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Prelude Floating LNG Project Draft Environmental Impact Statement

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Prelude Floating LNG Project Draft Environmental Impact Statement Shell Development (Australia) Proprietary Limited EPBC 2008/4146 October 2009 Disclaimer Copyright Th is draft Environmental Impact Statement (EIS) has been Th e concepts and information contained in this document prepared by Shell Development (Australia) Proprietary are the property of Shell. No part of this draft EIS may be Limited (Shell) for submission to the Commonwealth copied or duplicated without the express written permission Minister for Environment, Heritage and the Arts (the of Shell. Minister) under the Environment Protection and Biodiversity Conservation Act 1999. Th e draft EIS has been prepared Acknowledgements for this purpose only and no one, other than the Minister, should rely on the information contained in the draft EIS Th is draft EIS has been prepared in conjunction with to make any decision. In preparing the draft EIS, Shell has an independent consultant, Environmental Resources relied on information provided by specialist consultants Management (ERM), and specialist sub-consultants and other third parties who are identifi ed in the draft EIS. including the Centre for Marine Science and Technology, Shell has not verifi ed the accuracy or completeness of the Curtin University; Centre for Whale Research; Deltares information obtained from these sources, except where and specialists from ERM. Shell acknowledges the valuable expressly acknowledged in the draft EIS. contributions of these consultants. Invitation to Comment • Battye Library, Alexander Library Building, 25 Francis St, Perth Shell Development (Australia) Proprietary Limited (Shell) • Northern Territory Library, Bennett St, Darwin proposes to develop the Prelude petroleum reserves within • DEWHA Library, John Gorton Building, King Edward Exploration Permit WA-371-P. Th e Prelude FLNG Project Terrace, Parkes, Canberra is located in Commonwealth waters approximately 200 kilometres off shore northwest Western Australia, in the Copies of the draft EIS are also available from Shell. northern Browse Basin. Electronic copies of the draft EIS are available free of charge and may be downloaded from www.shell.com.au/prelude. Th e Project will be carried out using a Floating Liquefi ed Hard copies of the Executive Summary are available free of Natural Gas (FLNG) facility designed to extract and process charge and hard copies of the full draft EIS are available for natural gas and associated condensate, thereby avoiding the a charge of $20. Copies can be obtained by: need for a “traditional” development comprising off shore • Telephoning: 1800 037 298 platforms, export pipelines, an onshore liquefaction plant • Emailing: [email protected] and export jetty. Th e Prelude FLNG Project is scheduled to • Writing to: Prelude Draft EIS, Shell Development commence production in 2016 with an estimated operational (Australia) Pty Ltd, 250 St Georges Terrace, Perth WA life of 25 years. Annual production is estimated to peak at 6000 3.6 million tonnes of LNG, 1.3 million tonnes of condensate and 0.4 million tonnes of Liquefi ed Petroleum Gas. Submissions Th e Commonwealth Minister for the Environment, Interested persons or organisations may make a written Heritage and the Arts has determined that the Prelude submission in relation to the draft EIS. Submissions may FLNG Project is a controlled action under the Environment be in relation to general issues covered by the draft EIS Protection and Biodiversity Conservation Act 1999 (EPBC or on specifi c elements of the Prelude FLNG Project. All Act). It was determined that an Environmental Impact submissions received by Shell will be acknowledged, and Statement (EIS) would be required for the proposal. Th e copies forwarded to DEWHA. controlling provisions under the EPBC Act are: • sections 18 and 18A (listed threatened species and Submissions should: communities); • specify which chapter or section each point relates to; • sections 20 and 20A (listed migratory species); and • include factual and supporting information, including • sections 23 and 24A (marine environment). the source; • specify whether you wish for your submission to remain Shell has prepared a draft EIS for the Prelude FLNG Project confi dential; in accordance with Part 8 of the EPBC Act. Th e draft EIS • provide personal details, including name and address, covers the drilling, installation, commissioning, operation, and identify any special interest that you have in the maintenance and decommissioning phases of the project. Prelude FLNG Project. Viewing the Draft EIS Unless the submission specifi es that it is to be confi dential, all submissions will be treated as public documents. Copies of the draft EIS will be held for viewing at the Submissions may be referred to or quoted in the fi nal EIS. following locations: • Broome Public Library, Cnr Haas and Hamersley St, Submissions should be sent by e-mail or post to the above Broome address.Th e draft EIS is available for public comment for • Derby Public Library, Clarendon St, Derby a period of 30 business days and submissions close on • Th e Department of Industry and Resources, 1st Floor, FRIDAY 20th NOVEMBER 2009. 100 Plain St, East Perth Prelude FLNG Project FOREWORD Th ank you for taking the time to review the Draft Environmental Impact Statement for the Prelude Floating Liquefi ed Natural Gas (FLNG) Project. Th is Project involves the extraction, liquefaction and sale of natural gas and condensate from the Prelude fi eld located off the north west coast of Australia, some 475 km north-north east of Broome. As Operator and 100% equity holder of the WA-371-P exploration permit, Shell intends to develop the fi eld in a timely, economic and environmentally sustainable manner. Th e Prelude FLNG Project will be the fi rst application of Shell’s innovative FLNG technology as a means to develop a relatively small and remote gas fi eld which would otherwise be uneconomic to develop. By locating the processing and liquefaction facilities directly over the gas fi eld, there is no need for an off shore platform, a pipeline to shore, jetty and dredging for shipping or onshore construction. Th is not only reduces cost, but also reduces the environmental footprint of the project. Th is Project is an example of how Shell is responding globally to what we call the “3 Hard Truths”. 1. Increasing energy demand – the world continues to need more energy due to population growth and increasing standard of living in developing countries. LNG from Prelude will be exported to Asia providing cleaner energy to some of the highest growth rate countries in energy demand. 2. No easy oil – oil and gas is a fi nite resource and becoming increasingly diffi cult to fi nd and develop, with new discoveries in deeper waters further off shore and often as smaller, separate fi nds. For Prelude, the FLNG solution enables access to an otherwise stranded gas resource. 3. Carbon constrained world – fi nding, developing and supplying energy needs to be done at a low carbon intensity to avoid worsening the impacts of climate change on our planet. LNG is an energy source that emits far less CO2 for power generation than coal or fuel oil over the extraction to combustion lifespan. Th e Prelude FLNG Project is a very exciting project for Shell in Australia: • It is fast! Th e Prelude gas discovery was made in January 2007 and the project is expected to begin production in 2016, making it a fasttrack LNG development; • It will be Shell’s fi rst application of FLNG technology, a solution which has the potential to unlock much of Australia’s, and the world’s, stranded gas assets; • It has a low environmental footprint which is restricted to its location 200 km off shore, away from sensitive environmental receptors such as turtles, whales and the Kimberley coastline; and • It will deliver economic benefi ts to the region and Australia through 25 years of operation, producing a valuable export commodity and employing Australians to operate and maintain the FLNG facility. I encourage you to review this draft EIS and provide feedback on Shell’s proposed Prelude FLNG Project. We look forward to hearing from you. Jon Chadwick Shell’s Executive Vice President, Upstream International - Australia Prelude FLNG Project TABLE OF CONTENTS EXECUTIVE SUMMARY . 1 INTRODUCTION . 1 SHELL DEVELOPMENT (AUSTRALIA) . 2 LEGAL REQUIREMENTS & STANDARDS . 2 PRELUDE FLNG PROJECT . 3 CONSULTATION . 7 ENVIRONMENTAL & SOCIAL CONTEXT . 8 POTENTIAL IMPACTS . 9 IMPACT MITIGATION, MANAGEMENT & MONITORING . 13 CONCLUSION . 19 1 INTRODUCTION . 21 1.1 PROJECT TITLE . 21 1.2 LOCATION OF THE PROPOSED PROJECT . 22 1.3 DEVELOPMENT OBJECTIVES . 22 1.4 EIS PURPOSE AND SCOPE . 22 1.5 INTRODUCTION TO THE PRELUDE FLNG FACILITY . 23 1.6 PROPONENT . 23 1.7 PROPONENT’S ENVIRONMENTAL COMMITMENT . 24 1.8 PROJECT HISTORY . 25 1.9 ORGANISATION OF THIS DRAFT EIS . 25 2 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK . 27 2.1 OVERVIEW . 27 2.2 COMMONWEALTH POLICY FRAMEWORK . 27 2.2.1 Australian Off shore Petroleum Development Policy . 27 2.2.2 Commonwealth National Oceans Policy . 27 2.3 LEGISLATIVE FRAMEWORK . 28 2.3.1 Introduction . 28 2.3.2 Key Legislation . 28 2.3.3 Other Legislation . 30 2.4 ADMINISTRATIVE FRAMEWORK . 31 2.4.1 Production Licence. 31 2.4.2 Infrastructure Licence . 31 I 2.4.3 Safety Case . 31 2.4.4 Oil Spill Contingency Plans . 32 2.4.5 Environment Plans . 32 2.4.6 Environmental Management System . 32 2.5 INDUSTRY GOOD PRACTICE STANDARDS . 32 2.6 INTERNATIONAL AGREEMENTS AND CONVENTIONS . 33 2.7 INTERNATIONAL STANDARDS AND GUIDELINES . 33 2.8 SHELL HSE POLICY AND COMMITMENT . 36 2.8.1 Introduction . 36 2.8.2 HSE Control Framework . 37 2.8.3 Shell Group Biodiversity Standard . 37 2.8.4 Minimum Health Management Standards . 37 3 CONSULTATION . 39 3.1 INTRODUCTION . 39 3.2 METHODS OF ENGAGEMENTS . 39 3.2.1 Stakeholder Engagement Plan .
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