The role of gas in a carbon-neutral energy mix

By Marcel Hoenderdos and Dimitri Schildmeijer

x From left to right:

Scott Seatter (Vermilion), Corin Taylor (UK Onshore Oil and Gas), Paul Stamsnijder (The Reputation Group), Thijs Starink (EBN) and moderator Dimitri Schildmeijer (WPNT) at the European Autumn Gas Conference in November 2016 in The Hague.

Marcel Hoenderdos (EBN) and Dimitri Schildmeijer (WPNT) are members of the Marketing and Communications Committee. This committee looks at the role of communications in engaging stakeholders on new building projects, sustainability, clean air and innovation. Marcel and Dimitri chair the Committee's Study Group on Public Acceptance of Gas Projects.

At the European Autumn Gas Conference on Public Acceptance and Advocacy (The Hague, November 2016) Marcel Hoenderdos organised a panel. Marcel is the Communications Director of EBN, the Dutch state-owned participation company and a partner in every oil and gas project in the Netherlands. The panel was moderated by Dimitri.

The premise of the panel was that the certitude of gas as part of a sustainable energy future is not a given and needs to be earned. Marcel and Dimitri invited four speakers in a round table discussion to further explore how the sector can reinvent its relationship with society.

Panel member Scott Seatter, Managing Director of Vermilion Energy Netherlands BV, believes there is a future for onshore gas production in the Netherlands. The starting point is the licence to operate. “Companies have only the

rights given to them by society,” Scott stated. It wants to engage with all stakeholders as early as possible and do so in an open, transparent and respectful manner. The Canadian-owned company operates 100 wells in the Netherlands alone. And today, the company is asking the Dutch government for fiscal reform. Vermilion believes the local jurisdictions should receive a share of the revenue generated from gas developments in exchange for hosting the activity.

UK Onshore Oil and Gas (UKOOG) Director Corin Taylor talked about lessons learned from his hard-fought battles over shale gas in the UK. For him, a future role for onshore gas starts with a changing narrative on the role of gas: “Gas is vital for our lives. But local gas production also means less imports. Gas can mean green gas and low-carbon solutions like hydrogen and carbon capture and storage. By reframing the narrative on gas, you can start to reinvent your relationship with society.” Corin also provided advice on engaging communities to get buy-in for gas projects: ◆ Focus on creating (economic) value for local communities. For example, make sure you hire a lot of local people as employees or contractors. They carry a lot of credibility. ◆ Make transparency the good practice – for example, be honest and open about the chemicals you use and the environmental impact you have. Be ready to change the project based on feedback. ◆ Work very hard to minimise risk and the worry about risk. For example, UKOOG invested in designing a brand new insurance scheme to reassure citizens that any damage as a result of the wells – now or in the future – is covered.

Build a coalition of supporters of the project.

This is ultimately a local political campaign.

Identify supporters and encourage them to speak up.

Stakeholder management expert Paul Stamsnijder complimented the gas sector on being very much “tuned in” with decision makers in the sector. The challenge, he put to the room, was to get out of the industry’s comfort zone and start engaging with nontraditional stakeholders in society. His approach is to know, measure and ‘date’ stakeholders. Paul makes the point that this starts by changing the culture in your own organisation. “You have to go from an ivory tower to an open house,” is at the heart of his vision on transforming companies and getting more in tune with society. Finally, EBN’s Asset Director Thijs Starink stated that his organisation fully supports a carbonneutral energy mix by 2050. He said that for EBN this was both the end goal and the starting point of a discussion on what gas can be. EBN is one of the leading companies that is working on “Gas by Design”, a new Dutch approach to redefine the role of gas. It means that using gas is not a given, but a choice. It is a renewed promise that in the forcefield of climate change, public acceptance, seismicity and geopolitics, gas can carry the good cause.

Thanks to the panel for its insights!

Marcel Hoenderdos and Dimitri Schildmeijer chair the IGU Study Group on Public Acceptance of Gas Projects. Contact: dschildmeijer@wpnt.com

Growing with Responsibility

Embracing responsibility, increasing efficiency, and sustainable growth – these are the ingredients of DEA’s success story. The Mittelplate Drilling and Production Island at the edge of the Wadden Sea National Park in Germany is a good example of DEA’s approach towards the environment. DEA is currently producing more than 50 % of Germany’s domestic crude oil from Mittelplate and has been operating the field without any harmful influence on the nature reserve for 29 years now. DEA takes responsibility towards humankind and the environment in all its upstream activities – in countries like Germany, Norway, Denmark, Egypt and Algeria – every day.

News

We start the section with an update on the work undertaken by IGU since the last edition of International Gas in October 2016.

The project that is transforming IGU, Building for the Future, now enters Phase III. Two issues require detailed study and suggestions for reform: the role of the IGU Presidency; and role of organising the World Gas Conference. Luis Bertrán Rafecas, IGU Secretary General, presents the plans.

Now running since 2008, the IGU Global Gas Award will be a feature of the World Gas Conference in Washington DC. We provide an overview of the Award criteria and process, look back at its most recent winner and provide details of the entry requirements for 2018.

IGU’s Regional Coordinators for Asia and Asia-Pacific and for North America discuss important topics affecting their spheres of influence.

IGU’s work with government and policymakers is highlighted in two articles, the first reporting on the 5th IEA/IGU Ministerial Gas Forum and the second on engagement with the diplomatic corps through the expanding Diplomatic Gas Forum event series.

We have details from IGU’s 2016 Council meeting that was held in Amsterdam last October, which marked the handover from Norway to Spain as host of the Secretariat. Highlights included Pål Rasmussen addressing his final IGU meeting as Secretary General and details of a draft report on fugitive methane emissions by Mel Ydreos, IGU Executive Director Public Affairs.

There is also an update on the 27th World Gas Conference, which is now just over a year away. WGC 2018 Executive Director Jay Copan reveals the state of play with keynote speakers and what you can expect in the exhibition’s special pavilions. We also bring you the final preview ahead of IGRC 2017 in Rio de Janeiro in May.

News from organisations affiliated to IGU this issue provides the latest updates from GTI, GIIGNL and WLPGA.

And finally we introduce you to IGU’s newest Associate Members, the Natural Gas Society and PwC.