Daniele Strippoli - Partner, ERM - Italy

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The business of sustainability
Sustainability challenges of natural gas
infrastructures
The business of sustainability
© Copyright 2017 by ERM Worldwide
Limited and/or its affiliates (‘ERM’). All
Rights Reserved. No part of this work
may be reproduced or transmitted in
any form or by any means, without
prior written permission of ERM.

2. The business of sustainability
Contents

3. The business of sustainability
ERM – The Business of Sustainability
4,500+employees across the world
42years of innovative
sustainability
50%
of the Fortune 500 work
with ERM
~1B$
Revenue/y
ERM ranks #1 for top brand perception in global
EHS survey by Verdantix, 2015 and 2016
150+offices around the world,
from Argentina to Vietnam
160Countries &
territories worked in
over the last three
years

4. The business of sustainability

5. The business of sustainability
O&G Industry Transition to a new Energy Mix
-3%
0%
3%
6%
1965 1975 1985 1995 2005 2015
%Year-on-yeargrowth
GDP CO2 emissions
Global GDP vs carbon emissions
Global markets are becoming
more energy efficient and
shifting to lower-carbon fuels
Source: World Bank, BP Statistical Review / Outlook, International Energy Agency and XOM 2040 Outlook

6. The business of sustainability
O&G Industry Transition to a new Energy Mix
Source: IEA World Energy Outlook, BP 2035 Outlook, XOM 2040 Outlook
• East-MED as new Gas-
Hub;
• Export options;
• Gas to Power Programs;
• Natural Gas
Infrastructures.
• Integrated Solar/Renewable
Energy Projects;
• Off-Grid / Small-Scale Energy
Supply Scheme

7. The business of sustainability
Megatrends
57% of world
population will
be considered
Middle-Class
in 2030
Millenials’
awareness
vs. E&S
issues
Re-think
Enegy
production &
consumption
30% in 30
years at global
level
By 2050’ 2/3
of population
will be urban
Natural
Resources
consumption
170% of bio-
capacity by
2040

8. The business of sustainability
Regional Opportunities
Renewable Energy
Programs
 Eastern-MED : new emerging GAS province of world-wide relevance.
 Major Fields found their own way for development and security of supply of
domestic market has been prioritazed.
 Using existing infrasturctures (LNG & pipelines)? Construction of new long
pipeline connections?
 Number and size of G2P projects in North-Africa is growing;
 Next step – medium-long term will be the domestic valorization of gas
resources?
 E&S awareness is growing, as a consequence of Project Financing strategy
and increased complexity.
 Moroccan Agency for Solar Energy (MASEN) aims to build 2,000 MW of
solar integrated projects by 2020.
 Algeria to launch mid-June Tender for 4,000MW Renewable program
New discoveries
Game-Changer
Integration =
Gas to Power

9. The business of sustainability

10. The business of sustainability
Social License to Operate
■ What it is……
The Social License has been
defined as existing when a
project has the ongoing
approval within the local
community and other
stakeholders, ongoing
approval or broad social
acceptance and, most
frequently, as ongoing
acceptance.
■ What it is NOT……

11. The business of sustainability
Social License to Operate

12. The business of sustainability
The new reputation game
Reputation game in the 2.0 era……..
Reality
Perception
(Fake
information)

13. The business of sustainability

14. The business of sustainability
Financing Strategy
Being time effective – a complex balance
Manage Stakeholders
Circular Thinking

15. The business of sustainability
Sustainability nowadays
aa
Project to
Program
Energy
Efficiency
GHG
Reduction
Circular Thinking

16. The business of sustainability
ERM’s Experience
Planning &
Management
Design
Financing Strategy
Implementability
EHS/Sustainability
integration in
macro-planning
Interface
Management
Effective Site-
Alternatives
Assessment
No Over-
Promises
(Feasibility)
Setting of
Standards –
Go/No-Go
EHS/Sust.
criteria EHS –
Mitigation /
Management /
Monitoring
effectively
implemented
Stakeholder
Engagement &
LEA strategy
integration

17. The business of sustainability
Conclusions
17
The Transition to the new
Energy Mix is already
under-way. The question
is no longer “if” but “how
quickly”…………….
COP21 as game-changer
for Energy Production &
Consumption schemes?
How Megatrends will
play?
Stakeholders : managing
expectations with
transparent and clear
communication is key

18. The business of sustainability
THANK YOU
Daniele Strippoli
Partner
T|+39 348 31 73 404
E| daniele.strippoli@erm.com