esia executive summary - kipic.com.kwkipic.com.kw/summ_lngi_r01_25032018.pdf · contract...

ESIA – EXECUTIVE SUMMARY

For

Al-Zour LNG Import (LNGI) Facility ENGINEERING, PROCUREMENT, CONSTRUCTION, PRE-COMMISSIONING, COMMISSIONING,

START-UP AND PERFORMANCE TESTING OF AI-ZOUR LNG IMPORT PROJECT (LNGI), KUWAIT

Contract No. ZOR/LNG/EPC-0058

BV ref. no. : 50.17.042

Revision no. : 01

Date : 25/03/2018

ENGINEERING, PROCUREMENT, CONSTRUCTION, PRE-COMMISSIONING,

COMMISSIONING, START-UP AND PERFORMANCE TESTING OF AI-ZOUR

LNG IMPORT PROJECT (LNGI), KUWAIT

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ENVIRONMENTAL & SOCIAL IMPACT ASSESSMENT

(ESIA) STUDY REPORT

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EXECUTIVE SUMMARY

Introduction

Kuwait Integrated Petroleum Industries Company (KIPIC) is in the process of constructing and

operating a Liquefied Natural Gas (LNG) Import facility (LNGI) at Al-Zour offshore area in the

State of Kuwait to meet Kuwait's growing local energy demand in-line with the Kuwait

Petroleum Corporation’s (KPC) 2030 strategic plan. The project is a Lump Sum Turn Key (LSTK)

contract (ZOR/LNG/EPC-0058) with a total contract value of US $ 2,931,944,000/-.

KIPIC is a subsidiary of KPC set up by the State of Kuwait to manage refinery, petrochemicals

and LNG import operations in the Al-Zour area. KIPIC's mission is to manufacture refined

petroleum and petrochemicals products and supply LNG in a reliable, efficient, safe and

environmentally responsible manner to meet Kuwait's energy demand, maximize profit

through integration, develop a professional and competent workforce and enable the

development of the local economy.

Project Management Consultancies include Amec Foster Wheeler, Proes Consultores S.A.,

Felguera IHI, S.A. & Reganosa Servicios, S.L.. The Engineering, Procurement, Construction &

Commissioning (EPCC) contract for this project was signed and awarded to a consortium of

three companies operating as a Joint Venture (JV) named HDKC consortium, led by Hyundai

Engineering Company Ltd. (HEC) and including the said leader company, Hyundai

Engineering & Construction Company Ltd. (HDEC) and Korea Gas Corporation (KOGAS).

Current project status

The project works were commenced in May 2016 and are expected to be complete in

February 2021 upon receipt of the provisional acceptance certificate. The actual

construction has been commenced in August 2016. The project has been progressing

steadily as planned and as of February 2018, the project is ahead of schedule with a

progress of 30.31% against a planned progress of 29.35%. The total dredging volume is 13.4

million cubic meters and the reclamation volume is 8.9 million cubic meters. The dredging

works will be completed by March 2018. The Project is likely to be completed by December

2020 with a commissioning period of seven months from July 2020 to February 2021.

Host country regulations

The Kuwait Environment Public Authority (KEPA) is the lead government agency in the State

of Kuwait with a mandate of environmental management and protection. Article-16 of law

no. 42/2014 amended by 99/2015 states that “All entities subject to the provisions of this law

are prohibited to commence the implementation of any project, or conducting any

alterations or expansions to the existing activities, or obtaining any licenses of the same, but

after carrying out environmental impact assessment studies pursuant to the rules, regulations

and procedures set by the Executive Bylaw of this law”.

The project has already secured approvals from KEPA for the project and its associated

facilities as shown below.

S. No. Project activity Approval letter reference

1. LNGI facility

Phase-1 – 4 Tanks – 1,500 BBTU/day

Phase-2 – +4 Tanks – Total 3,000

BBTU/day

EPA/4213 dated 03-Dec-2014

EPA/1832 dated 11-May-2015

Associated facilities

2. Offsite pipeline works EPA/2896 dated 05-Jun-2017




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S. No. Project activity Approval letter reference

3. Labour accommodation camp KEPA Approval Letter (Sept, 2016)

4. Laydown area EPA/569 dated 17-Jan-2018

5. Potential Borrow Areas EPA/3991 dated 19-Oct-2014

Purpose of this ESIA study

The project will seek funds from local and international financing institutions. As per the

requirements of the Korean Export Credit Agency (ECA) – KEXIM & K-SURE, an Environmental

& Social Impact Assessment (ESIA) study will be required in-line with International Finance

Corporation’s (IFC) Performance Standards (PSs) and Environment Health & Safety (EHS)

Guidelines. This ESIA study is an upgrade to the EIA study conducted and submitted to KEPA

in December 2014, filling the various gaps identified between the Kuwait local regulations

and the lender’s requirements. KIPIC has approached Bureau Veritas (BV) to assist in

complementing the existing EIA study conducted in 2014 as per IFC requirements.

To support the document, the ESIA team has collected a wide range of environmental and

socio-economic baseline information in the project’s area of influence and recorded it in this

report. The bio-physical environmental data was collected from previous monitoring works

and the current ongoing onshore and offshore monitoring activities. Emphasis was also

placed on the socio-economic baseline data, which was gathered through secondary data

and literature review.

The ESIA includes a public consultation process. KIPIC will communicate with all stakeholders,

including government officials, concerned communities and other groups, listen to their

concerns, and address their needs to ensure that the project addresses those and establishes

an on-going relationship with all relevant stakeholders. Thus, the consultation process will

continue throughout the construction, and operations phases of the project.

Scope of the ESIA study

The scope of the ESIA covers the construction, commissioning and operation phases

(including abnormal/emergency) of the LNGI facility. The study covers the project site within

the boundary of all the activities, including the LNG unloading system, jetty and berth,

storage tanks, vaporizers, handling systems, terminal operation and other infrastructure

facilities, including the labour camp, laydown/workshop area and offsite pipeline works.

The study addresses both onshore and offshore activities of the project site, including the

dredging and construction of marine facilities, reclamation area, vessels movements, etc. It

covers the cumulative impacts arising from the existing/proposed projects within the vicinity

of the LNGI facility being constructed. The future expansion of the terminal facilities is not

considered under this study for which a separate ESIA study needs to be carried out.

This ESIA study report is organized in Eleven (11) chapters and an executive summary.

The Project

The project includes the construction of a regasification system, eight LNG storage tanks with

a capacity of 225,500 m³ each, two marine jetties, and berthing facilities for loading. The

project will also include other components such as 14 HP pumps, Boil-Off Gas (BOG) and a

flare package. Once fully operational, the facility is expected to handle 65,000 Tonnes Per

Day (TPD) of natural gas and will have a storage capacity of 1.8 million m³ of LNG. The plant

has been designed considering an expected minimum operating life of 25 years. The design

life related to the marine terminal, the land reclamation and the seawater intake / outfall will

be 50 years minimum. The LNGI facility will receive, store and vaporize LNG coming from




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cargo ships to send it as Natural Gas (NG) to the existing gas network at the required process

conditions.

The facility is being built on a reclaimed land in Al-Zour area, in the southern part of the State

of Kuwait at approximately 78.0 km from the Kuwait international airport in a southeast

direction in a crow fly. The project area is an upcoming mega petrochemical cluster with the

simultaneous development of the Al-Zour refinery (ZOR) and the petrochemical facility

(PRIZe) by KIPIC. The Al-Zour refinery facility processes 615,000 BPD of Kuwait crudes to

produce high value products and fuel oil. This refinery is in the engineering, procurement and

construction phase, with target date of completion by June 2019. The petrochemical facility

is where base petrochemical products are manufactured, with an annual capacity of 2,761

ktpa of aromatics and polypropylene. The facility is in the front-end engineering design

phase with an expected completion date by January 2019. The engineering, procurement

and construction phase is planned to be completed in July 2023, with an operations start

date in February 2024.

The location map of the project is provided as Figure-1.

Figure 1 Project location map

The EPCC Contractor has set-up the project contractor site office (within the reclaimed

land), the labor accommodation camp, and the laydown / work shop area for the

construction works at different site locations, based on land availability and access to the

site.

During the peak construction period, the work force involved in this project will be around

9,000 people. This peak is predicted to happen during the month of March 2019. During the

operation phase, it has been estimated around 136 persons will be deployed. As of February

Description Latitude Longitude

LNGI terminal 28°43'8.34"N 48°23'38.19"E

Contractor site office 28°43'11.91"N 48°23'21.26"E

Labor camp 28°47'6.61"N 48°14'15.93"E

Laydown / workshop area 28°47'9.60"N 48°14'33.91"E

Natural Gas (NG) pigging station 28°42'59.38"N 48°21'47.85"E

Tie-in location 28°44'35.91"N 48°19'10.19"E

Al-Zour Refinery

project (ZOR)

Al-Zour Power

station (North)

Petrochemical

facility (PRIZe)




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2018, the manpower mobilized at the project site is 4,872 persons. The EPCC Contractor is

dependent on an expat workforce; almost 99.27 % of the workers are from abroad and only

0.73 % (18 persons) are Kuwaiti nationals. The total number of women employees recruited

for the project amounts to 20 persons, which accounts for 0.81% of the total EPCC staff.

Women employees are appointed in various designations, including secretary, document

controller, accounting and engineers (process, electrical, procurement, instrumentation,

etc.).

Key actions during construction include: site preparation, excavations and fillings, installation

of temporary offices and labor camp, mobilization of materials, equipment and machinery

to the site, dredging and reclamation works activities, construction of the LNG terminal

facility, jetties, marine intake and outfall, testing and commissioning, removal of residues and

debris, and clean up.

Construction equipment and machines are deployed at the construction site by the

Contractors. The equipment used for the construction activities includes compactor, tractor,

concrete mixer, crane, backhoe loader, roller, half lorry, graders, pavers, vibrators, etc. The

fresh water requirement is being met through water tankers as and when required. Fresh

water is being used for domestic purposes for construction employees and for construction

activities. Potable water for the construction labors is supplied through company approved

vendors and is provided at the construction site using water filter/coolers. Drinking water

supply for the labor camp is being provided in bottled containers. Power requirements for

welding / construction activities are being arranged by the Contractors through portable

power generators as and when required. The existing roads (#40 & #270) that give access to

the construction site are being utilized for the transport of construction equipment and

laborers. No new access roads are required for the project activities. Construction wastes

including debris, waste oil, discarded electrical components, domestic wastes, etc. are

being collected, segregated, contained and disposed-off from the site periodically by the

EPCC contractor through approved waste collection / disposal facilities. Colour coded

waste collection bins and dumpsters are placed at appropriate work locations.

Once finished the construction, and prior to beginning operation, the EPCC contractor will

conduct the performance tests to ascertain the proper operation of the LNG transfer

operations.

The following are key activities during operation: transit of vessels and berthing and

departure operations, LNG regasification and supply of gas to the KOC, terminal

maintenance works, and navigation channel maintenance dredging.

The project’s area of direct influence corresponds to the physical space that will be

occupied during the construction and operation of the project, also called the footprint of

the project. The area of indirect influence corresponds to the area on which indirect impacts

of the actions generated by the project may occur.

The socio-economic area of influence of the project was determined mainly on the basis of

socio-economic criteria and the location of populated places closest to the project area,

which include Sabah Al-Ahmed Sea city (3.5 km, South), Al-Khiran chalets (3.6 km, South),

Bnaider beach chalets (5.6 km, NW), and Khiran resort (6.8 km, South). The residential area of

the Chevron complex, which is approximately 2.1 km, North from the LNGI facility, is currently

not occupied by residents since the facility is not operational.




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Role of environmental consultants in this project

Bureau Veritas

BV has been appointed to revise the EIA study report conducted for the Al-Zour LNGI facility

as per IFC guidelines and Equator Principles so as to meet the Environmental & Social (E&S)

requirement of prospective lenders and potential export credit agencies such as KEXIM & K-

SURE.

Environment World Company

Environment World Company (EWC) is the environmental consultant retained by HDEC to

implement the EMP. They have been conducting periodical offshore environmental

monitoring works, including the preparation of reports, every quarter since October 2016.

They have prepared the Contractor Environmental Management Plan (CEMP) for the

facilities in the Al–Zour project area for the LNGI offshore works to facilitate environmental

permits from KEPA.

BP Consultancy Company

BP Consultancy Co. (BPC) has been retained by HEC to provide environmental consultancy

services for the onshore and offsite works of the LNGI facility and to facilitate environmental

permits from KEPA. BPC has been involved in onshore environmental monitoring works since

July 2017 and is providing monthly/quarterly environmental monitoring reports to the

Contractor and KEPA for their follow-up and approval.

Project categorization

Considering the project scope and extent of the impact on the environment, the project is

being appraised under Category ‘A’ – Projects with potential significant adverse

environmental and social risks and/or impacts that are diverse, irreversible or

unprecedented.

Applicability of IFC Performance Standards (PS)

The project is being constructed offshore on reclaimed land stretching for a length of

approximately 1.8 km (Until the plant’s end), from the shore point. The onshore footprint is

therefore minimal and does not result in any physical or economic displacement of

communities, or has adverse impacts on indigenous people. Thus, PS-5 and PS-7 are not

considered in this study. Applicable PS to this project include PS1 to 4, PS-6 and PS-8.

Need for the Project

At present, the energy demand for the State of Kuwait has been fulfilled by hydrocarbons

reserves (crude oil and its derivatives). Though the existing oil resources/developments would

satisfy the present demand, as a long-term strategy, it is found necessary to adopt a cleaner

fuel option in order to minimize the GHG emissions thereby minimizing the environmental

impacts. Among all available energy fuels, LNG has a low carbon dioxide footprint and is a

more environmental friendly fuel. It is a long-term reliable low cost source to fuel the power

plants and other commercial and industrial end users. Moreover, there are undoubted

positive impacts of an expanding gas sector on employment, competitiveness and

sustainable development in the State of Kuwait. Hence, it is imperative to satisfy the future

regional and national energy demands with cleaner fuel option for which it is required to

develop and implement the permanent LNG import facilities.




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Alternative analysis

Various alternative analyses were conducted for the project including:

No project alternative;

LNGI facility location;

Layout alternatives;

Selection of tanks; and

Regasification technologies.

The analyses resulted in the preference for the construction of the LNGI facility on an offshore

reclaimed area considering the area constraints expected from the development of the ZOR

refinery project.

Environmental, economic and strategic variables were assessed during the initial FEED1

stages of the project. The analysis resulted in the alternative of carrying out the project

having more advantages than not carrying it. The economic advantage associated with the

construction of the project, including the creation of jobs, is one of the main positive impacts

of the project.

Baseline environmental data

Kuwait has a hyper arid desert climate, hot and dry. Typical average rainfall is 116 millimeters

a year across the country. Minimum annual levels have been recorded as low as 31.3

millimeters while maximum annual rainfall has reached 242.4 millimeters. In summer months,

average daily high temperatures range from 42°C to 46°C, with the highest-ever recorded

temperature of 54.0°C at Mitribah meteorological station in the North West on 21-Jul-2016

[Jason Samenow (22 July 2016) – The Washington Post].

The area of influence considered for this project include:

Physical footprint of the LNGI facility construction area, vessel navigation channel and

the offsite pipeline works;

Physical footprint of permanent and temporary onshore areas being used during

construction;

Onshore and offshore areas that may be impacted by solid wastes, effluents, emissions

to air, noise generation and visual concern;

Areas that have potential socio-economic benefits considering the creation of direct

job opportunities and indirect jobs opportunities from customers as a result of the

provision of services for the project;

Adjacent areas that are within the viewshed of the LNGI facility where various

industries are being operated; and

Areas that could potentially be impacted by accidental events.

Land use

The LNGI facility is being constructed on a reclaimed land in Al-Zour. As classified by the

Environmental Monitoring Information System of Kuwait (eMISK) 2010, KEPA, the land use of

the Al-Zour land at the front area of the LNGI facility is classified as ‘Industrial area’. The lands

where the workshop and the labor camp areas lay are classified under ‘Open desert area’.

Thus, no land taking issues were envisaged.

1 FEED – Front-End Engineering Design




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Terrestrial ecosystem

The project site and surroundings have not been included under any of the protected areas,

biosphere reserves or national parks of Kuwait. Proposed natural reserves near the Project site

include the Al-Khiran & Al-Nuwaiseeb natural reserve, approximately 3.5 km West from the

Project site. The nearest Important Bird Areas (IBAs) are more than 100 km away from the

project, but birds can be spotted at Port Zour, Sabah Al-Ahmed sea city and Jabel Al-

Benayah / Khiran town, which are near the project area.

Notable bird species that have been recorded at Port Zour (~ 2.4 km, North from project site)

include: Yellow-throated Sparrow (Least Concern2, LC), Indian Silverbill (LC), Rosy Starling

(LC), Hypocolius (LC), Eurasian Scops Owl (LC), European and Egyptian Nightjar (LC), Corn

Crake (LC), Common Quail (LC) and Western Osprey (LC). At low-tide, Socotra Cormorants

can be seen roosting on the exposed sandbanks in summer, whilst Greater Cormorants are

present in winter. Most of the Tern species of the northern Gulf can usually be seen here:

Bridled, White-cheeked, Little, Lesser Crested, Caspian and Swift. These terns can be seen

flying offshore or roosting on the sandbanks in late spring, prior to breeding commencing in

summer on the nearby islands.

The vegetation naturally existing in Kuwait, including that of the surroundings of the project

area of influence is characterized by a thin sprinkling of small shrubs, grass tussocks and

occasionally large shrubby growth such as tamarisk. Variety is limited, with a small number of

plants dominating the land. The onshore project site that is not disturbed is occupied by

halophytes. Halophytes are widespread in low lying salt affected coastal area. Major

halophyte identified in the project area include Nitraria resuta, Zygophyllum qatarense and

Halocnemum strobilaceum (Omar, Samira & F Misak, Raafat & Shahid, Shabbir. (2002).

Sabkhat and halophytes in Kuwait). The labour camp and the laydown area are

characterized by very sparse vegetation, with Cyperus conglomeratus as the dominant

species.

Based on the baseline review of the project site and the surroundings, the existing habitat is

considered as a modified habitat. The onshore habitat has been altered by the operation of

the Chevron facility to the North of the project site. Previously, it was operated as Saudi

Texaco, which merged with Chevron in 2001. As of today, the production activities have

been stopped. The facility has a residential complex outside the fenced area, which is now

being demolished. To the South of the project site, the onshore area has been cleared,

leveled, compacted and completely modified for the Shamal Al-Zour power plant, which

includes its expansion activities. Marine outfall discharges from the power plant are likely to

have modified the sea water quality around the near shore area. Developments in the

Sabah Al-Ahmed sea city and the Khiran plots are a complete modification of the area’s

primary ecological functions. Thus, the terrestrial and marine habitats in the project area of

influence are considered to be ‘modified’ habitats and, therefore, implementing a

biodiversity offset program will not be required for this project.

The chief ecosystem services noted in Kuwait include crop agriculture, rangelands

(traditional nomadic practices) and fisheries. However, no ecosystem services are identified

in the project site and its area of influence. It is to be noted that the beach areas

immediately North and South of the project site do not entertain any commercial fishing

activities except for recreational fishing by visitors of Khiran area.

2 A taxon is Least Concern (LC) when it has been evaluated against the criteria and does not qualify for Critically

Endangered, Endangered, Vulnerable or Near Threatened. Widespread and abundant taxa are included in this

category – IUCN (2012) Red List Categories and Criteria: Version 3.1. Second edition.




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Marine ecology

Benthic fauna: Field diving surveys took place during March-2017 at five (5) dive survey

locations in the LNGI site area. The assessment of macro epi-benthic fauna and macro

habitats was carried out using underwater photography of quadrate frame (2 m x 2 m) and

video recording survey along several transects by SCUBA divers. A total of 94 individuals,

were counted and identified using underwater quadrate survey method from five diving

locations representing 7 major phyla. On the other hand, a total of 542 individuals, were

counted and identified using underwater transect survey method from the same diving

locations representing 8 major phyla. In general, Mollusca and Polychaeta were the most

abundant marine phyla, followed by Chordata, Echinoderms, Cindaria, Porifera and

Arthropoda. The health of the marine ecosystem is considered normal for the study area,

With regard to the presence of coral reefs in the area, a marine ecological baseline survey

conducted by EWC in 2014, at the Potential Borrow Areas (PBA-1, PBA-2, PBA-3 and OBA)

locations concluded that the borrow areas contain limited seabed natural features and no

corals or any other ecologically sensitive habitats. The estimated total coverage of macro

habitat was very low (≤ 15%). The health of the marine ecosystem was considered to be poor

in PBA1, PBA3 and OBA areas, because the seabed is mostly covered by fine sand, silt,

sediment and rubble, which do not favor the adhesion or settlement of any marine habitat

(e.g. Algae, Sponge, or Coral reefs) on the seabed.

Secondary data also identified that there are no coral reef structures at the project site or

near the project’s marine outfall location. Only a patch reef (See Figure-2) was identified

approximately 3 km North of the project site. As per the records of Kuwait Dive Team (KDT),

the existing reef is 97% damaged due to the higher natural temperature fluctuations in the

Kuwait Bay.

Figure 2 Coral reef map

Marine outfall

location

Dredging limits

Coral patch reef




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Impacts from the LNGI facility during operation will be negligible considering the location of

the outfall and the temperature difference in the outfall being 0.57oC, which meets the

requirement of the IFC and KEPA. The chemical characteristics of the effluent at the outfall

will also meet the KEPA/IFC standards for discharge to sea. Thus, the impacts of the project

on the coral reef will be insignificant.

Pelagic fauna (vertebrates): The fish community Actinopterygii, represented by 9 taxa, with a

total of 55 fishes, were identified and counted in-situ during the field diving surveys of March-

2017. Threatened fish species near the project site include Manta Rays (Vulnerable3, VU),

identified at Port Zour and Khiran area (See Figure-3). Among reptiles, threatened Sea Snakes

(VU) and Hawksbill Turtles (Endangered4, EN) have been identified as well. A small vulnerable

population of sea turtles nests on Zour beach. However, marine turtles are not recorded by

the monitoring system of KISR/KU (2004). Marine mammals identified near the project area

(Port Zour and Khiran areas) include Indo-pacific Humpback Dolphin (VU), Bottle-nosed

Dolphin (LC), Black finless Porpoise (VU). It should be pointed out that Port Zour and Khiran

areas do not fall under the direct area of influence of the project with respect to the marine

outfall location. The temperature difference in the outfall being 0.57oC, meets the

requirement of the IFC and KEPA. Moreover, appropriate care has been taken during the

dredging works to avoid any damage to marine vertebrates as per the dredging and

reclamation plan.

Figure 3 Map showing location of Port Zour and Khiran area

3 A taxon is Vulnerable (VU) when the best available evidence indicates that the species is considered to be facing

a high risk of extinction in the wild - IUCN (2012) Red List Categories and Criteria: Version 3.1. Second edition. 4 A taxon is Endangered (EN) when the best available evidence indicates that the species is considered to be

facing a very high risk of extinction in the wild - IUCN (2012) Red List Categories and Criteria: Version 3.1. Second

edition.

Marine outfall

location

Dredging limits

Port Zour

Khiran area




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Nearby settlements

As show in Figure-4 below, the nearest residential facilities from the project site consist of a

residential complex operated by Chevron (2.1 km to the North) with a hospital at

approximately 2.4 km from the project site. However, the Chevron complex is currently not

occupied by residents since the industrial facility is not operational. Other residential

settlements include Sabah Al-Ahmed Sea City (3.5 km to the South), Al-Khiran chalets (3.6 km

to the South), Bnaider beach chalets (5.6 km to the Northwest), Khiran resort (6.8 km to the

South), Wafra (21.4 km to the Southwest) and the Sabah Al-Ahmed area (29.1 km to the

Northwest). The project site falls under the jurisdiction of Al-Ahmadi Governorate. Al-Ahmadi

Governorate has a total population of 959,009 consisting of 20 residential areas, including

Fahaheel, Ahmadi, Sabahiya, and Rigga. The district extends down South to Wafra and Al-

Zour, on the border with Saudi Arabia.

It could be inferred from the Public Authority for Civil Information (PACI) records that the

Bnaider area is scarcely populated with a population of 51 people. The area is used for

recreation and leisure activities and most of the people in this area are occasional visitors

during spring and winter seasons. However, the area is staffed with labour and maintenance

employees. Sabah Al-Ahmed Sea City has a population density of 93 people (Source: PACI,

July 2017). At present, Sabah Al-Ahmed sea city is populated by construction contractors

involved in the development works of the sea city. The city is being slowly populated by

residents.

Figure 4 Settlements around the Project site

Chalets of

Bnaider beach

Chevron complex

(Unoccupied)

Khiran resort

Sabah Al Ahmed sea

city and chalets of

Khiran area




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Cultural heritage

As listed by the United Nations Educational, Scientific and Cultural Organization (UNESCO),

there are no world heritage sites at or around the project site. Signs of a ship wreck were

detected from sonar surveys conducted as a part of the Marine Geomorphology study

carried out by Fugro Middle East in March-June 2006 to support the New Refinery Project

(NRP) study. The recorded geographic coordinates (247103 m E, 3180639 m N) located the

potential wreck at the edge of the dredging area for the navigation channel. However, the

EPCC contractors involved in the dredging work for this project have indicated that no

unusual objects have been discovered so far in the navigation channel, neither at the ship

wreck area (See Figure-5) or anywhere else. In any case, the Contractor has been instructed

to ensure that in case the wreck is identified, it shall not be disturbed by the dredging works.

Figure 5 Wreck location with respect to the Project site

Ambient air quality

Review of ambient air quality at the Project site was done based on the field works

conducted in July 2014 (At Al-Zour North Power plant location) and February 2017 (Offsite

scope – pigging stations). The parameters monitored include Sulphur dioxide (SO2), Hydrogen

sulfide (H2S), Nitrogen dioxide (NO2), Carbon monoxide (CO), Ozone (O3), Ammonia (NH3),

Non-Methane Hydrocarbons (NMHC), Particulate matter (PM10 & PM2.5). The concentrations

of the measured parameters are within the limits of IFC EHS Guidelines for ambient air quality

and KEPA AAQ standards, except for PM10 and PM2.5, which exceeded the IFC AAQ limits,

and NMHC, which exceeded the KEPA limits. Being a desert area, sandstorms are a common

phenomenon in Kuwait, which induces heavy particulate matter suspension in the air for long

hours to even few days. This is the most likely reason for the higher concentrations of

particulates found in the area. As for the higher concentrations of NMHCs in ambient air, the

Dredging limits




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probable sources are the vehicle exhaust, Al-Zour power plants and the O&G exploration /

production activities in the Ahmadi and Mina-Abdullah area.

Green House Gases (GHG) and climate change

According to the World Bank Data report, the carbon footprint of the state of Kuwait is 91.03

million metric tons. In terms of geographical distribution, the Shuaiba industrial area of Kuwait

proved to have the highest carbon footprint, with 15 Mt CO2/yr followed by the Al-Zour area,

with 12 Mt CO2/yr.

Offshore marine physical chemical environment

In addition to the Marine ecology study mentioned above, other detailed marine studies

have been conducted to assess the offshore marine physical and chemical baseline

conditions at the project site, including the following:

i. Marine water quality;

ii. Sediment characterization; and

iii. Marine geomorphology.

Presently, Environmental World Company (EWC) is conducting quarterly environmental

monitoring works at offshore areas in-line with the requirement of KEPA guidelines and

recommendations of the FEED EIA reports. The objective of this periodic monitoring is to

evaluate the effects/impacts during the dredging and reclamation activities. The scope of

evaluation covers the environmental monitoring of offshore physical and biological

parameters of sea water and bottom sediments. The scope also includes offshore

occupational noise underwater noise monitoring. EWC is maintaining marine water

monitoring buoys for in-situ water quality monitoring. Quarterly monitoring reports are being

submitted to KEPA.

The measured turbidity data surrounding the dredged area shows that the dredging activity

did not cause any rise of turbidity and the level were within the limits of KEPA. The results of

benthic fauna analysis showed moderate abundance of benthic community during April

and May 2017. This might be related to the biotic factors, environmental seasonality and

local impacts of dredging in the monitored area.

The comparative results indicated that the Macrobenthic marine faunal communities has

slightly improved in its abundance during the monitoring period between April and May 2017

as compared to baseline data in April 2016 and hence the project activities have local

insignificant impacts on macrobenthic fauna abundance and distribution among different

locations sampled in the monitoring area at Al Zour LNGI area.

The comparative results indicated that the phytoplankton communities have improved in its

abundance during the monitoring period between April and May 2017 and showed higher

values as compared to baseline data, April 2016 and hence the project activities might show

some impacts on phytoplankton biomass and distribution among different locations sampled

in the monitoring area at Al Zour LNGI area.

The comparative results of zooplankton communities also showed that this community has

improved in its abundance during the monitoring period between April and May 2017, as

compared to baseline data in April 2016 and hence the project activities might have

insignificant impacts on planktonic biomass and distribution among different locations

sampled in the monitoring area at Al Zour LNGI area.




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The health of the marine ecosystem is considered normal for the study area, most probably

due to the nature of the seabed which is mostly covered by fine sand, silt, and small rubble,

resulting in low adhesion or settlement of marine benthic habitats.

Marine modeling studies

The following marine modeling studies have been carried out for the LNGI facility to enable

to identify/understand the changes in the marine environment due to this project activity

and taking into consideration the other developments within its vicinity. These studies include:

Metocean study (deep-waters and nearshore);

Coastal dynamics study;

Modelization of sediment deposition study;

Sediment dispersion study;

Near field dilution study;

Far field dilution study; and

Nautical risk analysis.

Metocean study

Metocean study (P4054LNG-0000-19R-501 Rev. B; 20/02/2015) has been carried out by PROES

consultant in order to have accurate and high spatial resolution design parameters at the

project location. The study is based on the available data sources and implies the use of

advanced numerical modelling tools aiming to achieve the best possible results.

Coastal dynamics study

Coastal dynamics study has been conducted by the EPCC contractor to assess the historical

development of the coastline based on GIS software, available historical & recent satellite

images of the area and to assess the possible impact on the coastline due to the

construction of the LNGI facility, based on the historical response of the coast concluded in

the above study.

The findings of the study can be summarized as follows:

The net littoral transport (longshore sediment transport) is towards south along the

coast where the development is constructed;

82% of the coast at Al-Zour is developed and influenced by man-made structures like

groynes, revetments, sea walls, boat ramps, etc. and only 18% of the coast is natural

and open;

The Al-Zour Refinery (Package #5) and LNGI developments could potentially trap

sediment north of the development, which would result in coastal accretion as found

in the MepBay5 study. But due to the steep coastal profile and a limited littoral drift

from north (sediment supply) it will most likely take decades for a lens shaped beach

to develop;

The coast south of the LNGI development could potentially be subject to coastal

erosion due the deficit in sediment supply from north. But the coast is unable to

respond (erode) due to the presence of a 2 km rock revetment along the coast,

starting only 200 m downstream of the project area. Consequently, it is not expected

that the project will lead to any coastal erosion towards south; and

5 MepBay is a software to assists in the analysis of the equilibrium of bay beaches using the equation by Hsu & Evans

(1989).




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The coastal impacts caused by the future development are expected to be minor

because the wave climate is relatively mild in this part of the Arabian Gulf, and

because the coast is “hardened” by coastal structures and developments.

Modelization of sediment deposition study

Modelization of sediment deposition study was conducted by the EPCC contractor vide

document # P0058LNG-0010-ST-5002 Rev. B, dated 23-Mar-2017. This report provides the

findings of a sedimentation numerical modelling study carried out by using MIKE 216 coupled

model (HD, SW and ST) to assess the annual sedimentation in the berthing basin and

approach channel.

Sediment dispersion study

The sediment dispersion study (P4054LNG-0000-19R-532) has been carried out to analyze the

dispersion of cohesive sediment during the dredging and dumping activities due to this

project.

Near field dilution study

Near field dilution study (P4054LNG-0000-19R-533 Rev. B, dt. 20-Feb-2015) was conducted by

PROES consultant to determine the effect of near field dilution limit and evaluation of

reached jet height due to the discharge of cooling water to the marine body the simulation

tool VISJET7 has been used. This numerical model simulates the behaviour of a plume

dumped in an environmental current with JETLAG Lagrangian model, whose results have

been widely tested from theoretical principles, laboratory experiments, field studies and

other applications.

The length of the near field increases with the current, but the maximum length is less

than 60 meters in any option;

The proposed options fulfil with the recommendations of the Environmental, Health

and Safety (EHS) Guidelines of the World Bank Group;

The diffuser option, with risers of DN800, is recommended by:

o The necessary total length for the four pipes is less;

o The erosion to the sea bed is less because the flow of each jet is minor; &

o The execution procedure for this option is easier and marine means are lighter

than the outfall tower analyzed.

Far field dilution study

Far field dilution study (P4054LNG-0000-19R-534 Rev. B, dt. 20-Feb-2014) was conducted by

PROES consultant. This study is based on specialized numerical model specifically designed

for this duty, such as MOHID8. The aim of this study is to analyze the behaviour of the plume

resulting from the outfall of cooler water as a consequence of the regasification process. The

results will confirm the minimum distances between outfall and intake points in order to avoid

recirculation issues.

Results of near field and far field dilution studies indicates that the diameter and length of the

diffuser outfall are 800 mm and 132 m, respectively to have the optimum dilution at the

outfall area. As per the study carried out, the maximum temperature decrease in the

6 MIKE 21 is a tool for coastal modelling to simulate physical, chemical or biological processes in coastal or marine

areas. 7 VISJET is a tool to predict marine outfall to understand environmental impact and to design sustainable effluent

disposal systems. 8 MOHID is a three-dimensional water modelling system to simulate complex features of the effluent flow.




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discharge area will be around 0.57°C which is acceptable by the KEPA (∆ T 7°C) and IFC,

World Bank Group guidelines (∆ T 3°C). The length and width of the near field plume are

22.054 and 3.753 m.

Nautical risk analysis

Nautical risk analysis (P0058LNG-0010-ST-5101 Rev. B, dt. 22-05-2017) was conducted by the

EPCC contractor to describe the nautical risk analysis which includes identification and

characterization of main hazard of marine operations related to LNG carriers to/from the

marine terminal. The qualitative risk assessment is carried out for hazards arising during the

marine operations in the approach channel interface to the main navigational channel and

the approach channel itself, the basin and the terminal structure.

The main goals of the assessment is to identify, evaluate hazards and propose risk control

measures related to:

Personnel safety on ships and tugs;

Damage to ships and tugs e.g. due to collision and grounding;

LNG carrier access route entering/leaving the LNG terminal as far as practical; and

Damage to the environment e.g. from oil spill as a result of collision between ships.

Various hazards were qualitatively assessed and evaluated by jointly considering their

probability of occurrence and consequences. Most of the evaluated risks were found

acceptable and no additional measures are recommended. Risks for which additional safety

measures were recommended include

injury/fatality due to collision between ship and tugs;

injury/fatality due to collision between ship and berth/terminal/ship; &

Damage to structure due to collision between ship and berth/terminal/ship.

Recommendations are provided at the report and all the recommendations will be

implemented during the project operation stage.

Process hazard analysis studies

The following process hazard analysis studies have also been carried to identify the

associated hazards, risks and required additional improvements on the existing process safety

of the facility:

Hazard Identification (HAZID) study;

Hazard Operability (HAZOP) study;

Quantitative Risk Assessment (QRA) study; and

Safety Integrity Level (SIL) / Layer Of Protection Analysis (LOPA) study.

All the open recommendations/action items of the above mentioned EPCC stage safety

studies are being tracked in the safety study action items tracking register (Doc. no.

P0058LNG-0081-RP-0008). Summary of the close-out status of process hazard analysis studies

as on 30-Jun-2017 is provided in the below table.

S. No. Study

Status of study recommendations

Total Open Deemed

closed Closed

FEED stage safety studies

i. HAZID study 55 44 3 8

ii. HAZOP study 109 35 3 69

iii. SIL classification study 56 12 1 43




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S. No. Study

Status of study recommendations

Total Open Deemed

closed Closed

iv. QRA study 18 10 8 0

v. SIL classification study 28 9 1 18

vi. Vendor package SIL classification 10 4 0 6

EPCC stage safety studies

i. HAZOP study 262 100 38 124

ii. Vendor HAZOP study 921 709 116 96

iii. QRA study 7 5 1 1

iv. HFE review 35 30 1 4

v. Fire protection review 23 5 2 16

vi. HAC layout review 18 6 0 12

Impact assessment

Implementing the project will cause adverse impacts on the existing environment during

construction and operation stages. However, the identified impacts could be minimized

through the implementation of proper mitigation measures into the various project stages.

In this study, the Rapid Impact Assessment Matrix (RIAM) methodology has been used to

evaluate the impacts without mitigation measures and with mitigation measures during the

construction stage, the operation stage, the decommissioning stage, and for unplanned

events and for cumulative impacts. RIAM score values and range bands used in this

assessment are provided in the Table below.

RIAM score Range value

(Alphabetic)

Range value

(Numeric) Description of range band

108 to 72 E 5 Major positive change/impact

71 to 36 D 4 Significant positive change/impact

35 to 19 C 3 Moderate positive change/impact

10 to 18 B 2 Positive change/impact

1 to 9 A 1 Slight positive change/impact

0 N 0 No change/not applicable

-1 to -9 -A -1 Slight negative change/impact

-10 to -18 -B -2 Negative change/impact

-19 to -35 -C -3 Moderate negative change/impact

-36 to -71 -D -4 Significant negative change/impact

-72 to -108 -E -5 Major negative change/impact

The outcome for the various impacts assessed from the Project activities are illustrated as

graphs in the upcoming sections, organized as follows:

Environmental & Social aspects: Construction stage

o LNGI facility area including the contractor temporary site office and the

potential borrow areas.

o Offsite pipeline works and laydown area.

Environmental & Social aspects: Construction stage - Labor camp.

Environmental & Social aspects: Operation stage.

Social impacts requiring management and/or mitigation measures.

Environmental & Social aspects: Unplanned events

Environmental & Social aspects: Decommissioning activities

Environmental & Social aspects: Cumulative impacts




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Construction stage E&S impacts assessment (LNGI facility, contractor temporary site office,

borrow areas, Offsite pipeline works and laydown area)

The impacts varied from slight negative to moderate negative. The graphs showing the

impact assessment scores obtained for the construction stage are provided as Figure-6 (LNGI

facility area including the contractor site office and the potential borrow areas) and Figure-7

(Offsite pipeline works and laydown area). Major impacts during the construction stage as

per the assessment are the offshore impacts due to dredging and reclamation works. It

should be noted that the dredging works are almost complete and that appropriate

mitigation measures have been implemented through a well-documented dredging plan,

which includes the control of sediment dispersion using silt screens. Reports of ongoing

periodic offshore monitoring works confirm that there have been no significant negative

impacts to the marine habitats and the sea water quality from the dredging and

reclamation works.

Other impacts the construction activities from emissions to air and discharges to the

environment, including solid, liquid and hazardous waste, are being mitigated through the

existing Contractor Environmental Management Plan (CEMP) to meet KEPA requirement and

the proposed additional mitigation measures to meet the IFC requirement.




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Figure 6 Impact assessment scores during construction stage (without mitigation measures) –

LNGI facility area including contractor site office & potential borrow areas




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Figure 7 Impact assessment scores during construction stage (without mitigation measures) –

Offsite pipeline works and laydown area

Construction stage E&S impacts assessment (Labor camp)

A labour camp has been provided by the EPCC contractor for the construction workforce.

The camp is being developed in phases and each phase, including the current phase, is

suited for the existing man-power needs at that moment. Further phases will be developed

upon plans for the recruitment of additional workforce during peak activities are completed.

The Environmental and Social impacts for the labor camp are presented in Figure-8.

Figure 8 E&S impact score (without mitigation measures) for labor camp

Operation stage E&S impact evaluation

The operation stage includes processes related to receiving LNG through vessels, storing it in

the LNG tanks, and sending it to the KOC facility for further distribution. The evaluation of

environmental impacts during the operation of the LNGI facility is represented in Figure-9.




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Figure 9 E&S impact assessment scores (without mitigation measures) during operation stage

Social impacts requiring management and/or mitigation measures

The following are the potential negative social impacts (see Figure-10), which require

management and/or mitigation measures during construction and operation stage:

Increased risk of emergency situations with social consequences;

Intensification of cumulative traffic in the Zour area due to construction and

operation stage of various KIPIC projects in the Zour area including the LNG, ZOR and

Petrochemical Refinery Integration Al-Zour project (PRIZe);

Impacts related to communicable diseases;

Influx of construction/operation workers who are majorly expats;

Influx of negative social problems common with large imported workforces around

the labor camp area and employees residing from accessible locations including

Ahmadi, Fahaheel, etc. which are the major residential settlement areas of Kuwait;

Increased levels of dust and noise during construction;

Medical facilities to fulfill the requirements of influx of labours.

High influx of labors may create requirement of more transport routines and ultimately

create congestion in traffic and road safety issues;

Disruption of tourism activities (Khiran area);

Increased demand for accommodation and leisure establishments;

Project Induced In-migration; and

Disruption of commercial fishing activities along the ship navigation route.




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Figure 10 Impact assessment scores (without mitigation measures) for social aspects

Unplanned events

An unplanned event is defined as a reasonably foreseeable event that is not planned to

occur as part of the process, but which may conceivably occur as a result of accidents,

even with a low probability. Unplanned events may occur during any phase of the project.

Chemical and oil spills can occur during any phase of the project, due to the malfunction or

failure of equipment, vessel collision, or human error during transfer or use of fluids. The

impacts associated with chemical spills are related to the nature of the chemical spilled, the

location (surface or subsea) of the spill, its volume, and its behavior in the marine

environment (sink, float, disperse, etc.). Chemicals such as biocides and corrosion inhibitors

are classed as having low toxicity in the dilution rates to be used. In the event of such a

chemical spill to the marine environment, the chemical would be subject to dispersion and

dilution by prevailing currents. Such spills are likely to present a limited potential for toxicity to

marine organisms, due to temporary exposure and low toxicity as a result of rapid dilution.

In the case of a release of hydrocarbons into water, a number of processes occur that

influence the fate of the spill. These processes are affected by the chemical and physical

properties of the hydrocarbons such as their density, chemical composition, viscosity, flash

point, etc. The most important processes to affect hydrocarbons following a spill are

dispersion and weathering.

The impact evaluation for unplanned events during the operation of LNGI facility is

represented in Figure-11.

Figure 11 Impact assessment scores (without mitigation measures) for unplanned events




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Based on the Quantitative Risk Assessment conducted for the project:

The most exposed worker group in terms of Individual Risk per Annum (IRPA9) is the

“Production” group. The workers located in the “Operator House in the Process and

Tankage Area” have the highest IRPA of 5.1E-04 per year. All workers located in other

locations such as other Control Room and Warehouse & Workshop Building have IRPA

values within the ALARP10 (As Low As Reasonably Practicable) region of the KIPIC

Individual Risk Criteria (between 1.0E-05 and 1.0E-03 per year). All other worker groups

are exposed to negligible risk levels (less than 1.0E-05);

Based on KIPIC Societal Risk Criteria, the F-N curves11 produced for onsite personnel

are located within the ALARP region and are in the negligible risk region. The F-N

curves produced for offsite personnel are located well within the negligible risk region;

Ship collisions incidents that lead to loss of LNG are rare, with no serious loss of

containment incidents involving carriers since 1959;

Due to the open nature of onshore facilities, there are sufficient escape routes in the

event of a fire in the process area. Additional escape routes have been provided for

the jetty area to enable escape; and

The maximum safety exclusion zone is 1,700 m from the facility. This is based on the

maximum distance for a 5 kW/m2 radiation from a fireball due to catastrophic failure

of a LNG tank.

Decommissioning stage

The decommissioning phase of the project can impact the environmental or social

surroundings in the following ways (see also Figure-12):

Health and safety risks associated with demolition activities;

Dust generation and air emissions;

Elevated noise levels;

Accidental release of hazardous wastes and untreated effluents into the

environment;

Disturbances to terrestrial and marine habitats;

Visual impacts associated with poor site maintenance activities;

Traffic impacts;

E&S issues related to the setup of labour camps;

Disturbance to adjacent facilities from the demotion activities; and

Socio-economic issues.

9 IRPA is used for the assessment of risk to individual workers. The maximum tolerable limit for IRPA is 1.0E-03 per year. 10 ALARP region – IRPA between 1.0E-05 and 1.0E-03 per year. 11 F-N Curve – A plot of cumulative frequency versus consequences (often expressed as number of fatalities).




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Figure 12 Impact scale (without mitigation measures) for decommissioning activities

Cumulative impacts

The cumulative impacts have been assessed qualitatively. The following other

existing/proposed projects are considered for the cumulative impact assessment:

New Refinery Project (ZOR), Under development;

New Petrochemical project (PRIZe), Under planning;

Al Zour Power Plant North (existing); &

Al Zour Power Plant South (existing).

Cumulative effects identified from project activities and other reasonable foreseeable

activities in the region could include:

Degradation of air quality;

Elevated noise and vibration levels;

Traffic impacts, accidents;

Increase in greenhouse gas emissions;

Offshore impacts; and

Social impacts due to influx of migrant workers.

Mitigation/management plan

KIPIC will implement a number of specific mitigation and management measures to ensure

that the Project minimizes or avoids any negative impacts and maximizes positive benefits to

the environment and local communities. These measures are being presented in the ESIA as

part of the environmental and social management plan (ESMP). KIPIC will develop the

respective ESMP through the EPCC contractors for the construction phase and by themselves

for the ones corresponding to the operation phase.

Currently, the EPCC Contractor has prepared separate Contractor Environmental

Management Plans (CEMP) for the Onshore and Offshore scopes of works through the

retained environmental consultants. The Onshore CEMP has been prepared by BPC and is

being implemented at the project site (site office, laydown / workshop area, labour camp

and offsite pipeline works) by HEC. The Offshore CEMP has been prepared by EWC and is

being implemented at the project site (marine works) by HDEC.

The incoming workforce is expected to reach 9,000 workers, almost entirely male, and

accommodations will be provided at the labor camp. The recommended mitigation

measures focuses on raising awareness among the workforce and setting grievance

addressal procedures. The residual impact is expected to be slight/negligible by

implementing the mitigation measures proposed in the ESIA report.




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The key aspects of the E&S management plans for the construction and operation phases

are presented below:

Air quality management

The power equipment and machinery are being maintained according to the

specifications defined by the manufacturers to maximize combustion efficiency and

minimize the emission of pollutants.

All vehicles associated with the work must be in good repair and transit only on

existing roads.

In dry season, work areas will be kept moist to minimize the spread of dust.

Suitable places for storage, mixing and loading of building materials will be selected.

The soil being removed or being used as filler in the construction area will be

maintained under a certain degree of humidity.

The trucks carrying materials that can emit dust are being adequately covered with

tarps.

Temporary and interior roads are being adequately wetted or treated superficially

and maintained.

KIPIC shall regulate the maximum speed within the access road area for the

movement of transit vehicles within and around the project area, to a maximum

speed limit of 30 km/h to avoid accidents/near misses.

Contractor shall conduct periodic emission test for all construction vehicles and

heavy equipment and ensure its compliance with applicable standards of KEPA.

The IFC EHS guidelines for air quality standards will be respected in addition to the KEPA

standards. The EPCC contractor will ensure this through site environmental monitoring.

Periodical reports are being submitted to KEPA for their follow-up on the effective

implementation of the mitigation measures. The ongoing monitoring reports will be updated

to compare the results with IFC standards.

Noise and vibration

During construction, and especially at the time of operations that cause significant levels of

noise and vibration, a noise assessment will be conducted at critical sites (e.g. where

sensitive receptors are located) to define the need for control measures, either

administrative measures or appropriate engineering controls (e.g. silencers, noise barriers,

fixed barriers and / or mobile, etc.) If such controls do not achieve the goal of keeping noise

levels below applicable standards, appropriate personal protective equipment will be

provided to all personnel required to use it.

The measures to reduce noise levels will include:

Keeping all moving equipment in good condition and with silencers.

Reducing, where possible, the operating time of the sources of noise

Avoiding idle equipment and unnecessary use of alarms, horns and sirens.

Under water noise impacts from piling works and ship movement can be minimized

by isolating the equipment to minimize vibration, using acoustical absorbers and

providing enclosures to damp the noise generation.

The IFC EHS guidelines for environmental and occupational noise level will be respected in

addition to the KEPA standards. The EPCC contractor will ensure this through site

environmental monitoring. Periodical reports are being submitted to KEPA for their follow-up

on the effective implementation of the mitigation measures. The ongoing monitoring reports

will be updated to compare the results with IFC standards.




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Soil protection

All equipment will be operated and controlled as per manufacturers’ specifications

to ensure efficient operation and absence of leaks.

Upon repairs or maintenance of machinery or vehicles, the lubricants and greases will

be collected and properly disposed of together with other contaminated used

materials (rags, gloves, empty containers, etc.).

Activities such as greasing, supply and transfer of fuels and lubricants will be

performed by trained personnel and shall only be done on specially equipped and

waterproofed surfaces to allow containment and collection of any accidental spills.

In case of accidental spills, these will be removed immediately from any affected soil

and will be deposited in tanks for further processing as polluting materials (hazardous

substances). If the case warrants by the magnitude of the spill or discharge, the

Emergency Response Plan (ERP) will be implemented.

Waste management

Construction wastes and wastewater are being collected and segregated on site and

disposed of through KEPA authorized waste management contractors. Sanitary wastewater

from the labour camp is being treated on-site using a package treatment plant designed to

get an effluent quality that meets KEPA/IFC standards for discharge over land for irrigation.

During the operation stage, the wastewater discharges include Clean Storm Water (CSW),

Oil Drips Sewer (ODS), Sanitary wastewater (SWW), Accidentally oil contaminated (AOC)

water and Continuously oil contaminated (COC). SWW from buildings on the Terminal will be

treated in situ at a Sanitary Waste Water Treatment Package and routed to the outfall.

Discharge specifications shall meet KEPA/IFC requirement.

Emergency response plan (ERP)

For the construction phase, the EPCC contractors have developed and implemented an

Emergency Response Plan (ERP). This means that the EPCC contractors have qualified

personnel and equipment response to potential emergencies as part of their CEMPs. This

includes provisions for a trained and equipped emergency response team to be ready to

respond to emergency events.

For the operation phase, KIPIC will develop an Emergency Response Plan for onsite as well as

offsite operations that will address appropriate emergency preparedness and response

measures to be implement in the event of a fire, leak, spill, etc. This plan will identify likely

emergency scenarios, appropriate response equipment, response equipment, emergency

training and drill frequencies, identification of appropriate supporting parties, etc. Qualified

personnel to respond to any emergency will be available at all times.

Labor camp management

The IFC Performance Standards are applicable to this project, therefore Performance

Standard 2 covering labor and working conditions shall be followed. Services offered to the

laborers shall be in line with the requirement of set guidelines by IFC. The provisions of Human

Resources Policy shall be adhered by the EPCC Contractor. Furthermore, employees will

have access to the labor grievance mechanism for escalation purposes. The E&S policy of

KIPIC is applicable to this project and the Contractor would be required to acknowledge the

policy and agree to abide by its provisions.

The EPCC Contractor shall develop a detailed plan which shall, as a minimum, incorporate

the camp management measures described in this report. The Contractor shall not be

limited to these measures. Monitoring/audits to be undertaken as part of this plan. The




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Contractor is responsible for developing area or site-specific procedures for the monitoring

program (where necessary).

Occupational health & safety

KIPIC and the EPCC Contractor shall comply with all requirements related to health care and

safety issues. To ensure compliance with the requirements, mitigation measures such as the

following will be implemented:

Workers will be subject to a health check before entering work in the construction

site, especially for workers who will do hard work or work in dangerous places.

Workers will be subject to periodic health checks to detect any occupational

diseases or infectious disease, which may occur during construction works.

Workers will be provided appropriate medical treatment.

Workers will be provided all necessary training on health protection, potential

occurring and spreading of infectious disease and on how to treat with infectious

diseases.

Ensuring the quality of food and water supply.

Collaborating with local medical clinics or hospitals to help resolving emergency

cases.

Providing training and conduct awareness raising campaigns about infection

diseases for local population and workers.

Establishing collaboration with local communities to avoid or solve any conflicts with

workers.

Environmental and Social Management System (ESMS)

The existing onshore and offshore Contractor Environmental Management Plans (CEMPs)

and the HSE plans are prepared to meet the KNPC HSEMS procedures and KEPA standards.

The CEMPs shall be updated to meet the IFC requirement and an ESMS shall be prepared by

EPCC/KIPIC, which will enable the implementation of the mitigation measures as identified in

the ESIA report. IFC PS 1-5 requires that an ESMS be developed to support an organization’s

overall management systems to address environmental and social impact management

effectively.

The purposes of an ESMS are as follows:

Enables to manage the project activities in a healthy, safely, environmentally and

socially responsible manner;

Provides a structure to organize processes, programs and procedures that enable the

project to meet the requirement of its E&S policy;

Is designed to identify, evaluate and control project risks in a way that prevents or

mitigates incidents that could impact people, the environment or assets; and

Is prepared in such a way that will be applicable to the construction, pre-

commissioning, and operation phases. For the demolition stage, a separate ESMS can

be developed.

As part of the International financing, it is anticipated an independent environmental and

social consultant will need to be hired by the project. The periodical audit reports issued from

the ESMS will be shared with all the concerned stakeholders in a transparent manner.

Stakeholder engagement plan and grievance mechanism

The management of social concerns has been framed in the Stakeholder Engagement Plan

(SEP). Stakeholder engagement is a continuous process throughout the project lifecycle.




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Four phases are identified for the engagement process related to this project:

Stakeholder Engagement (Phase–1);

Stakeholder Engagement (Phase–2);

ESIA disclosure phase; and

Continual engagement – After the ESIA disclosure process is complete and

throughout the project life cycle.

The stakeholder engagement (Phase-1) was conducted on 25-Jul-2016 to commemorate the

award of Project contract to EPCC contractor and commencement of the Project

construction activities at Radisson Blu Hotel, Kuwait. Participants includes Bureau Veritas

Kuwait, Combined Group Contracting Company, Environment World Company, Hyundai

Engineering & Construction Company Ltd., Kuwait Environment Public Authority and Kuwait

National Petroleum Company who are the key stakeholders engaged in the Project during

initial design stages.

The minutes of the meeting were compiled based on the feedback received from the

participants in the meeting. The major concerns of the participants focused on the marine

environment impacts envisaged, particularly those during the dredging and reclamation

stages. The particular concern of affected industries in the vicinity of the project included the

impact on water quality due to the dredging works, which may affect the intake water

quality (turbidity) requirement for the nearby power plants (Al-Zour North & South). Positive

impacts addressed included Employment opportunities, Socio-economic development,

financial benefits and Supply of clean fuel in Kuwait after construction.

A second stakeholder engagement (Phase-2) has been planned for 27th March 2018

considering a wider range of participants, including nearby communities, NGOs, Universities

and Competent Governmental Authorities. Based on the outcome of this second

stakeholder engagement, the Stakeholder Engagement Plan (SEP) will be further formulated,

clearly defining the roles and responsibilities of the stakeholder engagement team of KIPIC.

The responsibility of the stakeholder engagement team will be to ensure effective

consultation with stakeholders during the various phases of the project and to implement the

grievance mechanism.

ESIA disclosure phase focuses on disclosing the ESIA Summary at the KIPIC website. This ESIA

summary will also be disclosed by Korean Export Credit Agencies (ECAs) for a period of 30

days for comments. Anyone will be able to comment on the ESIA report during the disclosure

period. All the comments will be addressed by KIPIC through a transparent and expedited

approach.

Based on the outcomes of the stakeholder engagement (Phase-2) and the disclosure phase,

the continual engagement activities will be planned for the future Project activities.

Conclusions

The impacts have been discussed with reference to each E&S component of the onshore

and offshore settings during the construction operation, and decommissioning stages, and

for unplanned events and cumulative aspects, with inputs of baseline/modeling studies.

Appropriate mitigation measures have been recommended in order to reduce impacts to

the minimum acceptable / insignificant levels. It is worthwhile to mention as well that the

project has been developed using the best available engineering practices in the LNG

industry. Based on the impact assessment study and the recommended mitigation measures,

the following conclusions are drawn:




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In general, the construction stage impacts are more and more significant compared

to the operation stage impacts, and the observed impacts are more at the offshore

environment than at the onshore environment.

During construction, the primary concern was on impacts on the marine environment,

including coastal morphology, coastal dynamics, sediment dispersion / deposition,

seawater quality, sediment quality and marine eco systems. However, the impact

assessment showed the construction stage impacts vary between slight negative and

moderate negative (without mitigation measures), the major concern being the loss

of marine flora and fauna at the reclamation area, and the smothering of marine

species due to other construction activities. With the implementation of mitigation

measures at the project site, the impacts are lowered to slight negative impacts. An

ongoing quarterly environmental works conducted by EWC and BPC are confirming

that there are no significant negative impacts from the construction activities.

Detailed mitigation measures are outlined to mitigate community related impacts,

including the labour camp issues. Monitoring and reporting of labour camp issues will

be through periodic labour audits and community concerns will be through the

Stakeholder Engagement Plan (SEP).

During the operation stage, major aspects that are likely to cause adverse impacts

include intake (for ORV) and discharge of sea water under normal operation

conditions, and air emissions. However, as per the results of dispersion modeling

studies, the results indicate that the impacts are within the acceptable limits and the

impact are rated as ‘slight negative’. Moreover, it has been recommended to

continuously monitor the outfall effluent characteristics to warn in case of any

abnormal conditions. Flue gas emissions from the SCV, and emissions from the

operation of the flare, diesel generator and fire water diesel pumps are anticipated

under abnormal/emergency conditions only. The anticipated impacts vary between

slight negative and negative impacts during operation (without mitigation measures).

It is noted that the frequency of the flare operation is ‘Zero’ under normal operation

conditions as per the Operations philosophy; even in the worst case scenario, the Boil-

Off Gas (BOG) would be diverted to the Al-Zour Refinery (ZOR). It is anticipated that

this worst case scenario would occur very rarely due to the fact that the demand of

Natural Gas (NG) from the end users is high. The operation of the SCV is also

negligible since it is used only as a backup option and will be operated only for two

(2) hours every month for maintenance purposes. The operation of the DG sets and

fire water diesel pumps is also very rare. The impacts on air quality due to emissions

from the trim heaters are mitigated using low NOx burners.

Process and safety hazards have been evaluated and studied through safety studies

(HAZID, HAZOP, SIL/LOPA and QRA). The recommendations of these safety studies

have been implemented in the project design and are being continuously

implemented throughout the construction stage. The EPCC contractor is maintaining

a recommendation’s tracking sheet to sort and close the ‘OPEN’ recommendations.

esia executive summary - kipic.com.kwkipic.com.kw/summ_lngi_r01_25032018.pdf · contract...

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