Proposed Project Location – Key Map 0 0 82 30’ 820 15’ 820 20’ 82 25’

Proposed LNG FSRU Terminal

Annexure Annexure

170 05’

F1 Proposed Widening and

- Deepening of entry channel

Proposed Subsea pipeline 170 Proposed Onshore Island Jetty Facility 00’

Proposed 600 mɸ Turning Circle

Annexure

0 16 2 55’ Preliminary Layout of Proposed Project

28 (A) Identified location for Offshore Facility (Island Jetty & FSRU)

Annexure Annexure

(B) Identified location for Onshore Facility (landfall Point)

Project Site Photographs APPENDEX I (Revised as per MoEF Notification S.O.3067(E) dt. 01.12.2009) (See paragraph – 6) FORM 1 (I) Basic Information

Sr. Item Details No. 1. Name of the Project/s Development of offshore LNG FSRU Facility at Kakinada Deep Water Port 2. S.No. in the schedule 7(e) 3. Proposed The project will be designed for 6.5 Million Ton capacity/area/length/tonnage to be Per Annum (MTPA) LNG throughput (Equivalent handled/command area/lease to Approx. 26.9 MMSCMD Natural Gas flow area/number of wells to be drilled rate) 4. New/Expansion/Modernization Expansion 5. Existing Capacity/Area etc. The existing Kakinada Deep Water Port handled 10.8 Million Metric ton Multiple Cargo during 2010-’11 6. Category of Project i.e., 'A' or 'B' ‘A’ 7. Does it attract the general Not applicable, since proposed project falls in ‘A’ condition? If yes, category Please specify. 8. Does it attract the specific -No- condition? If yes, Please specify. 9. Location Kakinada Deep Water Port, Kakinada, East Godavari District, Andhra Pradesh (Annexure- 1). Geographic location: Latitude – 160 59.141’ – 170 00.275’ N Longitude - 82016.763’ - 820 17.976’ E Plot/Survey/Khasra No. Within the existing Kakinada Deep Water Port limits Village Kakinada Tehsil Kakinada District East Godavari State Andhra Pradesh 10. Nearest Railway station/Airport Railway Station: Kakinada Port / Kakinada Town along with distance in kms Air Port: Rajahmundry (Approx. 70 Km) 11. Nearest town/city, district Head Nearest City : Kakinada (Population – 0.312 quarters along with the distance in million) kms Kakinada is District Head Quarters for East Godavari District 12. Village Panchayats, Zilla Parishad, The proposed project is planned within existing Municipal Corporation, Local Body Kakinada Deep Water Port limits. Present (Complete Postal addresses with custodian of proposed project site: telephone no.s to be given) General Manager – Operations Kakinada Seaports Limited 1st Floor, Operations Building Kakinada Deep Water Port

F1-1 Sr. Item Details No. Beach Road, Kakinada – 533 007 Andhra Pradesh Phones : 0884-2349619, 2368246 Fax : 0884-2354170, 2354171 13. Name of the applicant Managing Director Andhra Pradesh Gas Distribution Corporation Limited (APGDC) 14. Registered 2nd Floor, Parisrama Bhavan, 5-9-59/B, Fatheh Address Maidan Road, Hyderabad - 500 004, Andhra Pradesh 15. Address for correspondence: Name S.Narayanan Designation Managing Director Owner/Partner/CEO) Address 2nd Floor, Parisrama Bhavan, 5-9-59/B, Fatheh Maidan Road, Hyderabad - 500 004, Andhra Pradesh Pin Code 500 004 E-mail [email protected] [email protected] Telephone No. 040-67304949/ 67304930 / 09866248025 Fax. No. 040- 67304951 16. Details of alternative Sites As the immediate and main objective of proposed examined, if any project is to provide Natural Gas to the existing location of these sites should be Combined Cycle Power Plant (CCPP’s) apart shown on a toposheet. from city gas supply in Andhra Pradesh to overcome the existing electricity/energy crisis, the existing sea ports along A.P. coast (Visakhapatnam Port, Gangavaram Port etc.) have been studied by IPA & IIT, Chennai and recommended Kakinada Deep Water Port as comparatively better option (The details are provided in Appendix-B of attached PFR) based on techno economic considerations 17. Interlinked Projects -Nil- 18. Whether separate -No- application of interlinked Project has been submitted 19. If yes, date of submission N.A.

20. If no , reason N.A. 21. Whether the proposal involves approval / clearance under : (a)The Forest (Conservation) Act, - No- 1980 (b)The Wildlife (Protection) Act, 1972 - No-

F1-2 Sr. Item Details No. status to be given. APCZMA after completion of CRZ study / demarcation by MoEF authorized agency 22. Whether there is any Government -No- Order/Policy relevant/relating to the site? 23. Forest land involved No forest land is involved (hectares) 24. Whether there is any litigation pending against the project and/or - Nil - land in which project propose to be set up? (a) Name of the Court (b) Case No. Not Applicable (c ) Orders/directions of the court, if any and its relevance with the proposed project.

(II) Activity

1. Construction, operation or decommissioning of the Project involving actions, which will cause physical changes in the locality (topography, land use, changes in water bodies, etc.)

Details thereof (with approximate S.No. Information/Checklist Yes/ quantities /rates, wherever possible) with confirmation No source of information data 1.1 Permanent or temporary change Yes The proposed project (offshore LNG FSRU, in land use, land cover or associated pipeline and landfall facilities) is topography including increase in planned within the existing port area intensity of land use (with (Annexure-2). The landuse as well as respect to local land use plan) offshore facilities (Island jetty & FSRU) for

proposed project will be in compliance with the local designated land use plan within port area (Annexure-3). However, the proposed 2Ha (5 Acre) land for landfall facilities is at present undeveloped vacant area (Annexure-3). The development of control room with Natural Gas metering facility in this area (within port limits) will lead to increase in intensity of land use. 1.2 Clearance of existing land, Yes The 2 Ha land identified for Natural Gas vegetation and buildings? pipeline landfall facilities is within existing port limits and at present it is vacant undeveloped coastal land (Annexure-3). It requires development in the form of site grading, approach road, control room construction etc. 1.3 Creation of new land uses? Yes As per the requirement for proposed

F1-3 Details thereof (with approximate S.No. Information/Checklist Yes/ quantities /rates, wherever possible) with confirmation No source of information data onshore landfall facilities consisting of control room, metering, greenbelt etc.. The detailed plot plan / proposed land use details shall be included in EIA report. 1.4 Pre-construction investigations No To be undertaken after obtaining statutory e.g. bore holes, soil testing? clearances. However, the borehole data 1.5 Construction works? No available with M/s KSPL for harbour area will be utilized for assessing dredging and piling requirements. 1.6 Demolition works? No Not Required 1.7 Temporary sites used for No The major part of construction activity construction works or housing of (Island Jetty) will be in coastal sea water construction workers? (harbour area), which requires skilled workforce, limited in number and their required facilities will be arranged by the contractor. 1.8 Above ground buildings, Yes Insignificant; limited to control room and structures or earthworks office building as part of onshore landfall including linear structures, cut facilities (2 Ha land including gas metering and fill or excavations facilities). 1.9 Underground works including Yes As per the requirement for RCC pilings of mining or tunneling? proposed island jetty (one plat form and six mooring dolphins), for laying sub-sea pipeline (Natural Gas) & related cables, for laying buried pipeline (Natural Gas) on coast/land part. 1.10 Reclamation works? No Not Applicable 1.11 Dredging? Yes Based on IPA site selection report, capital dredging for proposed project is estimated to be:  Widening and deepening of approach channel: approx 10 million m3  Turning Circle: approx 2 million m3  Berth Pockets: approx 5 million m3 TOTAL capital dredging: approx 17 million m3. Out of this, the ship approach channel and turning circle (12 million m3) will become common facility for Kakinada Deep Water Port. 1.12 Offshore structures? Yes An island jetty with a RCC top will be built offshore (lee side of existing break waters in harbour area) to accommodate LNG FRSU and a carrier ship

F1-4 Details thereof (with approximate S.No. Information/Checklist Yes/ quantities /rates, wherever possible) with confirmation No source of information data 1.13 Production and manufacturing No There will be no manufacturing processes processes? for proposed project except regasification of

LNG and supply at high pressure, in Natural Gas form, through pipeline to main NG supply network 1.14 Facilities for storage of goods or Yes Proposed Facilities: materials?  Temporary warehouse during construction phase  One FSRU with a design capacity of max. 175,000 m3 LNG storage  Terminal warehouses for maintenance purpose 1.15 Facilities for treatment or Yes The proposed FSRU as well as LNG carrier disposal of solid waste or liquid ships will have onboard treatment of waste effluents? (sewage, oily water etc.) to international standards  The proposed offshore FSRU will utilize sea water for regasification of LNG. The outlet temperature of sea water after regasification will be maintained at 5-70C less than ambient sea water temperature  The solid/hazardous waste will be managed as per HWM Rules 2008/2010 (Amendment) through APPCB/CPCB authorized agencies 1.16 Facilities for long term housing of No Not envisaged in view of very limited operational workers? (approx.20nos.) operational workforce excluding FSRU 1.17 New road, rail or sea traffic Yes  The existing infrastructure facilities at during construction or operation? Kakinada Deep Water Port will be utilized during construction and operation phases.  In operation phase there will be increase in sea traffic by about 100 ships (LNG carriers) per year to and from Kakinada Deep Water Port 1.18 New road, rail, air waterborne or No Only enhancement of existing sea port other transport infrastructure activities with new LNG & Natural Gas including new or altered routes handling facilities and subsea/buried and stations, ports, airports etc?

F1-5 Details thereof (with approximate S.No. Information/Checklist Yes/ quantities /rates, wherever possible) with confirmation No source of information data pipeline to landfall point 1.19 Closure or diversion of existing No Not envisaged transport routes or infrastructure leading to changes in traffic movements? 1.20 New or diverted transmission Yes 30” HP gas subsea pipeline for high lines or pipelines? pressure Natural Gas from proposed island jetty to the proposed landfall facility (approx.2km) and further extended by a buried 30” onshore pipeline from the landfall facility to the tie-in to the existing GAIL’s pipeline network (approx.1 km) 1.21 Impoundment, damming, No Not envisaged / Not applicable culverting, realignment or other changes to the hydrology of watercourses or aquifers? 1.22 Stream crossings? No Not Required 1.23 Abstraction or transfer of water Yes  Abstraction of ground water is not from ground or surface waters? envisaged for proposed project  In operation phase sea water from harbour area will be utilized by proposed FSRU (approx.370,000 KLD) for regasification of LNG 1.24 Changes in water bodies or the No Nil land surface affecting drainage or run-off? 1.25 Transport of personnel or Yes Considerable only during construction materials for construction, phase (temporary) for about max.18 operation or decommissioning? months. Details shall be included in EIA report. 1.26 Long-term dismantling or No Not envisaged decommissioning or restoration works? 1.27 Ongoing activity during No Not applicable decommissioning which could have an impact on the environment? 1.28 Influx of people to an area in Yes  Construction phase: max. about 500 either temporarily or skilled workers for coastal marine permanently? (satellite jetty and subsea pipeline) constructions. However, it will be insignificant in comparison with existing >312,000 population in Kakinada city  Operation phase: about 40 persons will

F1-6 Details thereof (with approximate S.No. Information/Checklist Yes/ quantities /rates, wherever possible) with confirmation No source of information data live and work onboard the FSRU and about max.20 persons at proposed Natural Gas pipeline landfall facility (for round the clock operation)

1.29 Introduction of alien species? No Not envisaged 1.30 Loss of native species or genetic No Prima facie not envisaged, in view of diversity? proposed development (marine infrastructure) within the existing Kakinada Deep Water Port Limits. 1.31 Any other actions? Yes Kakinada Deep Water Port is an ISO-14001 certified sea port. The proposed project construction and operation phases shall strictly comply to requirements of ongoing/existing ISO-14001 EMS apart from strict compliance to the conditions stipulated in the latest EC by MoEF as well as CFE by APPCB.

2. Use of Natural resources for construction or operation of the Project (such as land, water, materials or energy, especially any resources which are non- renewable or in short supply): S.No. Information/checklist Yes/ Details thereof (with approximate confirmation No quantities /rates, wherever possible) with source of information data 2.1 Land especially undeveloped or Yes  The major component of proposed project agricultural land (ha) corresponds to coastal marine facilities like island jetty, FSRU and sub-sea Natural Gas pipeline in Kakinada Deep Water harbour area.  The proposed landfall (onshore) facility for Natural Gas pipeline (control room, metering system & greenbelt) is proposed on 2 Ha (5 Acres) land within existing port limits, which is at present an undeveloped piece of land (Annexure-3) 2.2 Water (expected source & Yes  The domestic/potable water requirement is competing users) unit: KLD estimated as 20 KLD during construction as well as operation phases, which is to be supplied by M/s KSPL as per the agreement/MoU  The sea water will be used for proposed LNG regasification (as once through heating medium for LNG) at FSRU. The

F1-7 S.No. Information/checklist Yes/ Details thereof (with approximate confirmation No quantities /rates, wherever possible) with source of information data sea water requirement is estimated as about 370,000 KLD, which will be returned completely to sea as per prevailing local environmental norms 2.3 Minerals (MT) Yes The proposed project aimed at import, regasification and supply of Natural Gas, a fossil fuel/mineral resource 2.4 Construction material – stone, Yes  As per the initial estimates aggregates, sand / soil (expected  The cement concrete requirement for source – MT) proposed island jetty is about 21000 m3,  The 2 Ha undeveloped land identified for proposed pipeline landfall facility would require site grading by level raising to about 1.8 m in accordance with storm surge height, which require about 9,000 m3 soil/sea sand (0.02 million MT)  The above materials will be procured mostly from the local sources. The details are to be included in EIA report 2.5 Forests and timber (source – MT) No Not envisaged 2.6 Energy including electricity and Yes  Proposed FSRU will have onboard fuels (source, competing users) (captive) power generation by using boil- Unit: fuel (MT), energy (MW) off-gas (BOG) from its LNG storage, i.e. Natural Gas. The preliminary estimate indicate there will be about 100 metric tonne per day of Natural Gas (BOG) to be used as fuel for power generation, which shall be equal to about 30 MW power generation  Onshore landfall facility will have one generator set (200 KVA) based on gas engine (NG as fuel) for emergency backup purpose 2.7 Any other natural resources (use -- -- appropriate standard units)

F1-8 3. Use, storage, transport, handling or production of substances or materials, which could be harmful to human health or the environment or raise concerns about actual or perceived risks to human health.

Yes/ Details thereof (with approximate S.No. Information/Checklist No quantities/rates, wherever possible) with confirmation source of information data 3.1 Use of substances or materials, Yes  The proposed project is to develop which are hazardous (as per infrastructure for LNG import, storage MSIHC rules) to human health or regasification and supply of Natural Gas in the environment (flora, fauna, and bulk quantity (6.5 million TPA). The water supplies) MSIHC rules would be applicable to Natural Gas in view of its fire hazard.  It is possible that final selected technology suppliers may use small amount of some chemicals as per the requirement for utilities. The details will be provided in EIA report. 3.2 Changes in occurrence of disease No Not envisaged or affect disease vectors (e.g. insect or water borne diseases) 3.3 Affect the welfare of people e.g. by Yes  During operation phase, direct changing living conditions? employment opportunities would be limited/insignificant  Potential scope for indirect employment opportunities is envisaged  Helps in partial fulfillment of energy security  Scope improved quality of life through availability of environment compatible fuel/energy source, for the country  Negligible impact on existing fishermen communities 3.4 Vulnerable groups of people who No  Not envisaged on land could be affected by the project  Negligible on coastal marine related e.g. hospital patients, children, the communities during normal operation elderly etc., phase  The impacts during accidental condition/emergency shall be assessed during RRA study 3.5 Any other causes -- --

F1-9 4. Production of solid wastes during construction or operation or decommissioning (MT/month)

S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities / rates, wherever possible) with source of information data 4.1 Spoil, overburden or mine wastes Yes  Only dredge material would be considerable during construction as well as operation phases  Initial estimate of capital dredge material is about 17 million cubic meter  The details about quantification of maintenance dredging as well as disposal with negligible impacts shall be studied though mathematical modeling, which would be covered is EIA report 4.2 Municipal waste (domestic and or Yes  Insignificant quantity on continuous basis commercial wastes) during operation phase  The details about safe/secured storage periodical disposal through APPCB/ MoEF/CPCB authorized agencies with strict compliance to local/MARPOL standards, will be dealt in EIA report 4.3 Hazardous wastes (as per Yes  Negligible in construction phase Hazardous Waste Management Rules )  In operation phase oily waste including bilge (waste) water of FSRU will be treated onboard as per international/MARPOL as well as local coastal marine standards 4.4 Other industrial process wastes No Not Applicable

4.5 Surplus product  No Not envisaged

4.6 Sewage sludge or other sludge Yes Insignificant from coastal marine activities. from effluent treatment Planned to collect, safe storage container and periodical disposal through authorized agencies 4.7 Construction or demolition wastes Yes  Not envisaged  Capital dredge material (about 17 million cubic meter) and maintenance dredge material, would be the only considerable waste  The dredge material shall be disposed as per local standards at identified disposal

F1-10 S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities / rates, wherever possible) with source of information data site

4.8 Redundant machinery or Yes Negligible, whatever possible shall be equipment managed as per international and local standards 4.9 Contaminated soils or other No Not envisaged materials

4.10 Agricultural wastes No Not applicable 4.11 Other solid wastes -- --

5. Release of pollutants or any hazardous, toxic or noxious substances to air (Kg/hr)

Details thereof (with approximate S.No. Information/Checklist Yes/ quantities / rates, wherever possible) with confirmation No source of information data 5.1 Emissions from combustion of Yes During construction phase fossil fuels from stationary or mobile sources NOx, SO2, carbon soot (smoke particles) and CO2 would be possible depending on type of fuel used by coastal marine construction equipment, conveyance vessels/ barges / dredgers etc. The marine construction machinery exhausts shall comply to Annexure-VI of MARPOL as well as local MoEF/APPCB standards During operation phase

Mainly NOx, CO2 and traces of unburnt hydrocarbons would be emitted through the exhausts of onboard power generator and steam generator of FSRU. Fugitive emissions of Natural Gas (trace levels) also possible from proposed LNG storage, regasification and Natural Gas handling facilities The details of impact assessment shall be included in EIA study 5.2 Emissions from production No Except regasification of LNG and captive processes power generation, there will be no production process involved in proposed project. Moreover these activities will be in offshore area. No emissions expected on continuous basis from onshore landfall facility 5.3 Emissions from materials handling Yes Same as given in above item 5.1 including storage or transport

F1-11 Details thereof (with approximate S.No. Information/Checklist Yes/ quantities / rates, wherever possible) with confirmation No source of information data 5.4 Emissions from construction Yes Same as given in above item 5.1 activities including plant and equipment 5.5 Dust or odours from handling of No Not envisaged materials including construction materials, sewage and waste 5.6 Emissions from incineration of No Not Applicable waste 5.7 Emissions from burning of waste in No Not envisaged open air (e.g. slash materials, construction debris) 5.8 Emissions from any other sources -- --

6. Generation of Noise and Vibration, and Emissions of Light and Heat:

S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities/rates, wherever possible) with source of information data 6.1 From operation of equipment e.g. Yes  The EPC contractor will be informed engines, ventilation plant, crushers about the prescribed Indian standards corresponding to noise generation sources i.e. equipment/machinery and will 6.2 From industrial or similar Yes be insisted upon strict compliance at processes nearest work environment (75dB(A)) as well as ambient noise levels  Necessary EMP as per the recommendations in EIA report will be implemented  DG set (operation only in emergency periods)  Noise generation at individual sources (intermittent or continuous) shall be complied with the prescribed limit(85 dB(A))  Noise impact would be further mitigated through appropriate design/development of green belt at onshore landfall facility 6.3 From construction or demolition Yes  The construction activities shall be so planned that ambient noise levels as well as vibration levels outside proposed project premises complies prescribed standards.  The noise impacts during construction activities shall be minimal on the surrounding/neighborhood environment.

F1-12 S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities/rates, wherever possible) with source of information data

No demolition work is envisaged at proposed project site. 6.4 From blasting or piling Yes  As per the borehole data available for

Kakinada Deep Water Port harbour area, the seabed strata upto 10-15 m deep consists sand and alluvial silt. In view of this there will be no necessity of blasting operation for dredging or piling  During dredging and piling works there will be noise & vibration generation by the machinery in offshore area. However, necessary control measures will be implemented to mitigate impacts 6.5 From construction or operational Yes  To be controlled through proper traffic maintenance of construction equipment

and vehicles.  Road traffic or marine (barge/tugs) traffic would be negligible during operation phase due to proposed sub-sea/buried pipeline for entire Natural Gas transportation 6.6 From lighting or cooling systems No  Deck lighting on FSRU and jetty as per

the requirement for safe operation.  Sea water would be used as heating medium for regassifying LNG and to cool machinery and then treated water is returned to sea. Temperature will decrease by max.7°C and will be in compliance with International Standards.  Lighting will be installed (150 lux) on internal roads at onshore facility to enable safe operations.  A diffusion study will be carried out during EIA study to predict precise temperature impact.  The impact from duck lighting of FSRU would be negligible and shall remain similar to a sailing ship. 6.7 From any other sources -- --

F1-13 7. Risks of contamination of land or water from releases of pollutants into the ground or into sewers, surface waters, groundwater, coastal waters or the sea:

S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities/rates, wherever possible) with source of information data 7.1 From handling, storage, use or No  Not possible during normal operation spillage of hazardous materials phase. Since the material to be handled

(bulk LNG and Natural Gas) is hazardous all necessary and possible precautionary safety measures will be integrated/interlocked in design, implementation and operation phases along with continuous/regular monitoring & alarm system at all critical locations for overall project to avoid any incidents.  Still in case of any spillage occurrence, it shall be suitably collected/diverted to control/treatment system 7.2 From discharge of sewage or Yes  For FSRU onboard treatment systems other effluents to water or the land separately for sewage/sullage and bulge (expected mode and place of (oily waste) water to comply with discharge) MARPOL, international and local standards (most stringent)  At onshore landfall facility, sewage/domestic wastewater would be in small quantity (max. 20 persons workforce) and proposed to manage through septic tank/ soak pit within the project premises 7.3 By deposition of pollutants emitted No Not envisaged due to proposed control to air into the land or into water measures as well as the local coastal dispersion 7.4 From any other sources Yes There will be scope for atmospheric emissions from the mechanized smaller vessels (barges/tugs) to be used for conveyance from coast to jetty and back during construction and operation phases. The emissions will depend mainly on the type of fuel used by these vessels and their maintenance. However applicable standards will be implemented to mitigate/control the emissions as well as impacts 7.5 Is there a risk of long term build No Not possible in view of proposed pollution up of pollutants in the environment mitigation measures for all potential sources from these sources? at all project activities such as dust control during construction phase of onshore facility and NOx control during operation phase of

F1-14 proposed FSRU (offshore) facility

8. Risk of accidents during construction or operation of the Project, which could affect human health or the environment

S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities/rates, wherever possible) with source of information data

8.1 From explosions, spillages, fires Yes  LNG is flammable gas with potential etc from storage, handling, use or scope for BLEVE and Flash Fire production of hazardous depending on the local circumstances substances  During transportation of Natural Gas through pipeline upto main network jet fire may be the phenomenon in case of leakage  Proposed bulk LNG and Natural Gas handling would be fire hazard prone activities. All necessary precautionary safety measures in compliance with international (MARPOL)/Indian safety standards prescribed by OISD/CCE/DG Hydrocarbons for storage and handling of LNG and Natural Gas will be integrated into proposed project from design stage onwards  Project specific rapid risk assessment study will be carried out as part of EIA study based on proposed project details as well as layout plan and the potential risk contours shall be contained within project premises to the extent possible along with recommendations on emergency preparedness contingency plan to mitigate accidental risk impacts 8.2 From any other causes Yes Potential risk due to dropped objects from

crane hoist, specially during construction phase; risk of drowning during offshore construction & operations, risk of cold burns due to cryogenic storage temperature during operation phase 8.3 Could the project be affected by Yes  The project site falls in Seismic Zone III natural disasters causing (Seismic Zone map updated as on April environmental damage (e.g. 2011) floods, earthquakes, landslides, cloudburst etc)?  The coast of Andhra Pradesh is vulnerable to tropical cyclones formed in Bay of Bengal/ Andaman Sea (winds,

F1-15 S.No. Information/Checklist Yes/ Details thereof (with approximate confirmation No quantities/rates, wherever possible) with source of information data

sea waves, with high amplitude as well as floods)  Risk/ vulnerability due to Tsunami also cannot be ruled out in the project region  All the construction and erection will be in accordance with the required standards for structural safety

9. Factors which should be considered (such as consequential development) which could lead to environmental effects or the potential for cumulative impacts with other existing or planned activities in the locality

Details thereof (with approximate S.No. Information/Checklist Yes/ quantities/rates, wherever possible) with confirmation No source of information data 9.1 Lead to development of No  The proposed project does not lead or supporting. utilities, ancillary stimulate directly any further development or development developments stimulated by the project which could have impact on the  There will be possibility of indirect environment e.g.: consequences such as local industry will have a source of power. This may result • Supporting infrastructure (roads, Yes in new industry starting with associated power supply, waste or employment, infrastructure etc.. wastewater treatment, etc.)

• housing development No

• extractive industries No

• supply industries No

• other Yes May be possible, in the activities related to energy 9.2 Lead to after-use of the site, No Not envisaged which could have an impact on the environment 9.3 Set a precedent for later Yes First FSRU/FSU in India. May be possible developments depending on availability of LNG 9.4 Have cumulative effects due to No Not possible in view of proposed major proximity to other existing or activities in offshore area planned projects with similar effects

F1-16

(III) Environmental Sensitivity

S.No. Areas Name/ Aerial distance (within 15 Identity km) Proposed project location boundary 1 Areas protected under  Coringa Wildlife The northern boundary of international conventions, sanctuary Coringa Mangrove swamp & national or local legislation for their wildlife sanctuary (notified by ecological, landscape, cultural or A.P. state govt. vide G.O. other related value Ms.No. – 484 dt. 05-07-1978) – the nearest distance from proposed project site in south direction is 12.5 km (areal distance)

 Uppada, coast (Ref. : MoEF Office (potentially high Memorandum dated 03-11- erosion prone) 2009) nearest distance from proposed project site in north direction is 10.5 km (areal distance) 2 Areas which are important or  Coastal Zone The proposed project is sea sensitive for ecological reasons - front based development, falls Wetlands, watercourses or other in coastal zone (offshore as water bodies, coastal zone, well as onshore facilities) and biospheres, mountains, forests related to Ports & Harbours sector

 Coringa Wildlife As given in above item 1 sanctuary in dense mangrove swamp 3 Areas used by protected, important  Coastal marine Proposed project site and or sensitive species of flora or ecology surrounding impact zone fauna for breeding, nesting, foraging, resting, over wintering, migration  Coringa wildlife As given in above item 1 sanctuary 4 Inland, coastal, marine or Coastal Water The proposed project falls underground waters under purview of Coastal zone

5 State, National boundaries No ---

6 Routes or facilities used by the Existing ADB road Adjacent (at about 300m) to public for access to recreation or from Kakinada Town project site onshore facility other tourist, pilgrim areas to Kakinada Beach

7 Defence installations Coast Guards Kakinada Port – Project Site

F1-17 S.No. Areas Name/ Aerial distance (within 15 Identity km) Proposed project location boundary 8 Densely populated or built-up area Kakinada Town >312,000 population

9 Areas occupied by sensitive man- Kakinada Town At approx. 7 km from project made land uses (hospitals, with hospitals, site schools, places of worship, places of worship community facilities) and community facilities 10 Areas containing important, high Dense Mangrove As mentioned in above item1 quality or scarce resources forest/Swamp (ground water resources, surface resources, forestry, agriculture, fisheries, tourism, minerals)

11 Areas already subjected to Nil --- pollution or environmental damage. (those where existing legal environmental standards are exceeded) 12 Areas susceptible to natural High erosion coastline As mentioned in above item 1 hazard which could cause the at Uppada project to present environmental problems (earthquakes, subsidence, landslides, erosion, flooding or extreme or adverse climatic conditions)

F1-18 (IV) Proposed (Draft) Terms of Reference (ToR) for EIA Study

EIA study shall be carried out at the project design stage so that the envisaged environmental consequences could be characterized well in advance in the project cycle and integrate in the project design so that the project could be environmentally sound and sustainable.

The primary objective of the EIA study for proposed Floating LNG Terminal shall be to safeguard the coastal marine as well as terrestrial environment during construction, operation and maintenance of proposed floating storage/re-gasification and pipeline supply of Natural gas (Floating LNG Terminal) at Kakinada Deep Water Port by mitigating the potential adverse environmental impacts.

The EIA study shall cover 5 km radial distance around proposed project site for primary data collection (field surveys) and 15 km radial distance for secondary data compilation in accordance with EIA guidance manual for Ports and Harbours.

The environmental impact assessment proposed to carry out based on one season (non-monsoon) environmental baseline data as the proposed project falls in expansion category.

The cumulative environmental impacts will be assessed in this study i.e. impacts due to existing activities, prior EC granted developments and proposed project at Kakinada deep water port.

The CRZ study will be carried out, if required by an authorized agency covering coastline details including CRZ map, to obtain CRZ clearance from APCZMA and MoEF.

The specific objectives of EIA study shall be as follows:

 Assess the (prevailing) baseline status of all environmental components within the study area

 Identify, predict and assess environmental impacts that might arise from proposed development at Kakinada Deep Water Port

 Delineation of pragmatic Environmental Management Plan for the proposed project in conjunction with existing EMP at Kakinada Deep Water Port

F1-19 Activates to be undertaken for Baseline Data Generation and Impact Analysis The details of work plan under individual components of environment are as follows :

Air Environment

 Assessment of existing levels of PM10, PM2.5, NOX and CO in ambient air and if

required the levels of SO2 and HCs (methane and non-methane)

 Collection of surface meteorological data, viz. wind speed, wind direction, relative humidity, temperature, etc. during ambient air quality survey period

 Inventory of atmospheric emission sources and quantification of emission (secondary data source)

 Estimation of air emissions including fugitive emissions from the proposed project activities

 Prediction of Ground Level Concentrations of air pollutants through appropriate air quality models incorporating the requirements specified in the publication of Central Pollution Control Board “Assessment of Impact to Air Environment : Guidelines for conducting Air Quality Modelling”

 Assessment of anticipatory changes in air quality and suggesting mitigation measures

 Evaluation of the adequacy of the proposed pollution control measures to meet air quality emission standards and TLVs for the workers on site, dust separation and HCs at proposed developmental activities

Noise Environment  Measurement of noise levels in residential/ commercial/sensitive zones in the study area

 Identification of high level noise zones requiring mitigation measures

 Monitoring of noise levels due to stationary and vehicular sources

 Studies on existing traffic movement and impact of proposed activities on existing transportation system. Keeping in view the increase in traffic movement, assessment of noise impact due to additional facilities

 Prediction and evaluation of impacts due to increase in noise levels arising out of the proposed project on the surrounding environment

F1-20  Recommendations on mitigation measures for noise pollution and to control noise impact

Water Environment  Study of existing ground and surface water resources with respect to its quantity and quality (physico-chemical, biological and bacteriological characterization of coastal marine water)

 Assessment of abiotic and biotic characteristics of coastal sea water and sediment component of marine environment

 Assessment of mangrove forests/vegetation in the coastal and inter tidal zone

 Assessment of primary and secondary productivity in the coastal region (for marine ecology)

 Assessment of wastewater characteristics and quantity to be discharged from the proposed project

 Assessment of domestic waste (sewage) generation, treatment and disposal as an integral part of wastewater management

 Study existing drainage pattern and impact of the project on drainage pattern

 Study the discharges (bilge, operational wastewater) generated during shipping operations

 Prediction of impacts on coastal marine water quality due to proposed dredge material disposal using appropriate mathematical/simulation models

 Evaluation of proposed wastewater treatment systems

 Assessment of feasibility of water recycle and reuse for green belt development and irrigation

 Assessment and evaluation of impacts an marine ecosystem through modeling due to accidental release of LNG as well as regasified NG

 Suggesting contingency plan, taking into account the accident scenario and natural disasters

Coastal Marine Environment  Assessment of marine physical water quality, sea state condition (Hydrography)

F1-21  Assessment of water quality for chemical and biological parameters including planktons and primary productivity

 Assessment of sediment quality in terms of texture, particle size distribution organic pollutants and heavy metals

 Assessment of sediment quality for biotic parameters such as benthos (mieo and micro fauna)

 Assessment of mangrove ecosystem, corals in the vicinity of project site

 Bathymetric study to assess tranquillity conditions at the proposed site

 Impact on shore line changes along the stretch. Suggestion on measures to be taken to prevent erosion in the area

 Details of reclamation and the impact of reclamation on the marine ecology

 Prediction of impacts due to dredging, disposal of dredged material (capital and maintenance) during construction phase through modeling and impacts of liquid emissions on biological life during operation phase, if required.

 Details of hydraulic studies and the dispersion model of the dredged dumping site

 Delineation of mitigation measures during construction including dredging and disposal of dredged material, accidental oil spill, operational oil spill to minimize the impacts

 Delineation of environmental management plan including post project monitoring

 Study details of project site from coastal zone regulation point of view for persuading clearance from AP Coastal Zone Management Authority

Land Environment

 Study of land requirement for the proposed developments

 Study of existing landuse and cropping patterns, vegetation, etc.. Studies on soil characteristics in the study area

 A regional developmental plan existing or new to be viewed for assessing impact of the project on the existing habitation and infrastructure

F1-22  Assessment of impacts on landuse pattern with respect to agriculture and forestry due to proposed project

 Characterization of solid wastes likely to be generated and disposal

 Impact of other construction activities on the shore line and the terrestrial environment

 Delineation of environmentally compatible options for value added utilisation; and other management options for environmentally compatible disposal of solid and hazardous wastes

 Design of green belt and identification of suitable native plant species for the proposed green belt

 Delineation of land environment management plan

Biological Environment

 Collection of information about flora and fauna (terrestrial, coastline and marine) and determination of species diversity, density, abundance etc.

 Identification of rare and endangered species in the study area

 Collection of ecological information on aquatic ecosystems

 Assessment of potential impacts on aquatic flora and fauna due to effluent discharges

 Assessment of impacts on terrestrial flora and fauna due to air emissions and landuse changes

 Prediction of stress on biological environment in the study area

 Delineation of measures for abatement/reduction of biological stress and regional management plan for biological environment

Socio-economic and Health Environment

 Collection of baseline data related to socio-economic profile of the study area with reference to :

1. Stakeholders relevant to the Project

F1-23 2. Human settlements, male/female ratio, occupational pattern, employment and income

3. Infrastructure resource base, viz. medical, education, water resources, power supply

4. Economic resource base, viz. agriculture, industries, forest, trade and commerce

5. Health Status, viz. morbidity pattern with reference to prominent and endemic diseases (e.g. fluorosis, malaria, filaria)

6. Cultural and Aesthetic attributes in the study area including places of historical/ archaeological importance

 Assessment of economic benefits to community and environment due to existing and proposed developmental activities

 Socio-economic survey to assess the Quality of Life of the people in the study area and their perceptions about the projects

 Review of Resettlement and Rehabilitation Plan Prepared for the project

 Projection of anticipated changes due to the proposed projects, and delineation of measures to minimise the impacts

 Assessment of impacts on places of historical/archaeological importance and aesthetic impairment, if any

 Assessment of impact due to the proposed activities on fishing and suggestion of management plan and provision to be made under CSR

Environmental Management Plan Environmental Management Plan (EMP) will be drawn separately for the construction and operational phase after identifying, predicting and evaluating the impacts on each component of the environment with a view to maximising the benefits from the project. Post-project Environmental Monitoring (PPEM) will be delineated.

Risk Assessment Studies Preparation of Risk Assessment (RA) report based on viz., hazard identification, hazard quantification with recourse to Maximum Credible Accident (MCA) Analysis and recommending risk mitigation measures.

F1-24 The objectives of the Risk Assessment are as follows:

 Hazard identification through computation of hazard indices and inventory analysis

 Generation of scenarios for accidental release of flammable chemicals

 Computation of damage distances based on consequence analysis for credible and worst case scenarios

 Assessment of risk and delineation of risk mitigation measures

 Preparation of emergency evacuation and Disaster Management Plan

" I hereby given undertaking that the data and information given in the application and enclosures are true to the best of my knowledge and belief and I am aware that if any part of the data and information submitted is found to be false or misleading at any stage, the project will be rejected and clearance given, if any to the project will be revoked at our risk and cost.

Date:______Place:______Signature of the applicant With Name and Full Address (Project Proponent / Authorized Signatory) NOTE: 1. The projects involving clearance under Coastal Regulation Zone Notification, 1991 shall submit with the application a C.R.Z. map duly demarcated by one of the authorized agencies, showing the project activities, w.r.t. C.R.Z. (at the stage of ToR) and the recommendations of the State Coastal Zone Management Authority (at the stage of EC). Simultaneous action shall also be taken to obtain the requisite clearance under the provisions of the C.R.Z. Notification, 1991 for the activities to be located in the CRZ. 2. The projects to be located within 10km of the National Parks, Sanctuaries, Biosphere Reserves, Migratory Corridors of Wild Animals, the project proponent shall submit the map duly authenticated by Chief Wildlife Warden showing these features vis-à-vis the project location and the recommendations or comments of the Chief Wildlife Warden thereon (at the stage of EC). 3. All correspondence with the ministry of Environment & Forests including submission of application for ToR/Environmental Clearance, subsequent clarifications, as may be required from time to time, participation in the EAC meeting on behalf of the project proponent shall be made by the authorized signatory only. The authorized signatory should also submit a document in support of his claim of being an authorized signatory for the specific project.”

****

F1-25

PRE-FEASIBILITY STUDY REPORT

Development of Offshore LNG FSRU Facility at Kakinada Deep Water Port, Kakinada, Andhra Pradesh

AUGUST 2012

Table of Contents

1 Introduction ...... 4 1.1 Background ...... 4 1.2 Project Objectives ...... 5 1.3 Project Overview & Environmental data ...... 5 2 Need to Import LNG:- ...... 8 2.1 Andhra Pradesh – An Emerging Gas Hub ...... 8 2.1.1 Gas Demand in AP ...... 8 2.1.2 Andhra Pradesh as an Attractive LNG Market ...... 9 3 Site overview ...... 11 3.1 Site selection - Kakinada Deep Water Port ...... 11 3.1.1 Kakinada Deep Water Port Salient Features ...... 11 3.1.2 Weather and Site Conditions ...... 12 3.1.3 Availability of Land for Future Onshore Terminal ...... 13 3.1.4 Location for the FSRU ...... 13 3.1.5 Operational Days ...... 14 3.1.6 Impact of the Terminal on Other Port Activities ...... 14 3.1.7 Distance to Populated Areas ...... 14 3.1.8 Distance to Existing Gas Transmission Infrastructure ...... 14 3.1.9 Geotechnical Aspects ...... 15 3.1.10 Site Selection Criteria ...... 15 4 Analysis of Alternative Processes/ Practices ...... 16 4.1 Land or FSRU ...... 16 4.1.1 Land-based Solution ...... 16 4.1.2 Offshore (Open sea buoy) Solution ...... 17 4.1.3 FSRU at a Near Shore Berth ...... 18 4.2 Screening of Design Concepts ...... 18 4.3 Project Layout & Proposed Configurations ...... 20 4.4 Preliminary Solution Marine and Pipeline Works ...... 25 5 Project Basis of Design & Budget: ...... 26 5.1 Criteria to Arrive at Proposed Design Capacity ...... 26 5.2 Concepts & Process Brief of FSRU ...... 26 5.3 FSRU Vessel ...... 28 5.3.1 FSRU Vessel Selection ...... 28

5.3.2 FSRU Regulation ...... 28 5.3.3 FSRU Vessel Specifications ...... 29 5.3.4 Regas Technology ...... 30 5.3.5 Vaporization of LNG ...... 30 5.4 General Arrangement of Receiving Facilities ...... 32 5.5 Subsea Pipeline ...... 33 5.6 Landfall Point Station ...... 33 5.7 Dredging ...... 34 6 FSRU Specification Table ...... 35 7 Current Status of Project ...... 37 8 Preliminary Environmental Assessment ...... 38 9 Budgetary Cost Estimates and Project Schedule ...... 42 9.1 The Expected Project Costs for a Double Jetty Solution ...... 42 9.2 Project Schedule ...... 42 10 Conclusions & Recommendations ...... 43 APPENDIX A : Brief profile of market conditions for Natural Gas in Andhra-Pradesh ...... 44 APPENDIX B: Site Selection Report IPA IIT Chennai ...... 50 APPENDIX C: Safety & Social Aspects ...... 51 APPENDIX D: Basic Process Flow Diagrams FSRU ...... 55 APPENDIX E : General Arrangement – Basic Design ...... 57 APPENDIX F: Plot Plan Landfall Point Station ...... 59 APPENDIX G: FSRU vessel specifications ...... 61 APPENDIX H : Safety, Health and Environmental Protection System ...... 85 APPENDIX I : MOU SIGNED WITH ANDHRA PRADESH GOVERNMENT ...... 92 APPENDIX J : CONSENT LETTER FROM KAKINADA SEAPORTS LIMITED...... 94

1 Introduction

1.1 Background

Andhra Pradesh Gas Distribution Corporation Limited (APGDC) is a Joint Venture 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. APGDC is responsible to create Natural Gas pipeline infrastructure, City Gas Distribution Networks, CNG Stations and LNG importation terminal in the State of Andhra Pradesh.

APGDC Board has resolved to promote an FSRU Project on the East Coast of India, in the State of Andhra Pradesh. This would help meet the growing gas demand requirements in the region. The Government of Andhra Pradesh and Govt. of India have supported APGDC’s initiative for FSRU terminal. The FSRU is required at the earliest possible timeframe at the East Coast of Andhra Pradesh. The Andhra Pradesh Government has also signed a MoU with APGDC during the Partnership Summit held during 11-13th January, 2012, assuring all support for this prestigious Project.

Indian economy is expected to continue to be amongst the fastest growing economies of the world. Considering the increasing demand for energy in India and the limited domestic availability of fuel resources, the contribution of imported fuels in the country’s energy mix is on the rise. In this backdrop, the Natural Gas usage is bound to increase given the growing affordability and rising demand. A brief profile of the market conditions from a Natural Gas perspective for India and specifically for the State of Andhra Pradesh has been covered in Appendix A.

APGDC has selected GDF Suez LNG UK Limited (GDF Suez) as Strategic Partner to implement this project. GDF SUEZ which holds 38 MTPA of re-gasification capacity worldwide is the number two terminal operator in Europe with an overall re-gasification capacity of more than 20 MTPA. GDF SUEZ has over 40 years of operating and maintenance experience of the land based terminals and more recently expanded to floating terminals. All of the GDF SUEZ terminals are operating without any significant incident which is due to continuing integration of past experience.

GAIL (India)Limited, the promoter company of APGDC through GAIL Gas is a Navratna Central PSU having business interest in supply chain of Natural Gas from exploration, transportation of Natural Gas and LPG, fractionation of Natural Gas to produce LPG, Propane and other Liquid hydrocarbons. GAIL is operating one of the gas based biggest Petrochemical Complex in Uttar Pradesh meeting almost 1/4thof the Polyethylene requirement for India. GAIL is also having various Joint Venture Companies to promote City Gas Distribution. GAIL is having equity participation in LNG terminals in India.

GAIL is transmitting 3/4th of the Natural Gas through pipeline with more than 50% of market share in Natural Gas business in India. GAIL is operating 8 LPG Recovery plants and producing more than 1 Million Tons of LPG.

1.2 Project Objectives

APGDC together with GDF Suez (“the Promoters”) are planning to develop a Floating Storage Re-gasification Unit (FSRU) for LNG import in Kakinada Deep Water Port (“the Project”) through an SPV to be incorporated.

The objectives set for the Project are defined hereunder:

- Send-out demand and flexibility: o Annual capacity: up to 6.5 MTPA. o Maximum send out flow rate shall be 50% above the average.

- FSRU output : o Pressure: Min 80 bars, Max 120 bars o Temperature : Min 0°C, Max 10°C

- Marine specifications – Vessel size: o Marine facilities will be designed to accommodate LNG vessels between 120,000 M3 and 215,000 M3. However, mooring and berth shall be designed to accommodate up to 265,000 M3 (Qmax) class vessels. o Call duration (including berthing, mooring, cool down, unloading, cast off) will be 30 hours for a 160,000 M3 LNG carrier (assuming availability of storage on the FSRU).

- Flaring: zero flaring or no gas release to atmosphere (including during unloading) will occur under normal operation.

- Schedules: A key objective of the Promoters is to build and commission a floating type LNG import terminal by early 2014.

1.3 Project Overview & Environmental data

Capacity of the FSRU 6.5 Million Tons per Annum (MTPA) project

Location Kakinada Deep Water Port, Beach Road, Kakinada Andhra Pradesh- - 533 007

Access to site By road- Samalkot-Kakinada bypass road , nearest National Highway- NH 214 (approx. 7 km from the proposed site)

Nearest railway station– Kakinada Port Railway station,5.1 km from the proposed site

Nearest Airport : Rajahmundry,70 km from the proposed site

Site features Site - Kakinada Deep Water Port

District - East Godavari

State - Andhra Pradesh

Latitude - 16° 58.37’ N

Longitude - 82° 17.06’ E

Elevation 2-3 m MSL

Nearest Metrological station Kakinada (Stn No.43189)

Mean Maximum temperature 43.8 Deg. C

Mean Minimum temperature 15.8 Deg. C

Annual maximum humidity 82%

Annual Minimum Humidity 61%

Predominant wind direction South West and South East

Annual rainfall 1113.2 mm

Nearest habitation Kakinada

Nearest major town/Nearest Kakinada major city (more than 2,00,000 population)

Defence Installations Nil within 10 km radius

Protected area as per WP Act, Coringa Wildlife sanctuary, approx. 15 KM 1972

Reserved/Protected forest Nil within 10 km radius

Nearest water bodies Sea (Bay of Bengal) streams/Rivers/sea Bhogamdani Cheruvu – 4.2 km

Kulai Cheruvu – 6.3 km

Major Industries Two Fertilizer Plants (namely Nagarjuna Fertilisers and Coramandel Fertilisers ) and few Gas based power plants such as GMR Barge mounted Plant, Spectrum Power Etc.

Seismic zone Zone III as per IS 1893:2002

Pipeline for natural gas 750 mm dia (30”) 2.5 km sub-sea Gas pipeline transportation

Project schedule Commercial operation-18 months

Project cost Rs.1000 Crores approx.

2 Need to Import LNG:-

2.1 Andhra Pradesh – An Emerging Gas Hub

Andhra Pradesh is the fourth largest state by area and fifth largest by population in India. Andhra Pradesh is blessed with a long coastline and has the second largest coast line of 972 km among the states of India. Over the past decade, it has emerged as one of India’s fastest growing states. The state’s GDP is estimated to be more than USD 120 Billion and stands third among states of India.

The State has emerged as an important hub for natural gas industry post the Krishna – Godavari basin gas discovery. A large number of gas based power plants and other industries have been set up and many are under planning stage. Andhra Pradesh has a good pipeline infrastructure connecting it to the other regions of India. So, a terminal in Andhra Pradesh could supply gas to many other regions in India. Further, the pipeline infrastructure in the state is expected to get a further boost once the planned pipelines are commissioned. Some of the pipelines being planned in the state are Kakinada-Chennai in Tamil Nadu Kakinada-Haldia in West Bengal State and Kakinada- Vijayawada-Nagpur-Bhilwara in Rajasthan State.

Furthermore, the Petroleum, Chemical & Petrochemical Investment region (PCPIR) is being setup in the east coast along the Kakinada -Visakhapatnam Industrial Corridor. Many SEZ’s are planned to be setup in the area with Refinery / Petrochemical Feedstock Company. This investment region would further boost the demand for gas in the state.

2.1.1 Gas Demand in AP

Power sector is a major consuming sector for gas in the State of Andhra Pradesh. The energy consumption in the state is growing at double digits during past several years. With an installed capacity of more than 15,500 MW, Andhra Pradesh represents one of the largest power markets in India. The AP state power utilities have power purchase agreements for around 2,700 MW of gas based power plants in the state. However, due to shortfall in domestic gas, these plants are not operating at their optimal capacities. The gas based plants in the state are currently operating at 50% - 60% of their capacity. Further, an estimated 13,000 MW of gas based plants are expected to come up in the state in the coming years subject to gas availability given the constraints in coal supply. With increased power tariffs and rising imported coal prices, the affordability for gas is on the rise. This would lead to a further increase in demand for natural gas in the state.

The state of Andhra Pradesh is experiencing huge energy deficits owing to shortfall in domestic coal and gas supplies. Due to this, the state is left with no option but to impose load restrictions on the consumers in the state. During the load restrictions, the industries mostly run their plants on liquid fuel. The cost of power from diesel generators is estimated to be around Rs. 16/unit (USD 0.32 /unit). Given this backdrop, the industrial associations have approached the Andhra Pradesh Power distribution licensees for supply of uninterrupted power to mitigate load restriction measures. Accordingly, the licensees have proposed to tie-up power from idle gas based power capacity using RLNG fuel. In this context, alternate fuel like RLNG would be in demand despite the relatively higher costs when compared to coal based power generation.

City gas distribution demand comprising compressed natural gas (CNG) for usage as transport fuel and piped natural gas (PNG) for replacing LPG – is an attractive demand segment from an affordability perspective. There are significant plans of APGDC to spread the gas distribution infrastructure to all the regions in AP which will drive the demand. PNGRB has allotted licenses to a number of players for CGD implementation in the state of

Andhra Pradesh. Gas demand from these cities like Visakhapatnam, Nalgonda, Rajahmundry, Kakinada, etc. is expected to increase once these projects are implemented. Due to rapid economic growth, the natural gas demand from other industrial sectors like ceramics, metals and bulk drugs is expected to go up. The expected gas demand from sectors other than the power sector is likely to be around 30 MMSCMD. But, due to shortfall of domestic gas, a lot of this demand is currently not being met. So, an LNG terminal on the Andhra Pradesh coast is necessary to bridge this gap.

The summary of existing demand for gas from all the sectors is shown in the table below:

Sector Allocation Requirement Supply Alloc-Req Alloc-Sup Req-Sup

MMSCMD MMSCMD MMSCMD MMSCMD MMSCMD MMSCMD MMSCMD (A) (B) ('C) (A-B) (A-C) (B-C) Fertilizer 4.797 3.27 3.215 1.527 1.582 0.055

Power 21.473 15.022 9.856 6.451 11.617 5.166

Ceramics, 0.71944 0.9205 0.3855 -0.20106 0.33394 0.535 Glass, Steel and Others Total 26.98944 19.2125 13.4565 7.77694 13.53294 5.756

Furthermore, there are many announced projects that could increase the demand for gas. For example, the additional demand from Power Sector from announced capacity addition programs from projects in Andhra Pradesh are likely to be around 40 MMSCMD. Some of the announced and under construction power plants are from large players like Reliance, GMR, Lanco and GVK.

2.1.2 Andhra Pradesh as an Attractive LNG Market

The gap will have to be met from RLNG as the domestic gas supply is on a decline. Furthermore the RLNG terminal on the east coast will be more economical than on the west coast. This can avoid additional taxes and transportation charges that make the delivered price of RLNG costly. The following tables illustrate the difference in the delivered price of gas in two scenarios considering crude price of $100 –

Scenario – 1 – RLNG transported from West Coast to AP

In case the gas is transported from the West Coast, there is additional implication of taxes and transportation charges as shown in the table below:

Scenario – 2 – FSRU on the East Coast of AP

In case the FSRU is located on the East Coast in AP, then the delivered price will be lower due to the avoidance of additional taxes and transportation charges as shown in the table below:

For further details refer Appendix-A

3 Site overview

3.1 Site selection - Kakinada Deep Water Port Kakinada Deep Water Port has been selected as the most preferred location among three existing ports located on the coast of north eastern Andhra Pradesh, at the outset of a site selection study completed by the Indian Port Association & IIT Madras (see in Appendix B detailed Site Selection Report). This selection has been justified based on the following criteria:

 Kakinada presents the most cost-effective option at this stage compared to developing in the other two locations (breakwater requirements and land availability concerns at the other ports will increase development costs compared to Kakinada);

 Kakinada is close to the existing KG Basin Gas transmission network of GAIL, and the gas market, thus reducing the cost of connectivity which will have a significant share of the overall CAPEX;

 Kakinada enjoys relatively mild metocean conditions with less cyclonic activity than other areas of eastern India;

 The traffic density with 6 existing berth and around 10 MTPA of traffic compatible with the installation of a LNG terminal;

 Land at Kakinada is suitable for a future on-shore extension;

 Kakinada is a sheltered port endowed with a natural protection (Hope Island) and an existing breakwater would further protect the FSRU from NE prevailing waves.

The selection of Kakinada Deep Water Port as the best location for an FSRU project in Andhra Pradesh was based on the comparative survey carried out by Indian Port Association end 2011 assessing details of three potential locations, i.e.: Kakinada, Visakhapatnam and Gangavaram. The complete study is attached in Appendix B; its key findings are as follows:

3.1.1 Kakinada Deep Water Port Salient Features Kakinada deep water port is located on the east coast of Andhra Pradesh at latitude 160 58.37’N and longitude of 820 17.06’ E. It is situated at 170 km. south of Visakhapatnam and 650 km north of Chennai Port. This port is the main gate way for the rich agricultural belt of East Godavari, West Godavari & Krishna districts of Andhra Pradesh. Moreover, in view of its strategic proximity to the Krishna-Godavari Basin, there is significant traffic in Off Shore Supply Vessels.

Kakinada occupies a unique site location on the East Coast of India where a headland to the south of the city has caused the development of a spit generated by the littoral drift caused by the South West monsoon which is not reversed during the North East monsoon because of the embayment to the north of the city. The result is that Hope Island now provides a natural protection to the inner harbour area from waves from the SE and East.

Kakinada Deep Water Port was predominantly a lighterage port prior to the development of sheltered deepwater berths protected by a breakwater from waves from the NE. Regular maintenance dredging is

11 required to maintain a -14.5 Mts. CD outer channel. The maintained depths at various berths permit vessels with draught from 11.5Mts.CD to 13.5MtsCD, to access to the harbour at high tide.

Available port facilities include a quay length of 610 Meters and a new 910 meters length single quay for multiproduct handling and stand-alone facility for Oil Supply Vessels (OSV) of the KG basin. After extension Kakinada Deep Water Port has 6 berths and handled traffic of about 9.9 million tonnes during 2010-11 with vessel traffic of 766. The movement of other vessels including offshore supply vessels was 1466.

Kakinada Deep Water Port is under private management by M/s. Kakinada Sea Port Limited (KSPL).

The port is managed by Kakinada Seaport Limited (KSPL), a Special Purpose Company established in 1999 as part of the privatisation initiative of the Govt. of A.P.

The area on the leeside of the north breakwater has been made available for the envisaged LNG berth by KSPL. This isolated area is separated from the environmentally sensitive Hope island area, and more than 2km away of the existing berths. Interference with existing port operations to the LNG traffic, which, at nominal capacity of the terminal will be one LNG carrier per week, is considered as minimal.

3.1.2 Weather and Site Conditions The tidal range in Kakinada is as follows:

Tide Level in m (CD)

Mean High Water Springs (MHWS) 1.5

Mean High Water Neaps (MHWN) 1.2

Mean Low Water Neaps (MLWN) 0.6

Mean Low Water Springs (MLWS) 0.2

Source: Admiralty Chart

The wind table for a location close to Kakinada is provided in the table below:

Wind speed (m/s) Percentage of 1999-2008 occurrence 0.00 – 1.00 3.71 1.00 - 2.00 6.62 2.00 - 3.00 9.35 3.00 - 4.00 12.32 4.00 - 5.00 15.10 5.00 - 6.00 16.61 6.00 - 7.00 13.40 7.00 - 8.00 9.44 8.00 - 9.00 6.18 9.00 - 10.00 3.55 10.00 - 11.00 1.85

11.00 -12.00 0.94 12.00 - 13.00 0.46 13.00 - 14.00 0.19 14.00 - 15.00 0.14 15.00 - 16.00 0.09 16.00 - 17.00 0.05 17.00 - 18.00 0.03 18.00 - 19.00 0.04 19.00 - 20.00 0.07 Wind speed measured at a coastal site

Strong winds above 15 Mts/sec. liable to disturb LNG operations are relatively rare (about 1 day per annum).

The area is prone to occasional cyclone landfalls which are likely to generate wind and sea conditions potentially affecting LNG operations. About 15 cyclonic storms and super cyclonic storms have crossed around the region during the 1891-200period. Tracks of the major cyclones passing very close to Kakinada are shown in Figure here down:

3.1.3 Availability of Land for Future Onshore Terminal At Kakinada Deep Water Port the required land for a possible future onshore terminal is available on the coast within the Port boundaries between the shore line and ADB road (see General Arrangement in Appendix E).

3.1.4 Location for the FSRU At Kakinada Deep Water Port, the FSRU is being proposed to be located on the leeside of the breakwater moored to a conventional jetty. This will be at a distance of about 2.5km from the onshore terminal location.

At a later stage the same jetty could be used for berthing LNG Carrier and it would be possible to connect to the ship using a trestle if required (not part of this MOEF application).

3.1.5 Operational Days At Kakinada Deep Water Port, since the FSRU is within the protection of the breakwater, the terminal will be operable for most of the year except during extreme cyclonic conditions.

3.1.6 Impact of the Terminal on Other Port Activities At Kakinada Deep Water Port the location of the conventional jetty is sufficiently away from the main activity zones of the port providing the required safety distances. Even the barge movement of the anchorage port will be away from the FSRU location.

3.1.7 Distance to Populated Areas At Kakinada Deep Water Port the populated area is about 5km. Only a few industries are near the likely location of a future onshore terminal, sufficiently away to provide the required safety distances.

3.1.8 Distance to Existing Gas Transmission Infrastructure At Kakinada Deep Water Port the gas transmission network of GAIL passes very close at a distance of around 2 KM and it will be very easy to get connected (see map below).

3.1.9 Geotechnical Aspects Some geotechnical information has been identified from local sources. The investigations carried out at the port area indicate that in the major portion of the off shore area, the sea bed comprises of soft sediment layers to a depth of 10 m to 15 m from sea bed level, followed by a medium stiff clay. We understand that no hard strata or rock has been observed to occur at shallow depth.

Some of the onshore bore holes indicate variable rock levels varying from 22 m to 32 m below the chart datum in near Balacheruvu Creek entrance.

3.1.10 Site Selection Criteria It is the intention of APGDC and the Govt. of Andhra Pradesh to quick start the FSRU project within the shortest time to meet the shortfall in supply of natural gas. Kakinada Deep Water Port is the most preferred location based on the following:

 Kakinada, Visakhapatnam, and Gangavaram Port have been looked at by GDF SUEZ as part of wider activities. It is thought that Kakinada presents the most cost-effective option at this stage compared to developing an FSRU Project in the other two locations (breakwater requirements and land availability concerns at the other ports will increase development costs compared to Kakinada);

 Kakinada is close to the existing Andhra Pradesh gas transmission infrastructure of GAIL, and the market thus reducing the cost of connectivity which will have a significant share of the overall CAPEX;

 Kakinada enjoys relatively mild metocean conditions with less cyclonic activity than other areas of eastern India;

 The traffic density with 6 existing berth and around 10 MTPA of traffic looks compatible with the installation of a LNG terminal;

 Land at Kakinada looks suitable for a future on-shore extension pending zoning consent;

 Kakinada is a sheltered port endowed with a natural protection (Hope Island) and an existing breakwater would further protect the FSRU from NE prevailing waves.

The limited interference expected with the port operation due to the isolated location of the envisaged LNG receiving facilities behind the north breakwater combined with relatively mild metocean conditions (wind and waves), makes the Kakinada Deep Water Port an ideal location for an LNG port. However, with respect to the stringent safety/availability requirements associated with LNG operations, a fast-time simulation will be performed in order to investigate the arrival and departure of the LNG Carrier under a variety of normal and extreme conditions during the engineering studies with the purpose to and in order to optimize its design. A real time manoeuvring simulations will also be performed during the FEED. Similarly a metocean study is being developed as part of engineering studies in order to quantify precisely the expected downtime and determine the design criteria for the facilities (extreme winds, storm surge).

4 Analysis of Alternative Processes/ Practices

4.1 Land or FSRU With Kakinada chosen as the site, the project developers then had to choose between a land offshore marine, or near shore marine based solution.

4.1.1 Land-based Solution The main process sections and the supporting utilities of the land-based LNG Receiving Terminal are shown in the block diagram below.

Block diagram for the land-based LNG receiving facility

Unloading of the LNG is accomplished via hard-piped liquid unloading arms located on the jetty platform and the unloading lines to the LNG storage tank(s), located on a trestle running to shore. Vapour displaced from the land-based storage tanks whilst ship unloading is also returned to the ship via a vapour return line and a vapour return arm.

The Boil off Gas (BOG) from the LNG tanks is compressed and routed to a recondenser where the BOG vapours are condensed with LNG from the tank at a pressure of some 5-10 bar to achieve total condensation of the BOG.

The LNG is pressurised by the High Pressure (HP) pumps to the send-out pressure and then vaporised and superheated at high pressure.

A total land area of 23.5 ha must be reclaimed to accommodate the land-based terminal. The surface area of the platform is to be of sufficient size for construction and operation of the land-based facilities taking into account lay-down and working space for construction and expansion.

In order to accommodate LNG vessels, berth structure, break-water and dredging are also required.

4.1.2 Offshore (Open sea buoy) Solution The solution would consist of utilising an existing FSRU with a capacity of 145,000 m3. In this case, the FSRU would be anchored in the open sea. It would deliver natural gas via a Submerged Turret Loading (STL) buoy into a Pipe Line End Manifold (PLEM) on the seabed where it will be sent onshore via a subsea pipeline. The LNG would be transferred from an LNG vessel into the FSRU by a ship to ship transfer arrangement.

The figure below provides an overview of this system:

STL Buoy, Mooring Lines PLEM and Export Riser

Two options have been considered:

 One located approximately 10km from the land-based tie-in point in waters of an average depth of 12m, referred to as the “Shallow Water” solution.

 the other located approximately 20km from the land-based-in point in waters of an approximate depth of 40m, referred to as the “”Deep Water” solution.

They are technically similar but differ by the fact that the “Shallow Water” solution requires dredging and a 10km pipeline to shore whereas the “”Deep Water” solution does not need dredging but requires a 20km subsea pipeline.

4.1.3 FSRU at a Near Shore Berth The FSRU, moored at the proposed location, provides all the functionalities of a land-based terminal and thus includes LNG storage, re-gasification units and their related utilities, metering and analysing unit, cargo transfer systems, safety systems.

Also an island terminal berth structure and a breakwater are required in this solution to accommodate the FSRU and the incoming LNG vessel.

For this solution a HP subsea gas pipeline transfers natural gas from the jetty to the grid tie-in point would be required.

4.2 Screening of Design Concepts APGDC and GDF Suez have reviewed the options for the proposed regas terminal concept and completed an initial screening based on a set of criteria, the first of which was an early completion schedule as this was deemed a key requirement.

Due to the land reclamation and LNG tank construction requirements, 2017 would be a realistic start-up date. Note in particular that LNG tanks require at least 33 months to be built. In addition, the CAPEX is much higher than that for an FSRU solution (see hybrid solution for details).

This immediately eliminated the fully land-based solution which will be looked at a later date.

The remaining options were then:

 FSRU

 Open sea buoy terminal

 Hybrid solution which is a temporary floating terminal during construction of an on-shore facility

These were further assessed based on the following criteria:

 Schedule risks

 Cost

 Expandability

 Proximity to selected site

 Throughput flexibility

The hybrid solution meets the schedule but the cost of a land terminal is significantly higher compared to the floating solutions, without major benefits for this phase of LNG imports. At this stage it is preferred to build a floating installation with a land based terminal to follow at a later date once the throughput capacity justifies this solution.

The preferred solution was therefore sought in the FSRU based solutions.

A) Open sea buoy FSRU terminal:-

 had to be located too far away from the selected site due to shallow water around Kakinada

 presented little opportunity to add extra storage

 did not bring Capital Expenditure (CAPEX) advantage compared to a floating terminal at the selected site

 expansion was more costly as a second FSRU would have to be used and significant CAPEX would be required to add another STL Buoy system

 downtime caused by delayed Ship to Ship cargo transfer in open sea in a cyclonic prone area was anticipated to be unacceptable by RLNG gas customers

Hence the Open sea buoy FSRU Terminal is eliminated.

B) The floating FSRU terminal within Kakinada Deep Water Port:-

 Had the least schedule risks

 Had the lowest CAPEX

 Provided a safe and reliable solution providing a high availability level

 Offered expandability options

Accordingly the floating FSRU terminal was therefore selected as the preferred solution.

This decision process can also be visualized in the following figure:-

Summary of selection process for the preferred floating solution

Other parameters were also considered during this above evaluation exercise such as:

 Reliability to meet gas demand

 Logistics

 Impact on port operation

Based on the above criteria, APGDC and GDF Suez have concluded that a FSRU solution at Kakinada is the optimal solution. This solution meets all the project criteria, is the most cost efficient and allows for a seamless expansion to increase the capacity when required.

4.3 Project Layout & Proposed Configurations The Promoters have selected a jetty based, near shore solution for the following reasons:

 A jetty based solution is known to present lower CAPEX costs for development than an offshore turret system and associated pipeline to shore. It also has a higher availability of LNG transfer from shuttle vessels to the FSRU, hence lower likelihood of the FSRU running low on LNG for regasification;

 There are only a few ships currently available that can connect to an offshore buoy solution which may increase the price of FSRU charters. A jetty based system opens up the FSRU market to a much larger choice of ships which will result in a more cost effective and faster to market solution;

 A jetty capable of accommodating a variety of FSRU sizes allows for expansion of the FSRU without the need to migrate to an onshore facility.

 If the terminal moves to a larger onshore solution then there is no need for additional expenditure on a new jetty;

 The sheltered near shore location of the jetty reduces construction costs for the pipeline, and reduces the chance of weather related delay to construction schedules;

 A near shore jetty allows port services (dredger, tugs, pilot, channels etc.) to be pooled with existing port users.

Approximate location of the Floating LNG Terminal

FSRU receiving facilities proposed location

Concept wise, two configurations shall be considered at the onset of the pre-FEED study. These configurations will be modified during the pre-FEED study to improve the speed to market, cost effectiveness, and to best match local market conditions. From an environmental impact point of view, there are not significant differences between these two lay-out options.

The Promoters have selected these configuration/layouts due to the advantage that each solution will provide depending on how the market may develop.

These configurations are shown overleaf:

Configuration 1: FSRU - Twin jetty with over the jetty transfer of the LNG from the LNG carrier to the FSRU:

Layout configuration 1

Proposed lay-out configuration 1 to be modified in Pre FEED (Orientation to be confirmed in study)

Configuration 2: FSRU - Single jetty with side by side Ship-to-Ship transfer of the LNG from the LNG carrier to the FSRU:

Layout of Configuration 2

Proposed lay-out Configuration 2 to be modified in Pre FEED (Orientation to be confirmed in study)

In configuration 1, the FSRU and the LNG carriers are moored in a traditional manner each side of a twin jetty. LNG is transferred from the LNG carrier to the FSRU across the jetty platform. Two sets of cryogenic hard arms are installed on the jetty.

In configuration 2, the FSRU is moored at a single jetty and the visiting LNG carrier is moored side by side (SBS) to the FSRU. LNG is transferred directly from the LNG carrier to the FSRU through cryogenic hard arms. The unloading arms are installed on the FSRU deck.

The obvious difference between these two is the jetty structure itself and the arrangement of pipe work and arms which would be present at the start of the project.

Moreover, in the event of a future transfer to an onshore solution Configuration 2 would require further modification such as:

 the building of cryogenic arms on the jetty;

 installation of utilities;

 potential creation of a second jetty structure to for increased LNG ship turnover etc.);

 further dredging to create a second jetty pocket;

 cost of removal of hard arms from FSRU so it can operate at as a normal carrier again (difficult to place an FSRU directly from one project straight into another).

Due to these being additions to a Configuration 2 layout all of these modifications would come at increased cost compared to installation up front as in Configuration 1.

However, more significant is the impact such construction activities would have on on going re-gas operations. Send out to customers would cease for a number of months as construction take place, with associated loss of revenue and attractiveness as a supplier. Hence whilst Configuration 1 may have higher upfront costs, in the long term it may be a more cost effective solution for the project and hence Configuration 1 is effectively set up as a jetty that would be ready both for FSRU operations and also as a conventional jetty for a future onshore terminal.

The FSRU receiving facilities will be designed to accommodate LNG from shuttle LNG vessels of up to 265,000m3, which is the largest existing LNG vessel size in the industry. LNG will be transferred directly from the shuttle vessel moored alongside the FSRU over a jetty using cryogenic arms placed on the jetty structure (Configuration 1).

Maximum re-gas capacity can be up to 26.9 MMSCMD (depending on market conditions and cost effectiveness) of which 14.2 MMSCMD is a typical average use.

It is anticipated that customers from the power sector could form a significant part of the customer base and the extra capacity above the average send out rate of 14.2 MMSCMD of gas is required to accommodate swings in send out which inevitably will occur in day to day operation. In addition to supporting the needs of the power sector, the ability of the FSRU to reach an interruptible peak capacity of 26.9 MMSCMD for a limited period, would ensure energy security for APGDC in the event of unforeseen circumstances/outages with other sources of gas supply.

Re-gasification will most likely be carried out using seawater as the primary heating medium. The seawater is pumped into shell and tube vaporisers, vaporising the LNG and the sea water is then discharged back into the sea.

The FSRU will re-gasify LNG at send out pressure and deliver natural gas via one of two HP gas arms to the jetty and then to a subsea pipeline. As a key potential bottleneck in assuring gas to customers, two HP arms are used to allow suitable redundancy.

LNG sampling for custody transfer and Gas metering and analysis equipment will be provided at the land fall point station (see Appendix E &F). At the shore, the pipeline will be run under ground up to the land fall point station assumed to be the tie-in point to the grid.

The marine structure will consist of the berthing and mooring dolphins, the quick release hooks, fenders, platform structures and top side equipment (unloading arms, cryogenic pipeline, drain drum, HP arm).

4.4 Preliminary Solution Marine and Pipeline Works

All dredging works will be carried out before the LNG facility becomes operational. The size of the turning circle, entrance channel, run-off channel and berth pockets will be subject to detailed study in the FEED stage but the preliminary concept is for a 600m turning circle (it is assumed that during the initial stage, the SPV will receive ships of maximum size of 215000 m3), an approach channel width of 300m, and all to a depth of 15m below chart datum. This follows appropriate SIGTTO and PIANC guidance for terminal layout.

It is assumed that suitable dredged material may be used in reclamations for port development activity if required. Otherwise surplus or unsuitable material is assumed to be disposed of at an approved/designated offshore disposal location, which is less than 10 km from the proposed FSRU location at Kakinada Deep Water Port, subject to necessary permitting and environmental assessment.

An HP gas pipeline will transfer gas from the jetty to the grid tie-in point. It is proposed to pre-invest in a pipeline able to accommodate the expansion of the terminal. This pipeline would size for a nominal 28.3 MMSCMD capacity and peak capacity of up to 42.5 MMSCMD, as the additional mobilization and installation cost for a second pipeline far outweighs the incremental cost of increased pipeline diameter installed upfront.

The appropriate level of peak capacity to support the hourly variations in power sector gas demand would be validated by the gas market study element of the feasibility study.

5 Project Basis of Design & Budget:

5.1 Criteria to Arrive at Proposed Design Capacity In comparison with an on-shore terminal, on a floating LNG re-gasification unit, the designer is constrained by space available on the vessel deck and by the number of tanks of the ship.

The existing FSRU vessels vary in the following range:

- Storage capacity: 125000 to 175000m3

- Send out: 2.5 to 6.5 MTPA (base-load)

However, these relatively small capacities fits well to a nascent LNG market like Andhra-Pradesh especially in an Indian context where international market price remains an issue in terms of affordability. Thus the floating option while reducing the capex exposure of the promoters, allow a fast track cost efficient access to natural gas resource.

The final capacity of the project will result from the best possible compromise between the FSRU market opportunities and the RLNG demand as assessed per the on-going market study.

5.2 Concepts & Process Brief of FSRU Promoters, particularly GDF SUEZ, have experience from other projects that suggests what is likely to be the optimum layout for the facility. Whilst this prior experience is not intended to pre-empt the final technical design of the LNG terminal that the feasibility study will recommend, this understanding will simplify and accelerate the implementation of the feasibility study.

Promoters have identified two configurations options as the starting point for its feasibility study. These layouts will be modified during the feasibility study to improve the speed to market, cost effectiveness, and to best match local market conditions. These initial designs are based at Kakinada Deep Water Port with respect to the selection criteria listed hereunder. However, this choice will have to be confirmed during the feasibility study:

Configuration 1: Over the Jetty Transfer (twin jetty)

In this configuration, both FSRU and LNG shuttle are berthed on a traditional solid LNG berth. The unloaded LNG is transferred from the shuttle to the FSRU where it stored and re-gasified before being sent out through a High Pressure arm to the subsea pipeline.

The process flow diagram here under illustrates the ship jetty ship configuration

Configuration 2: Ship to Ship Transfer (single jetty)

In this configuration, LNG carrier berth alongside the FSRU. Each LNG carrier would be secured to the FSRU using mooring lines equipped with quick-release hooks that would be permanently attached to the FSRU. Floating pneumatic fenders would be used to separate and prevent contact between the hull of a moored vessel and the side of the FSRU.

The unloading area near the carrier berth would support the primary equipment needed to safely unload LNG, including LNG loading and vapour return arms (hard or flexible); LNG and vapour transfer piping and manifolds; gas and fire detection, fire protection, and fire fighting facilities; life-saving equipment; telecommunications equipment; an access gangway; and a small crane.

In both above configurations the re-gasification process takes place on the ship (FSRU). The FSRU will send out High Pressure Natural Gas through HP gas send out arms located on the Jetty.

5.3 FSRU Vessel

5.3.1 FSRU Vessel Selection The final FSRU will not be selected until after the project has received its environmental clearances. It is also possible that an initial “bridging” vessel will be selected from the existing world fleet to cover the start-up of the project, which will then be replaced by a new vessel of larger size and regas capacity. This allows the project to start up prior to the new vessel being completed in the shipyard. However the general parameters of an FSRU can be specified at this stage, and worst case values from both the bridging and new vessel are used in the Form I. Any studies carried out will apply to both vessel types

5.3.2 FSRU Regulation

It should be noted that the FSRU’s will comply with international marine regulation. This is a prescriptive approach rather than a risk based system normally found in onshore systems.

Regulations concerning shipping are developed at the global level. Because shipping is inherently international, it is vital that shipping is subject to uniform regulations on matters such as construction standards, navigational rules and standards of crew competence. The alternative would be a plethora of conflicting national regulations resulting in commercial distortion and administrative confusion which would compromise the efficiency of world trade

Hence the concept of whether the FSRU is acceptable in terms of build quality, safety, operations etc, is regulated under an extensive range of internationally agreed and accepted rules, regulations and independent verification. These rules are centrally developed under the United Nations Agency entitled the International Maritime Organization (IMO). The IMO's primary purpose is to develop and maintain a comprehensive regulatory framework for shipping and its remit today includes safety, environmental concerns, legal matters, technical co-operation, maritime security and the efficiency of shipping.

IMO has adopted a comprehensive framework of detailed technical regulations, in the form of international diplomatic conventions which govern the safety of ships and protection of the marine environment. National

28 governments, which form the membership of IMO, are required to implement and enforce these international rules, and ensure that the ships which are registered under their national flags comply.

The level of ratification and enforcement of IMO Conventions is generally very high in comparison with international rules adopted for shore based industries.

The principal responsibility for enforcing IMO regulations concerning ship safety and environmental protection rests with the flag states (i.e. the countries in which merchant ships are registered – which may be different to the country in which they are owned).

Flag states enforce IMO requirements through inspections of ships conducted by a network of international surveyors. Much of this work is delegated to bodies called classification societies.

Hence the FSRU is treated as being acceptable in terms of design and operations if it meets these international regulations and passes regular independent inspection and verification. Thus any ship entering Indian waters that meet its own national flag regulations needs not be reassessed for internal safety against Indian regulations.

5.3.3 FSRU Vessel Specifications A typical FSRU vessel specification is given in appendix G.

The main features of the FSRU vessel, its general arrangement, containment system, cargo system machinery, safety, detection & fire-fighting equipments, pollution & waste treatment equipments, control system and communication are described in this document.

The permanently berthed FSRU Terminal concept is assumed to be fully self-sufficient in providing power, water and life-support on-board.

All receiving facilities, marine structures such as jetty, mooring and breasting dolphins, unloading platforms and breakwater that are required together with dredging of the berth, turning circle and access channel connection to main shipping channel, will be designed to comply with the FSRU vessel and in order to ensure the compatibility with the visiting LNG shuttles.

The LNG is contained at a temperature of -161oC and at atmospheric pressure (or slightly above). There are no refrigeration facilities onboard the FRSU. Instead the cargo tanks are made of extremely high performing insulation material to prevent heat leak into the cargo. Temperature rise is extremely low and the typical amount of lost cargo per day (Called boil off gas or BOG) is less than 0.15% of the cargo tank volume. This excess gas is generally fed to the regas or power systems to be used as fuel. Some modern FSRU’s have the ability to re-condense the spare boil off gas and inject it into the re-gas system. No gas is vented to atmosphere at any time during normal operations.

The FSRU’s are double barrier concepts. This means that there are two hull structures between the tanks and the outside sea. Not only does this limit the risk of cargo spillage, but it also provide space for ballast water to be stored (only LNG is ever stored in the main cargo tanks)

For further details see Appendix G.

5.3.4 Regas Technology FSRUs are designed to incorporate certain equipment and processes on board to accomplish the task of offshore LNG vaporization. There exist two distinct types of re-gas concept, with a number of manufacturers for each concept. The two re-gas concepts are either an open loop or a closed loop system. The fundamental difference between the two systems is whether the medium used to heat the LNG and convert it from a cold liquid to a ~ambient temperature gas is fully contained within the FSRU (closed loop) or is brought in from outside (in this case seawater) and sent out again to outside of the FSRU (open loop).

5.3.5 Vaporization of LNG

To accomplish the task of offshore LNG vaporization FSRUs may be operated in one of three ways:

 Closed-loop mode, in which LNG vapour is burnt in the FSRU boilers to produce steam which is then used to heat fresh water or glycol circulated through the shell-and-tube vaporizers in the regasification plant.

 Open-loop mode, in which relatively warm seawater is drawn in through the FSRU’s sea chests. This warm seawater is used as a heat source and passed through the shell of the shell-and-tube vaporizers, causing the vaporization of the LNG. During this process, the temperature of the seawater is lowered by approximately 13 degrees Fahrenheit (7 degrees Celsius). For this reason, the open-loop mode is not applicable for water temperatures below 45 degrees Fahrenheit;

 Combined mode, in which seawater at temperatures between 45 and 58 degrees Fahrenheit can be used when heated by steam from the FSRU boilers to provide sufficient heat for the vaporization of the LNG

This reflects the system onboard the likely FSRU’s that could be used at Kakinada. It may be that such an FSRU of suitable containment/re-gas size for the project is not available in the early years of the project and must be built in the yard and arrive on site a few years later than project start date. As such a temporary and smaller bridging vessel would be required from the existing fleet. A bridging vessel would have the technology described above or would be a closed loop only type.

Closed loop systems must create heat by burning LNG rather than use the ambient heat of seawater. As such whilst closed loop systems will not interact with the surrounding water in Kakinada, they do produce larger amounts of air emissions than an open loop system. As such it is expected that an open loop system will be utilised in Kakinada in the long term.

A flow diagram for the open loop system to be used for the long term FSRU option in Kakinada is shown below

For the bridging vessel, an open or closed loop system may be used. If it is open then it follows the same flow diagram as for the long term solution. Should a closed loop system be utilised in a bridging vessel then it has the following flow diagram.

5.4 General Arrangement of Receiving Facilities The receiving facilities considered to be developed for this project are described on the plot plan given in Appendix E.

It comprises:

- Navigational access system: access channel, turning circle, berth pit(s),

- An island jetty with its top-sides (unloading arms, drain drum, cryogenic pipeline, HP arms),

- A buried subsea pipeline connecting the island jetty to the shore line and to land fall point station,

- A land fall point station covering an area of approx. 2 ha.

The overall view of the facilities is shown here under:

Prospectively, this map also indicates an area suitable for a potential future on-shore terminal development which is not part of the present permitting application.

5.5 Subsea Pipeline A HP subsea gas pipeline will transfer gas from the jetty to the grid tie-in point.

Two HP gas arms (2 x100%) on the jetty will transfer gas from the FSRU to the subsea pipeline.

The subsea gas pipeline to the shore line will be approx. 2.5 km length and will be prolonged underground on approx. 300 m till the land fall point station (see general arrangement). This is expected to be a 750 mm (30”) high pressure pipeline. It will be buried or otherwise protected against damages, particularly from anchorage deployed by vessels moored for discharge of lighter cargo. It is important to note that this pipeline will not cross the Kakinada Deep Water Port shipping channel.

Illustration detail of HP subsea gas pipeline

The installation method assumed for the submarine pipeline section involves prefabrication of pipe sections land-based and tow out to the proposed FSRU site.

A preliminary estimate of corridor width for the main pipe string fabrication is around 10 -15 meters; a more detailed review of land availability and access requirements would be required to confirm actual requirements.

The installation options will need to be further reviewed during front end engineering.

5.6 Landfall Point Station

Gas Metering and custody transfer is assumed to be at the inlet to the HP gas pipeline, inside the battery limit of the terminal project at the land fall point station. The HP gas pipeline connectivity downstream of the landfall point station up to the tie-in point is not included within the perimeter of the terminal project.

The facilities/equipment installed within the landfall point station includes:

 An administrative building,

 Two metering skid systems (ultrasonic) with associated gas quality analysis,

 Safety isolation valves system,

 Pig receiving facilities,

 Cathodic protection system,

 An autonomous power generator (approx200 kW)

An indicative plot plan of the landfall point station is given hereunder:

5.7 Dredging To allow Kakinada Deep Water Port to accommodate larger LNG vessels of Q flex size, its navigation access capacity will have to be increased. This will translate in important dredging works described in IPA Site selection report (see Appendix B) and summarized in the table here under:

Components Dredging work description Dredging material (estimated) Million m3 Access channel Widening of existing 10km 160 m width to 7 to 10 300 m width Additional turning Creation of a dedicated turning circle of 600 3 to 4 circle m diameter north of the inner channel Manoeuvring area Creation of one or two berth pockets with 2 to 4 & berth pocket(s) accessing manoeuvring area TOTAL 12 to 18

Current estimated dredging volume is between 12 and 18million cubic meters.

Subject to further soil investigations, it is expected that dredging will be carried out using a Trailing Suction Hopper Dredger (TSHD) and Cutter Suction Dredger (CSD). The CSD will be able of dredging cap rock which would not otherwise be dredgeable with TSHD.

Suitable dredged material will be used in reclamations and port development activity within Kakinada Deep Water Port, if required. Otherwise surplus or unsuitable material is assumed to be disposed of at the approved/designated offshore disposal location of Kakinada Deep Water Port, subject to necessary permitting and environmental assessment.

6 FSRU Specification Table

A shortened overview of the FSRU characteristics is shown below. Full details are contained within Form I.

General Information Long Term Vessel Bridging Vessel Builder Korean or Japanese Korean or Japanese Date keel laid After 2013 After 2000 Date Launched After 2015 After 2002 Class society DNV, LR, ABS, BV DNV or BV Cargo capacity 120,000 to 215,000m3 138000 to 151,000 m3 Cargo tank working pressures Likely 1-102kpa. 4-10kpa gauge

Design draft and Up to 12.3m 11.4 displacement (m) Ballast draft and down to 9.5m 9.6 displacement (m) Loaded draft and displacement up to 12.5m 11.64 (m) Max air draft (m) 50-54m 40.4 Propulsion type and Likely steam or DFDE Likely steam or DFDE characteristics Regasification System Regas technology Probably Open Loop Open or Closed Loop

HP Gas Pressure and 80-120 Bar 80-120 Bar temperature 0-10oC 0-10oC

Min/Max continuous send out 1.4MMSCMD to 1.4MMSCMD to 14.2MMSCMD 22.6MMSCMD

Max send out 26.9MMSCMD 21.2MMSCMD Spare philosophy N+1 on critical equipment N+1 on critical equipment

Other Staff/crew composition Operation phase – 32 Construction phase – 1000 persons on board and 20 workers persons for terminal Operation phase – 32 persons on operations board and 20 persons for terminal operations Visiting LNG Ship Capacity Up to 265,000m3 Up to 265,000m3 Resource requirement Land 2 Hectares for on-shore 2 Hectares for on-shore receipt receipt terminal terminal

Water 320000 KLD sea water as 35000 KLD as cooling water for heating medium for RLNG machinery and 35000 KLD as cooling water for machinery

Energy 100 Tons of LNG per day 80 to 340 Tons of LNG per day equivalent to approximately (depending on regas rate) 64 MW per day which will equivalent to approximately 51 be generated by FSRU itself. to 218 MW which will be generated by FSRU itself Construction Material Jetty- approx. 21000 M3 Jetty- approx. 21000 M3 concrete concrete Safety & Social Aspects Refer Appendix-C Refer Appendix-C Safety, Health & Environmental Refer Appendix-H Refer Appendix-H protection system

7 Current Status of Project

 APGDC and GDF SUEZ have executed the Project Framework Agreement for development of FSRU facility at Kakinada, Andhra Pradesh on 17th April, 2012 in New Delhi in the presence of Hon’ble Chief Minister, Andhra Pradesh, Union Minister for Petroleum and Natural Gas, C&MD, GAIL, President, GDF Suez LNG UK Ltd and other dignitaries.

 Report for selection of suitable site for establishing the FSRU project has been submitted by Indian Port Association (IPA) and IIT Madras. (Copy attached as Appendix-B). The IPA and IIT, Madras has suggested establishing the project in Kakinada Deepwater Port area in the report.

 During Partnership Summit held between 11th January and 13th January, 2012, GAIL Gas Limited, a 100% subsidiary company of GAIL has entered into a MoU with the Government of Andhra Pradesh to establish an RLNG Terminal in the Coast of Andhra Pradesh through APGDC. (Copy attached as Appendix-I).

 Consent letter has been received from M/s. Kakinada Sea Ports Limited (concessioner for operating Deep Water port at Kakinada) for establishing of LNG FSRU project within the boundary limits of Deep Water port (copy attached as Appendix-J).

8 Preliminary Environmental Assessment

8.1 Background

This section deals with the Initial Environmental Evaluation of the proposed project of Development of Offshore LNG FSRU Facility at Kakinada Deep Water Port, Kakinada, East Godavari District, Andhra Pradesh State. The section considers the environmental settings of the project site and surrounding study area including identification of notified ecological sensitive areas as per Ministry of Environment and Forests, Government of India followed by Potential Environmental Impacts due to the proposed project.

8.2 Environmental Setting of the study area

As discussed above, the Offshore LNG FSRU Facility is proposed at Kakinada Deep Water Port, Kakinada. The site is located at a distance of 2.5 Km from the Berth 1 of Kakinada Seaport Limited. Hope Island, located to the east of the proposed berth on the lee side of the breakwaters is within a distance of 10 Km, this was formed due to the sand drifting from the tributary of River Godavari. The island stretches across Bay of Bengal and forms the Bay of Kakinada between the island and the main Kakinada Coast. The northern part of the island is called Godavari point which overlooks the entry point into the Bay of Kakinada and the Kakinada Harbour. On the shore line, Kakinada fishing harbour is located on the northern side of the port. NH214 lies on the Western Direction of the port.

Coringa Wildlife sanctuary lies to the south of the port. It is located at a distance of about 15 Km from Kakinada on Kakinada – Yanam road. Coringa Sanctuary, named after a tiny village Coringa in East Godavari District of Andhra Pradesh, a part of Godavari Mangroves was declared as a wildlife sanctuary by Government of Andhra Pradesh vide G.O.Ms. No. – 484, Forests and Rural Development (For.III) Department dated 05.07.1978 was to conserve the mangrove vegetation of the estuary, extending in an area of about 235 sq. Kms. It is located between 16° 30’ to 17° 00’ N latitudes and 82° 14’ to 82° 23’ E longitudes. Mangroves are salt tolerant ecosystems of tropical and sub-tropical intertidal regions of the world.

East Godavari receives rainfall during June to October both southwest and northeast monsoon. Average rainfall varies widely from 1000 mm at the northern part of the coast to 1400 mm at the extreme western parts of the hills. The district has two major fertilizer plants and gas based power plants and edible oil refineries. Brief Summary of Environmental settings of the study area of 10 Km is provided in the following table.

Table: Summary of Environmental settings of the study area of 10 Km

Sr. Particulars Details No. Latitude 16° 58.37’ N 1 & Longitude 82° 17.06’ E 2 Elevation 2-3 m MSL 3 Nearest Meteorological station Kakinada (Stn No. 43189) Mean Maximum temperature 43.8°C Mean Minimum temperature 15.8°C Annual Maximum Humidity 82% Annual Minimum Humidity 61% Predominant direction South West and North East Average wind speed 9.6 kmph Annual rainfall 1113.2 mm 4 Nearest habitation Kakinada Nearest major town/Nearest major city 5 Kakinada (more than 2, 00,000 population) NH 215, 4.2 km Western side connecting 6 Nearest highway Yanam and NH -5 at Kathipudi Kakinada R.S 4.5 km from the port 7 Nearest railway station Kakinada Port R.S <1Km from the Port 8 Nearest airport Rajahmundry, 70 Km 9 Nearest tourist places Hope Island, within 10 Km radius 10 Defence installations Nil within 10 Km radius 11 Protected area as per WP, act, 1972 Coringa Wild life sanctuary, approx. 15 Km 12 Reserved/Protectedforest Nil within 10 Km radius Sea (bay of Bengal) Nearest water bodies 13 Bhogamdani Cheruvu – 6.5 Km streams/rivers/sea Kalai Cheruvu – 14 Km Two large Fertilizer Plants (namelyNagarjuna and Coramandel), Few Gasbased power 14 Major Industries Plants such as GMR Barge mounted Plant, Spectrum Power etc. 15 Seismic zone Zone III as per IS 1893:2002

8.3 List of Ecologically Sensitive Places as defined by Ministry of Environment and Forests, Government of India.

 Religious and historic places

 Archaeological monuments/sites

 Scenic areas

 Hill resorts/mountains/hills

 Beach resorts

 Health resorts

 Coastal areas rich in corals, mangroves, breeding grounds of specific species

 Estuaries rich in mangroves, breeding ground of specific species

 Gulf areas

 Biosphere reserves

 National park and wildlife sanctuaries

 Natural lakes, swamps, seismic zones tribal settlements

 Areas of scientific and geological interests

 Defence installations, especially those of security importance and sensitive to pollution

 Airport

 Tiger reserves/elephant reserve/turtle nestling grounds

 Habitat for migratory birds

 Lakes, reservoirs, dams

 Streams/rivers/estuary/seas

 Railway lines

 Highways

As per the list mentioned above, Hope Island is located within 10 Km radius of the project site and considered as local tourist spots. Apart from the large fertilizer plants, Kakinada seaport, barge mounted gas based power plant is under operations. Yanam Island located at a distance of 20 Km where number of wetlands is present and attracts migratory birds to the area.

8.4 Environmental related studies that are proposed for the project

 Comprehensive EIA (marine and terrestrial) studies;

 Disaster Management Plan, Quantitative Risk Assessment Studies;

 CRZ map indicating HTL and LTL demarcated studies due to landfall point.

8.5 Social and Environmental aspects construction and operation phase

 Brief details of the social and environment aspects during the construction and operation phase have been worked out and enclosed as Appendix-C.

 The detailed study shall be carried out in EIA, Risk Assessment and Disaster Management Plan

8.6 Summary

This consideration of environmental issues has been prepared based on the inputs taken from site and also through published information from MoEF/CPCB/Government of India Portal.

The project is located at a distance of 2.5 Km from the shore line. The project is for the installation of LNG FSRU facility within Kakinada Deep Water Port Limit, and transfer to the landfall point; it has insignificant environmental impacts on the marine biodiversity.

However, it is recommended to conduct detailed EIA studies covering marine and terrestrial, Risk Assessment, Disaster Management Plan for the proposed project.

Preliminary Site Selection Report has been appended as Appendix –B.

9 Budgetary Cost Estimates and Project Schedule

9.1 The Expected Project Costs

DESCRIPTION Configuration 1 Configuration 2 FSRU twin-jetty FSRU Single jetty OJ transfer STS transfer (Million INR) (Million INR) Feasibility and BOD studies 56 56 FEED 168 168 Jetty Structure 2800 1960 Jetty Topsides 1400 560 Subsea Pipeline+ Onshore facility 560 560 Dredging (turning circle, berth pocket) 3080 2520 Additional ship Modification 0 560 Additional investment for Common Port Facilities : 2000 2000 Dredging (widening and deepening of Port access channel) TOTAL 10064 8384

9.2 Project Schedule The table below show the timeline for construction activities related to the project.

S.No. Description Target Dates 1 Detail Feasibility Report December 12 2 Final design for Jetty and other May 13 facilities 3 Ordering and receipt of long Jan 14 lead items 4 Construction of Jetty Nine months from MOEF clearance 5 Dredging work Nine months from MOEF clearance 6 Sub-sea pipeline construction Six months from MOEF clearance 7 Ship fixing & FSRU conversion Feb 14 8 Ship sailing and commissioning March 14

Note: The above schedule is subjected to MoEF clearance

10 Conclusions & Recommendations

The study concludes that it would be technically feasible to establish an island jetty based FSRU, LNG receiving terminal, in Kakinada.

Kakinada is located close to the existing grid and East West pipeline; this would allow the promoters of the Project to achieve the connectivity between the LNG receiving facilities and the gas market in a short period of time (2 to 3 years), thus enjoying the benefits of a fast track LNG floating solution, with an optimized time to market.

The leeside of the north breakwater offer a suitable, protected marine area suitable to set up an LNG berth. Offshore open sea locations have been ruled out, as harsh weather conditions in a cyclone prone area, with waves heights exceeding 2 meters for 32% of the time during NE monsoon, and 68% of the time during SW monsoon1, are considered as a strong deterrent with respect to the downtime generated on cargo transfer operations.

The design options described in this report are indicative only and will have to be assessed, precised and selected, during consolidated engineering studies; similarly further investigations relating to environmental issues and FSRU operation impact will be required during EIA studies. Then only the outlined figures given will be confirmed.

The ultimate viability of the project will be determined and established by a comprehensive Detailed Feasibility Report collecting and analysing site specific data in particular Metocean data

1See IPA Site Selection Report (page 38) attached in Appendix B

APPENDIX A

BRIEF PROFILE OF MARKET CONDITIONS FOR NATURAL GAS IN ANDHRA-PRADESH

Brief Profile of Market conditions for Natural Gas

Andhra Pradesh – An Emerging Gas Hub

Gas Demand in AP

Due to rapid economic growth, the natural gas demand from other industrial sectors like ceramics, metals and bulk drugs is expected to go up. The expected gas demand from sectors other than the power sector is likely to be around 30 MMSCMD. But, due to shortfall of domestic gas, a lot of this demand is currently not being met. So, an LNG terminal on the Andhra Pradesh coast is necessary to bridge this gap.

The summary of existing demand for gas from all the sectors is shown in the table below:

Sector Allocation Requirement Supply Alloc-Req Alloc-Sup Req-Sup

MMSCMD MMSCMD MMSCMD MMSCMD MMSCMD MMSCMD MMSCMD (A) (B) ('C) (A-B) (A-C) (B-C) Fertilizer 4.797 3.27 3.215 1.527 1.582 0.055

Power 21.473 15.022 9.856 6.451 11.617 5.166

Ceramics, 0.71944 0.9205 0.3855 -0.20106 0.33394 0.535 Glass, Steel and Others Total 26.98944 19.2125 13.4565 7.77694 13.53294 5.756

Andhra Pradesh as an attractive LNG market

Scenario – 1 – RLNG transported from West Coast to AP

In case the gas is transported from the West Coast, there is additional implication of taxes and transportation charges as shown in the table below:

Scenario – 2 – FSRU on the East Coast of AP

In case the FSRU is located on the East Coast in AP, then the delivered price will be lower due to the avoidance of additional taxes and transportation charges as shown in the table below:

Natural Gas Demand Drivers

The consumption of natural gas has been growing at around 9.9% CAGR. Power and fertilizer sector contribute around 70% of total gas demand in the country. The key demand segments are as follows:

Power - Currently, power plants contribute more than 40% of natural gas consumption in India. The Indian Power Sector has been growing at a rapid pace and the pace is likely to be sustained in the coming years to meet the growing power demand. The installed capacity has increased from 105GW in 2001-02 to more than 180GW in 2011. Even with such increase in installed capacity, the power deficits in the country exceed 10%. Given the shortage of domestic coal, the primary fuel used for power generation, there is emphasis on leveraging all possible sources of energy for meeting the deficit. Given the shortage of domestic coal and gas resources, there is increased dependence on imported coal and LNG. At present there is about 2300 MW capacity that exists without allocation of gas and about 1700 MW that are under execution without having firm gas tie-up. Further about 700 MW of gas plant are being run on liquid fuels. In addition, there are many plants that are running below capacity owing to less supply of domestic gas. Thus there is a window of opportunity for LNG suppliers to cater to partial/full requirement of the existing and new plants.

Fertilizers - The fertilizer sector contributes more than 25% of the natural gas consumption. Government of India has decided that all existing gas-based urea plants would be supplied gas to meet their shortfall to ensure full capacity utilization. All existing plants in this sector have been accorded highest priority for domestic gas allocation.

City Gas Distribution (CGD) - PNGRB has granted licenses/approvals for CGD implementation in many cities of India. The CGD network in India has been steadily increasing and Government of India has a vision to expand the CGD network to 200 cities by 2015. Since the alternate fuel for CGD network is expensive liquid fuels (Furnace Oil, Commercial LPG, Petrol prices are deregulated in India), this segment has emerged as an attractive market segment for gas from an affordability perspective.

Supply Constraints

The supply of gas in India has not matched the demand growth. Some of the factors limiting the supply of gas are:

 Maturing Oil / Gas fields: The gas production from existing fields like Mumbai High and Reliance KG basin has decreased. The current production from KG basin is much lower as compared to the estimates a few years earlier.  Limited Oil & Gas reserves: The participation from global oil majors in the NELP bidding rounds has not been very encouraging.  Unconventional resources are yet to be fully tapped: Major unconventional sources of supply such as CBM, shale gas and gas hydrates are still in nascent stages of development. There has been some tight gas discoveries in the Cambay basin, but the commercial monetization of such discoveries will take time

All the aforementioned constraints limit the availability of domestic gas in the country. Import of LNG is an important option by which India could enhance the gas supply position in the country. India is already importing more than 40 MMSCMD through the LNG route.

Demand Supply scenario

The demand supply shortfall is estimated at close to 100 million metric standard cubic meters per day (MMSCMD). This in turn, has resulted in the inadequate or sub-optimal use of infrastructure: both gas-based power plants and fertilizer units either remain idle or operate using expensive liquid fuels, such as naphtha.

The graph below shows the estimated deficits

Given the shortfall and domestic gas supply constraints, there is an urgent requirement for increased LNG regas capacity and imports.

Natural Gas Infrastructure

Pipeline Infrastructure: India has more than 11,000 km of pipeline with capacity of more than 270 MMSCMD. Gas pipeline infrastructure predominantly meets the demand in the Western and Northern parts of the country. The pipeline capacity is expected to rise substantially going forward on the back of the proposed pipeline capacity and from the pipeline capacity already under construction. The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted in 2007 to promote competition and to authorize entities to build

48 the required infrastructure and monitor the downstream sector. Thus there is a significant thrust to develop the pipeline capacity and it is not a major constraint once a gas source is identified.

RLNG Terminal Capacity:

Presently, India’s LNG import capacity is around 13.5 MMTPA through its terminals at Dahej of 10 MTPA and Hazira of 3.5 MTPA. The contribution of imported gas through RLNG is around 20% of the total gas supply of the country. Furthermore, the LNG terminals at Kochi and Dabhol are likely to be operational soon. It may be mentioned here that all the LNG terminals (existing + under construction) in the country are currently located on the western coast. Despite high demand for gas in east coast region of India, there is no RLNG terminal on the east coast.

APPENDIX B

SITE SELECTION REPORT IPA

IIT CHENNAI

APPENDIX C

SAFETY & SOCIAL ASPECTS

Safety Aspects – Navigation

1. HYDRAULIC CONDITIONS Currents are dominated by the tidal flows, with predictable variations over diurnal, monthly and annual time scales.

Very strong currents in the order of 0.4 to 0.8 m/s occur between the sand pit and the breakwater, which are capable of moving sediments into and out of the bay.

The currents in the vicinity of the port and within the dredged channels are relatively weak, with a maximum of only 0.2 m/s.

Currents generally flow in a North/South direction, roughly parallel with the shoreline.

The predominant wind directions are South-West and South-East. The mean wind speed is about 14.4 km/h (4 m/s). The maximum mean wind speed is 49.7km/h (13.8 m/s).

During cyclone the region experiences a maximum wind speed in excess of 117 km/h (32.5 m/s).

2. TRAFFIC INTENSITY AND SAFETY ISSUES Kakinada Deep Water Port has development plans for expansion. Therefore, we should expect traffic to increase over the next decade. The Terminals shipping requirements may impact on the Ports development plans, however, in this instance there is no detrimental impact on the provision of additional berthing.

The traffic intensity is moderate but the bulk carriers do have a significant Deadweight of around 100,000 Tons. Even at low speeds this bulk carrier can cause severe damage to an LNG carrier in a collision. This risk can be easily mitigated with good basic traffic control.

The berth arrangement is perpendicular to the entrance channel, with a clearance of approximately 300m. The change of collision is therefore minimised. The existing turning circle will be increased to 600m dia to suit the LNGCs, which will be “reversed” into position using tugs. Careful river management will be necessary during turning when the vessel is vulnerable because the side of the vessel is exposed to channel traffic.

The ignition zone of 250m around the berth is not interfering with the other activities.

3. MANOEUVRABILITY Since Kakinada is a sheltered harbour location already accommodating large ocean going vessels it has been assumed at this stage that wave, wind and current heights and speeds are normally not excessive or restrictive.

A fast-time simulation study will be performed in order to investigate the arrival and departure of the LNG Carrier under a variety of normal and extreme conditions. A real time manoeuvring simulations will also be performed during the FEED.

Social and Environmental aspects

DURING CONSTRUCTION

The development of an LNG terminal on the eastern coastline of India has potential to impact the environment as per follows:

 Direct damage to marine and terrestrial habitats and species via dredging and construction activities,  Accidental spillage of oils, fuels and chemicals from construction vessels,  Local re-suspension of sediments and increase of turbidity with resultant impacts, such as decrease of primary production for benthic and pelagic flora due to reduced light penetration, and smothering of benthic organisms,  Spread of potentially contaminated sediments through construction activities, in particular dredging works,  Effect of surface water run-off which may contain contaminants,  Wastewater from the construction site including accidental spillages could enter water sources e.g. during unloading or transportation processes or by being washed into water courses during rainfall,  Changes to tidal flow and wave energy characteristics with a resultant change to the habitat for pelagic and benthic organisms,  The water environment could be polluted through waste and litter being discarded or blown in to the surrounding water courses, terrestrial environment or into the sea,  Impacts of noise and vibration during construction works on birds, terrestrial animals and underwater fauna,  Decreased air quality from exhaust gases during transportation of equipment, construction activities.

Potential social impacts include:

 Impacts to water quality outlined above also have potential to cause social impacts to local people through declines to water which may be used for drinking or bathing.

 Changes to air quality through:

o Exhaust gases from construction vehicles. Most vehicles and construction equipment use petrol or diesel as fuel and will discharge gaseous pollutants;

o Dusts from construction activities may be transferred into the atmosphere locally which could impact on workers and neighbours’ residential areas.

 Fire and explosion risks associated with flammable substances such as gas and oils.

 The concentration of personnel/labour can cause public health problems through potential spread of infectious diseases and increased pressure on public services such as health care.

 There can also be potential for increased levels of crime as a result of the influx of workers.

 Noise and vibration during construction works on human receptors,

 Increased employment as a result of the development of an LNG terminal is predicted to cause

beneficial impacts to the local community, in terms of socioeconomics.

Potential impacts listed above shall be minimized and controlled through appropriate mitigation.

DURING OPERATION

The LNG terminal on the eastern coastline of India has potential to impact the environment as per follows:

 Direct damage to marine and terrestrial habitats and species via dredging maintenance and operational activities,  Accidental spillage of oils, fuels and chemicals from vessels using the LNG terminal during operation,  Local re-suspension of sediments and increase of turbidity with resultant impacts, such as decrease of primary production for benthic and pelagic flora due to reduced light penetration, and smothering of benthic organisms.  Effect of surface water run-off which may accidentally contain contaminants.  Depending upon the vaporization process, discharge of sea water which could be used in this process during operation. This water would be 5-7°C cooler, with a maximum chlorine component of 1ppm. The discharge rate will be a maximum of 11,500 m³/h (for 2.5 MTPA) or 23,000 m3/h (for 5 MTPA).  Changes to tidal flow and wave energy characteristics with a resultant change to the habitat for pelagic and benthic organisms.  The water environment could be polluted through waste and litter being accidentally discarded or blown in to the surrounding water courses, terrestrial environment or into the sea.  Decreased air quality from exhaust gases during operational vessel traffic and potential accidental gas leakage. Potential social impacts include:  Impacts to water quality outlined above also have potential to cause social impacts to local people through accidental declines to water which may be used for drinking or bathing.  Changes to air quality through: o Uncontrolled equipment emissions NOx, CO, SO2, PM10, CO2 and NH3 o Land based emissions CO2 and NOx o Discharge of cold gas from safety valves in the event of fire.  Fire and explosion risks associated with flammable substances such as gas and oils.  Increased employment as a result of the operation of an LNG terminal is predicted to cause beneficial impacts to the local community, in terms of socioeconomics,

Potential impacts listed above shall be minimized and controlled through appropriate mitigation.

APPENDIX D

BASIC PROCESS FLOW DIAGRAMS

FSRU

APPENDIX E

GENERAL ARRANGEMENT – BASIC

DESIGN

APPENDIX F

PLOT PLAN LANDFALL POINT

STATION

APPENDIX G

FSRU VESSEL SPECIFICATIONS

Please note that these are typical FSRU specifications. Exact details are to be finalised subsequent to completion of Pre- Feed and inputs from EIA clearance. However, the quantifications given in the Form I will be worst case and any studies carried out to attain EIA approval will always be in excess of what will be finally commissioned.

FSRU Regulatory Compliance

National Rules of the Flag of Registry

o International Convention on Load Lines;

o International Convention for the Safety of Life at Sea, incl. International Gas Code;

o International Convention for the Prevention of Pollution from Ships;

o International Convention for the Prevention of Collisions at Sea;

o International Telecommunication Union Radio Regulations;

o International Tonnage Measurement and Certification;

o Suez Canal Navigation Rules, incl. Regulations for Measurement of Tonnage; and

o Safety and Health Regulations for Long shoring, U.S. Department of Labor.

International Maritime Organization (IMO):

o IMO Publication No. 978 Performance Standard for Navigational Equipment;

o IMO Resolution A.665 (16) “Radio Direction Finding System;”

o IMO Draft Guidelines of Bridge Visibility;

o IMO Resolution A 468 (XII) “Code on Noise Levels on Board Ships;”

o IMO Resolution A343 “Recommendation on Methods of Measuring Noise Levels at Listening Posts;” and

o IMO Resolution MSC.35 (63) “Guidelines for Emergency Towing Arrangements on Tankers” (International Convention for the Safety of Life at Sea [SOLAS] Conference May 1994).

An example layout of an FSRU is shown overleaf

LNG Containment System

The cargo system has 4-6 reinforced membrane-type tanks. The LNG with a specific gravity of typically between 0.43 and 0.47 is stored at -261°F. The guaranteed daily boil-off rate is approximately 0.16% of the vessels total cargo capacity. The design chosen complies with all International Maritime Organization (IMO) requirements in accordance with a 40-year World Wide Trade operational lifespan.

The containement of the LNG may be iether in Mark III or No 96 systems, both from the manufacturer GTT of France.

The main components of the MARK-III Containment system are applied as follows :

 The insulation which consists mainly in rigid polyurethane foam with reinforcing glass fibers in between two (2) plywood sheets. Insulation transmits cargo pressure to the internal structure of the Vessel.

 The 1.2 mm thick stainless steel primary barrier whose main feature consists in an orthogonal system of corrugations which compensate for thermal contraction and mechanical ship's deflections.

 The secondary barrier, which are laminated composite material, and which are made of two (2) glass cloths (for the resistance) with an aluminium foil (hereinafter call "Triplex"), in between, for the tightness. The secondary barrier, whose purpose are to sustain LNG in case of any accidental leakage through primary barrier, are inserted in the insulating structure.

The layout of these panels is shown overleaf

Layout of Mark III Containment Tank

Layout of Mark III Containment System

Should a No96 system be chosen then it has the following layout

Layout of NO96 Containment Tank

Layout of of NO96 Containment System

Cargo System Machinery

Typical cargo systems include the necessary pumps and control systems for monitoring and control of the LNG in the storage tanks. The onboard classification society approved load and stability calculator will assure that liquid cargo (LNG), and ballast water is properly distributed to minimize the stresses in the FSRU’s hull. The operator is able to monitor the cargo levels, temperatures and processes within each tank, and control the valves for filling, discharging, and stripping the tanks. The operator will also monitor and control the auxiliary equipment associated with the cargo system, to include the following:

. Cargo machinery room and electric motor room: The cargo machinery room and electric motor room are arranged on deck. The electric motor room is separated from the cargo machinery space by a certified gastight steel bulkhead and is designed as gas safe space.

. Cargo compressors: Two low-duty (LD) compressors are used to handle the quantity of gas compatible with 100% gas burning on the auxiliary boilers. To protect the cargo tanks from being over pressurized due to natural boil-off the gas has to be consumed by the ships engines, the regas boilers burned in the gas combustion unit or as a last resort vented to the atmosphere. The Low Duty compressors will supply the natural boil-off gas to the duel fuel engines and the gas combustion unit as fuel gas to keep the vapour pressure stable. If the duel fuel engines require less fuel gas than that which is naturally boiling off, the vapour header pressure will increase. To prevent an increase in the pressure the gas control unit will be activated to burn the remaining natural boil off.

. Cargo vaporizer: One vaporizer capable of supplementing natural boil-off gas during 100% gas burning operation and that will:

o Supply cargo vapor to the cargo tanks when the cargo pumps are discharging, without vapor return from shore; and

o Purge inert gas from cargo tank.

. Cargo discharge pumps: Each LNG tank is outfitted with two cargo discharge pumps. These pumps are single-stage, centrifugal pumps with one inducer stage. The single stage will help to obtain a very low net positive suction head. The pumps are of the submerged motor type, with the motor windings cooled by the pumped LNG. The LNG also will lubricate and cool the pump and motor bearings.

. Emergency cargo pump: Each tank is equipped with a column where an electric motor-driven emergency cargo pump can be lowered.

. Inert gas plant: Inert gas/ dry air plant is installed, consisting of inert gas plant for gas oil burning, scrubber and dryer of combined refrigerating/ absorbent type, two blowers (electrical driven). The inert gas produced is to have a maximum oxygen content of 1.0 % and a dew point below -45C. The same plant is capable of supplying dry air into the cargo tanks.

. Nitrogen generators: Two equal nitrogen generator sets of membrane type are supplied with air from two dedicated oil-free compressors. The generators will discharge to a buffer tank of about 10 m3 volume at a pressure of about 10 bar, purity 97%, and dew point minus 70ºC. The nitrogen generators are installed to provide nitrogen for the following purposes:

o Cargo compressor gland sealing;

o Cargo tank insulation space and inter-barrier space inerting and purging;

o Cargo line purging; and

o Fuel gas to DF generators and auxiliary boilers line purging.

. LNG custody transfer system: An LNG custody transfer system is provided to enable accurate LNG quantity measurement when loading or unloading LNG; this will work independently from the export gas fiscal metering. The system will measure liquid levels, liquid and vapor temperatures, and vapor pressure within each LNG tank. This data, together with the tank calibration tables, is used to automatically calculate the LNG quantities before and after the transfer of the LNG.

. Gas metering system: The metering system is located on the forward part of the main deck between the vaporization units and the unloading buoy trunk. The metering system will include the following main items:

o Ultrasonic gas metering system:

Two ultrasonic gas flow meters,

Two pressure transmitters, and

Two temperature transmitters.

o Gas analyzer system:

Sample probe,

Two gas chromatographs,

Pressure reduction cabinet, and

Analyzer cabinet.

o Metering control system:

Metering cabinet,

Two flow computers,

Terminal flow computers and gas chromatographs,

Supervisory computer and operator station, and

Local area network (LAN) switch.

. Cargo leak detection: Minute cargo leakage within the membrane inter-barrier space is detected at an early stage by the gas detection system. The gas detection system will continuously monitor the inter-barrier space by circulation of nitrogen within the space. Should a leak occur, it is detected. Cargo would be restrained from coming into contact with the inner hull of the LNG carrier by the secondary barrier membrane. An assessment of the leak could then be made and any special recovery measures such as emptying the tank concerned could be implemented.

. ESD system: The ESD system is designed to ensure a controlled shutdown of LNG equipment to avoid any unsafe conditions. It is essential that the LNG pumps be stopped and valves closed in the correct sequence to avoid inertial pressure surges.

. Ship-to-shore link: Linked ship-shore emergency shutdown systems are required by SIGTTO for loading LNG and discharging at shore-side LNG piers. They will minimize the potential consequences of an accident or, if abnormal conditions arise, they will allow the process to be shut down averting any LNG escape. This reduces and or avoids:

o Excessive surge pressure on the loading arm connection causing damage in the event of an upstream valve closing first,

o Overfilling the cargo tanks, and

o Risk of damage or spillage due to excessive movement of the LNG carrier with respect to the shore side berth.

 The ship-to shore link consists of a triple system including,

o Pneumatic connection

o Fiber Optic connection

o Electrical/Pyle connection

Depending on the terminals shore side systems, either the Fibre Optic, or Electrical Pyle connection can be used in conjunction with the pneumatic ESD and communication system

This system shall have ship/shore connections compatible with the discharge terminal. Fibre optic, intrinsically safe types and pneumatic types shall be installed.

Fibre optical link shall be based on the Furokawa/Seatechnick system or equivalent and shall incorporate ESD, telephone function and mooring tension monitoring.

Pyle National hardwired electric link with Miyaki adapter shall incorporate ESD and telephone function.

All cable for ship/shore ESD link shall be supplied by loading and discharging port.

The following systems shall be provided:

a) Fiber Optic System

This system shall be installed for:

o ESDS signal from shore

o ESDS signal to shore

o Communication signal to shore

o Communication signal from shore

b) Electrical System

This system shall be provided for ESDS in accordance with SIGTTO recommendations and shall consist of ship assembly. c) Pneumatic System

This system shall be provided as an ESDS back up between ship and shore and shall consist of an adjustable pressure switchbox, a selector switch and pneumatic hose. Hose quick connections are not to have non-return valves fitted.

 LNG tank high-level shut-off system: Each LNG tank will have an independent high- level alarm and shut-off function, which will work independently of each other. The shut-off function is connected to the high-level alarm system. A pre-warning alarm is sounded when the tank volume reaches 95%. This will activate an alarm in the cargo control room and an alarm horn with a different tone will sound on deck, accompanied by an orange flashing warning light. When the liquid level in the tank reaches a position equal to 99.2% full by volume, a signal is sent to the tank loading valve remote control system to close the valve automatically. When this valve is activated, red warning lights will flash and an alarm horn will sound on deck.

 LNG tank relief valves: Each LNG tank will have two pilot-operated pressure/vacuum relief valves as required by the IMO code. This will assure that cargo tank pressure is maintained within safe limits prescribed by the shipbuilder.

 Accommodation and machinery spaces gas detection system: This gas detection system will monitor the accommodation and machinery space areas throughout the FSRU. The system will automatically (or manually) switch between the measurement locations. The range of measurement is from 0 to 100% of the Lower Explosion Limit. The system will continuously scan the locations sequentially 24 hours-per-day, seven days-per-week. In addition, a separate gas detector is installed for continuous monitoring of fuel gas supply at the auxiliary boiler furnace fronts and DF generators enclosed rooms.

 Cargo areas gas detection system: A separate gas detection system will cover the LNG insulation spaces and cargo handling machinery compartments. The control unit is similar in operation to the accommodation and machinery spaces gas detection system.

 Each of the three regasification unit’s housings enclosures is equipped with gas analyser sampling tubes connected to the gas detection system.

 Fire detection and alarm system: The fire detection system is computerized, with fully addressable analogue fire alarm system and analogue detectors. The central control unit with back-up battery, operating panel and power supply is contained in a central cabinet on the bridge. There is a repeater panel in the fire control headquarters. The system is interfaced to the Distributed Control System. The Distributed Control System will indicate loop status and will control the fire pumps. The operator also is able to access mimic deck plans indicating the exact location of individual detectors and their status. The system will use a wide range of detectors and sensors to suit different needs and conditions. It will include detectors with different alarm parameters (for example, ion and optical smoke detectors, heat and flame detectors, manual call

points, short-circuit isolators, and timers where required). The detectors are wired in a loop configuration with four loops in total. A fault in the system or a false alarm is detected immediately since the function of the detectors and other installed loop units is tested automatically and continuously.

 Public address system: A public address system is provided with sufficient numbers of loudspeakers arranged in the accommodation, public rooms, engine room, and open deck

High Integrity Pressure Protection (HIPPS)

A High Integrity Pressure Protection System protects the export piping from the skids to the HP manifold from over pressurisation, by limiting the pressure. These are not control valves and close in case of failure.

The HIPPS vales are not expected to close during any part of the start-up or shutdown process and are equipped only as a safety device. Their task is to protect the equipment downstream of the re gasification equipment and to keep the pressure in the regas system below design pressure in all situations.

Cargo Lines:-The system is shown diagrammatically in principle on the separate drawing of Cargo Piping Diagram below. All Cargo Lines, and valves are constructed of high grade stainless steel, for use under cryogenic conditions.

Lines from Cargo Tanks

Cargo Piping has the following key characteristics:

Two (2) main liquid and one main vapour crossovers, common to all cargo tanks, are provided. Four (4) liquid shore connections and one vapour connection are provided at each side of the Vessel.

One common liquid header, one common vapour header and one stripping/spray header are provided. The liquid lines terminate at the bottom at the aft end of each cargo tank.

The liquid domes extend from inside the cargo tank up to a suitable height above the weather deck. The vapour line are connected at the middle of each tank.

All cargo and associated piping are laid on the trunk deck.Special attention is given to the arrangement in way of dome area to allow safe and easy access for maintenance work.

Piping drainage arrangements are provided so that the liquid in cargo piping can be drained back into cargo tanks from shore connection.

An electrical bonding system is provided throughout to ensure that potential differences are avoided.

Small drip pans of stainless steel are provided under all flange connections in liquid cargo lines (removable type)

One (1) stainless steel liquid header is led between No.1 and No.4 cargo tanks on the trunk deck and are connected with the crossovers.

One (1) liquid connection is branched off the liquid header and led to each cargo tank.

In each cargo tank, two (2) cargo discharge lines with cargo pumps at the bottom, and one (1) cargo filling line extended to the bottom are provided. In addition, a well is provided for lowering down the emergency cargo pump. These lines shall penetrate the liquid dome and are connected to the cargo liquid branch for each tank.

Cargo manifold arrangement

Loading stations are provided port and starboard on platform above upper deck as shown below:

Manifold Lines

The cargo manifold consisting of four (4) liquid lines and one (1) vapour line is arranged L.L.V.L.L. and provided port and starboard on platforms above the main deck and are in compliance with OCIMF standards and the loading and discharging ports.

The spacing between liquid line and vapour line are in accordance with loading and discharging terminal's arm locations and the distance between ship manifold flange and ship side is 3.5m.

The distance between the bottom edge of the manifold flange and the top of the deck or working platform is 900 mm.

The shore connections shall consist of ;

. Two (2) 600 mm dia. liquid crossovers connected to the fore and aft liquid header and terminating with Y branch at each end.

 A hydraulically operated butterfly valve with emergency shutdown and a manually operated butterfly valve is fitted to each manifold liquid line with blank flange.

. One (1) 600 mm dia. vapour crossover connected to the fore and aft vapour header and terminating with one (1) hydraulically operated butterfly valve and with blank flange at each end.

The outer length of each manifold up to the first support are increased to schedule 40S pipe for the loads imposed by hard-arms, and are provided with a pressure gauge and drain connection.

Water curtain pipes (90-10 copper-nickel) are provided at ship side in way of each loading station to protect the side shell during loading and discharging. (Not spraying type, film type)

Sea water for sea water curtain is supplied from fire and deckwash main line near the loading station.

All remotely operated valves as well as emergency shutdown valves are operable from the IAS and valves are capable of manual operation locally at solenoid rack and by hydraulic hand pump..

Loading platform

The loading platform is constructed of stainless steel (SUS 304) with coaming and small stainless steel drip pans are provided under the ends of shore connection of low temperature liquid line.

GRP grating on manifold deck is provided within the area surrounded by coaming, including stainless steel (SUS 304) grating inserts in load bearing areas.

The means (spill line and valve) are provided to deflect a spill of LNG overboard to facilitate the rapid escape and evaporation of the liquids in accordance with the OCIMF standards.

Separate coaming with drain plug are installed around bunker manifold.

Vent masts for cargo tanks

Four (4) vent masts about 14.5m high above the trunk deck are provided and fitted with a nitrogen purging connection.

The vapour header is permanently connected to forward vent mast which is fitted with a pressure control valve, and a trip closing arrangement operated from the IAS & W/H, with manual override.

The vent mast are of stainless steel pipe (SUS 316L). A bottom plate and a drain connection with small drip tray are provided at the bottom of each vent mast.

Ladders are fitted on the vent mast for access to the head of each mast top and wire rope stays are provided to prevent vibration.

The top of each mast are designed to prevent rain from entering the mast but allow gas to escape vertically upwards.

Safety Equipment

Life Boats

The lifeboats are of the totally enclosed free-fall type, and will accommodate the full complement in accordance with the ship’s safety certificate. The lifeboat davit is positioned aft.

High Speed Rescue Boat and Davit

A davit launched high-speed rescue boat for 12 persons is provided with the davit. The boat is propelled with an inboard diesel driven water jet designed for a speed of 25 knots with 12 people.

Life Rafts and Davits

. Two life rafts for 25 persons, inflatable, davit launch type with hydrostatic releasing device;

. Two life rafts for 25 persons, inflatable, throw overboard-type with hydrostatic releasing device; and

. One life raft for six persons, inflatable, throw overboard-type and manual releasing device.

Personal Life-saving Equipment

Life-saving equipment, such as life jackets, life buoys, line throwing appliance, and distress flares, are provided in accordance with rules and regulations. Survival suits for the full complement are provided and stored in safety equipment lockers.

Fire-fighting Equipment

Fire-fighting equipment is installed in accordance with regulatory requirements and class notations notation, or equivalent.

As per the IMO Regulations for the Construction and Equipment of Ships Carrying Gases in Bulk, The FSRU is split into fire fighting zones as specified overleaf:

Hazardous Areas and Gas Dangerous Zones

Gas dangerous zones, are zones pm the open deck, within 3m of any cargo tank outlets, gas or vapour outlet, cargo pipe flange, cargo valve and entrances and ventilation openings to the cargo compressor house. They also include the open deck over the cargo area and 3m forward and aft of the cargo area on the open deck up to a height of 2.4m above the weather deck, and a zone within 2.4m of the outer space of the cargo containment system where such spaces are exposed to weather

The entire cargo piping system and cargo tanks are also considered gas dangerous.

In addition to the above, the code also defines other gas dangerous spaces.

The area around the swept trunk in which the gas fuel line to the engine room is situated, is not considered a gas dangerous zone under the Code.

All electrical equipment used in these zones, whether a fixed installation or portable, is certified “safe type equipment”. This includes intrinsically safe electrical equipment, flame proof type equipment and pressurized enclosures type equipment. Exceptions to this requirement apply when the zones have been certified gas free e.g. during refit.

Fire Main System

The fire main system is supplied with seawater by two main fire pumps. An approved instantaneous coupling of non-corrosive material is used at all hydrants to quickly connect reeled fire hoses. The system is installed in all external and internal areas of the vessel where required, such as exposed deck, engine room, and accommodation areas. The firewater ring main routed throughout the vessel is permanently pressurized and circulated. A dedicated pressurizing pump, circulating pump, and two fire pumps are provided. In addition, one emergency fire pump is provided located in the forward pump room. All fire pumps are electrically driven.

The Deck and Accommodation fire systems are shown overleaf

Fire and Deck Wash System

Accommodation Fire Hydrant System

Water Spray System

Freshwater Fire Fighting System

A freshwater fire fighting system consisting of a fire main and hose reels is provided in the accommodation. The hose reels are stowed in recessed bulkhead lockers. Any point in the accommodation may be reached with water spray from at least one hose reel.

Fixed Water Spray System

The system is provided for cargo tank domes, cargo manifold valves, unloading buoy trunk area, cargo machinery rooms, lifeboat areas, and front of the accommodation deckhouse.

Water from the fresh water tanks is used for exercise and testing. Change-over between fresh water and seawater is controlled from the fire control room.

Manifold Water Curtain System

An independent water curtain system with dedicated pump will cover the shell and deck plating in way of the cargo manifold area to vaporize LNG leaks, should they occur to protect the vessel’s steel from cold embrittlement.

Carbon Dioxide Fire-Extinguishing System

A total-flooding carbon dioxide (CO2) fire-extinguishing system is provided for the engine room, control rooms, switchboard rooms, incinerator room, and other areas. Certain rooms will have a local CO2 extinguishing system.

Local Fire Extinguishing System in Engine Room

Local high-pressure water mist system is applied in high risk areas e.g. fuel oil purifier room, in accordance with rules and regulations.

Dry Powder Fire Extinguishing System

Dry powder stations are provided at each cargo tank dome with reeled hose lines and nozzles to fight local fires. Nitrogen stored in bottles is the propellant gas; bottles are refilled on board from the nitrogen generator via a high pressure compressor.

Fire Control Station

A control station is arranged at main deck level with access from both deck and accommodation areas, with control and communication for operation of fire alarm, CO2 release, fire pump control, oil valve controls, telephone, fireman’s equipment etc. In addition, a station for fire equipment storing spare parts and consumables is provided.

Pollution Prevention Equipment

The FSRU is in full compliance with MARPOL and will carry an annual, renewable International Oil Pollution Prevention (IOPP) Certificate. The certificate describes fully how the FSRU handles and logs operational onboard oil transfers, bilge pumping and waste management.

Powered hydraulics is limited to the crane and mooring buoy connection equipment located forward. During the vessel’s stay at the port, the crew will patrol the deck around the clock. In addition, closed- circuit television cameras from the cargo control room and the bridge will continuously monitor all deck areas. The vessel is able to respond immediately if any oil leak should occur.

Additional oil spill recovery equipment is deployed adjacent to possible sources for hydraulic oil spills. Such equipment will include sawdust, shovels, portable pumps and empty barrels.

Waste Treatment Equipment

Sewage Treatment Unit

The FSRU is equipped with an approved sewage treatment unit to suit the size of the FSRU quarters’ capacity for grey and black water. While at the port, the discharge from the sewage treatment unit and other accommodation drains is collected in a tank for later disposal at sea, away from the port and in accordance with MARPOL regulations.

Oily Water Separator

Bilge drains in machinery spaces are directed to a contaminated bilge holding tank. An emulsion breaking oily water separator fulfilling the latest rules and regulations is fitted to separate the oil from the water. The capacity is 3.5 cubic meters per hour (m3/hr) and would be fully automatic.

Two bilge holding tanks, one forward with capacity of about 200 m3 and one aft of about 300 m3, will each be arranged to enable the vessel to retain all bilges including rainwater from utility areas at deck level while at the buoy.

While at the berth, the bilge water is retained in bilge holding tanks. In accordance with MARPOL regulations waste products will be disposed of ashore

Incinerator

The diesel oil-fired incinerator is used to incinerate fuel/lube oil sludge, cleaning materials, used oil and grease, and oil recovered from the machinery space bilge separating system.

Trash Compactor

All trash from the accommodations, including plastic, is compacted into manageable bundles for proper disposal ashore.

Communications

The FSRU is equipped with the following main communication systems

Communication equipment

International call sign LADW7 Radio station MMSI 257352000 Satcom B FLEET 77 Telephone/telex TEL 764915932 TLX 600963967 Telefax

Satcom C Telex TLX No.1 425735210 TLX No.2 425735211

IAS

The IAS is a distributed monitoring and control system which due to its flexibility and modular architecture can be extended to cover a wide range of applications and types of vessel

The IAS is built from a full range of hardware and software modules to form optimum solution to any requirement. Normal configuration of the IAS includes machinery control and monitoring, propulsion/thruster control and monitoring as well cargo and ballast control and monitoring integrated in the same equipment. All connected equipment can be controlled from any operator station throughout the vessel according to command control setup

All operator stations and field stations are self-contained unit and independent of the other units, i.e. a failure in one station will not cause any other station to break down. All process logic including equipment safety and control functions are contained in the respective process station.

Each operator station contains a hard drive with all system configurations. A number of dedicated operator stations contain all configuration and acts as back-up for each other during system start-up and process station software loading

Redundant network based on the Ethernet principles installed as standard. The two nets are installed in different cable paths as far as possible. Each unit is interfaced to both nets

APPENDIX H

Safety, Health and Environmental

Protection System

Safety, Health and Environmental Protection System

Safety culture

Safety has always been paramount to APGDC and its strategic partner - GDF SUEZ. As leading players in the LNG industry both companies have been leaders in setting industry safety standards and forming industry associations to share best practice.

In the past four decades APGDC’S strategic partner - GDF SUEZ has developed vast HSSE experience and expertise in all parts of the LNG chain: development and liquefaction of LNG supplies, development and safe operation of LNG regasification terminals around the world and LNG shipping.

In its operational regasification terminals it has an exemplary safety record helping it to achieve high reliability and availability of its terminals. The availability achieved in the last years is over 99%. To achieve such high terminal availability, GDF SUEZ has implemented numerous improvements in operating facilities, and operational procedures, and environment protection.

GDF SUEZ was also one of the founding members of the International Group of LNG Importers (GIIGNL) established shortly after the birth of the LNG industry in the 1960s. GIIGNL is a non-profit organisation that studies and promotes the development of activities related to LNG, in particular purchasing, processing, importing, transporting, handling, re-gasification and various uses of LNG. GIIGNL promotes the exchange of information and experience among its members to enhance the safety, reliability and efficiency of LNG import activities and of the operation of LNG import terminals in particular. Jean-Marie Dauger, Executive Vice President of GDF SUEZ, oversees GIIGNL’s Executive Committee.

GDF SUEZ is also active participant in a number of other international organizations and help to shape the future industry standards. These organisations include:

 Society of International Gas, Tanker and Terminal Operator (SIGTTO)

 The International Maritime Organisation (IMO)

 The International Association for Natural Gas (CEDIGAZ)

On a wider basis the transporting LNG by sea requires special engineering techniques and contingency measures to minimise the risks created by the hazardous nature of the cargoes carried. The very first modern LNG vessels were built in 1960 and the LNG industry has now expanded to over 350 vessels. The safety record is impeccable with no major release of LNG and no loss of life. During the last 5 years the industry has moved on to dedicated FSRU type vessels. The companies operating these types of complex vessels have extended the safety culture to enhance safety in design and operations. Again the industry prides itself with an unrivalled track record of no major incidents or loss of life or damage to installations or impact upon the environment.

Codes and Standards

The purpose of this section is to provide an indication of the likely applicable codes and standards for the design, supply, construction, inspection, commissioning and operation of the Kakinada Regas Terminal.

It should be noted that this list of codes and standards is not exhaustive and the future requirements during the Re-gasification Project may require and/or add new codes and standards, including company’s specific requirements (based on process safety requirements which are more stringent than international standards mentioned below).

The design, supply, construction, commissioning and operation of the Kakinada Regas Terminal will be in compliance with local regulations and applicable codes and standards for the Re-gasification Project.

Except where otherwise stated, the applicable codes and standards shall be the latest edition, including all amendments, as applicable at the Contract Award date.

The Kakinada Regas Terminal will be built in compliance with NFPA 59A (ed. 2006) or equivalent EN 1473 complemented by the applicable local Indian regulations and reference standards. NFPA 59A or the equivalent EN 1473 establishes essential requirements and minimum standards for the design, installation, and safe operation of liquefied natural gas (LNG) facilities and prevails on other codes.

Beyond that other standards likely to be applied and which could contribute towards safety of the terminal are as follows:

GENERAL CODES AND STANDARDS

 LNG CODES

o NFPA 59A (2006)

o EN1473

 EARTHQUAKE CODES

o NFPA 59A (2006) and reference standard ASCE 7

 OTHER CODES

o Associated NFPA, IEEE , API and UL Standards

o ISO 9000

o ISO 14000

 CIVIL WORKS

o AWS D.1.1-92

o ISO 10319 (1993)

o ISO 12236 (2006)

o AISC-ASD 9th edition

o IBC

o Applicable Indian Standards – (TBA)

o ACI Standards

o ASTM Standards

 EQUIPMENT VESSEL AND ROTATING MACHINES

o Associated API/ASME/ISO/EN Standards

o LNG UNLOADING ARMS & SHIP-SHORE LINK

o ASME B31.3

o EN 1532

o OCIMF (3rd Edition 1999)

o SIGTTO

o EN 1474

 VALVES

o Associated API/ASME codes

o MATERIALS

o ASTM

o SFA AWS

o EN 10204

 INSPECTION & TESTING

o Associated ASTM and ANSI Standards

 PIPING

o Associated ASTM and ANSI Standards

 PAINTING & PROTECTION

o Associated ISO Standards

 THERMAL INSULATION

o Associated ASTM Standards

 INSTRUMENTATION

o Associated IEC, ISO, ASME and API Standards

 COMMUNICATION STANDARDS

o Associated ISO/IEC: International Organisation for Standardisation.

 ELECTRICITY

o Associated IEC, ISO, ASME and API Standards

Implementation of Philosophy and Codes

HSSE Principles

APGDC recognise that in order to achieve the sustainable development objectives of helping to meet the world’s growing energy needs in economically, environmentally and socially responsible ways they need to ensure that the risks and opportunities around health, safety, security, environment, social performance, local content and permitting are understood and integrated into their decision-making processes early.

Throughout the project, the intention is to identify and reduce all HSSE risks and to maximise benefits. This is most effective during the early stages of the project when changes may be made relatively easily. It is also important to integrate all the elements (health, safety, security, environment and social performance) of HSSE risks as early as possible. Once the strategic decisions have been made at the beginning of the project, design effort in balancing and reducing overall risk continues to the end of the execute phase. This ensures that the residual risks handed over to the operation group are as low as reasonably practicable and will continue to be managed as part of the Operations Phase of the project

The guiding principle is that the best HSSE outcome results from the identification and management of critical HSSE issues as early as possible in the project development. For many activities, high-level screening activities or coarse studies are specified in early project stages followed by detailed studies as more data become available.

Competent HSSE professionals will participate in the project from the start to apply the appropriate tools effectively.

Project HSSE activity plan

An HSSE activity plan will be developed early in the project, in cooperation between the project manager and the HSSE representative.

The HSSE activity plan shall make clear who is responsible for each activity. The HSSE activity plan will be continuously reviewed and updated at the end of each project phase.

The objectives of the plan for the project are to:

 identify applicable HSSE activities with respect to the scope of the project;

 define deliverables for the project and ensure all HSSE documentation is provided for the decision gate reviews;

 assign roles and responsibilities in relation to delivering the HSSE activities;

 identify work that will be contracted to others;

 schedule all HSSE related activities within the overall project work plan;

 create a budget based on the timing, resourcing and support activities needed for the project.

HSSE management in operations

An HSSE Management System will be established as the framework for systematically managing all HSSE risks; it will define the organisation structure, responsibilities, practices, procedures and resources for managing business and marine activities. It will be the responsibility of senior operations staff to provide leadership and so ensure that an HSSE culture is embedded within the entire workforce and that everyone involved on the land-based facilities and FSRU fully understands, participates in and is committed to HSSE. Continuous development is important for a HSSE MS to be effective.

The HSSE MS will cover the following:

 management and leadership;

 policy and strategic objectives;

 organisation and responsibilities;

 hazards and effects management process (HEMP);

 standards, procedures and document control;

 planning;

 implementation, monitoring and corrective actions; and

 audit requirements.

 marine risks

The International Ship & Port Facility Security Code (ISPS) will be applied. A Port Facility Security Plan (PFSP) will be developed, implemented and submitted for approval by the appropriate authorities for the land-based facilities before commencement of operations. The FSRU will arrive with ISPS certification. A Port Facility Security Officer (PFSO) included in terminal organisation will be trained and certified; this is normally a marine person.

Key staff will ensure that process and personal HSSE considerations are fully understood and evaluated throughout the life cycle, from the concept stage, through project execution, start-up, operations and finally to decommissioning. Performance targets will be set and indicators will be established to determine how well the operation is performing in key areas.

An HSSE case or safety case will be prepared, which gives an overview of the potential hazards affecting the project, focuses on the major HSSE issues as the design develops, records how these have been controlled or mitigated and, ultimately, provides assurance to regulators and other interested parties of the safety of the facility. It will eventually be developed to become the operational safety case prior to start-up in accordance with regulatory requirements. QRAs, HAZIDs and HAZOPs are supporting elements of the HSSE case.

Simultaneous Operations (SIMOPS) are defined as the simultaneous execution of two or more activities that, owing to their interaction, may result in an increased operational complexity and/or an enhanced level of risk. SIMOPS will be avoided, as far as possible, through proper planning and design. However, where the requirement for SIMOPS is identified, in order to, for example, limit substantial gas deferment or enable major breakdown maintenance in a live plant, the facilities will be designed to allow such activities safely and procedures developed to reduce the risk. An example is the LNG high pressure pump removal while other re-gasification trains are on line.

An Emergency Response (ER) plan will develop contingency plans that focus on the management of all the potential incidents during all phases of the life cycle of the integrated production system.

The FSRU will maintain a crew that is fully trained and competent to deal with emergencies on board and supplemented as required by the local authorities in the event of escalation.

APPENDIX I

MOU SIGNED WITH ANDHRA PRADESH GOVERNMENT

APPENDIX J

CONSENT LETTER FROM

KAKINADA SEAPORTS LIMITED