Yemen LNG Project Environmental and Social Impact Assessment Prepared for: Yemen LNG Company Ltd 10 February 2006 REVISION 1 Prepared by: Project N° 43683552-1903 Report Reference N°766-AUR-06-0001 A 43683552-1903 Yemen LNG Project REVISION 1 Environmental and Social Impact Date : 10 February 2006 Assessment Yemen LNG Company ltd Page i CONTENTS Section Page Number SECTION 0. EXECUTIVE SUMMARY 0.1. INTRODUCTION.................................................................................................... 0-1 0.2. HISTORY OF ESIA STUDIES ............................................................................... 0-1 0.3. PROJECT DESCRIPTION..................................................................................... 0-2 0.4. BASELINE CONDITIONS ...................................................................................... 0-2 0.5. ANALYSIS OF ALTERNATIVES ........................................................................... 0-4 0.6. POTENTIAL ENVIRONMENTAL AND SOCIO-ECONOMIC IMPACTS AND MITIGATION MEASURES..................................................................................... 0-5 0.7. ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM.............................. 0-16 SECTION1. INTRODUCTION AND METHODOLOGY 1.1. INTRODUCTION.............................................................................................. 1-1 1.1.1. General ............................................................................................................. 1-1 1.1.2. History of the ESIA studies .............................................................................. 1-1 1.1.3. ESIA guidelines and policies............................................................................ 1-2 1.2. METHODOLOGY OF THE ESIA ..................................................................... 1-2 1.2.1. Scope of the ESIA............................................................................................ 1-2 1.2.2. Identification of Potential Impacts .................................................................... 1-3 1.2.3. Mitigation Measures ......................................................................................... 1-4 1.2.4. Residual Impact and Compensatory Measures .............................................. 1-4 1.2.5. Impact Significance.......................................................................................... 1-4 1.2.6. Human Health and Safety Risks ...................................................................... 1-10 1.3. REPORT ORGANIZATION.............................................................................. 1-11 SECTION 2. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2.1. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK OF YEMEN............... 2-2 2.1.1. General Framework ............................................................................................... 2-2 2.1.2. Environmental Protection Council.......................................................................... 2-3 2.1.3. Environment Protection Authority (EPA) ............................................................... 2-4 Ref N°766-AUR-06-0001 A 43683552-1903 Yemen LNG Project REVISION 1 Environmental and Social Impact Date : 10 February 2006 Assessment Yemen LNG Company ltd Page ii 2.1.4. The Environmental Protection Law (EPL) No 26 of 1995 ..................................... 2-6 2.1.5. The Law n°11 for the Protection of the Marine Environment ................................ 2-9 2.1.6. Operational Discharge Controls............................................................................. 2-9 2.1.7. Emergency Preparedness and Response............................................................. 2-10 2.1.8. Other Laws related to the Environment ................................................................. 2-11 2.2. INTERNATIONAL ENVIRONMENTAL CONVENTIONS ...................................... 2-12 2.3. ENVIRONMENTAL AND SOCIAL POLICIES FOLLOWED BY YLNG................. 2-14 2.4. ENVIRONMENTAL STANDARDS APPLICABLE TO THE PROJECT................. 2-15 SECTION 3. PROJECT DESCRIPTION 3.1. MAIN LINE – TRANSFER LINE....................................................................... 3-1 3.1.1. Project Overview .............................................................................................. 3-1 3.1.1.1. Main Line.......................................................................................................... 3-1 3.1.1.2. Transfer Line .................................................................................................... 3-2 3.1.1.3. KPU and CPU facilities .................................................................................... 3-2 3.1.1.4. Gas Composition.............................................................................................. 3-3 3.1.2. Construction, Installation and Commissioning ................................................ 3-3 3.1.2.1. Construction Activities ...................................................................................... 3-3 3.1.2.2. Commissioning Activities ................................................................................. 3-4 3.1.2.3. Construction Camp .......................................................................................... 3-5 3.1.2.4. Specific Construction Techniques ................................................................... 3-5 3.1.3. Pipelines Process Operations.......................................................................... 3-6 3.1.3.1. Maintenance..................................................................................................... 3-6 3.1.3.2. Control / Inspection .......................................................................................... 3-6 3.1.3.3. Logistics............................................................................................................ 3-6 3.1.4. Decommissioning............................................................................................. 3-6 3.2. BALHAF LNG PLANT ...................................................................................... 3-7 3.2.1. Project Overview .............................................................................................. 3-7 3.2.2. Construction, Installation and Commissioning ................................................ 3-8 3.2.2.1. LNG Process Unit and Utilities......................................................................... 3-8 3.2.2.2. Jetty and MOF Construction ............................................................................ 3-9 3.2.2.3. Construction Camp .......................................................................................... 3-10 3.2.3. Process Operations.......................................................................................... 3-11 Ref N°766-AUR-06-0001 A 43683552-1903 Yemen LNG Project REVISION 1 Environmental and Social Impact Date : 10 February 2006 Assessment Yemen LNG Company ltd Page iii 3.2.3.1. Flare systems ................................................................................................... 3-12 3.2.3.2. Liquid Burners and Tank Vents........................................................................ 3-12 3.2.3.3. Water Intake and Water Systems .................................................................... 3-13 3.2.3.4. Sewer and Wastewater Collection Systems.................................................... 3-14 3.2.3.5. Wastewater Treatment Plant ........................................................................... 3-16 3.2.3.6. Utilities .............................................................................................................. 3-17 3.2.3.7. Logistics............................................................................................................ 3-18 3.2.3.8. Additional Facilities .......................................................................................... 3-18 3.2.4. Decommissioning............................................................................................. 3-19 3.2.5. Summary of Wastes and Emissions................................................................ 3-19 3.2.5.1. Atmospheric Emissions .................................................................................... 3-19 3.2.5.2. Liquid Emissions .............................................................................................. 3-23 3.2.5.3. Wastes.............................................................................................................. 3-24 3.2.5.4. Summary of Emissions and Waste.................................................................. 3-26 3.2.6. Indicative Schedule of the LNG Project........................................................... 3-26 SECTION 4. DESCRIPTION OF THE ENVIRONMENT 4.1. CLIMATE, METEOROLOGY AND AIR QUALITY................................................. 4-1 4.1.1. General Climatological Conditions......................................................................... 4-1 4.1.2. Rainfall.................................................................................................................... 4-5 4.1.3. Temperature........................................................................................................... 4-5 4.1.4. Relative Humidity ................................................................................................... 4-5 4.1.5. Wind Speed and Direction ....................................................................................