shell quest ccs project

QUEST CCS PROJECT

Stephen Harvey– QUEST Geophysicist

5

CO2 Pipeline

2

1

Amine Unit Compressor

1

QUEST - LOCATION

March 19, 2014 Quest Project - MUN 2014, Calgary

Alberta

Canada

Quest Fort Saskatchewan

Fort McMurray

Edmonton

Calgary

! Capture plant located near Fort Saskatchewan, approx 60 km N.E. of Edmonton

2

CCS IN ALBERTA

n  CCS is a significant part of GHG mitigation plans for both Canada and Alberta

n  Quest Funding

n  ~1.3 Bln $ project

n  165 MM$ CND, 700 MM$ AB

Source: Alberta 2008 Climate Change Strategy

GHG emissions profile and mitigation options – Alberta

CCS =70%

Materiality: Quest = 1.1 MT/a of

CO2 ~ 175,000 cars

50Mt

BUSINESS AS USUAL

ALBERTA’S PLAN

First CCS project in Alberta Oil Sands and it has massive scalability.

Cost of Project •  ~1.3 Bln $ Quest Funding •  165 MM$ CND, 700

MM$ AB

The Athabasca Oil Sand Project (AOSP)

May 2014 4

Peace River

Calgary

Edmonton

Corridor Pipeline

Fort McMurray

Muskeg River Mine

Bitumen

Scotford Upgrader

Bitumen to Synthetic crude (255,000 bpd)

H2

Scotford Refinery

(Shell only)

AOSP - JV among Shell (60%); Chevron (20%); and Marathon (20%) QUEST Update - Pittsburgh CCUS Conference

QUEST – Overview

SALT SEALS

Cement

SHALE SEALS

TARGET FORMATION

! Capture at the Scotford Upgrader from 3 Hydrogen Manufacturing Units - One million tonnes CO2 per year capacity for 25 years

! CO2 transported by 12 inch pipeline to storage, with 6 inch laterals

! Pipeline to 65 km north of the Upgrader

! Wells : 3 injection wells , 3 Deep Monitoring Wells and 9 Shallow Ground Water monitoring wells

! Execution Phase since Sept 2012

May 2014 5 QUEST Update - Pittsburgh CCUS Conference

INTEGRATED CCS PROJECT �Technical aspects: Capture, Pipeline, Storage & MMV

CO2 Pipeline

2

Pipeline to storage site, 65 km

3 CO2 injectors

1

Amine Unit Compressor

1

Up to 1.2 Mtpa from the Scotford Upgrader

o  Commissioning Q1 2015 o  Sustained Injection by end 2015 o  Measurement, Monitoring &

Verification (MMV) o  25 year field life (27 Mt CO2 ) o  10 year closure period

n  BCS Storage Complex n  Deep saline aquifer (~2km), porous sandstone (Por~16%, K~ 1D)

n  Multiple continuous seals to minimize containment risk

n  No significant faulting visible from wells or seismic

n  Well below hydrocarbon bearing formations(<1200m) and potable water zones (<200m)

n  Few legacy wells, nearest at ~20 km

QUEST Overview - Storage

34m

84m

44m

41m

Ultimate Seal

Secondary Seal

Primary Seal

Injection Target

Ultimate Seal

BC

S St

orag

e C

ompl

ex

Win

nipe

gosi

s C

ompl

ex

Upper Lotsberg

Lower Lotsberg

MCS – Middle Cambrian Shale

LMS – Lower Marine Sand

PreCambrian Basement BCS – Basal Cambrian Sand

85m


QUEST - Construction Progress Highlights

8

! All major equipment such as towers and the compressor have been received and on site.

! One HMU set of equipment modules installed.

! Pipeline construction progressing and > 50% welding is complete.

! Wells drilled and 2 injection wells tested in 2013

! Operations readiness activities progressing per plan

! Schedule is tracking on target costs slightly below target

! Public engagement activities continue through start-up.

May 2014 QUEST Update - Pittsburgh CCUS Conference

QUEST - Amine Stripper Vessel lift – March, 2014 �


QUEST - 2013 Well Test Results - Injectivity

10

W ell N am e Ra te D elta P In jectiv itym 3 / d k Pa m 3 / d /MPa

Ra dw a y 8 -‐1 9 3 6 0 0 .9 5 3 7 9Redw a ter 1 1 -‐3 2 4 9 2 1 2 .1 3 4 1Tho rh ild 5 -‐3 5 3 4 2 0 .3 3 1 0 3 6Ra dw a y 7 -‐1 1 3 9 6 0 .1 9 2 0 8 5

0

10000

20000

30000

40000

50000

60000

70000

3 Well Avg PI Water Injection Rates

Water Injection Potential

Estimated CO2 Injection Potential

Quest CO2 injection requirement

Injection Ra

te, [reservoir m

3/d]

Water PICO2 UncertaintyQuest Requirement

Linear adjustmentto FBHP of 26 MPa

CO2/waterinjectivityratio of 1.5 -‐ 3

Quest Initial Rate= 900 -‐ 1800 %


Regulatory Constraint Ø  30 Mpa Ø Fracture pressure 40Mpa

WATER INJECTIVITY / TEST RESULTS

CO2 INJECTION CAPABILITY

Pressure and CO2 Plume Propagation

2015 - Start 2015 - Start 2016 – 1 Year Injection 2025 2025 – 10 Year Injeciton 2040 – Shut-in 2045 – Shut-in 5 years

2055 – Shut-in 15 years

MPa

2016 – 1 Year

2025 – 10 Years

2040 – Shut-in 2050 – 10 Years Shut-in 2085 – 45 Years Shut-in

Expectation delta Pressure

Expectation CO2 @ 8-19

Heavy Oil Shell Canada

QUEST - New Well Results - Containment


Gen-4- Pressure Distribution after 25 Years of Injection in the Mid Property / Mid Connectivity Case with an analytical aquifer extension

Gen -4- 25 Year FBHP Forecast for the mid property, mid connectivity case with analytic aquifer

n  Capacity very large compared to injected volume

n  Elevated pressure is very low - no risk of brine leakage n  Expected to be considerably less then Gen-4 – mid case

QUEST IN-WELL MONITORING

Lotsberg

LMS

BCS

MCS UMS

Colorado

PreCambrian

Upper

Lower

CKLK

Quest Storage Complex

Freshwater

Geophone array (1 well only)

450m

1750m 5 ½”

8 ¾”

30m DEEP MONITORING WELL (DMW)

40m

180m 5 9/16”

Datalogger (pH, Eh)

GROUNDWATER MONITORING WELL (GWM)

DTS/DAS

13 3/8”

9 5/8”

4 ½

” Tu

bing

7“

Downhole P/T Gauge

450m

2000m

2150m

INJECTION WELL (IW)

QUEST - New Well Results - Injection Performance Modelling

14 May 2014 QUEST Update - Pittsburgh CCUS Conference

5 Generations of Models

Ø  Substantial reduction in range of uncertainty after appraisal/injection wells in 2012/13

! !

Identify Risks &

Uncertainties

Appraisal

Strategy

Data Evaluation

Integrated Reservoir Modeling

1)FPP

SDP & MMV Plans

2) Lease App.

3) Reg. Submission

4) SDP n  Status n  BCS Static model update

complete

n  Cooking Lake static modeling ongoing

n  Leak path model update ongoing

n  Results in Q3 2014 n  CO2 plume and pressure

predictions

- Sequestration Lease area

- Timing of VSP vs 4D seismic

- MMV coverage

n  Leakage risk

n  Pressure Monitoring Thresholds

Iterative Workflow

! 5) MMV


MONITORING PLAN OVERVIEW

Atmosphere LightSource CO2 Monitoring

Biosphere Remote Sensing (Brine & NDVI), CO2 Natural and Artificial Tracer Monitoring,

Hydrosphere Private Landowner Groundwater wells (Chemistry and Isotopes on water and wellhead gas

Deep Monitoring

Wells

Down-Hole Pressure & Temperature (DHPT) above Storage Complex Down-Hole Microseismic Monitoring

BCS Observation Well: DHPT

Injection Wells

Injection Rate Metering, PFC Tracer Injection?

Geosphere

InSAR

Time-Lapse 3D VSP Time-Lapse 3D Surface Seismic

DHPT, Distributed Temperature and Acoustic Sensing, Annulus Pressure Monitoring, WHPT, Wellhead CO2 Sensor, Mechanical Well Integrity

Testing, Operational Integrity Assurance

Time (years)

Baseline Injection Closure

CBL, USIT

Shell Groundwater Wells: Continuous EC, pH, T, P & ORP, Discrete Chemical and Isotopic Analysis on water and WHG,

2010 2015 2020 2025 2030 2035 2040 2045 2050

CO2 Flux & Soil Gas


MMV baselining Activities – HBMP progress


a)Discrete GW well sampling (Landowner & Project Wells)

Sampling event Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Q4-‐2012

Q1-‐2013

Q2-‐2013

Q3-‐2013

Q4-‐2013 b)

Continuous GW well sampling (Project Wells only)Sampling event Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 c)

Soil Gas/Flux Sampling & Remote Sensing Calibration Data AcquisitionSampling event Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Q4-‐2012

Q1-‐2013

Q2-‐2013

Q3-‐2013

Q4-‐2013

no soil gas

n  Ground Water and Biosphere Baseline Data acquisition progressing as planned n  Golder Report at end of 2013 summaries all data to date.

n  “Sample Manager” implementation ongoing for Data Management


MMV Baselining Activities – Pressure Monitoring


n  Pressure Monitoring Zone changed to Cooking Lake n  Shallowest zone with high enough permeability

n  Depleted by production from the Leduc Reef

n  Commenced Feasibility Study n  Pressure gauges installed in DMW 5-35 and DMW 7-11 to measure pressure variability

n  Some fit for purpose dynamic modeling indicates monitoring at Redwater 3-4 would be beneficial

n  Planning for gauge installation in Redwater 3-4 and building a more detailed Cooking Lake static model.

MMV baselining – 2014/15 Activities

May 2014

18

QUEST Update - Pittsburgh CCUS Conference

RADAR REMOTE SENSING for Salinity (SAR) & Surface Deformation (INSAR) - Complete SAR Feasibility Study - Q2 2014 - Update INSAR capability Dec 2014

OPTICAL REMOTE SENSING for Plant Health Feasibility Ongoing – Complete in 2014

BCS Formation

Injector Observation Well Geophones

Seismic wave

Microseismic event

Fracture opening or fault slip

BCS Storage Comple

x

Micro Seismic – Installation Q3 2014

Surface Seismic

3D VSP

3D VSP Baseline –Q1 2015

March 19, 2014 Quest Project - MUN 2014, Calgary

BCS Formation

Injector Observation Well Geophones

Seismic wave

Microseismic event

BCS Storage Comple

x

§  Time Lapse 3D Surface Seismic (& Time Lapse 3D VSP) Ex: Sleipner/Norway, CO2 injecMon into saline aquifer (started 1996) (source: Chadwick et al., 2009, Energy Procedia 1, 2103–2110)

§  Micro Seismic Fracture opening or fault slip

19

QUEST - MMV ACTIVITIES: GEOSPHERE §  Remote Sensing (InSAR)

Surface displacement


MMV Activities - Sensor Hook Up / Data Transmission �

20

Storage �(Well sites)

LOS CO2 DAS …

Continuous MMV data

(WPH, WEC, BHP, DMWP.)

LOS CO2 DAS …

MMV data (MS data, DAS/

DTS Lightsource

LOS CO2 DAS …

Continuous Process Control

(WHPT, WHCO2, APM,DHPT)

Capture (Scotford)

Transport (Pipeline)

Well pads

Private wireless

CO2

ß 67 km pipeline à

P&C Signals, Alarms

MMV Measurements

LBV’s

#1

X

P&C data

Scotford Control Room

Scotford Control Rooms

#2

X #3

X #4

X #5

X

Storage Mgt Team

WRFM TOOLKIT

SHELL NETWOR

K

PI



MMV Activities - Technology Development


n  Tracer Feasibility Studies n  PFC Experimental work progressed in 2013 and ongoing until March 2014

n C13 Studies progressing

- CO2 Gas sampling at Scotford

-  Research (phases 1 to 3) completed and reports received from the Uni. of Calgary

-  C13 Data collection in as part of the HBMP baselining

n Decision on Tracers postponed to June 2014 – AER special report #3

n  Lightsource Feasibility n Controlled release test at IW 8-19 in Sept. 2013

n  Further work on algorithm development

n New Boreal digital laser tested.

n Agreed workplan with U of Vic & BC on EC for background

n  Report Expected May 2nd - Milestone meeting /Decision


April 11, 2014 22 Quest CCS Project - 2nd AER Annual Status Report

Stakeholder Engagements n  Status

n  Local community events in summer 2013 (Thorhild Sunflower Festival)

n Open Houses conducted in October 2013:

n  Thorhild, Radway and Bruderheim

n  Town, City and Council updates provided annually to:

n  Thorhild, Lamont, Bruderheim, Fort Saskatchewan, Strathcona, Lamont, Sturgeon

n Community Advisory Panel (CAP) formed and kicked off in 2012 for MMV program- met 6 times in 2013- including touring the upgrader and pipeline construction

n Community newsletters - 2 in 2013

n HBMP GW sampling brochure for landowners issued in Q1 2014

n  Upcoming work in 2014 n Continue CAP meetings (quarterly), annual Council

updates , Open Houses (Oct. 2014) and Newsletters

n Community survey on Quest (completed bi-annually)

n  Well Program n Hook up and testing of wellpad MMV

sensors by Q4 2014

n  MMV program

n Baseline sampling program complete Q1 2015

n  Capture & Pipeline n Module fabrication – Last module

installation targeted for summer 2014

n Pipeline mechanical completion expected fall 2014

n Mechanical completion of capture facility by Q1 2015

n  Operations Handover Q3 2015

n  Full production Q4 2015

May 2014 23

QUEST - Project Timeline to Operations

QUEST Update - Pittsburgh CCUS Conference

Thank You

QUEST - 2013 Well Test Results - Injectivity

25

W ell N am e Ra te D elta P In jectiv itym 3 / d k Pa m 3 / d /MPa

Ra dw a y 8 -‐1 9 3 6 0 0 .9 5 3 7 9Redw a ter 1 1 -‐3 2 4 9 2 1 2 .1 3 4 1Tho rh ild 5 -‐3 5 3 4 2 0 .3 3 1 0 3 6Ra dw a y 7 -‐1 1 3 9 6 0 .1 9 2 0 8 5

0

10000

20000

30000

40000

50000

60000

70000

3 Well Avg PI Water Injection Rates

Water Injection Potential

Estimated CO2 Injection Potential

Quest CO2 injection requirement

Injection Ra

te, [reservoir m

3/d]

Water PICO2 UncertaintyQuest Requirement

Linear adjustmentto FBHP of 26 MPa

CO2/waterinjectivityratio of 1.5 -‐ 3

Quest Initial Rate= 900 -‐ 1800 %

Well Core Avg k (D)

Core Max k (D)

Test Low Keff (D)

Test Mid

keff (D)2

Test High

keff (D)3 8-‐19 0.5 3.6 0.5 0.8 1.1 5-‐35 0.9 2.2 0.8 1.0 1.3 7-‐11 0.9 2.9 1.2 1.8 2.0

Well FEP FCP

1AA/11-32 45.4 MPa (20.7 kPa/m)

31.7 MPa (14.5 kPa/m)

100/08-19 42.4 MPa (20.6 kPa/m)

34.6 MPa (16.8 kPa/m)

102/05-35 48.1 MPa (23.5 kPa/m)

33 MPa (16.1 kPa/m)

103/07-11 42.5 MPa (21.0 kPa/m)

24.5 MPa (12.1 kPa/m)


Regulatory Constraint Ø  30 Mpa

PERMEABILITY (TEST vs CORE) WATER INJECTIVITY / TEST RESULTS

CO2 INJECTION CAPABILITY FRACTURE EXT. PRESSURE


Atmospheric Monitoring

LightSource: CO2 mass flux rate Baseline Injection Closure Baseline Injection Closure

Atmosphere Biosphere

Hydrosphere

Geosphere

BCS Storage Complex

shell quest ccs project

Documents

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storage mmv co2 pipeline

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