Shippers' Forum
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SHIPPERS’ FORUM 17 September 2020 WELCOME Clement Johan Ulrichsen, Energinet Gas TSO MUTE YOUR MICROPHONE, SWITCH ON YOUR CAMERA, ONLY WHEN YOU DON’T SPEAK WHEN YOU ARE GIVEN THE WORD TO SPEAK USE THE ‘RAISE HAND’ …YOU CAN ALSO WRITE YOUR FUNCTION IF YOU WISH TO QUESTION USING THE CHAT - COMMENT OR ASK A THE HOST WILL ASK THE QUESTION… QUESTION FOR YOU PROGRAMME 13.00 Welcome 14.10 Security of supply 14.00 Baltic Pipe Clement Johan Ulrichsen, Energinet Gas TSO The supply situation Project status Clement J. Ulrichsen, Christian Rutherford, 13.10 Grid planning approval Energinet Gas TSO Energinet Gas TSO Sara Andersen, The Tyra redevelopment Tariffs Energinet Gas TSO Morten Hesselager Pedersen, Nina Synnest Sinvani, Total E&P Denmark Energinet Gas TSO 13.20 Equinor’s climate roadmap User Groups Axel Elmelid, Nina Synnest Sinvani, Equinor Energinet Gas TSO 13.45 Gas Storage Denmark Balancing model 2022 Iliana Nygaard, Julie Frost Szpilman, Gas Storage Denmark Energinet Gas TSO 15.30 Closing remarks Clement Johan Ulrichsen, Energinet Gas TSO 4 NEW CHAIRMAN Mogens Lykketoft is new chairman of Energinet’s Board of Directors • He is a former • Danish Minister • Speaker of Parliament • President of the UN General Assembly • He replaces Lars Barfoed • Chairman since 2017 BALANCING MODEL AND NEGATIVE PRICES Negative prices will be possible from 1 October 2020. Energinet’s balancing model is updated to give correct incentives if prices are negative. BALANCING 2020/21: ADJUSTMENT STEP 2 PRICES Updated yearly to reflect Ellund and storage alternatives Activated if systems end in yellow zone - but there has been no yellow zone trades Adjustment Step 2 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Gas Year 2019/2020 (current gas year) 6% 6% 6% 10% 10% 10% 10% 6% 6% 6% 6% 6% Gas Year 2020/2021 (new gas year) 10% 10% 10% 10% 10% 10% 10% 9% 9% 8% 8% 9% Reasoning behind the increase: • Lower gas price as basis, compared to last year • Seasonal tariffs at Ellund included in calculation 7 GERMAN CONSULTATION ON INCREMENTAL CAPACITY PROJECTS - ELLUND Energinet Gas TSO choses to participate with the following key messages: • Disagreement with process leading to capacity reduction to zero at Ellund southbound • Disagreement with using incremental capacity process as a mean for testing capacity need for southbound capacity • Energinet Gas TSO should have been involved, before reducing the capacity, in accordance with EU regulation The consultation ended on 10 September 2020 GREEN GAS LOLLAND-FALSTER Nothing new to add. Project awaits political process. QUESTIONS Contact: [email protected] GRID PLANNING APPROVAL Sara Andersen, Energinet Gas TSO ASSESSMENT OF FUTURE DEVELOPMENTS IN THE GAS TRANSMISSION SYSTEM A change in law and a new assessment Sara Andersen, Energinet Gas TSO 12 LONG-TERM DEVELOPMENT PLAN 2022 • Energinet’s Long-Term Develoment Plan for Electricity and Gas • A new task based on a proposed change in law (Act on Energinet, January 2021) • First plan expected published in 2022 and updated every second year • Projects (leading to possible investments) must be described in the plan LONG-TERM ASSESSMENT OF GAS DEVELOPMENT PLAN SYSTEM NEEDS 2022 2020 • Energinet’s Long-Term Develoment - This year we will publish a Plan for Electricity and Gas ”frontrunner” for the long-term plan • A new task based on a proposed - The plan includes: change in law (Act on Energinet, - an analysis of expected January 2021) developments in the • First plan expected published in 2022 transmissions system and updated every second year - identification of system needs • Projects (leading to possible - possible solutions investments) must be described in the plan - The analysis is based on the Danish Energy Agency’s outlook 2019 for Energinet, and two scenarios. IDENTIFICATION OF GAS SYSTEM NEEDS Identification of gas system needs can be categorized in four main groups DEMAND AND EXTERNAL RE- SUPPLY SYSTEM USERS CLAIMS INVESTMENTS Analysis of changes Incremental Legal requirements Forecast total in gas demand and Capacity-process and international budget for all re- supply: how will this and other requests standards investments affect how the gas system is used? 15 EXAMPLES OF IDENTIFIED NEEDS IN THE 2020 REPORT Analysis of increased local production of biogas and decreased gas consumption: Example of illustration from the 2020-report: analysis of areas with biogas surplus in 2040 • Some areas might experience a biogas surplus before 2040 • Gas flow at some M/R stations may decrease significantly before 2040 These results are examples of situations which can lead to developments in the gas transmission system PUBLICATION AND STAKEHOLDER INVOLVEMENT STAKEHOLDER PUBLICATION INVOLVEMENT WEBINAR The assessment is We aim at increasing our After the publication we expected to be published stakeholder involvement are planning to host a in October to ensure that the webinar It will be in Danish assessment covers the Also in Danish expected future developments also anticipated by the gas system users 17 SPØRGSMÅL Contact: [email protected] Equinor’s Climate Roadmap 19 | Equinor's Climate Roadmap Open 17 September 2020 The world is changing and so are we Driving long term value creation, in line with the Paris Agreement Population growth Broad energy company Low carbon embedded in Higher energy need strategy The Paris Agreement Our climate roadmap 20 | Equinor's Climate Roadmap Open 17 September 2020 Our climate roadmap Profitable growth in renewables Climate is embedded in our We use our decision-making voice to drive Industry leading change in carbon efficiency Accelerate decarbonisation 21 | Equinor's Climate Roadmap Open 17 September 2020 2026 Grow renewable energy capacity tenfold. 2035 Increase capacity from 0,5 today to 12-16 GW. 22 | Equinor's Climate Roadmap Open 17 September 2020 2025 <8 kg CO2 per boe. 23 | Equinor's Climate Roadmap Open 17 September 2020 2030 Carbon neutral global operations. 24 | Equinor's Climate Roadmap Open 17 September 2020 2030 No routine flaring by 2030 and near zero methane emissions intensity. 25 | Equinor's Climate Roadmap Open 17 September 2020 Hammerfest LNG Climate ambitions for Norwegian Continental Shelf Absolute emissions reductions (million tonnes of GHG) Reduction Reduction by by Near 15 Halten 40% 70% 0 10 million -5 tonnes 5 Hywind Snorre A, B million Tampen -9 tonnes Gullfaks A, B, C Mongstad 0 H Demo Martin Linge 2 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Oseberg Troll A , B, C Kårstø Gudrun Gina Krog Johan Sverdrup Sleipner 26 | Equinor's Climate Roadmap Open 17 September 2020 Accelerate decarbonisation >85% More than 85% of emissions come from the final use 27 | Equinor's Climate Roadmap Open 17 September 2020 Including scope 1, 2 and 3 28 | Equinor's Climate Roadmap Open 17 September 2020 Future value creation in CCUS and hydrogen from natural gas • Hydrogen plays a key role in a low carbon future • Blue hydrogen technology is available at GW scale today • H2 enables solutions for the hard-to-decarbonise sectors Northern Lights H2Demo Norway Zero Carbon Humber H2 /Ammonia shipping Clean steel A Norwegian full-scale CCS Demonstration of natural gas Aim to build the world’s first Replacing diesel/fuel oil in the Decarbonisation of the steel value chain, including capture based hydrogen production zero carbon industrial cluster shipping sector industry - replacing coal with of CO2 from industrial sources with CO2 removal and storage in the North of UK hydrogen 29 | Equinor's Climate Roadmap Open 17 September 2020 Our enablers • CO2 price of at least USD 55 Climate is • Stress testing embedded in our decision-making • Remuneration and incentives We use our voice to drive change • Setting climate policy expectations • Promoting collaboration 30 | Equinor's Climate Roadmap Open 17 September 2020 31 | Equinor's Climate Roadmap Open 17 September 2020 Cautionary statement This presentation contains certain forward-looking statements that involve risks and uncertainties. In some cases, we use words such as “aim”, “ambition”, “continue”, “expect”, “may”, “strategy”, “will”, “in line with”, and similar expressions to identify forward-looking statements. Forward-looking statements include all statements other than statements of historical fact, including, among others, statements regarding Equinor’s ambitions, plans, intentions, aims and expectations with respect to Equinor’s new Climate Roadmap, including with respect to its net carbon intensity, carbon efficiency, methane emissions and flaring reductions, renewable energy capacity, carbon-neutral global operations, internal carbon price on investment decisions, future levels of, and expected value creation from, oil and gas production, scale and composition of the oil and gas portfolio, development of CCUS and hydrogen businesses, use of offset mechanisms and natural sinks and support of TCFD recommendations. These forward-looking statements reflect current views about future events and are, by their nature, subject to significant risks and uncertainties because they relate to events and depend on circumstances that will occur in the future and are beyond Equinor’s control and are difficult to predict. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including societal shifts in consumer demand and technological advancements, levels of industry product supply, demand and pricing; price and availability of alternative fuels; the political