Peru LNG

completed

The project involves the construction and operation of a LNG Plant and export facility on the Peruvian coast, which includes a marine terminal, breakwater, and temporary rock quarry. Also, a new 34 inch diameter transportation pipeline will be constructed to bring feed natural gas to the LNG Plant. The pipeline will be approximately 408 kilometers (km) in length, stretching from the Chiquintirca community in the Ayacucho Region of the Andes mountains to the LNG Plant at Pampa Melchorita on the coast. A more detailed description of the Project’s components is provided as follows.The LNG Plant is located at Pampa Melchorita on the Pacific coast near San Vicente de Cañete, 169 km south of Lima. Liquefied natural gas (LNG) is produced when natural gas is cooled to minus 163 Celsius (°C) at atmospheric pressure. LNG occupies approximately 1/600 of the equivalent volume of natural gas, which facilitates the storage and transport of bulk LNG using specialized ships.The life span of the plant will be a minimum of 30 years and may be significantly extended depending on the operation and maintenance conditions. The plant site has space allocated for a potential expansion by adding a second train.The liquefaction train uses the propane pre-cooled multi-component refrigerant liquefaction technology which is a widely adopted technology.The plant with a nominal capacity of 4.4 million metric tonnes per year (MMTY) will be comprised of the following process areas:Feed gas receiving, liquid separation, gas metering and pressure reduction - The Feed gas Receiving Unit (FRU) will be designed to separate and store any liquids that might remain in the natural gas supply pipeline after initial hydrostatic testing operations. An Inlet Knock Out (KO) Drum will remove any free liquids that collect in the pipeline.Removal of carbon dioxide and water from the feed gas -The Acid Gas Removal Unit will remove carbon dioxide from the natural gas as it arrives from the FRU. Carbon dioxide is removed because it would freeze in the cryogenic process of converting gaseous methane to liquid methane, blocking the process flow. The technology for removing acid gas from natural gas uses activated Methyl Diethanolamine (aMDEA), a tertiary amine.Gas dehydration and carbon adsorption units - The Dehydration Unit removes water from the natural gas. The unit uses a three-bed molecular sieve configuration – two beds operating in the adsorption mode while the third bed is undergoing regeneration. Each molecular sieve bed is regenerated every 24 hours. The Dehydration Unit dries the natural gas until it contains less than one part per million (by volume) of water to prevent gas hydrates from freezing and plugging in the cryogenic liquefaction unit. An Activated Carbon Adsorber will be provided as a safety measure to ensure the removal of any heavy metals present in the feed gas. Heavy metal could cause corrosion problems in the aluminum components of the liquefaction process equipment.Facilities for refrigeration and liquefaction - The refrigerant process employed uses two types of refrigeration cycles to pre-cool and liquefy the feed gas. The feed gas is first pre-cooled using propane refrigerant at four different descending pressure and temperature levels. After pre-cooling, the feed gas enters the main cryogenic heat exchanger (MCHE). In the MCHE, the feed gas is further cooled and totally condensed by the mixed refrigerant (MR). The pressure of the LNG leaving the MCHE is reduced by a control valve and is then sent to the LNG storage tanks. LNG enters the storage tanks at 1.08 bar pressure and minus 163.1° C.LNG and refrigerant storage - Each of the two single containment LNG storage tanks has a capacity of 130,000 cubic meters (m³). The tanks will have a common secondary containment area, as required by National Fire Protection Association (NFPA) standard 59A, which Peruvian regulations follow.Propane and ethylene for refrigerant make-up will each be stored in horizontal, bullet-type storage tanks. Two pressurized propane bullets will have a combined storage capacity of 602 m³. Two pressurized and vacuum-jacket-insulated ethylene bullets will have a combined storage capacity of 230 m³.Utilities and infrastructure - The plant will be self sufficient for its water and electricity requirements. Natural gas powered turbine generators will provide electric power and a desalination plant will provide process and potable water. During the first year of construction (Phase 1), while the desalination plant is being built, water from the lower reaches of the Cañete River or other sources will be used to control dust that could be generated during ground preparation. Additionally, fire fighting, flare, and venting systems will provide the necessary safety protection in case of a plant upset or emergency during start-up and operation.Trestle - A trestle will be constructed, extending perpendicularly from the shore to the LNG loading platform. The trestle is approximately 1.35 km long and will consist of a steel superstructure supported by steel piles and a concrete abutment. As an aid for the construction of the breakwater, a rock load-out jetty will be built approximately midway along the trestle for use of loading barges with rock material. The dock face of the rock loadout jetty is 127 meters long. The rock load-out jetty will remain in place following construction and will be used for as a berthing area for the tugboats.Breakwater - Because the Peruvian coastline is exposed to long period Pacific swells during parts of the year, a breakwater will provide for safe berthing of LNG vessels and will allow the marine facilities to remain accessible year-round for a continuous supply of LNG. As designed, the breakwater will be situated in a depth of approximately 14 meters of water and aligned parallel to the coastline and the sea bottom contours. The length of the breakwater that is visible above water is 800m. Also, a crest elevation of 11 meters above mean low water spring tide will provide protection at the LNG berth from the 100 year design wave with no structural damage to the breakwater while minimizing overtopping.Navigational Access Channel for LNG Tankers - A navigational channel will be dredged to provide access in and out of the berth area for the LNG tankers. The entrance channel and egress channel and where the LNG carriers make turns outside the protection of the breakwater will be dredged to -18 meters. The LNG berth area which is approximately 250 meter wide and 500 meter long is dredged to -15 meters. LNG Tanker Berth and LNG Loading Arms - The LNG berth structures will consist of a 30 meter by 20 meter loading platform, four breasting dolphins, and six mooring dolphins. The dolphin structures will consist of open grid decks on beams supported by piles driven through jackets. LNG loading will be accomplished by using four 16 inch specialty pipe-and-swivel LNG loading arms. Three arms will normally be used for LNG loading and one will be used to return vapor to the plant''s Boil-Off Gas (BOG) Compressors. A gangway is provided for access to and from the LNG ships.Utility Dock - A small utility dock will be provided on the north side of the trestle approximately 90 meters from the loading platform. The utility dock will contain a local control room for the loading dock, be used to berth tugs temporarily, to support seawater intake equipment, and to provide a working area for a mobile crane to support routine maintenance and tug supply operations. The Rock Load-out Facilities will also have the facilities and equipment required for spill containment. The quarry – As stated above, in order to operate the marine facilities safely, it is necessary to build a breakwater for protection of LNG tankers. The quarry site to supply rock for the breakwater was identified through an alternative analysis process and it is nearby the LNG Plant. The selected site is called GNL-2 and will consist of a quarry and its 25 km long access road. The volume of rock required is estimated as 3.4 million metric tons for which a total of 7.6 million metric tonnes (including overburden and waste rock) will need to be quarried. The access road is located on land that belongs to the Ministry of Agriculture which has issued the access road permit. No villages are close to the quarry, the nearest being 7 km away. The area of influence is a desert and semi-desert zone with scarce xerophytic vegetation. The overall Project construction is estimated to last 2 years (4 months for development of the quarry and its facilities, 18 months for quarrying, and approximately 2 months for the decommissioning phase).The new pipeline - The transportation of natural gas for the liquefaction plant will be through the existing Camisea-Lima Pipeline Transportation System (PTS) up to kilometer post (kp) 211 at Huayahura. From this point, a 408 km long 34 inch diameter pipeline will be constructed and operated by PERU LNG to provide the required natural gas to the plant. The pipeline will be designed to transport 677 million standard cubic feet per day (MMSCFD) of natural gas at a pressure of 147 barg (2,160 psig). The natural gas pipeline will be buried for its 408 km length and will include surface installations such as mainline valves, scraper traps, and a pressure reduction station. The burial depth is variable between 1 to 2 meters depending on the sensitivity of the location and the RoW will be 25 meters wide during construction and will be reduced to 20 meters for the operations phase. The route crosses 13 districts in 5 provinces that belong to 2 departments (Ica and Lima). The population of settlements near the RoW is approximately 22,400 inhabitants.Approximately 300 of the 402 km of the horizontal path of the PERU LNG pipeline will traverse the Andes mountains at altitudes ranging from 1,500 to more than 5,000 meters above mean sea level. The regional climate along the new pipeline path is extremely variable including hot, temperate, cold, and very cold climates; as well as conditions that are arid, semiarid, sub-humid, humid, and very humid. The coastal region is very homogenous, covering the area between 1,500 meters above mean sea level and the littoral zone, all of which is a desert landscape. The pipeline will receive high-pressure natural gas from the Malvinas Gas Separation Plant during operation. The pressure differentials between the Malvinas Gas Separation Plant and the LNG plant will allow the natural gas to reach the delivery point. Upstream Facilities: The Project receives its natural gas supplies from the separate Camisea natural gas liquids (NGL) and natural gas Project (“the Camisea Project”) which has been in operation since 2004. The Camisea Project consists of Blocks 88 and 56, a separation facility at Malvinas (the Malvinas Gas Separation Plant) in the Amazon rainforest, as well as NGL and natural gas pipelines from the blocks to the Camisea fractionation plant on the coast at Pisco and to Lima. A more detailed description of the upstream facilities and its environmental and social assessment is available at the end of this report.Project’s Current StatusAt the LNG Plant site all earth movements, clearing, grading, and leveling activities have been completed and concrete foundations for the LNG tanks is in progress. The camp facilities, offices, and main warehouse are finished. The marine facilities construction activities for the abutment are complete including the placement of the riprap on the abutment tsunami run up slope. Quarry access road clearing is complete and the road surface grading is in progress. In respect of the pipeline, the engineering is almost finished and the start-up of the pipeline’s construction is planned for January 2008.