ROVIGO Liquefied Natural Gas (LNG) TERMINAL

Transcription

1 ROVIGO Liquefied Natural Gas (LNG) TERMINAL Prepared by: Giorgio Locatelli (University of Lincoln) and Mauro Mancini (Politecnico di Milano) Contacts: Giorgio Locatelli University of Lincoln Lincoln School of Engineering Brayford Pool - Lincoln LN6 7TS United Kingdom Phone; glocatelli@lincoln.ac.uk

2 ROVIGO LNG TERMINAL (Adriatic LNG) 2

3 ROVIGO LNG TERMINAL (Adriatic LNG) GBS Structure 3

4 ROVIGO LNG TERMINAL LNG carrier near the terminal 4

5 ROVIGO LNG TERMINAL 5 1)GBS structure 9) Generators 2) LNG vaporizers ORV 10) Maintenance building 3) Boil-off gas compressors 11) Helicopter platform 4) Boil-off recondenser 12) LNG unloading platform 5) High-pressure pumps 13) Docking facilities 6) Flare 14) Bridges 7) Living quarters 15)Pipeline connection 8) Electric and instrumental system

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15 SECTION 1 - BASIC PROJECT INFORMATION Project Title Location Purpose Liquefied natural gas (LNG) terminal of Rovigo. 15 Km far from the coast of Porto Levante, in the province of Rovigo, in the Adriatic sea. (Adriatic LNG, 2011). Regasify 8 billion m 3 of gas per annum, about at the 10% of the Italian gas consumption. Scope Contractual Framework Relevant Physical Dimensions Realization of the gravity base structure (GBS), all the facilities placed on the top of GBS, the mooring dolphins, the off-shore and the on-shore (Porto Viro Cavarzere Minerbio) pipeline to connect the terminal to the national gas distribution. Two EPC contracts with Aker Kvaerner and Snamprogetti (now Saipem). About 1 billion of Euro The GBS built with cubic meters of concrete and tons of steel, is long 180 m and high 47 m and the most part is under the sea level. The liquefied natural gas is stored in two LNG tanks, with capacity of cubic meters everyone, placed into the GBS structure. A first pipeline of 76 cm diameter and 40 km long covers 15 Km of sea floor and then carries on for 25 Km onshore. From here the gas is carried by another pipeline (90 cm diameter and 84-km long) to a tie in point with the national distribution network near Minerbio (BO). (Adriatic LNG, 2011). 15

16 SECTION 1 - BASIC PROJECT INFORMATION 16

17 SECTION 2 - PROJECT STAKEHOLDERS Internal Supply- Side Stakeholder Category Case-Study Comments (e.g. maturity, previous experiences of stakeholders, skills, influence on project) Client Adriatic LNG Owner and manager of the terminal and the pipeline up to Cavarzere station. The company employs about 125 people. (Adriatic LNG, 2011). Financiers Edison, Qatar Petroleum (QP), ExxonMobil (XOM), Italian State. Sponsors Edison. It obtained all the necessary authorizations for the realization of the terminal. Client s Customers Edison 80%, BP 12,5%, Others 8,5% (percentage of the gas productions). Edison is the holder of the right of allocation and so it has a contract take or pay with RasGas of 25 years of duration for the utilization of the 80% of the gas processed in the terminal. (Quadrino, 2009) and (Delibera n. 91/02). The remaining 20%, available for the other gas companies, has been assigned according to the procedures defined by AEEG Authority. The 8,5% is processed on demand. (Adriatic LNG, 2011). 17

18 SECTION 2 - PROJECT STAKEHOLDERS Internal Supply- Side Stakeholder Category Case-Study Client s Owners ExxonMobil 70,7%, Qatar Petroleum 22%, Edison 7,3%. Comments QP and XOM are involved together in other joint venture of LNG terminal. South Hook LNG terminal in UK, Golden Pass LNG terminal in USA. (Qatar Petroleum, 2010). Other internal supply-side categories ( please specify) RasGas ExxonMobil and QP own also the company RasGas (ExxonMobil, 2010) that supply the 80% of the LNG for the terminal. (Quadrino, 2009). Demand Side Principal Contractor Aker Kvaerner for the LNG terminal and Saipem for the pipeline. Aker Kvaerner is a global oil services company that provides engineering services, technologies, product solutions for the oil and gas industry. It employs about people. (Aker Solutions, 2011). Saipem is an Italian contractor in the field of infrastructure construction and maintenance for the oil industry, with operations on five continents. It employs about people. (Saipem, 2012). 18

19 SECTION 2 - PROJECT STAKEHOLDERS Stakeholder Category Case-Study Comments (e.g. maturity, previous experiences of stakeholders, skills, influence on project) Acciona It built the GBS structure (Serina, 2012). It also undertook all of the ancillary installations for the base camp, including 4500 square meters of offices and other facilities (Acciona, 2008). Internal Demand Side First Tier Contractors Whessoe Dragados It provided, with an EPC contract, the engineering and design for LNG tanks and subcontracted the construction. It was responsible for the testing and commissioning of the tanks after their installation into GBS. (Whessoe, 2010). It constructed the top side facilities, and was responsible to their installation and hook up on the GBS structure. (Serina, 2012). Ing. E. Mantovani It built the Mooring Dolphins at the Arsenale shipyard in Venice (Italia Oggi, 2008) and was involved in the pipeline construction (Penolazzi, 2006). Max Streicher and Saipem pipeline construction. 19

20 SECTION 2 - PROJECT STAKEHOLDERS Stakeholder Category Case-Study Comments (e.g. maturity, previous experiences of stakeholders, skills, influence on project) Hyundai Heavy Industries (HHI) It manufactured and supplied the LNG tanks in six sections. (Hyundai Heavy Industries, 2006). Second Tier Consultants Siemens It built the module of electric and instrumental system. (Serina, 2012). Internal Demand Side Emtunga It supplied the Living quarters module. (Serina, 2012). Professional Services Providers Fagioli It was responsible for the unload, the transport, the lifting and the positioning of the all modules and top side facilities on the GBS structure. (Fagioli, 2011). 20

21 SECTION 2 - PROJECT STAKEHOLDERS Stakeholder Category Case-Study Comments External Public Regulatory Agencies AEEG (Autorità per l Energia Elettrica e il gas) Local Government National Government Regione Veneto, Regione Emilia Romagna, Provincia di Rovigo, Municipalities. Ministero Sviluppo Economico, Ministero dell Ambiente. AEEG has the functions of regulation and control in the sectors of the electricity and gas (determination of tariffs and the technical and economic conditions of access and interconnection to the networks). (AEEG, 2012). Both regions approved and was favourable to the projects. The Ministero dell Ambiente issued the VIA decrees. The Ministero Sviluppo Economico issued the permissions to construction. Private Environmentalists Committees environmentalist Tried to stop the construction of the terminal. 21

22 Stakeholder Relationship Maps Privates and banks Qatar State Transalpina di Energia Owns 50% EDF Gruppo Tassara Floating owns owns Owns 61,3% Owns 19,4% Owns 10% Owns 9,3% RasGas Owns 30% ExxonMobil Owns 70% Qatar Petroleum Owns 70,7% Owns 22% Owns 7,3% Sell 80% Edison owns owns RasLaffan LNG Others Supplies 80% Supplies 20% Adriatic LNG Termi nal + Pipeline (Terminal-Cavarzere) Contract Contract Sell 12,5% Sell 8,5% BP Others Edison Stoccaggio Pipeline (Cavarzere- Minerbio) Contract Construction Construction and installation Aker Kvaerner Terminal Design and construction Construction Saipem Pipeline Construction Construction Foreign investors: Own the plant Supply the gas Sell the gas Acciona GBS Dragados Top side facilities Whessoe LNG tanks Ing. E. Mantovani Mooring Dolphins and Pipeline Max Streicher Pipeline Supplier Supplier Supplier Emtunga Module of living quarters Siemens Module of electric system Hyundai Heavy Indusries LNG tanks 22

23 MEGAPROJECT External Stakeholder Attitude Analysis External Stakeholder External Stakeholder s Attitude to this Project External Stakeholder s Influence on project Impact of Project on External Stakeholder Region of Veneto Region of Emilia- Romagna It was favourable to the realization of the terminal and the pipeline in its territory. (Regione Veneto, 2006). It was favourable to the realization of the pipeline in its territory. (Regione Emilia- Romagna, 2003). In the VIA decree of 1999 for the terminal and in 2003 for the pipeline it obtained that it takes great care of the environment and its restoration during the construction of the terminal and pipeline. (Decreto di VIA, 2003) and (Penolazzi, 2005). In the VIA decree of 2003 for the pipeline it obtained that it takes great care of the environment and its restoration during the construction of the pipeline. (Decreto di VIA, 2003). Province of Rovigo The Province opposed to the terminal and the pipeline trying in any way, in the courtroom, to stop the project. (Chinaglia, 2006). It first appealed to the TAR of Lazio and then turned to the State Council against the acts of authorization. It lost in both the judgements in June 2005 and July (TAR del Lazio, 2005) and (Consiglio di Stato, 2006). In February 2008 there was the signing of the agreement between AdriaticLng, Consvipo and the Province of Rovigo that put an end to the battles. This agreement established a environmental compensation for the territory. (Consvipo, 2008). 23

24 MEGAPROJECT External Stakeholder Attitude Analysis 24 External Stakeholder Environmentalists Municipalities External Stakeholder s Attitude to this Project Since 1998 until the entry into operation of the terminal there was the opposition of the environmentalists and committees of citizens against the terminal. (Stoppa, 2009). the negative effects on the environment risks of accident any benefit on the employment plan and stops the process of tourism development. In 2006 there was the agreement between Edison and the municipalities for the environment compensations. The overall amount was 1,2 million euro. The municipalities committed to facilitate the execution of work, releasing permits not included into urban conformity required by Edison, and to renounce to legal action. All the municipalities expressed their agreement with resolution of their councils. (Comune di Berra, 2006). External Stakeholder s Influence on project The committee Basso-polesano recoursed to the TAR of Lazio and then to the State Council against the acts of authorization. It lost in both the judgements in June 2005 and July (TAR Veneto, 2006). In 2006, some environmental groups including the Committee Basso-polesano appealed to the TAR of Veneto against the acts of authorization and the TAR of Veneto dismissed this appeal on October (TAR Veneto, 2006). Impact of Project on External Stakeholder In 2006 the municipalities crossed for the section of pipeline Cavarzere - Minerbio obtained by Edison the environmental compensation for the constraints burdening in their territories. The municipalities of the on-shore pipeline section of Porto Viro - Cavarzere (the municipality of Porto Viro and Loreo) was compensated, together with Consvipo, by Adriatic LNG after the agreement of (Consvipo, 2008).

25 MEGAPROJECT Project Management Client Project Team Size & Structure Contractor Project Team Size and Structure Sub-Contractor Project Team Involvement Project Tools and Techniques Please if present, x if absent, leave blank if unknown Life-Cycle Costing Approaches Project Management Software Lessons Learnt Transfers Stakeholder Involvement Relationship Management Tools Team Building Tools Building Information Modelling (BIM) Project Knowledge Management Tools Competency framework Other Tools and Techniques or More Information SECTION 3 - PROJECT MANAGEMENT

26 MEGAPROJECT Project Management Risk Management Processes Present (describe below) Not Present No Information HR Management Processes Present (describe below) Not Present No Information Procurement Management Processes Present (describe below) Not Present No Information Integration Management Processes Present (describe below) Not Present No Information Scope Management Processes Present (describe below) Not Present No Information Time Management Processes Present (describe below) Not Present No Information Cost Management Processes Present (describe below) Not Present No Information Quality management Processes Present (describe below) Not Present No Information Communications Management Processes Present (describe below) Not Present No Information SECTION 3 - PROJECT MANAGEMENT

27 MEGAPROJECT Project Performance Aspects of Performance Concerned with Doing the Project Right Performance relating to time Years Coming into operation Nov 2000 End 2004 Nov 2003 End 2007 Apr 2005 End 2008 Apr 2007 End 2009 (respected) Performance relating to cost In November 2000 the managers of the then-company Edison Gas (after Edison LNG and now Adriatic LNG) stated that the investment was about 450 million of euro for the terminal. (Il Gazzettino - Cronache di Rovigo, 2000). In the resolution of the CIPE of 2001 the investments was estimated in 455,98 million of euro. The next year with the second resolution of CIPE the cost increased to 585,519 million of euro. In the last resolution of CIPE in 2003 the cost of the terminal raised to 615,72 million of euro. (CIPE, 2001,2002,2003). In 2004 the EPC contract awarded was of 900 millions of Dollars (ENR.com, 2008) and some months before was awarded the FEED and the detailed design for about 70 million of Dollars (Aker Kvarner, 2004). Size increased from 4 billions to 8 billions! 27

28 MEGAPROJECT Project Performance Aspects of Performance Concerned with Doing the Project Right Stakeholder or Stakeholder Grouping Original Aims of Project Involvement and Changes to these Aims Achievement of these Aims Province of Rovigo and Environmentalist Stop the project. (Chinaglia, 2006). Lost their battle at the civil court (Consiglio di Stato, 2006) the project has been completed. Region Veneto and Emilia-Romagna Aker Kvaerner Edison QP and ExxonMobil They asked that the project was less invasive for the environment and asked for the environmental monitoring plan during and after the construction. (Decreto di VIA, 2003). Realise the first offshore LNG terminal in the world to get the know-how for the next project in this sector. Enter in the new Italian market of the LNG and to have a good price the gas for its customers. Realize LNG terminal in the world to sold the LNG processed in their liquefaction trains and so enter in the regasification business. Ensures a presence in the whole LNG value chain from gas production through liquefaction, shipping and LNG regasification. (RasGas, 2011). Their requests was accepted. (Decreto di VIA, 2003). It realized the terminal. 80% of the gas processed sold to Edison for 25 years. (Quadrino, 2009). The terminal came into operation. The LNG arrive from their liquefaction trains. (Qatar Petroleum, 2010). 28

29 MEGAPROJECT Project Environment Legal and Regulatory Environment Legal and Regulatory Project Environment (regionally, nationally and Europe wide) The environmental compensations to the municipality and local authorities crossed by the two sections of pipeline was possible because of the law of August 23, 2004 article 1 paragraph 5 (Legge, 2004). In the first part of pipeline Porto Viro - Cavarzere owned by Adriatic LNG with agreement signed in 2008 were compensated municipalities, the Park of Delta and Consvipo (Consvipo, 2008). In the second part of pipeline from Cavarzere to Minerbio owned by Edison Stoccaggio with the agreement of 2006 were compensated the remaining municipalities involved (Comune di Berra, 2006). Italian and Regional Laws Ask for the authorization Another law impacting on the project was the Article 27, comma 2 of n. 273 and the subsequent deliberation n. 91/02 and n. 90/03 of AEEG (Autorità per l Energia Elettrica e il Gas) that acknowledged this law. The resolution 91/02 of the AEEG established the condition to the priority access for the new LNG terminal in Italy. This is an important decision that allows to the companies of the sector to have rules to make investment Modify decisions. The the main rules project of this resolution as establish much that is allocated as the priority access to the companies that fund the construction of the new terminals in Italy. To this companies is reserved the 80% of the terminal capacity for 20 years from the start-up of the plant. The tariffs possible is traded with the to owner satisfy of the plant. The as tariffs many must be communicated to the authority (AEEG) that publishes them. (Delibera n. 91/02). stakeholders in possible On was enacted the legislative decree n.164/2000 about the liberalization of the internal market of natural gas in Italy, crucial for the future construction of terminals by private companies. (Legge, 2000). The liberalization of the gas market Obtain began at European the level by authorization Directive 98/30, then updated and replaced by 2003/55 that pursued the objective of creating a single European market free and competitive. In Italy, the opening to the free competition began with the legislative decree 164/2000. The Italian gas market since its inception has been characterized by vertically integrated monopoly of ENI, with the exception of the distribution, where, although the leader was Italgas, a subsidiary of ENI, the market shares have always been very fragmented. When the decree (164/2000) opened the market to competition, he did so by focusing on Upstream chain, going to affect directly the existing monopoly. The monopoly of ENI was then hit by placing a double cap. From , in fact, no company could claim a share of gas supply in Italy (production + imports) over 75% of total consumption (excluding own consumption). This roof was reduced by 2% every year to get to the limit of 61% in 2009 and Furthermore, no company can sell to end users more than 50%. (AmbienteDiritto, 2004) and (Legge, 2000). Specific Legal and Regulatory events impacting on the project The declaration of public utility and urgency for the pipeline Porto Viro - Cavarzere - Minerbio, with legislative decree no.190 of 2002, of the works allows the realization and operation of strategic infrastructure for energy supply and all the activities envisaged in the approved project. It is issued with the agreement State-Regions about the location. Local authorities provide to the necessary safeguards for the areas involved and the related range of respect. The project will then have to obtain the decree of environmental compatibility. So the main thing is that the local authority have not the power to stop the realization of the project. (Legge, 2002). 29

30 Political Environment Political Project Environment Specific Political Events impacting on the project Economic Project Environment In Italy about 92.5% of gas consumption comes from foreign countries. The construction of new LNG terminals is strategic choice and allows Italy to diversify its sources Italy thus would decrease its heavy dependence on Russia. In January 2006 and 2009 there was the crisis between Russia and Ukraine, which also affected Europe and Italy since the gas arriving from Russia passes for 80% through the Ukrainian territory to which Russia pays transit fees. The Comitato interministeriale per la programmazione economica, CIPE, establishes the address to the national economic policy and the general guidelines for the elaboration of the national economic program. The CIPE in 2001 (resolution no. 41 of 2001) with its resolution authorized the stipulation of the program contract between the Ministero del Tesoro, and the then-company Edison Gas regarding the investment for the construction of an off-shore terminal. The incentives were calculated based on the costs of industrial investment and industrial research activities. 30

31 MEGAPROJECT Project Key Events and Activities Timeline Events and activities relating to project stakeholders Dec 1999 VIA decree for the Terminal with regasification capacity of 4 billion m 3 per year after the favorable opinion of the Region of Veneto (Decreto di VIA, 1999). May 2000 Mar 2002 Events and activities relating to project management Events and activities relating to project performance Events and activities relating to project environment The legislative decree n.164/2000 about the liberalization of the internal market of natural gas in Italy, crucial for the future construction of terminals by private companies. (Legge, 2000). The declaration of public utility for the pipeline Porto Viro - Cavarzere Minerbio. (Penolazzi, 2005). Dec 2002 The law n. 273, article 27, comma 2 (Articolo 27 comma 2) and the subsequent deliberation n. 91/02 and n. 90/03 of AEEG (Delibera n. 91/02). Mar 2003 Region Veneto (Decreto di VIA, 2003) and Region Emilia-Romagna (Regione Emilia-Romagna, 2003) expressed favourable opinion for the pipeline. 31

32 MEGAPROJECT Project Key Events and Activities Timeline Events and activities relating to project stakeholders Oct 2003 VIA decree for the Pipeline. (Decreto di VIA, 2003). Nov 2003 Nov 2003 QP and ExxonMobil agree to participate in the development of the Terminal with Edison. (RasGas, 2011). Summer 2004 Jul 2004 Oct 2004 VIA decree for the increase of the terminal regasification capacity from 4 to 8 billion m 3 per year. (Penolazzi, 2005). May 2005 Set up of Adriatic LNG By Edison, QP and ExxonMobil. (RasGas, 2005). Events and activities relating to project management Aker Kvaerner was awarded by a EPC contract for the realization of the terminal. (ENR.com, 2008). In July 2004 was awarded Snamprogetti (now Saipem) for the realization of the two section of pipeline. (Edison Stoccaggio, 2012). Events and activities relating to project performance Events and activities relating to project environment The CIPE issued a third and last resolution. The decree established a contribution to Edison LNG for the work amounted to 66,57 million of euro. (CIPE, 2001,2002,2003). 32

33 MEGAPROJECT Project Key Events and Activities Timeline May 2005 Events and activities relating to project stakeholders Jun 2005 The Province of Rovigo (TAR del Lazio, 2005) and the Environmentalists (TAR Veneto, 2006) lost the cases at the Tar of Lazio. Sep 2005 Jan 2006 Jul 2006 The Province of Rovigo (Consiglio di Stato, 2006) and the environmentalists (TAR Veneto, 2006) lost the cases at the State Council. Aug 2006 The municipalities of the section of pipeline Cavarzere -Minerbio obtained by Edison the environmental compensation. (Comune di Berra, 2006). Events and project management Events and activities relating to project performance Construction start of the terminal at the dry dock of Algeciras in Spain. (Adriatic LNG, 2011). Construction start of the pipeline Terminal Cavarzere. (Penolazzi, 2006). Events and activities relating to project environment Crisis between Russia and Ukraine, which also affected Europe and Italy since the gas arriving from Russia passes for 80% through the Ukrainian territory. The European gas companies reported a drop in pressure in the pipelines of its national network. (Croce, 2011). 33

34 MEGAPROJECT Project Key Events and Activities Timeline Events and activities relating to project stakeholders Events and project manageme nt Events and activities relating to project performance Oct 2006 Construction start of the Pipeline Cavarzere Minerbio. (Edison Stoccaggio, 2012). Feb 2008 The municipalities of the pipeline section Porto Viro - Cavarzere was compensated, together with Consvipo, by Adriatic LNG. (Consvipo, 2008). Mar 2008 Construction end of the terminal at the dry dock of Algeciras in Spain. (Fagioli, 2011). Mar 2008 Construction end of the pipeline Cavarzere Minerbio. (Edison Stoccaggio, 2012). May 2008 Probable construction end of the pipeline Terminal Cavarzere. Sep 2008 The terminal arrived in the Adriatic Sea. Then it was ballasted, connected to the pipeline and there was the installation of the mooring dolphins. (Adriatic LNG, 2011). Jan 2009 Aug 2009 Started the commissioning with the mooring of the first LNG carrier. (Esso, 2010). Oct 2009 Inauguration of the terminal. (Esso, 2010). Events and activities relating to project environment New Crisis between Russia and Ukraine. There was a new stop flow of gas to Europe. (Il Giornale.it, 2009). 34

35 MEGAPROJECT Project Key Events Feasibility study: 1998 Project final approval: 2003 Start of GBS construction: 2005 Module installation engineering: from beginning 2005 LNG Tanks arrival on site: December 2006 LNG Tanks installation: January May 2007 Modules installation: July2007 May 2008 Basin flooding: 20 th May 2008 GBS sailaway: 30 th August 2008 Sailing duration: 15days GBS in final position on Adriatic sea bed:18 th September