IEEJ：2010年10月掲載

QATAR – SHELL – JAPANDELIVERING THROUGHPARTNERSHIPThe Joint Qatari-Japanese
Energy Forum
September 2010

Andy Brown
Executive Vice President
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

QATAR – A GREAT PLACE TO INVEST – $0 TO$20BLN IN 5 YEARS
Ras Laffan

Not to scale

Al KhorCourtesy of Qatargas

Qatargas 4Doha

QATAR

Not to scale

Shipping services to Nakilat

Qatar Shell Research &Technology Centre

Copyright of Royal Dutch Shell Plc

Pearl Academy

Pearl GTLIEEJ：2010年10月掲載

PEARL GTLINTEGRATED GAS TO LIQUIDS PROJECT 1.6 Bcf/d of wet gas: 260kbbl/d of products– 120 kbbl/d NGLs/ethane
OffshorePlatforms– 140 kbbl/d GTL products
 Major construction complete Q4 2010Feedgas
preparation

 2011 start up – 2012 full production
EthaneLPG

 ~$18-$19 billion development cost *Condensate

 Profit sharing contract
Two train
GTL plant

 100% Shell in partnership with Qatar
GTL Naphtha

Petroleum

N-Paraffin
GTL Kerosene
GTL Gas Oil
GTL Base Oil

Full integration from offshore to refined products
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

PEARL GTL – THE WORLD’S LARGEST OIL AND
GAS CONSTRUCTION SITE

0Copyright of Royal Dutch Shell Plc

500 M

IEEJ：2010年10月掲載

PEARL GTL CONTRACT PARTNERS – JAPANESE
ROLE
CONTRACTOR OVERVIEW
Buildings(STRABAG)

Storage(CB&I)

Utilities(KBR)

Feed Gas
Preparation(CHIYODA/HHI)

LiquidProcessing
Unit(TOYO/HEC)

 50,000 workers at peak
 Unique project scale + operating environment Multiple lump-sum contractors

Effluent
Treatment Plant(AJ/OTV/SPM)(PMC)

Air Separation Units(LINDE)GTL Process(JGC)
Pipelines &platforms(MCDERMOTT)Main Automation Contractor(HONEYWELL)

Jetty & Pipeline corridor(JGC/KBR)

Project ManagementContractor(JGC/KBR)

Lump Sum

 Shell & Project Management Contractor

Japanese Contractors

Copyright of Royal Dutch Shell Plc Japanese contractors involved in >50% ofscope

IEEJ：2010年10月掲載

C6G – GAS TO LIQUIDS MAIN PROCESSGTL is constructed by JGC under an

Reimburseable EPCM Contract
GTL process plant convert natural gas

and oxygen into GTL waxes, it houses 24of the largest reactors on site, weighing 1200
tonnes each.
Total forecasted numbers:
Concrete: 110,000 m3



Steel &Pipe: 77,000 tonnes

E/I cabling:1,600km

Spent over 1.9 million hrs in home office and92 million hrs on site
HSSE record of 40 million hours without an Lost Time Incident
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

C4 – FEED GAS PROCESSING (FGP)
FGP is constructed by CHC(Chiyoda / HHI Consortium) under aLump Sum Contract
Total forecasted number:— Concrete:

101,000 m3— Steel &Pipe:

44,000 tonnes— E/I cabling:

3,300km

Spent over 2.3 million home officehours and 49 million hrsconstruction
HSSE record of 23 million
manhours without an Lost Time
Incident,

Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

C5 – LIQUID PROCESSING UNIT (LPU)
LPU is constructed by THC (Toyo/Hyundai E&C) under a Lump SumContract
LPU is the plant’s refinery
converting GTL wax to finishedproducts, with one of the world’s
largest hydrocrackers and steam
methane reformers
Total forecasted number:— Concrete:

36,000 m3— Steel &Pipe:

36,000 tonnes— E/I cabling:

1,500 km

Spent over 1.7 million home officehours and 35 million hrsconstruction
HSSE record of 24 million hours
without an Lost Time Incident
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

TEAMWORK AT LEADERSHIP LEVELONE PROJECT – ONE TEAM
 Leadership commitments reaffirmed atregular CEO summits – five held so far
 Forging a “One Project – One Team”

mindset CEOs reinforced their commitment to Safety and welfare
 Productivity
 Cooperation and quality in finishing

COMMITMENT CHARTERS

Courtesy of Qatargas

Copyright of Royal Dutch Shell Plc

Pearl GTL CEO Summit – June 2010

IEEJ：2010年10月掲載

IMPROVING WELFARE IN PARTNERSHIP WITH QP
BUILDING A COMMUNITY – DELIVERINGPERFORMANCE

Focus on Safety & Welfare
Pearl Village – 40,000 workers
Training Centre – 200,000 courses
Recreation, culture, well being
World class safety – 77 mln hrs LTI
free
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

PEARL GTL PRODUCTS OVERVIEWPRODUCT SLATEEND PRODUCTS

Ethane (~30kboe/d)NGLs + Ethane

LPG (~30kbbl/d)

Condensate(~60 kbbl/d)

Chemicals and detergentfeedstock

Kerosene (~25 kbbl/d)Jet Fuel

Gasoil (~50 kbbl/d)DieselBase Oil (~30 kbbl/d)Finished Lubricants

GTL

Naphtha and Normal Paraffin(~35 kbbl/d)

Copyright of Royal Dutch Shell Plc

MARKETIEEJ：2010年10月掲載

GTL PRODUCTS ADVANTAGE
CLEANER BURNING + SMOKELESS GTL FUELSGTL N-PARAFFIN: A COST EFFECTIVE FEEDSTOCK

Emissions improvement range for light duty diesel engines vs. refinery
diesel diesel
Refinery
10%Min
emissionsMax

Improvement
using GTL

25%

45%

Pearl
GTL N
Paraffin

Our Customers
LinearAlkylbenzene

HouseholdFormulations

40%

60%

e.g. washingpowderRefinery85%

Zero emissionsKeroseneNParaffin

HIGHER VALUE NAPHTHA FEEDSTOCK GTL Fuels Cleaner Burning
LOW VALUECHEMICALSHIGH VALUECHEMICALS• Ethylene• Propylene• Butadiene• Benzene

Copyright of Royal Dutch Shell Plc

 GTL N-Paraffin cost effective detergent

feedstock generates premium over Kerosene
 GTL Naphtha is a higher value feedstock forchemical manufacturing

IEEJ：2010年10月掲載

IN MARKET PARTNERSHIP - SYNTHETIC FUEL IN(MOU TOKYO
signed between TMG, Toyota-Hino, Showa Shell & Shell on Nov 2008

Successful field demonstration of GTL with Hybrid buses used for public

transportation services (Toei Buses) in 2009
Local emissions benefitsParticulate trap stress reduction
Noise benefits on transition between electric and engine
Semi-optimised engine
Ease of refuelling, lower odour and better touch

Currently expanding the use of Synthetic Fuel* in other Toei Buses with conventional
engine (July 2010).
*Synthetic Fuel is a blend of GTL & HVO fuels.

Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

QATARGAS 4

1.4 Bcf/day Wet gas : ~280 kboe/dOffshore Platforms

 7.8 mtpa LNG
 ~70 kbbl/d NGLs/Ethane
QG3

Construction complete Q4 2010

QG42011 ramp-up~$2 billion development cost*
Tax & royalty contract

Joint storage

30% Shell, 70% Qatar Petroleum
8x

Full integration from offshore to LNG offtake
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

WORKING IN PARTNERSHIP WITH QATARGASPROJECT

Joint AssetDevelopment
Team• 40 Shell secondees
supplementing Qatargas
capabilities

OPERATIONS

Nakilat

SPA Delivery•COO Operations•Qatar Gas Transportcompany•Dubai•25 LNG Tankers underShell operationalmanagement•Further opportunities•Maintenance Manager•Engineering Manager•> 30 secondees

Copyright of Royal Dutch Shell Plc

MARKETING

Helping Qatargas
Operating Company•Terminal Manager

Pictures by courtesy of Qatargas

SHIPPING•1200 Officers and crew
recruited and trained•ChinaIEEJ：2010年10月掲載

QATAR (QPI) & SHELL TAKING THE PARTNERSHIPGLOBALLY...
Proposedcomplex, China

MOU signing,
June 2007

Nov 2009
Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

SHELL IN QATAR - A STRONG & LASTINGPARTNERSHIP WITH QPQSRTC Inauguration –Apr 2009

QPI/Shell
Petrochemical JV –Nov 2009

Pearl GTL - DPSA signing – Jul 2004

PearlFeb2007
2007
PearlGTL
GTL–- Stone Laying
laying ––Feb

Abdulla Salatt Rig Visit – Jun 2009

H.E. Abdulla bin Hamad Al-Attiyah &delegation – Visit to The Hague – Jun 2009First commercial flight on GTL
fuel – Oct 2009

Abdulla Salatt RigVisit– 2009
May 2010 - House of
May 2010 - Block D Lords

Minister in London – May 2010

Copyright of Royal Dutch Shell Plc

Signing

Pearl GTL - Start ofCommissioning – Oct 2009IEEJ：2010年10月掲載

SHELL PARTNERSHIP IN GLOBAL LNG – JAPANSHELL EQUITY LNG SALES: JAPANSHELL GLOBAL LNG PORTFOLIOBAJAOPERATIONCONSTRUCTIONLNG SUPPLY:SPAINDUBAIHAZIRAREGAS CAPACITY:

ALTAMIRASAKHALIN II
COVE POINT

BRUNEI LNG
ELBA ISLAND

MALAYSIA LNG* Indirect interest
QATARGAS 4GORGON LNG

QALHAT*NIGERIA LNGOMAN LNG

SHELL EQUITY LNG GROWTH

PLUTO*NORTH WEST SHELFHIGHLIGHTS: JAPAN•Copyright of Royal Dutch Shell Plc

Source: Woodmac (Long term sales only)

Shell equity LNG accounts for 8 to 9% ofthe current Japanese imports

IEEJ：2010年10月掲載

GAS AFFORDABILITYATTRACTIVE ECONOMICS FOR ELECTRICITYPRODUCERS
Gas plants more energy efficientthan coal plants
Solar Thermal- 55-60% vs. 34-42%
Wind Onshore

Gas has much lower capitalcosts per MW installed:Nuclear 50% of coalCoal

 20% of nuclear

Total Cost
Capital Costs

CCGT 15% of wind0

key for cash-strapped
economies!

100

150

200

250

US$ / MWh
Price Assumptions:Gas - $8/MMBtu
Coal: $60/t
CO2: $40/t

Total cost for gas is the cheapest
Copyright of Royal Dutch Shell Plc

50

CCGT: Combined Cycle Gas Turbine
Total Cost = Capital + Fuel + Operating

IEEJ：2010年10月掲載

GAS - ENVIRONMENTAL ACCEPTABILITY

Gas is the cleanest-burning fossil
fuelGas plants emit: 50% less CO2 than a modern

IGCCOld
Coalcoal plant 60-70% less CO2 than an oldcoal plant
There are still hundreds of oldcoal plants in operation today

USC
With CCS

CCGT

No CCS

0200400600

800

10001200kg CO2 / MWh

Gas CCS cost  coal per MWh
IGCC: Integrated Gasification Combined Cycle
Coal
USC: Ultra Super Critical Coal
CCGT:
Combined Cycle Gas Turbine

Source: Shell Internal Analysis

Copyright of Royal Dutch Shell Plc

IEEJ：2010年10月掲載

GTL AN ALTERNATIVE BENEFITING RESOURCEHOLDER AND CONSUMERGTL AND LNG FINANCIAL PERFORMANCE Qatari Government wise decision to invest inGTL production
 GTL provides Qatar with a natural hedge to gas

markets

PEARL GTL

Copyright of Royal Dutch Shell Plc

LNG AT HH PRICESIEEJ：2010年10月掲載

IEEJ：2010年10月掲載

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