane oil and gas acreage.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this presentation “Shell”, “Shell group” and “Royal

Dutch Shell” are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words “we”, “us”

and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by

identifying the particular company or companies. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this presentation refer to companies over which

Royal Dutch Shell plc either directly or indirectly has control. Companies over which Shell has joint control are generally referred to as “joint ventures” and companies

over which Shell has significant influence but neither control nor joint control are referred to as “associates”. In this presentation, joint ventures and associates may

also be referred to as “equity-accounted investments”. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by

Shell in a venture, partnership or company, after exclusion of all third-party interest.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements

other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations

that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties tha t could cause actual results,

performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements

concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts,

projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’,

‘‘expect’’, ‘‘goals’’, ‘‘intend’’, ‘‘may’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘plan’’, ‘‘probably’’, ‘‘project’’, ‘‘risks’’, “schedule”, ‘‘seek’’, ‘‘should’’, ‘‘target’’, ‘‘will’’ and similar terms and

phrases. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those

expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes

in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition;

(g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and

completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and

regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l)

political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of

projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are

expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking

statements. Additional risk factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2014 (available at

www.shell.com/investor and www.sec.gov ). These risk factors also expressly qualify all forward looking statements contained in this presentation and should be

considered by the reader. Each forward-looking statement speaks only as of the date of this presentation, September 15, 2015. Neither Royal Dutch Shell plc nor any

of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information.

In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation.

We may have used certain terms, such as resources, in this presentation that United States Securities and Exchange Commission (SEC) strictly prohibits us from

including in our filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website

www.sec.gov.

3 Copyright of LNG Canada June 2015 Unres t r i c ted

About LNG Canada

Shell, PetroChina, Mitsubishi

Corporation, and KOGAS

are working together to

design, build and operate

LNG Canada – a proposed

natural gas liquefaction plant

and marine terminal export

facility near Kitimat, B.C.

4 Copyright of LNG Canada Unres t r i c ted

LNG Canada is a powerful joint venture

• Global leader in LNG since 1964, operating about one quarter of the world’s

LNG vessels

• 10 LNG projects in 9 countries in operation, with 2 new projects under

construction

• Japan’s largest trading company and handles about 34% of Japan’s LNG imports

• Successfully built a portfolio of LNG export investments across Australia,

Indonesia, Malaysia, Brunei, Oman , Russia and North America

• South Korea’s principle LNG provider; operates 4 LNG import terminals

• Involved in various LNG projects: Australia, Indonesia, Middle East

and LNG Canada

• Diversified into LNG trading, LNG terminal construction, operations

and management

• China’s largest oil and gas producer and supplier

• Involved in 4 LNG projects: Australia, Russia, East Africa, LNG Canada

June 2015


19 PROPOSED LNG EXPORTS PROJECTS IN WESTERN CANADA (as of March 2015)

Grassy Point LNG

Aurora LNG

Prince Rupert LNG

Discovery LNG

Woodfibre LNG

Kitsault LNG

Stewart Energy

WCCLNG

Tilbury LNG

Steelhead LNG

Watson Island LNG

Triton LNG

Cedar LNG

LNG Canada

Pacific NorthwestLNG

BC LNG

Kitimat LNG

Orca LNG

New Times LNG

June 2015


Proposed facility:

• Two 6.5 mtpa LNG

processing units or

“trains”

• Expandable to four trains

with a total capacity of

approximately 26 mtpa

• Estimated peak

construction workforce:

approximately 7,500

• Estimated operational

workforce: approximately

300-450 people in first

phase, and up to 450-800

should the full project be

built


Key project elements


• LNG facility – natural gas

receiving and treatment

facilities

• Liquefaction facilities

• Office and maintenance

facilities

• Pipeline to transfer LNG

from the facility to the

marine terminal




• Marine terminal with

a wharf that can

accommodate and load

LNG ships, and a barge-

unloading ramp

• Temporary worker

accommodation village

and temporary laydown

and assembly

areas will be constructed

• The project will be located

on approximately 400

hectares of privately

owned land, already

zoned for industrial use




With its deep protected

harbour, Kitimat is a natural

choice for an LNG terminal.

The Douglas Channel

provides a deep-water,

wide, sheltered and ice-free

shipping route throughout

the year.

June 2015

Project location

Proposed LNG

Canada Facility Site

Existing Rio Tinto

Alcan Site

Existing RTA East

(formerly EuroCan)

Wharf – proposed

LNG Canada

marine terminal

Proposed Coastal

GasLink pipeline

Current Site

Unres t r i c ted


Site looking north

LNG Facility

Town of Kitimat

Haul Road

Marine Wharf


LNG Canada is a four train project (With two trains in the first phase)

T4

T3

T2 T1



Safety is critical to LNG Canada’s ability to deliver energy responsibly, and one

of our core values.

Our HSE Objectives

• Goal Zero: no harm to people, no uncontrolled releases to the environment

• Life Saving Rules

• Respect and care for people and the environment

• Engaged, committed, and lead by example

• Clear expectations for staff and contractors

• Communicate openly and honestly

• Learning organisation

• Accountable, share information, celebrate success


Health, Safety, and Environment is integral to everything we do in LNG Canada


Proposed shipping route (aminated version)

Kitimat

Proposed

project site PORCHER ISLAND

TRIPLE ISLAND

PILOT STATION

KITKATLA

HECATE STRAIGHT

BANKS ISLAND

PRINCIPE CHANNEL

HARTLEY BAY

DOUGLAS CHANNEL

TERRACE

KITAMAAT

VILLAGE

PRINCE RUPERT

METLAKATLA VILLAGE

LAX KW’ALAAMS KITSUMKALUM

KITSELAS

* Map is for illustrative purposes only

LNG from Kitimat would

travel down Douglas

Channel and then north

through Principe Channel

where it will connect into

the existing commercial

shipping routes.

50 mi

50 km


HAIDA GWAII


Joint Venture Partners will transport own LNG to Asia


Each Joint Venture Partner will bring their own gas through the Coastal GasLink Pipeline


LNG will be transported in large, specially designed ships with double hulls – one

layer forms the normal hull of the ship, while a second layer forms an inner hull as

an added safety measure.


LNG ships


• LNG ships would travel

from near Triple Island

through Principe and

Douglas Channels to

Kitimat Arm.

• At full build-out, the

project would expect

between 170 and 350

LNG ships to visit the

terminal annually.


LNG ships


We have designed the

project to be one of the

world's best performing LNG

facilities in terms of

greenhouse gas emissions


Helping B.C. acheive the cleanest LNG


• National Energy Board Export

License (approved Feb. 2013)

• Environmental Assessment –

LNG facility, marine terminal

and shipping activities

(approved Jun. 2015)

• B.C. Oil and Gas Commission

LNG facility permit (submitted

Feb. 2015)

• Transport Canada TERMPOL

review (submitted Feb. 2015)

• Disposal at Sea Permit

(submitted Mar. 2015)

• Fisheries Act Authorization

(underway)


Regulatory review process


Environmental assessment (EA) scope

The following major project

components were in scope

for the EA for LNG Canada:

The LNG

facility

The marine

terminal

Supporting

infrastructure

and facilities

Environmental and socio economic aspects covered in the EA included:

Environmental effects

(air quality, noise, vegetation,

wildlife, fisheries, marine

mammals, etc.)

Heritage effects Health effects Social effects Economic

effects

Shipping /

marine traffic

First Nations

interests

Environmental

effects of

accidents /

malfunctions

Cumulative

effects


B.C. Environmental Assessment process

Project Description

Determination that

project is

reviewable

(Section 10 Order)

Scope and

process for review

determined

(Section 10 Order)

Application

information

requirements

PUBLIC

COMMENT

PERIOD

Application

evaluated for

completeness

(30 days)

Application

review

PUBLIC

COMMENT

PERIOD

Assessment

report

Application Review Stage

(180 days)

Project decision

by Ministers

Decision

(45 days)

Certificate

Issued-project

authorized to

proceed to

permitting stage

Certificate

returned-project

cannot proceed

Further

assesment

required

Approved

Not Approved

Application

prepared and

submitted

Pre-Application Stage

(no timeline)

WORKING GROUP REVIEW

FIRST NATIONS AND COMMUNITY ENGAGEMENT

We are here


Project timeline


CFSW LNG Constructors is a powerful plant construction contractor

June 2015


A variety of key stakeholder groups

LNG Canada

Government JV Partners FEED

contractor

NGOs

Labour/Unions

Public

Emergency

Responders

Media

Opinion Leaders

Trade

Associations

Business

Partners

Academics First Nations Investors


Secured land for project

(February 2014)

Creation of LNG Canada

Joint Venture

(April 2014)

Selection of TransCanada

to build and operate Coastal

GasLink

(June 2012)

National Energy Board Export

License secured

(February 2013)

LNG Canada filed an Application

for Environmental Assessment

(EA) Certificate and Coastal

GasLink has received its EAC

(October 2014)

Selection of CFSW LNG

Constructors for FEED

(May 2014)

Unres t r i c ted

We have completed nine milestones

June 2015


LNG Canada received approval

of Environmental Assessment

(EA) and EA Certificate (June

2015)

Signed a power supply

agreement with BC Hydro

(November 2014)

Signed agreement with GE

Oil & Gas for gas turbine

and compressor technology

(December 2014)

Unres t r i c ted

We have completed nine milestones

June 2015

Project Overview - Shell · Project decision by Ministers Decision (45 days) Certificate...

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