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Executive Summary Draft Report Environmental Impact Assessment of Proposed FSRU Based LNG Terminal at Kakinada Deep Water Port, Kakinada, East Godavari District, Andhra Pradesh Executive Summary Sponsor:Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad National Environmental Engineering Research Institute (Council of Scientific and Industrial Research) Nehru Marg, Nagpur – 440 020 (QCI / NABET Accreditation : Sr.No.102 as per the list published on May 05, 2013) October, 2014 Draft Report Environmental Impact Assessment of Proposed FSRU Based LNG Terminal at Kakinada Deep Water Port, Kakinada, East Godavari District, Andhra Pradesh Executive Summary Sponsor Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad National Environmental Engineering Research Institute (Council of Scientific and Industrial Research) Nehru Marg, Nagpur – 440 020 (QCI / NABET Accreditation : Sr.No. 102 as per the list published on May 05, 2013) October, 2014 Executive Summary 1.0 Introduction Andhra Pradesh Gas Distribution Corporation Limited (APGDC) is a Joint Venture Company of Andhra Pradesh Gas Infrastructure Corporation Pvt. Ltd (APGIC), [a wholly owned company of APGENCO & APIIC] and GAIL Gas Limited, [a wholly owned subsidiary of GAIL (India) Limited, a Public Sector Undertaking under the Ministry of Petroleum & Natural Gas, Govt. of India]. The Government of AP has mandated APGDC for development of LNG terminal at an existing port in Andhra Pradesh. M/s APGDC together with M/s GDF SUEZ and M/s Shell (MNCs) propose to develop LNG import, storage, regasification and bulk natural gas supply terminal at existing Kakinada Deep Water Port (KDWP). Based on the Feasibility Study for the Project, a near shore island jetty & Floating Storage and Re-gasification Unit (FSRU) based LNG terminal has been found most suitable to meet the immediate demand of natural gas in A.P state in the shortest time period, with an optimum Capital Expenditure (CAPEX) as well as with all necessary safety measures. 1.1 Need of Proposed Project The government of India in its policy document “Hydrocarbon Vision 2025” outlined India’s goal to significantly increase gas usage by 2025. This ambition is mainly an effort to wean the overall Indian economy off its dependence on coal and Liquid fuel for environmental reasons. Currently gas based power generation is around 9% of total power production in India, which is much below world average of 22%. There is substantial gap in demand and supply of Natural Gas in India in general and within Andhra Pradesh in particular. Existing gas based power plants in A.P. having around 2700 MW capacity are running on very low Plant load factor (around 26%) due to non- availability of gas, while the new units to the tune of 1000 MW are waiting for commissioning. Further additional capacity of approx. 2800 MW is under installation. Apart from the above, Natural Gas demand exists from fertilizer and other industries as well as for city (domestic) gas distribution. In view of existing shortage in natural gas in the country, the natural gas import is unavoidable to fill up the increasing supply-demand gap. Since the proposed project is initiated by Govt. of Andhra Pradesh through joint venture Company, this project shall have priority to supply natural gas within the state of Andhra Pradesh. Accordingly, the proposed project would CSIR-National Environmental Engineering Executive Summary Research Institute meet the need of natural gas in the coastal region and the Andhra Pradesh and its surrounding states in substantial way. 1.2 Advantages of FSRU based LNG Terminal Reduced project schedule: FSRU based terminal is generally commissioned in 2 years, whereas a land based LNG Terminal typically takes 4-5 years. Requirement of land is minimal, limited to metering station with control room/ ORF. FSRU is flexible to re-location. Capital Expenditure (CAPEX) is considerably less when compared to land based LNG terminal. In a cyclone prone area, in case of cyclone alert, the FSRU based LNG terminal can cast off and leave the danger zone and come back after the cyclone. 1.3 Proposed Project – Prior Environmental Clearance As per MoEF Notification of 14th September 2006, the proposed FSRU based LNG Terminal falls under ‘Category-A’ and ‘7(e)’ project activity as per the Schedule for which prior Environmental Clearance from MoEF is a mandatory requirement. The Ministry of Environment & Forests (MoEF) has issued Terms of References (TORs) vide letter no.11-70/2012-IA.III dated 6th November 2012 for undertaking EIA study. The present EIA report has been prepared in compliance with the EIA guidelines as well as MoEF approved ToR. 1.4 CRZ Status The CRZ demarcation study has been carried out by National Institute of Oceanography (NIO), Goa through its Regional Center at Vishakhapatnam at the proposed project site and in the vicinity. As per the study results, the proposed project activities are permissible in different CRZ classifications prescribed in the MoEF CRZ Notification 2011. 2.0 Project Description The design capacity of the proposed LNG terminal will be 3.5 MMTPA (Million Tonne per Annum) with appropriate operational flexibility up to maximum 5.25 MMTPA. The proposed LNG terminal project consists development of marine LNG import facilities (island Jetty Platform); berthing / mooring of FSRU for LNG import, storage and regasification within KDWP harbour; a high pressure subsea pipeline to transport re-gasified LNG (RLNG) to coast, and an onshore receiving facility (ORF) / landfall station for gas metering, control room and supply to Sponsor: Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad ES.2 CSIR-National Environmental Engineering Executive Summary Research Institute gas grid. 2.1 Summary of Project Design Details LNG Terminal Design capacity Max. 5.25 MTPA (million tonnes per annum) Peak send out Approx. 750 MMSCFD / 21 MMSCMD Operating Pressure 65-98 bar(g) Operating Temperature 0 - 500 C FSRU LNG Storage Capacity Max. 217,000 m3 Regas technology Open loop Spare philosophy Operating + Standby for all critical equipment Flaring ‘Zero’ Flaring under normal conditions Staff/crew Operation phase – 35 persons on board FSRU Island Jetty Location 16° 58’ 57” N, 82° 18’ 00” E; 16° 58’ 51” N, 82° 18’ 03” E 16° 59’ 03” N, 82° 18’ 12” E; 16° 58’ 57” N, 82° 18’ 15” E; Marine area 35.4 Ha (approx.) Jetty Dimension 90m x 25m Jetty height 9.5m above CD (initial studies) LNG unloading from carrier to Ship to Ship transfer using cryogenic flexible FSRU hoses – 8 Nos. HP gas arms 2 Nos. (operation + standby) Power Requirement 250 KVA Navigation Exclusion Zone 350m (above FSRU manifold) Safety Exclusion Zone (MEZ) 500m (from FSRU manifold) Staff Unmanned, operations are controlled from ORF and FSRU Subsea Pipeline Diameter 28” Design pressure 98 bar (g) Sponsor: Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad ES.3 CSIR-National Environmental Engineering Executive Summary Research Institute Pipeline Length (Jetty to 3.6 km(approx.) subsea and 0.5 km onshore ORF) Connectivity to Existing Gas Grid Pipe Diameter 28” Operating Pressure 50-92 bar (g) Pipeline length 1.1 km (approx.) Onshore Receipt Facility (ORF) ° ° ORF location 17 0'32.6"N, 82 17'0.3"E 17°0'31.1"N, 82°17'5.4"E 17°0'17.9"N, 82°17'1.5"E 17°0'18.8”N, 82°16'56.1"E Plot Dimensions 400m x 200 m (8 Hectare) Present Status Ownership: Revenue Department Govt. of AP. Allotment of land is under process. Gas Handling Capacity Max. 21 MMSCMD Power Requirement 550 KVA (grid power) Staff Operation phase – 12 persons (4 on general shift, 2 for each shift) Dredging Navigation channel width 265m (existing channel width 160m) Turning basin diameter 600m Depth (Navigation channel , Max. 15.5m below CD Turning basin and berthing area) Capital Dredging Estimated about 19 million m3 Maintenance Dredging FSRU basin: 1.5million m3 (approx.) Resource requirement Sea Water At maximum capacity: 15000 m3/h sea water as LNG heating medium for LNG vaporization and 4500m3/h for machinery cooling (open loop mode) Domestic (potable) water 20 KLD Power 800 KVA (for ORF and Jetty) to be taken from Grid Power. FSRU will have captive power generation on board. Construction Material : ORF – approx. 1000 m3 Cement concrete Jetty - approx. 7000 m3 Sponsor: Andhra Pradesh Gas Distribution Corporation Limited, Hyderabad ES.4 CSIR-National Environmental Engineering Executive Summary Research Institute Construction steel ORF – approx. 250 MT Jetty - approx. 17000 MT Additional Ship Traffic Visiting LNG carrier Ships Max. of 217,000m3 (Q-Flex); 50-60 ships/year Project Cost And Schedule Estimated Capital Rs. 1800 crores (assuming FSRU is leased) expenditure Project Schedule 24 months from the date of financial closure (after receipt of Environment Clearance) 2.2 Project Location Different alternative locations of existing ports, namely Vishakhapatnam, Gangavaram and Kakinada have been evaluated for the proposed project and Kakinada has been chosen, in view of tranquility conditions on the lee side of the existing constructed breakwater for positioning the FSRU for round the year operation, low sea traffic at present, availability of Government land and proximity to existing natural gas distribution grids/ networks as well as bulk consumers. The Kakinada Deep Water Port (KDWP) location (16°58.37’ N, 82°17.06’ E) harbour has been chosen for the proposed LNG import facilities under the protection of existing breakwater. Floating Storage and Regasification Unit (FSRU) will be berthed at proposed island jetty on the lee side of breakwater. The KDWP is presently operated by M/s Kakinada Seaports Limited (KSPL) as concessionaire. Project location accessibility: Village : Kakinada Mandal : Kakinada District : East Godavari State : Andhra Pradesh Nearest railway station : Kakinada Port / Kakinada Town Nearest airport : Rajahmundry (Approx. 65 Km) Nearest city : Kakinada (Population – 0.312 million) The land identified for the proposed LNG terminal is only 8 Ha.
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