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Supplement Studies Including Biodiversity and Critical Habitat Assessment

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Supplement Studies Including Biodiversity and Critical Habitat Assessment Environmental and Social Impact Assessment Addendum – Supplement Studies including Biodiversity and Critical Habitat Assessment Project Number: 49222-001 October 2016 INO: Tangguh LNG Expansion Project Prepared by BP Berau Ltd. for the Asian Development Bank The environmental and social impact assessment is a document of the project sponsor. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Term of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of or any territory or area. SUPPLEMENTARY INFORMATION TO SUPPORT THE IMPACT ASSESSMENT BP Berau Ltd. (“BP”) is the operator of Tangguh LNG, which comprises of two gas treatment and liquefaction Trains located in Teluk Bintuni Regency, Papua Barat Province, Indonesia. The onshore plant produces Liquefied Natural Gas (LNG) and stabilized hydrocarbon condensate as export products with the first LNG cargo shipment in July 2009. Natural gas from two offshore platforms is delivered to onshore receiving facilities via subsea pipeline. BP and its partners plan to expand the Tangguh LNG facilities to increase Tangguh LNG production capacity by developing LNG Train 3 and additional supporting facilities, referred hereafter as the Tangguh Expansion Project (TEP). Initial expansion is to include LNG Train 3, two platforms (ROA and WDA), 13 new development wells, two subsea pipelines, a combined LNG and Condensate Jetty and other supporting facilities. TEP aims to optimize LNG production of existing reserves that cannot be produced within the existing two train development prior to Production Sharing Contract (PSC) expiry. TEP will provide benefits to the Government of Indonesia and local communities, which include a contribution to fulfilling domestic gas needs, supporting local livelihoods, strengthening partnership and continuing investment in economic and social development of the region. BP and its partners are seeking external financing to support the onshore components of the project. TEP aims are to comply with the environmental requirements of the Government of Indonesia and respective local government regulations, to conform to ADB's Safeguard Policy Statement 2009 (ADB, 2009), and to align with IFC Performance Standards (IFC, 2012), as well as the Equator Principle III (2013) standards. This document provides additional information required to fulfill lenders requirements, to supplement the impacts assessment discussed in the AMDAL. The additional information requirements are: - Impact assessment of LNG tankers operation; - Residual impact management, i.e. Acid Sulfate Soil (ASS) management, landfill and hydrostatic test water pond closure framework; - Water management; - Green House Gas (GHG) management; - Drilling mud and cuttings management; - Tangguh waste management facilities; and - Critical Habitat Assessment and Biodiversity Action Plan. SUPPLEMENTARY DOCUMENT TO LENDER 1 1. LNG Tankers LNG Tankers shall operate according to applicable Indonesian regulations and the International Requirement, i.e. International Maritime Organization (IMO), International Convention for the Safety of Life at Sea (SOLAS) and International Convention for the Prevention of Pollution from Ship (MARPOL). The requirement to follow those applicable international standards is stated in the Master Time Charter Party Agreement between Tangguh LNG and the Ship Owner(s). According to the agreement, BP will act as Commercial Operator/Charterer, with main responsibility to provide assurance that the LNG Tankers will fully comply with applicable requirements, e.g. SOLAS, MARPOL, while the full accountability to conduct the environmental management of the LNG Tankers belongs to the Ship Owner(s). It is clearly stated in the Master Time Charter Party Agreement that the Ship Owner(s) shall ensure that no pollution of any description shall be discharged from the LNG tankers. The LNG tankers shall be fully compliant with all applicable international, national and state oil and air pollution laws, conventions and regulations. In case of any non-conformance of the requirement, the LNG tanker shall be ‘Off-Hire’ until it is in state to resume the normal service and operation required under the agreement. 1.1 Impact Description Similar with the general sea transportation activities, LNG tanker movements within Bintuni bay area may generate the following impacts which need to be managed: 1. Disturbance to Marine Mammal and Marine Biota due to LNG Tanker Movement. Marine mammals (dolphins and whales) are sensitive to direct disturbance from waves caused by vessel movements, and the possibility of vessels colliding with marine mammals. In addition, acoustic energy caused by transportation activities may also disrupt marine mammals’ communication and navigation systems, so that they avoid the area. 2. Potential Pollution from LNG Tankers Waste Disposal and Wastewater Discharge. Waste disposal and wastewater discharge from LNG tankers will be mainly sourced from organic material, such as sewage and food waste. Although the disposal of both, waste and wastewater from LNG tankers, may have impact to the sea water quality, but considering the treatment facility on board to treat the waste and wastewater prior to discharge and the fulfillment of MARPOL (and/or other applicable international requirement), the impact from disposal of waste and wastewater from the LNG tankers may be deemed insignificant. SUPPLEMENTARY DOCUMENT TO LENDER 2 3. Potential Invasive Alien Species Invasive alien species may occur due to ballast water change and/or barnacles on ship body. Proper management of ballast water exchange and use of anti-fouling agent have been implemented, to minimize the impact of invasive alien species. 4. Potential Collision with Community and Other Boats Passing in Bintuni bay Area Tankers operating within Bintuni bay have the potential risk of colliding with community/other boats passing the area. Although a shipping lane has been determined for tanker’s operation, additional measures such as the presence of patrol boat and security boat as described in Section 1.2 below have been put in place to prevent collision between LNG tanker and community/other boats in the Bintuni Bay area. For this assessment, the scope of impact and management will be limited within the project area of influence, i.e. within Bintuni Bay area, considering also limitations of the influence of the project to the tanker operation. Greenhouse gases (GHG) generated from LNG tanker operation is not considered as GHG impact from Tangguh activity. Therefore, there will be no trans-boundary impact from Tangguh generated from the LNG tanker operation. 1.2 Impact Management To minimize the impact from LNG Tankers operation within Bintuni Bay, the following mitigation measures have been implemented by Tangguh through inclusion into LNG Tankers Charter Agreement, Operational Procedure and Work Instruction. The operational procedure that is relevant for LNG tankers operation is Marine Mammals and Sea Reptiles Protection Procedure (900-PRC-EN-2329) and provided in Attachment 1. 1. Disturbance to Marine Mammal and Marine Biota due to LNG Tanker Movement - Tanker route shall consider the presence of endangered species and their calving grounds; and - Ensure compliance on Tangguh Policy to route LNG tankers along established international sea lanes through Halmahera (Maluku) waters and avoid travel through Raja Ampat, which features high biodiversity value and whale migration corridors. 2. Potential Pollution from LNG Tankers Waste Disposal and Wastewater Discharge Selective collection and management of wastes according to the criteria of MARPOL 73/78 Annex V Prevention Pollution Garbage Disposal of Garbage Outside of Special Area, as shown in Figure 1 below. - Disposal into the sea of all plastics, including but not limited to synthetic ropes, synthetic fishing nets, and plastic garbage bags is prohibited; SUPPLEMENTARY DOCUMENT TO LENDER 3 - Disposal into the sea of the following garbage will be made as far as practical from the nearest land, but in any case is prohibited if distance from the nearest land is less than 25 nautical miles (nmi) (46.3 km) for dunnage, lining and packing material that will float; 12 nmi (22.2 km) for food wastes and all other garbage, including paper products, rags, glass, metal, bottles, crockery and similar refuse; - Disposal into the sea of garbage specified in sub-paragraph (b)(ii) of Annex V may be permitted when it has passed through a comminute or grinder and made as far as practicable from the nearest land, but in any case is prohibited if the distance from the nearest land, is less than 3 nmi (5.6 km). Such comminute or ground garbage will be capable of passing through a screen with openings no greater than 25 mm; and - When garbage is mixed with other discharges having different disposal or discharge requirements, the more stringent requirements will apply. Table 1. Simplified Overview of the Discharge Provisions of the Revised MARPOL Annex V Offshore platforms (more than 12 nm from Ships outside special Sh ips within special Type of Garbage land) and all ships areas areas within 500 m of such platforms Discharge permitted Discharge permitted
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