Aluminium: from Bauxite to Benefits 6 Pt Lisas Estate, South and East 13

GASCO NEWS VOL.22, NO.4, DECEMBER 2009

Aluminium:Page From 6 Bauxite to Benefits fold

VOL 22 NO 4

December 2009

Renique Murray, Haydn I. Furlonge, Nicola Ghouralal

NGC Archives, Kevin Reis

Tank under construction at Tobago Gas Receiving Facility.

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Front Cover: Menthol Plant in Point Lisas

SUNSET SWIMMING: A boy wearing life preservers looks at the majestic sinking sun in the waters near Pigeon Point, Tobago. Pigeon Point, situated near the western tip of the island is one of Tobago’s most beautiful beaches and a major tourist destination. Photo by Kevin Reis

fold CONTENTS VOL. 22, NO. 4, DECEMBER 2009

Why Burn Methanol? 2 Executive Change at NEC 12 Aluminium: From Bauxite to Benefits 6 Pt Lisas Estate, South and East 13

Pt Lisas Port 13

Oropouche Basin 14 8

Galeota Port 14 NGC’s S&P Rating Raised 9 Union Industrial Estate 14 NEO Pipeline 9

Tobago Pipeline 9

Liquid Fuels Project 10 Fabrication Yard 15 UIE Pipeline 10

Tamana Service Main 11 9 NAPA Pipeline Commissioned 11

High Speed Cable for Offshore Platforms 16

GORTT Signs Equity Partner for Alutrint 16

Atlantic LNG Positive on Gas Outlook 16

Guyana Looks to Hydropower 16

15 16 Why Burn Methanol?

The following is an excerpt from a paper By Renique Murray Consequently, this work investigates published in the Journal of the Association (Research Assistant) and the potential for methanol as such an of Professional Engineers of Trinidad alternative for the Caribbean region. and Tobago by Murray and Furlonge Haydn I. Furlonge The paper first gives an overview of (2009). It examines the potential of using (former Head of the Natural some of the key technical considerations methanol as an alternative fuel for power Gas Institute of the Americas), of the MtP, and outlines important generation in the Caribbean. The University of T&T characteristics of the Caribbean power market. Factors affecting MtP’s ethanol is primarily known for is another derivative, in compression feasibility relative to other means of its use as a chemical feedstock, ignition diesel engines for transport supplying energy to the region are Mfor instance in the production purposes. However, most of these considered. A brief description of the of formaldehyde and acetic acid. It projects came to a halt at the end of the economic considerations of the MtP can also be used to produce olefins testing stage. value chain is presented. The paper and other longer chain hydrocarbons More recently, methanol is finding concludes by highlighting some of the such as proteins and gasoline, although new fuel applications, namely in fuel key findings on the suitability of MtP these applications are not as extensive. cells. It can be catalytically reformed to to the Caribbean region, and identifies However, as these markets develop, produce hydrogen gas (H2) for use in future work on technical as well as there are significant implications in the fuel cells, or reacted with air in direct commercial aspects of the technology. light of potentially peaking global crude methanol fuel cells (DMFC). In general, oil production. Methanol’s use is not methanol’s use as a fuel is becoming Technical Considerations restricted to chemical production. One more attractive. This is significantly of Methanol as a Fuel such example is that methanol has been being influenced by recent trends in the The use of methanol as a fuel for proposed as a solution to addressing global energy market. stationary engines has previously been stranded gas fields; the key advantages Firstly, prices of oil and its related investigated. The overall result was that being increased safety and a potentially products have been at a record high methanol can be used successfully, with more economic means of transportation recently. This has been partly attributed only minor modification of the standard than LNG. As such, much work is being to the rapid growth of Far East and machinery to account for the main done to reduce methanol’s cost of Asian markets, which placed higher differences in the fuel characteristics of production. demands on limited oil resources. This methanol as compared to those of other Even using the conventional has prompted consideration of other liquid fuels. production route, methanol is being alternative energy sources that are not Firstly, methanol has a significantly considered in fuel applications. With oil dependent. A second key issue has lower calorific value (22.7 Mega an excellent octane number, methanol been growing global concern for the Joules per kg), which for example, is has been used in spark ignition engines environment and emphasis being placed approximately half that of diesel (45 in various ways, including as a simple on the use of fuels having lower COx Mega Joules per kg). This is generally additive to improve engine performance, and NOx emissions. Methanol offers compensated for by a concomitant and in the development of special these advantages, being a derivative of increase in the volumetric flow rate of methanol blends for use in racing natural gas which is partly de-linked from methanol which can be achieved without applications with modified engines. In oil, and is a clean burning fuel. significant difficulty or deviation from particular, methanol’s use soared in the This is of key significance to countries usual operating conditions. Special late 1990s when MTBE, a derivative of the Caribbean region, given that nozzles can be used for high fuel of methanol, was used as a common almost all are net importers of fossil fuels, distribution with low pressure drop. additive for gasoline engines. Several which have been negatively affected by Secondly, the lubricity of methanol other tests were carried out to examine recent fluctuations in crude oil prices. As is relatively low. This poses problems the technical feasibility of using methanol such, there is a keen interest in sourcing with standard fuel-delivery systems, and di-methyl ether (DME), which cheaper and cleaner fuel alternatives. such as those involving the use of valves

2 for flow rate control, and in situations where the fuel comes into contact with other moving parts within the engine. In general, methanol’s use as a fuel There are generally two approaches to addressing this. If preserving the is becoming more attractive. This is chemical integrity and consistency of the methanol is not a major requirement, significantly being influenced by recent then the use of suitable lubricant additives may be employed, with a trends in the global energy market. consequent alteration in combustion emissions. This may also impact the rate of wear and residue build-up on • Technology classification of markets. Alternatively, it may be implemented as other engine components. Alternatively, Another basis for differentiation a means of satisfying new demand. It is an appropriate pump with effective between markets was the type of also possible to modify existing turbine coatings may be used. The third factor power generation technology used. and reciprocating engines to burn concerns methanol’s combustibility For some islands, power is generated methanol, as was noted earlier. and flammability, which consequently solely by thermal processes using requires specific handling, controls and turbines or reciprocating engines. Factors Affecting MtP’s Feasibility monitoring. However for others, power is Present global concerns surrounding Despite the foregoing issues, previous generated using a mix of renewable energy security and environmental work has confirmed that the use of energy technologies and thermal impact have crafted a space for the methanol as a fuel for power generation technologies. Countries with mixed emergence of a new type of fuel which is indeed possible. However, this has technologies usually had lower yearly can satisfy increasing energy demand been mostly limited to an experimental electricity prices than those without. in a sustainable and cost competitive scale on gas turbines. Accordingly, power markets can also manner. For countries of the Caribbean be divided into two other categories: region, natural gas is one of the most Caribbean Market Assessment single and mixed technologies. promising fuel sources because of its Although the compatibility of relative abundance, cleaner combustion methanol as a fuel for use in power • Turbine and engine market share. emissions and proximity to supply, generation equipment is important, it The two main types of machinery Trinidad and Tobago being the is not the sole factor in determining used for thermal processes are gas primary one. This section presents a its use in the region. An assessment turbines and reciprocating engines. qualitative assessment of various means of Caribbean power markets is also a However, it was found that their of transporting natural gas including via preliminary step in order to determine distribution is correlated to the methanol. trends and key details that were unique market size of the country. Generally, The main options previously to the Caribbean context and would those with smaller market sizes considered, for instance in Kromah influence the implementation of MtP in tended to use reciprocating engines et al (2003), are gas pipeline, gas to the region. Some defining characteristics more, while larger markets used gas hydrate, gas to wire (GtW), gas to liquid of Caribbean power markets have been turbines. (GtL), and the more familiar LNG identified: and compressed natural gas (CNG). • Size classification of markets. It was In addition, the assessment revealed However, given the fact that the found that the island markets could that most countries increase their proponents of each of these technologies be differentiated on the basis of size. installed generating capacity by 15% to assume the use of the same natural gas In general, generation capacities for 45% every 4 to 6 years. Consideration source and with markets being small, the countries were either significantly of these factors points to different these technologies cannot be jointly below or above 100MW; there were motivations and configurations for the implemented. Consequently, the major only three islands with capacities implementation of MtP in a country. focus here is on MtP’s comparison to close to 100MW. As such, markets For example, MtP may be implemented some of the aforementioned technologies were classed as either small (below via the installation of new turbines for natural gas utilisation within the 100MW) or large (above 100MW). to replace existing infrastructure. region.

3 Shipping/Transportation Shipping of methanol uses no specialized containment or materials, It is important for the Caribbean region to methanol being relatively non-corrosive, and a liquid at room temperature and move decisively away from its dependence atmospheric pressure. In contrast, on oil and its derivatives in order to reduce LNG and CNG require cryogenic alloy materials (and in most cases double the overall power generation cost and high containment), and materials capable of high pressure, respectively. volatility of electricity prices

Infrastructure (Harbour and Import Facilities) closer and smaller markets but this has determining the cost of methanol Methanol ships consist of a wide not yet been proven economic for this production. range of sizes, so smaller ones may region. Consideration has been given to 2) Methanol transportation – This be available which would not require a single main gas transmission pipeline, approach considers the cost for the harbours as deep as those for LNG and with spurs to each market, since building shipping of methanol to the various CNG vessels. Being a liquid fuel, storage separate pipelines for each country markets using standard vessels. and handling equipment at the import is not a feasible option. As such, the 3) Methanol storage – Here, it is terminal would be essentially the same capital cost, and commercial, legal and assumed that inventory at the as that of other oil-based liquid fuels, political hurdles for such a project may import terminal would be large which are already in existence in regional be prohibitive. enough for 30 days of power markets. However, compressors would Overall, the comparison of different generation demand. The cost be required for a pipeline, a regasification natural gas transportation technologies involves the capital for construction facility for LNG, and high pressure suggests that MtP has certain distinct of the necessary storage facilities. storage and compression facilities for advantages, particularly for the unique 4) Power generation – This element CNG. Caribbean power market. Of the of the chain covers the cost of competing technologies, it is the most generating power from methanol Implementation Time and flexible and easily implementable, using either gas turbine engines Supply Flexibility while potentially being the least costly. or reciprocating engines. Both Unlike other gas transportation As mentioned earlier, MtP can be the initial capital outlay and the technologies, MtP can be implemented implemented using gas turbines or by subsequent operational expenses are in a relatively short space of time retrofitting reciprocating engines, which considered here. given that methanol is a widely traded is the most common power generation In order to quantitatively assess commodity with significant production technology being used. Consequently, MtP’s feasibility, an integrated economic from T&T. As such, there is flexibility a more detailed economic analysis model comprising these activities was in supply in terms of the number of is required for determining the best developed. More details of the model countries in the Atlantic Basin region, solution for MtP’s application. and economic analysis are provided in and the ability to access incremental Murray and Furlonge (2009). volumes on a spot trade basis. As Economic Considerations mentioned above, no specialized of MtP Value Chain Concluding remarks equipment is required which also reduces The MtP value chain comprises four Energy security and affordability the time to implement and expand key economic activities. are important ingredients to achieving facilities compared to pipeline, LNG and sustainable development. In this regard, CNG. 1) Methanol production – For the it is important for the Caribbean purposes of this study, the market region to move decisively away from its Initial Capital Investment price of methanol is used as the dependence on oil and its derivatives LNG has proven to be economic only cost of methanol. This allows for in order to reduce the overall power for long distances and large volumes, a fair market-based comparison generation cost and high volatility which are not characteristic of regional since it avoids issues such as rates of electricity prices. As noted here, markets. CNG has been considered for of return and natural gas pricing in methanol prices on an energy equivalent

4 basis have been historically competitive with diesel, as shown in Figure 1. Relative to other fuels and means of transporting natural gas, advantages also include lower capital cost, minimal infrastructure requirements, use of standard equipment and materials, and ease of shipping. Furthermore, because methanol can be shipped cost effectively in smaller quantities, MtP can be economic for small niche power markets such as in the Caribbean. The legal and commercial hurdles of supplying gas to the region via pipeline from Trinidad and Tobago do not arise with an MtP solution. Additionally, it is Figure 1: Comparison of Market Price for Different Fuels a cleaner burning fuel. Methanol is an attractive alternative fuel for meeting Retrofitting reciprocating engines, which various stakeholders in the MtP chain, the energy needs of niche markets is the most prominent technology being and risk distribution. in an economic and environmentally Finally, the technical feasibility of sustainable manner, utilizing existing or used in the region, gives the highest MtP needs to be assessed, i.e. equipment new power generation infrastructure in savings for MtP, of up to about 10 US efficiency, reliability, availability and the Caribbean. cents per kWh. For comparison, it is maintenance programme. This work is In order to further assess MtP’s estimated that with just an average 1 US currently being undertaken by potential, an integrated economic cent per kWh reduction in electricity The University of Trinidad and Tobago modelling approach of the MtP chain prices via MtP, a total saving of roughly along with Methanol Holdings Trinidad has been presented here, taking into US$200 million can be realized per Limited which is overseeing the account methanol production, shipping, annum in the region. This highlights operation of a demonstration power importation and power generation. the potential impact of a cheaper power plant on the Point Lisas Industrial It is found by Murray and Furlonge generation option, and makes MtP Estate, Trinidad (Furlonge and (2009) that MtP proves to be cheaper worthy of further consideration. Chandool, 2007). in smaller islands which tend to pay Based on these preliminary findings, slightly more for diesel and due to the lower economies of scale and efficiency there is a potential for MtP to replace References of power generation at smaller capacities. at least 6,000MW, or put another way Furlonge, H.I. and Chandool, 16.2 billion kWh per annum of power V. (2007), “Methanol to power generation in the Caribbean region. demonstration project,” GazChem 2007 Conference, Port of Spain, June. Available This will require approximately 7.1 Because methanol from: http://www.utt.edu.tt/utt/ngia/ million tonnes of methanol per annum methanol_to_power.pdf [cited 20 February can be shipped cost (or 626 MMscfd of natural gas), thus 2009] effectively in smaller providing a large new market for Kromah, M. Thomas, S. and Dawe, methanol, and hence for natural gas. R.A. (2003), Transporting natural gas quantities, MtP can Of course, there are several factors to around the Caribbean, West Indian be economic for consider in implementing a change- Journal of Engineering, Vol.25, pp.18-32. out of technology in any one island, Murray, R. and H.I. Furlonge, Market and Economic Assessment of small niche power including capital outlay and financing, using Methanol for Power Generation in markets such as in project viability based on detailed the Caribbean Region, The Journal of engineering and economic evaluation, the Caribbean the Association of Professional Engineers payback period, commercial arrangement of Trinidad and Tobago, 38(1), 88-99, and ownership structures comprising the 2009.

5 ALUMINIUM: From Bauxite to Benefits

Trinidad and Tobago is on the cusp By Nicola Ghouralal The modern process of becoming a primary and secondary Communications Officer The modern process incorporates producer of aluminium and downstream BSc – Sociology, MSc – Marine and alumina undergoing electrolysis in products. There has been keen interest Environment Resource Management electric-reduction furnaces or “pots”, to in our potential aluminium producing separate the aluminium and oxygen. The industry, both from international and pots are large, shallow, steel tanks lined local audiences. However, the aluminium The main ore of with carbon and connected electrically in industry goes beyond the smelter. From a series. bauxite extraction, to smelting processes aluminium is bauxite, and to the environmental and economic the source of 99% of In each pot, an electric current benefits that a country can derive from the flows from carbon anodes (the positive downstream aluminium sector, this article metallic aluminium. electrode of an electrolytic cell), through will seek to offer basic information on Bauxite is a general a molten bath containing alumina, to a everything aluminium. carbon cathode (the negative electrode term for a mixture of of an electrolytic cell) lining, and then What is aluminium? minerals composed onto the next carbon anode in the next The word aluminium was derived pot. The current forces the oxygen in from alumen, the Latin name for alum mainly of hydrated the alumina to separate from the metal, (an aluminium sulphate mineral). aluminium oxides. and join with the carbon to create carbon Aluminium is the most abundant metallic dioxide. This carbon dioxide rises to the element in the Earth’s crust but was top of the furnace pot. once thought to be a rare and precious but at huge costs. In fact, aluminium has The current usually generates heat metal. It was discovered to be a separate only been produced commercially for between 920oC and 980oC. Because element in the 1820s. Aluminium reacts the past 146 years and is still a relatively with water and air to form powdery ‘young’ metal. of the energy-intensive nature of the oxides and hydroxides, and does not The process of aluminium smelting smelting industry, they must be located occur in a metallic state in nature. This was invented in 1886, simultaneously in areas with access to an abundant means that it must be extracted and by Frenchman Paul Louis Héroult and supply of power (natural gas, hydro- processed. The metal aluminium is a American Charles Martin Hall, two electric or nuclear). silver-white metal which is very light in young and unknown scientists working At the end of this process, molten weight (less than three times as dense as independently and in ignorance of each aluminium remains on the bottom. The water), yet relatively strong. other’s attempts to separate the metal aluminium is then siphoned into larger from the ore. holding furnaces where other impurities How do we make aluminium? The scientists discovered that a are removed and alloy elements such as The main ore of aluminium is bauxite, combination of chemical and electrical magnesium, silicon or manganese are the source of 99% of metallic aluminium. processes could produce aluminium. If added. Bauxite is a general term for a mixture of one dissolved aluminium oxide (alumina) The molten aluminium is cast into minerals composed mainly of hydrated in a bath of molten cryolite (sodium various forms and sent to fabrication aluminium oxides. aluminium fluoride) and passed a plants to be rolled or stretched or to a For thousands of years, mankind has powerful electric current through it, then foundry for casting. A typical smelter can used other metals including copper, molten aluminium would be deposited have about 300 pots, producing 125,000 tin and lead. Over 2000 years ago, the at the bottom of the bath. This process, tonnes of aluminium annually. The later Chinese developed a process to obtain known today as the Hall-Héroult generation smelters have over 400 pots aluminium; however, this process was Smelting process, is the foundation on and produce between 350,000-400,000 lost to civilization. Over the years, small which modern-day aluminium smelting amounts of aluminium were produced is based. tonnes annually.

6 Aluminium technology Most debates surrounding smelters Other energy saving advances include have centred on the technologies used and their efficiency and safety improvements to bath chemistry to lower with regards to human health and the both the smelting temperature and heat losses, environment. There are two main technologies in use in smelter plants improvement of insulation to reduce heat losses, throughout the world – The Söderberg improved baking technology for anodes and Cell technology and the Pre-bake Cell technology. reduced carbon anode consumption per kilogram The older Söderberg technology uses a continuous anode which is delivered to the pot in the form of a paste, which in a fabric filter baghouse. The reacted or the design improvements that have taken bakes itself. The Pre-bake uses multiple fluoride-containing alumina is recycled place. This reduction is directly linked anodes in each cell which are baked in into the aluminium production process. to the computerization of smelting cells, a separate facility and attached to ‘rods’ The emission of fluoride is the most an improvement that has largely been that suspend anodes in the cell. New debated aspect of aluminium smelting. unrecognized outside the industry. anodes are exchanged for spent anodes, Relatively small amounts of fluoride Other energy saving advances include which are then recycled into new anodes. do escape from the process, typically improvements to bath chemistry to Part of the pot lining carbon can also be when changing the anodes. Depending lower both the smelting temperature and recycled. on conditions, fluorides could have heat losses, leading to an increase in the an impact upon potentially sensitive efficiency of the use of electrical current, The environmental benefits of flora and fauna. Studies have shown improvement of insulation to reduce pre-bake technology that fluorides in large quantities have heat losses, improved baking technology Today, over 75% of the world’s the potential to accumulate in the for anodes and reduced carbon anode aluminium smelters use the Pre-bake teeth and bones, but not in the edible consumption per kilogram of aluminium technology. Virtually all new plants and meat of animals such as cows, and can produced. Because of the energy plant expansions around the world are accumulate in vegetation. Substantial intensive nature of the smelting industry, based on Pre-bake technology. This fluoride reductions have been achieved they must be located in areas with access technology has been proven to be using new technology and have been to an abundant supply of power (natural more environmentally friendly than demonstrated to pose no threat to health gas, hydro-electric or nuclear). the Söderberg technology. Pre-bake or the environment. Commitments by aluminium smelters technology encourages recycling; However, these fluoride emissions are throughout the world include the therefore, there is waste minimization. still subject to strict controls and even minimization of any impact on the It also has led to energy efficiency and a discharge licences. These emissions and environment by extensively researching reduction in fluoride emissions. effluents must be strictly and regularly energy and emissions reduction, Gases and solids which evolve from monitored by the relevant environmental initiating responsible, safe disposal or the pot and its electrolyte are controlled authority as well as the management of re-use of waste products and maximizing by various treatment processes. The the actual smelter. the use of recycled materials in the most efficient method is that which Given the high energy and other costs process of making aluminium. utilizes a highly effective pot hooding associated with the Hall-Héroult process, system and removes more than 99% of the smelting industry is continuously From the kitchen to the construction the fluoride emission from captured pot looking at alternative methods of site – the downstream aluminium gases. extracting aluminium. industry This system prevents air pollution, Concurrently, effort has been made The product of aluminium itself is conserves valuable resources for recycling to improve the efficiency of the Hall- a sustainable material. Products made and because it is a dry process, there Héroult process. On an average, it takes from aluminium can be recycled, saving are no liquid wastes to be disposed of. about 15.7 kWh of electricity to produce both energy and mineral resources. Fluoride gases are passed through a bed one kilogram of aluminium from Because it is lightweight and strong of alumina where fluoride is absorbed. alumina. This is a reduction from 21 and conducts heat well, aluminium The particulate matter is then collected kWh in the 1950s, again, a testament to has many domestic and industrial uses.

7 MARKET DEVELOPMENT

Examples of everyday products made from aluminium.

When exposed to open air, it forms a also requires aluminium sheeting, affordable and recyclable. Realizing film of oxide on its surface which makes plating, extrusions, forgings, structural the need to improve its fundamental the metal more corrosion-resistant or castings and super alloy turbine blades. processes, which would not only benefit ‘rustproof’. High power voltage lines are also the industry, but international goals for Many of our domestic household made mostly of aluminium because the energy-use reduction and environmental sustainability, the industry has pioneered items including beverage cans, pots, material is an excellent conductor of heat the way in research and development. pans and of course foil are made of and electricity. Aluminium is also used In closing, the Trinidad and Tobago aluminium. Most vehicles used for in road signs, roofing and form the frame Government has as a goal to obtain the transportation consist of aluminium. of many modern-day window panes. highest value for the country’s gas. One Cars are lighter and consume less gas of the strategies in achieving this is the because of lightweight aluminium. Aluminium – an industry development of the downstream gas Trucks, boats and aircraft and aircraft for the future sector. At present, most natural gas- engines are made of aluminium. In fact, The growth of the aluminium based activity does not go beyond the primary processing stage. Aluminium, there would be no air travel without industry over the years is a aluminium. Its steel strength and of demonstration of its value not just to more than most other options for gas course lightweight properties are suited the economy, but to society – consumers usage, has this remarkable potential for to the modern aircraft which must travel and companies – who have placed substantial downstream activity, with faster and higher. The aerospace industry value in a material that is lightweight, associated creation of jobs.

8 NGC NEWS

NGC’s S&P Rating Raised

Standard and Poor’s raised NGC’s financial rating, including its corporate credit rating from BBB- to A- on October 19. The company’s rating was removed from the S&P CreditWatch, where it was placed with positive implications in July 2009. This rating change is reflective of NGC’s liquidity position and S&P’s expectation that NGC will continue to perform its critical economic role in monetizing the nation’s natural gas resources while adhering to the best principles of financial management.

NEO Pipeline

NGC has imported 8,054 lengths of pipe for the project from India. Those pipe Marine pipelaying activities – Tobago Pipeline lengths which will be used underwater are concrete weight-coated to provide stability of the pipeline on the seabed Tobago Pipeline and protection from third party damage. NGC will be carrying out a Horizontal Once the HDD and Carillon is performing Civil and Direct Drilling (HDD) operation other preparatory works Structural works at the Cove Eco starting 1.6 km offshore at Mayaro. This Industrial Estate, which involves the complex technique lays segments of the are completed, NGC will laying of foundation and underground pipeline without open cutting, to avoid infrastructure, including cables damaging the environment. To do this, lay the onshore pipeline and pipes. These works should be a hole is bored horizontally under the which will be tied in substantially finished by the end of area and the pipeline is drawn through 2009. Phase 2 involves the installation it like thread through a needle. The to the New Abyssinia of equipment, with piping and Electrical HDD will be conducted on a 24-hour and Instrumentation works commencing Accumulator Station in January 2010. The project is expected to be completed and first gas supplied in January, 2011. NGC imported 4,603 lengths of fusion-bonded epoxy-coated pipe for the project from Mexico. The basis in Quarter 1, 2010. It will follow main marine pipelaying work will take the initial pipelaying on the seabed place in Quarters 2 and 3, 2010. NGC which is underway in preparation for the is currently performing a Horizontal pipe full into the drilled hole. Once the HDD and other preparatory works are Direct Drilling (HDD) operation at the completed, NGC will lay the onshore approach to Cove Estate. This complex pipeline which will be tied in to the New technique allows the laying of segments Abyssinia Accumulator Station. The of the pipeline underground to avoid construction of the main marine pipeline damaging the environment. The HDD will take place during Quarters 2 and 3, will be finished in early 2010. The 2010. Supply of first gas is projected for gas supply to Tobago will service the HDD Liquid Fuels January 2011. T&TEC power generation plant, small

9 industries to be established at Cove Estate and eventually extend to users in other parts of Tobago.

Liquid Fuels Project

The pipeline system for the Liquid Fuels System consists of four phases, from Petrotrin to Phoenix Park, from Phoenix Park to Pierre Road, Chaguanas and from Pierre Road to Caroni and Caroni on to Piarco. All phases are being constructed simultaneously, and the segment between Caroni and Piarco is complete and testing is being done. The project will transport unleaded super and premium gasoline, diesel and jet fuel between each of these phases along an eight-inch-diameter liquids line. Holding tanks will be constructed at the originating point, Petrotrin, and at Frederick Settlement where the routing of the different fuels along the line will be moved, stored and regulated. The main control systems will be also housed at the Frederick Settlement facility and two additional tanks will be constructed to supplement existing storage capacity at the airport. A fibre optic cable is being laid along with the pipelines for use by SCADA, a computerized Frederick Settlement Facility – Liquid Fuels Project monitoring system.

Pipelaying works will be completed related facilities at Union Industrial by first quarter 2010, and HDD Estate (UIE). The project will techniques were used at sites on Rivulet The project involves a 3.2km-long, transport unleaded Road, Caroni River, Couva River, 24-inch-diameter pipeline, which will Couva Main Road, Caroni Irrigation connect to the 56-inch Cross Island super and premium Canal, Camden Road, Cedar Hill Road, Pipeline (CIP) near Pablito Trace. This Roopsingh Road and the Solomon pipeline will run westwards parallel gasoline, diesel and Hochoy Highway. HDD techniques to CIP. A 2km, 24-inch pipeline will were also used to route a pipeline under be tapped off from the line and run jet fuel between the runway lights at Piarco International northwards to UIE. Airport. Within the estate, NGC will lay a each of the phases 16-inch distribution line and an 8-inch UIE Pipeline pipeline which will supply natural gas to along an eight-inch- small customers located at the adjoining By mid-2010, NGC expects to have La Brea Industrial Estate. Facilities at diameter liquids line. completed an expansion of its natural gas UIE will be constructed for condensate distribution and transmission network removal, pressure regulation and with its installation of a pipeline and metering of natural gas.

10 NGC NEWS

Tamana Service Main

The construction and installation of a 152mm diameter carbon steel supply pipeline running 3km from the existing pipeline near the Frank Kerry Estate will bring a natural gas supply to the Tamana Industrial Technology Park at Cumuto, Wallerfield. The project also includes the construction of a regulator/odorizer/receiver station and a 9km High Density Polyethylene distribution ring main. A critical upgrade to NGC’s gas distribution network, this new supply will fuel the developments planned for this new nexus of computing technology. API Pipeline Construction Company is the contractor for the project. Commissioning is expected at the end of December, 2010.

NAPA Pipeline Commissioned

The recently commissioned National Academy for the Performing Arts (NAPA), an impressive home for the development of artistic talent, benefited from the use of natural gas, used to fuel some of the building’s components. The construction phase of the project required a connection to a future valve on an existing 102mm line at the Hilton Hotel which runs through the Queen’s Park Savannah. The supply line was a 50mm polyethylene pipe in a 203mm polyethylene pipe sleeve laid using HDD technology through the Savannah to the metering station on the NAPA compound at Queen’s Park West. The project required a swift response from NGC from planning to commission. The project was completed in four months. On site, the pipelaying and connections were completed in 24 days, well ahead of a planned 35-day schedule. Pipelaying at Tamana InTech Park

11 Executive Change at NEC

On August 5, 2009, former NEC He holds a BSc. in Natural President Mr. Prakash Saith passed Sciences, a Postgraduate Diploma the energy baton to Mr. Andrew in Petroleum Engineering from the N. Jupiter, who became the new University of the West Indies and President of the National Energy a Master of Engineering Degree in Corporation. Mr. Saith served Mineral Engineering Management NGC/NEC for 27 years. A civil from Pennsylvania State University, engineer by profession, Mr. Saith USA. became General Manager of NEC in During his public service, 1999 and President in 2004. During Mr. Jupiter held several senior his career at NEC he oversaw the positions at the Ministry of Energy construction, project management and Energy Industries (MOEEI) and contract administration of large from 1979-2004, including civil engineering, infrastructure and Petroleum Engineer, Senior energy-intensive projects which Petroleum Engineer, Director would house world-scale plants. Operations, Director Energy Mr. Saith was directly Planning, Chief Technical Officer, Prakash Saith, former NEC President responsible for the construction, as well as Permanent Secretary. In management and operation of over 2004, Mr. Jupiter joined NEC US$150 million in marine assets, as the Vice President, Business including the Savonetta Piers I, II, Development. III and IV, ISCOTT Dock, Point During his career, he served as Lisas Harbour and NEC’s fleet of 10 an expert witness to the Government vessels. These assets service several of Trinidad and Tobago on petrochemical and steel plants to petroleum matters, led a negotiating meet international standards on a 24- team that signed 19 Production hour basis, 365 days a year. Sharing Contracts between the Mr. Saith served as Chairman of Government and multinational the Board of the Rural Development companies, and participated in the Company and as a director on negotiations for the LNG trains at several state boards. He is a member Point Fortin. of several professional societies, Mr. Jupiter is a member of the including the Association of Society of Petroleum Engineers and Professional Engineers of Trinidad the Association of International and Tobago (APETT) and the Petroleum Negotiators where he Association of Professional Engineers was the first Trinidadian to serve as of Ontario, Canada. AIPN Director. He is Chairman of His successor, Mr. Andrew the Caricom Regional Energy Policy Andrew N. Jupiter, new NEC President Jupiter, has served the energy Task Force and a Member of the industry for 38 years, starting at Shell Standing Committee on Energy and Trinidad Limited in 1971. the Natural Gas Export Task Force.

12 Foreground – Savonetta Piers III & IV at Port Point Lisas.

Pt Lisas Estate, be able to make a formal response to the into negotiations for local services and South and East EMA’s review of the EIA with additional materials’ suppliers and has been working data by October 2010. with NEC on minimizing cost exposures. Designs for the project are complete The commencement of works is pending and CARIRI has been engaged to create Pt Lisas Port (South) the grant of the final Certificate of baseline data on air and water conditions Environmental Clearance (CEC). The on the Estate. The sampling process is Preparation for the construction Environmental Impact Assessment (EIA) underway; it will be done over one dry phase is well underway. The project has been reviewed and resubmitted season and one wet season and will be utilized international competitive by NEC through its consultant Rapid completed by June 2010. tendering to engage the services of Environmental Assessment Limited in A consultant will be retained to Saipem for engineering, procurement order to clarify information requested by respond to the EMA’s review of the and construction (EPC) services. the EMA. project’s documentation and to assess Procurement of all materials for Preliminary planning and design and interpret the data which has been the 700-metre quay wall has been work undertaken by Parsons Brinkerhoff collected by CARIRI. NEC expects to completed. Saipem has also entered for adapting the port to serve the

13 NEC NEWS

industries has been completed. The contract for dredging a new channel and turning basin has been awarded to The EMA has been provided with all information Westminster Boskalis. The public engagement process requested and the consultant, Technital, has been is now focused on ensuring that there is acceptance of the mitigation plans able to secure terms of reference for the conduct and environmental measures that have been adopted. Managing the natural of EIA studies for the project. Detailed design environment and sociological impact of the planned construction works is a key for the project will proceed in collaboration element in NEC’s social responsibility in implementing the port project. with the EIA studies to ensure environmental compliance in all aspects of the design. Oropouche Basin

The Oropouche Bank project is a reclamation initiative to create a viable revetment works. The project will All statutory permits, approvals and alternative to using land-based sites. The require 100 million cubic metres of fill designs are completed for the port, west coast was identified as offering the for the initial phase, which will comprise fish landing facility and new access best potential, and the selection criteria 300 hectares of reclamation. Fill sourcing road. Procurement of all quay wall pile demanded a marine environment without studies have already begun and 14 materials is complete. aggressive topography or the potential million cubic metres of fill have been to damage protected flora or fauna. The identified. The EMA has been provided site identified lies north of the Godineau with all information requested and the Union Industrial Estate River outfall, which met the preliminary consultant, Technital, has been able to criteria with a stable, shallow sea floor secure terms of reference for the conduct Royal Haskoning Caribbean Limited extending over 3,900 hectares in water of EIA studies for the project. Detailed is preparing detailed designs to address varying between three and four metres design for the project will proceed in issues with the portion of the Vessigny deep. The site is very economical for collaboration with the EIA studies to River on the estate and to manage the project, due to the shallow depth ensure environmental compliance in all general drainage issues on the Alutrint of fill required and it is located in a aspects of the design. project site. Petrotrin has awarded a contract for the removal of their tanks low energy marine environment in the in the buffer zone. Asphaltic base course Gulf of Paria. Preliminary designs have Galeota Port works to cover 30,000 square metres been completed, delineating the shape of roadway have begun on the UIE and location of the reclamation site. NEC is currently finalizing the post- Corridor by Sunco. Project deadlines are The project will eventually cover 1,400 CEC monitoring plan with the EMA. under review. hectares of reclamation and will be linked This plan, which includes stakeholder The Trinidad Generation Unlimited by a permeable causeway approximately engagement and shoreline monitoring, plant is underway, with 800 persons 2.5 kilometres long. This optimal design was submitted to the EMA within the employed by the project. Of these is the basis on which further studies statutory time allowed. Contractor workers, 560 are drawn from La Brea are to be undertaken and extensive GLF/Jan de Nul JV is planning for the and its environs. Man Forrestaal, the geological and seismic exploratory start of construction on receipt of the studies have been undertaken to assess EMA’s approval and the conclusion of contractor supplying the turbines and liquefaction risks, settlement and an agreement with bpTT, the former site generators and managing the power consolidation. The soil stability and owner. plant’s construction, expects the labour coastal protection of the reclamation site NEC is mindful of its role as a force to grow to 1,200 by early next year incorporates the use of mangrove on the corporate citizen and is providing as the project ramps up. Foundations are leeward side facing the mainland, and a meaningful contribution to the being prepared for the turbines and 13 the remaining perimeter consolidation of welfare of Galeota/Mayaro with the of these power generation engines have the facility will use armored rock coastal development of a fish landing facility. been installed.

14 Fabrication Yard at La Brea Industrial Estate.

Fabrication Yard TOFCO, now operates on 29.5 acres Many smaller operators with at Labidco. TOFCO is a joint venture fewer than 20 employees working on The estate is proving to be a model for between Louisiana-based Chet Morrison site report 100 per cent staffing by local content participation in industrial Contractors Inc and Weldfab Limited, a employees drawn from La Brea and environs and most other companies development in Trinidad and Tobago. Trinidad and Tobago company operating operating at Labidco report local content Since 2004, eight offshore platforms for since 1979. new exploration and production projects ratios greater than 50 per cent. At peak times on the fabrication were built at the Trinidad Offshore This commitment to knowledge schedule, over 700 persons are usually Fabricators Unlimited (TOFCO) facility transfer and workplace training ensures at Labidco and two more are currently employed directly with almost half the growth potential of the industrial under construction. of them drawn from La Brea and its estate and the encouragement of greater The fabrication facility was environs. The policy of local content resources in the future from nationals expanded by 4.5 acres in 2008 to involvement and training has led to high who increasingly see the industrial accommodate increasing demand for the levels of local employment in projects activity at Labidco as a real, sustainable company’s services, and the fabricator, underway at the Labidco facility. opportunity.

15 High Speed Cable for Offshore Platforms

The Trinidad Offshore Fibre Electronics Project, an initiative of Canada’s Windward Telecoms, plans to launch two new offshore fibre optic communications networks aimed at linking the offshore energy sector. The fibre optic cable will land at Crown Point, Tobago to provide high speed Internet cable communications for that island and in Trinidad at Macqueripe and Galeota. The 12-pair design of the cable is Atlantic LNG at Pt Fortin. promised to provide superior uptime The Minister further noted that the and stability with little maintenance and of increasing the capacity of the existing environmental impact assessment study self-healing capabilities for more than 25 trains I-IV without constructing new (EIA) commissioned by Alutrint in July years. plants. Deployment of the north ring of 2005 details a design engineering stage the system is expected to begin in July for the project that will ensure the use of Guyana Looks to next year and will provide links to oil the best available pollution prevention Hydropower and gas production platforms operating and control technology to avoid potential major impacts. on Trinidad’s eastern coastline. Local Guyana’s plan for a US$2 billion The other partner in the project is telecommunications providers will be renewable water power plant, the the project’s engineering procurement able to use the line for data, voice, land Turtruba Hydropower Project, has construction contractor, China National and wireless communications and may won the interest and support of Brazil’s Machinery and Equipment Import consider it as a backup for their current President Lula Da Silva. The 800 and Export Corporation. The project’s services. megawatt hydropower development financiers are China Eximbank and the planned for Guyana’s Mazaruni River Government of the People’s Republic of GORTT Signs Equity was conceptualised by Enman Services China. Partner for Alutrint Limited, a Pt Lisas based engineering In December 2009 Minister and development firm headed by of Energy and Energy Industries Atlantic LNG Positive Donald Baldeosingh, a former Conrad Enill signed equity partnership on Gas Outlook Chairman of Petrotrin. agreement with Brazil’s Votorantim Brazil, which shares a border with Metais to participate in the Alutrint Point Fortin-based natural gas processor Guyana, will be linked by the project via Project planned for Union Industrial Atlantic LNG announced that, despite the Takutu Bridge. In September 2009, Estate in La Brea. Votorantim Metais plunging natural gas prices since the presidents of Guyana and Brazil, is a mining and processing company November 2008 from US$8 per mmbtu Bharath Jagdeo and Lula Da Silva within the Votorantim Group, one of to US$4.40, in 2009 the Company met at the symbolically correct border the largest industrial conglomerates in will meet targets for products while town of Lethem in Guyana to open the Latin America. A closed capital family successfully maintaining safety as its bridge project. owned company, it is headed by Brazilian highest priority at its facilities. Ten to 15 per cent of the power billionaire Antônio Ermírio de Moraes. The four trains of Atlantic LNG produced will be reserved for Guyana’s Minister Enill announced that are capable of producing up to 100,000 use and the remainder will be earmarked the signing does not move the project cubic metres of LNG per day, enough for export either to Brazil or to the forward, and the smelter project will energy to power the United States Caribbean archipelago. The project not commence until outstanding issues for 1.4 months. The company is scope currently includes a 580km high are settled in the courts of Trinidad investigating project procedures with voltage transmission line from the and Tobago and a Certificate of Bechtel, the construction company that power plant site to Boa Vista in Brazil’s Environmental Clearance is issued. built the plant to review the possibility northern Roraima state.

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