Page 5 - NorthAmOil Week 28 2021
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NorthAmOil                                   COMMENTARY                                          NorthAmOil


                                                                                                  Shell already operates
                                                                                                  the Quest CCS project
                                                                                                  at the Scotford
                                                                                                  complex.


































                           The conversion of the Scotford site to an  according to Shell Canada’s president and coun-
                         “energy and chemicals park” is in line with a  try chair, Susannah Pierce. If Shell proceeds with
                         broader reorganisation of Shell’s refining hold-  building more large-scale facilities, then fewer
                         ings. The super-major is whittling down its  projects would be required in total in order to
                         refinery portfolio from 14 plants last year to  meet the target.
                         six such integrated energy and chemical parks.
                         It is currently in the process of closing sales of  Carbon hub
                         its refineries in Anacortes, Washington and  Shell is the latest company to propose a CCS
                         Mobile, Alabama, as well as its controlling stake  facility for Alberta after several other energy
                         in a joint venture refinery in Deer Park, Texas.  players also unveiled proposals for new CCS
                         All three sales are due to close in the fourth  capacity in the province in recent weeks. Nota-
                         quarter of 2021, as Shell pivots from oil produc-  ble developments include an alliance formed
                         tion and refining to petrochemicals as part of  by Alberta’s five leading oil sands producers to
                         its broader adjustment to the energy transition.  pursue net-zero GHG emissions from oil sands
                                                              operations by 2050. This initiative is anchored
                         Under pressure                       by a “major” CCS trunkline connected to a car-
                         Shell unveiled the proposal weeks after a Dutch  bon sequestration hub, the companies said last   Several other
                         court ruled that the super-major should reduce  month.
                         its greenhouse gas (GHG) emissions by 45% by   Separately, Suncor Energy – one of the par-  energy players
                         2030 compared with 2019 levels. This would be  ticipants in the alliance – said in May it was   also unveiled
                         a larger cut than Shell’s existing target of a 20%  partnering with ATCO on a clean hydrogen
                         reduction by 2030 compared with 2016 levels.  project that could include a CO2 sequestration   proposals for new
                         While Shell will contest the ruling, its CEO, Ben  component. And midstream players Pembina
                         van Beurden, said following the verdict that the  Pipeline and TC Energy have partnered on the  CCS capacity in
                         company would seek to accelerate its energy  development of a carbon transportation and
                         transition strategy and deepen its emissions  sequestration system that would be capable of   the province in
                         cuts. The ruling applies immediately and cannot  transporting more than 20mn tpy of CO2.  recent weeks.
                         be suspended prior to the appeal.     Smaller firms are also involved in the devel-
                           Shell’s decarbonisation plan – likely to require  opment of CCS projects in Canada, and it is
                         updating in the near future if it is ultimately  hoped that as participation in the sector grows,
                         forced to adhere to the court-mandated targets  the costs involved will come down. Develop-
                         – envisions access to an additional 25mn tpy of  ment of carbon capture is in its early days but
                         CCS capacity by 2035. The super-major says on  is already comparatively advanced in Canada,
                         its website that this would be equivalent to 25  thanks to the existence of Quest, as well as the
                         CCS facilities the size of the Quest project.  Alberta Carbon Trunk Line (ACTL) system. If
                           However, if Polaris progresses to its second  the latest proposed projects all proceed to con-
                         phase, this would make a “significant contri-  struction, Alberta will further solidify its domi-
                         bution” to the company meeting its target,  nance as a carbon capture player.™



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