A Review of Climate Change Regulatory Framework and Applications in Qatar with Special References to RasGas Company Li

1. A Review of Climate Change Regulatory Framework and Applications in Qatar with Special References to RasGas Company Limited’s Facilities Fragu, Finley, Bagchi, Al-Qadi RasGas Company Limited 10 March 2009

2. Outline: • Climate Change Regulatory Framework • Qatar’s CO2 Emissions • Policies and Initiatives in Qatar • CO2 Capture and Injection at RasGas • Challenges and Opportunities in Qatar Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

3. Flexible Mechanisms Joint Implementation (JI) Emission Trading (ET) Clean Development Mechanism (CDM) CDM Process: Prepare Project Design Document (PDD): additionality, outline alternatives, investment analysis Approval from Designated National Authority Designated Operational Entity (DOE) for Validation Approval from Executive Board Designated Operational Entity for Verification Issuance of Certified Emissions Reductions Climate Change Regulatory Framework United Nations Framework Convention on Climate Change (UNFCC) • Intent: “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system” • CO2, CH4, N2O, SF6, HFCs, PFCs • Target reduction of 5.2% of GHG emissions for Annex 1 parties (1990 basis) • In 2008: 183 parties ratified the protocol KyotoProtocol • Annex I parties can purchase GHG emission reductions credits through financial exchanges or implementing projects that reduce emissions • Non Annex 1 parties: no GHG emission restrictions, but financial incentives • CDM in 2008: • 1,146 projects registered as CDM, 1.3 billion CERs • Over 3,000 projects in the pipeline, 2.7 billion CERs by 2012 • Consensus for updated changes • To be finalized in 2009 Bali Roadmap Post Kyoto… Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

4. Qatar’s CO2 Emissions UNDP, 2008 • Highest Per Capita CO2 emissions • In 2006, CO2 emissions dominated by: • Oil & Gas (70%) • Electricity & Water (20%) • Transport/Construction (10%) Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

5. Policies and Initiatives in Qatar Ministry of Environment (MoE) - Designated National Authority - Ratified in 2005 - Non Annex 1 - Chair NCCC National Committee for Climate Change (NCCC)- Supreme National Policy Formulating Body Flaring Reduction - World Bank’s Global Gas Flaring Reduction - Qatar Zero Flaring Target Qatar Petroleum (QP) - Industry Committee on Climate Change - Industry Emissions Inventory Committee - CDM guidelines - CDM registration for Al Shaheen Project Research & Development - Energy Research & Climate Change Fund - CCS Research Project - Investment of QIA into UK fund for renewable projects State of Qatar General Secretariat for Development Planning (GSDP) - Qatar National Vision 2030: Framework for National Strategies and Implementation Plans Industry (Oil & Gas)- GHG reporting - Voluntary Projects Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

6. North Field RasGas at a glance… • 1971: North Field Discovered • World Largest non-associated natural gas field • 900 Trillion SCF (20% of world gas reserves) • 1991: QP started Commercial Development Ras Laffan • 1999: RasGas 1st LNG Production • Venture between QP and ExxonMobil • Production: • One of the Largest Integrated Gas Facility in the World • Largest LNG Plant in the World • 5 LNG Trains - 20.7 MTA capacity • Sales Gas, LPG, Condensate and Helium production Doha • Expansion: • 2 LNG Trains (15.6 MTA), Sales Gas and Helium • Greater than 30,000 personnel currently Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

7. Storage CO2 Capture and Injection at RasGas Capture & Injection Monitoring • Results: • All indications are that AGI is contained in local area below Hith seal • Injectivity is steady • Pressure is well below fracture pressure • Micro-gravity does properly detect the total amount of gas injected • The Gas plume is contained as expected Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

8. CO2 Capture and Injection at RasGas • Environmental benefits: • 80 MMscfd = 3,300 tons/day injected • Net CO2 Emission Reduction ~ 2,800 tons/day • SO2 Emission Reduction ~ 32 tons/day (vs. SRU): responds to stricter regulations • Avoid stock piling sulfur / sulfur spills Other CO2 Emission Reduction Initiatives at RasGas: • Flare Minimization Program: Flare reduction of 5 bcf in 2007 (~ 750 tons CO2 /day) • Indirect: opportunity for energy efficiency / green building are pursued. SGS - 2008 Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

9. Challenges and Opportunities in Qatar • Regulatory incentives: development of national GHG policy and emission reduction implementation plan, future UNFCC discussions • Market incentives: local and US carbon trading • Carbon Capture & Sequestration: • Eligibility as CDM • Reservoir availability, long term storage • Power plants: commercial development of capture technology • Potential for large scheme CCS with EOR (UAE project) • Financial support + credits from CDM/ET • Energy efficiency: manufacturing, district cooling, housing • Renewable energy Fragu, Finley, Bagchi, Al-Qadi 10 March 2009

10. Thank You! Fragu, Finley, Bagchi, Al-Qadi 10 March 2009