ROVIGO Liquefied Natural Gas (LNG) - Megaproject

1 ROVIGO Liquefied Natural Gas (LNG) TERMINAL Megaproject : The Effective Design and Delivery of megaprojects in the European Union 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;+441522837946 Megaproject : The Effective Design and Delivery of megaprojects in the European Union ROVIGO LNG TERMINAL (Adriatic LNG) 2 Megaproject : The Effective Design and Delivery of megaprojects in the European Union ROVIGO LNG TERMINAL (Adriatic LNG) 3 GBS Structure Megaproject : The Effective Design and Delivery of megaprojects in the European Union ROVIGO LNG TERMINAL 4 LNG carrier near the terminal Megaproject .

2 The Effective Design and Delivery of megaprojects in the European Union 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 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 6 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 7 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 8 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 9 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 10 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 11 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 12 Megaproject : The Effective Design and Delivery of megaprojects in the European Union More than 13 Megaproject .

3 The Effective Design and Delivery of megaprojects in the European Union More than 14 Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 1 - BASIC PROJECT INFORMATION 15 Project Title Liquefied Natural gas (LNG) terminal of ROVIGO . Location 15 Km far from the coast of Porto Levante, in the province of ROVIGO , in the Adriatic sea. (Adriatic LNG, 2011). Purpose Regasify 8 billion m3 of gas per annum, about at the 10% of the Italian gas consumption. Scope 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.

4 Contractual Framework Two EPC contracts with Aker Kvaerner and Snamprogetti (now Saipem). About 1 billion of Euro Relevant Physical Dimensions 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).

5 Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 1 - BASIC PROJECT INFORMATION 16 Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 2 - PROJECT STAKEHOLDERS 17 Stakeholder Category Case-Study Comments ( maturity, previous experiences of stakeholders, skills, influence on project) Internal Supply-Side 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.

6 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). Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 2 - PROJECT STAKEHOLDERS 18 Stakeholder Category Case-Study Comments Internal Supply-Side Client s Owners ExxonMobil 70,7%, Qatar Petroleum 22%, Edison 7,3%.

7 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 18500 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.

8 It employs about 30000 people. (Saipem, 2012). Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 2 - PROJECT STAKEHOLDERS 19 Stakeholder Category Case-Study Comments ( maturity, previous experiences of stakeholders, skills, influence on project) Internal Demand Side First Tier Contractors 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). Whessoe 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.

9 (Whessoe, 2010). Dragados 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. Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 2 - PROJECT STAKEHOLDERS 20 Stakeholder Category Case-Study Comments ( maturity, previous experiences of stakeholders, skills, influence on project) Internal Demand Side Second Tier Consultants Hyundai Heavy Industries (HHI) It manufactured and supplied the LNG tanks in six sections.

10 (Hyundai Heavy Industries, 2006). Siemens It built the module of electric and instrumental system. (Serina, 2012). 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). Megaproject : The Effective Design and Delivery of megaprojects in the European Union SECTION 2 - PROJECT STAKEHOLDERS 21 Stakeholder Category Case-Study Comments External Public Regulatory Agencies AEEG (Autorit per l Energia Elettrica e il gas) 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).