gmr holdings private limited -...

Pre-Feasibility Report

April 2016

Development of LNG Facility at

Kakinada Deep Water Port

B1151103 RP001, Rev 0

Submitted By:

L&T Infrastructure Engineering Limited (formerly known as L&T-Ramboll Consulting Engineers Limited)

GMR Holdings Private Limited

L&T Infrastructure Engineering Ltd.

Client: GMR Holdings Private Limited

Project: Development of LNG Facility at Kakinada Deep Water Port

Project No.:

B1151103 Title:

Pre-Feasibility Report (PFR) Document No.:

RP001 Rev.:

0 This document is the property of L&T Infrastructure Engineering Ltd. (formerly known as L&T-Rambøll Consulting Engineers Limited) and must not be passed on to any person or body not authorised by us to receive it nor be copied or otherwise made use of either in full or in part by such person or body without our prior permission in writing.

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Notes:

1.

Revision Details:

0 05.04.2016 First Submission ALJ SAP CVS

Rev. Date Details Init. Sign. Init. Sign. Init. Sign.

Prepared Checked Approved

Table of Contents

Development of LNG Facility at Kakinada Deep Water Port B1151103 Pre-Feasibility Report RP001 rev. 0

Table of Contents Page i

TABLE OF CONTENTS 1 Executive Summary........................................................................................................................1

2 Introduction .....................................................................................................................................1

2.1 Project Background ...................................................................................................................2 2.2 Need and Justification of the Project ........................................................................................3 2.3 Employment Generation ...........................................................................................................4 2.4 Organisation of the Report ........................................................................................................4 2.5 Consultants Appointed ..............................................................................................................5

3 Project Description .........................................................................................................................5

3.1 General .....................................................................................................................................5 3.2 Location .....................................................................................................................................5 3.3 Overview of LNG Facility ..........................................................................................................6

3.3.1 LNG Handling Capacity ..................................................................................................6 3.3.2 LNG Storage ...................................................................................................................6 3.3.3 LNG Unloading and Regasification ................................................................................7

3.4 Analysis of Alternatives .......................................................................................................... 11 3.4.1 Scenario 1 .................................................................................................................... 11 3.4.2 Scenario 2 .................................................................................................................... 11 3.4.3 Scenario 3 .................................................................................................................... 11 3.4.4 Advantages of Selected Scenario ............................................................................... 11

4 Site Analysis ................................................................................................................................ 12

4.1 General .................................................................................................................................. 12 4.2 Connectivity to Site ................................................................................................................ 12 4.3 Topography ............................................................................................................................ 12 4.4 Existing Land use Pattern ...................................................................................................... 12 4.5 Existing Kakinada Deep Water Port ...................................................................................... 13 4.6 Meteorological and Oceanographic Parameters ................................................................... 13

4.6.1 Meteorological Conditions ........................................................................................... 13 4.6.2 Oceanographic Conditions .......................................................................................... 14

5 Planning Brief .............................................................................................................................. 16

5.1 Layout of the LNG Facility ...................................................................................................... 17 5.2 Vessel Characteristics ........................................................................................................... 17 5.3 Channel Requirements .......................................................................................................... 17 5.4 Turning Circle ......................................................................................................................... 17 5.5 Dredging and Disposal ........................................................................................................... 17 5.6 Breasting/Mooring Dolphins ................................................................................................... 17 5.7 Unloading Platforms ............................................................................................................... 17 5.8 LNG Storage .......................................................................................................................... 18 5.9 Cryogenic Pipeline ................................................................................................................. 18 5.10 Regasification Facility/Technology ........................................................................................ 18

5.10.1 At Location 1 ................................................................................................................ 18 5.10.2 At Location 2 ................................................................................................................ 18

5.11 Distribution Details ................................................................................................................. 19 5.12 Utilities .................................................................................................................................... 19

5.12.1 Power ........................................................................................................................... 19 5.12.2 Water ........................................................................................................................... 19 5.12.3 Environment Management........................................................................................... 19

5.13 HTL/LTL and CRZ Map .......................................................................................................... 19

6 Resettlement and Rehabilitation Plan ....................................................................................... 19

7 Project Schedule and Cost Estimates ....................................................................................... 20

7.1 Project Implementation .......................................................................................................... 20 7.2 Cost Estimates ....................................................................................................................... 20

8 Analysis of Proposal ................................................................................................................... 20


Table of Contents Page ii

LIST OF FIGURES Figure 1: Regasification Facility Options ..................................................................................................6 Figure 2: Location 1 – Unloading and Regasification facility at Berth 7 of KDWP ...................................9 Figure 3: Location 2 – Unloading at Berth 7 and Regasification facility at Barge Mounted Power Plant ............................................................................................................................................................... 10 Figure FD0101: Project Layout Figure FD0102: HTL/LTL and CRZ Map

LIST OF TABLES Table 1: Natural Gas Demand Projects ...................................................................................................4 Table 2: Demand and Potential LNG Requirement in India .....................................................................4 Table 3: Regional LNG Requirement for Base Case ...............................................................................4 Table 4: Landuse Pattern in the Study Area ......................................................................................... 12 Table 5: Depression/Storms in Kakinada region (1891-1971) .............................................................. 15 Table 6: Depression/Storms in Kakinada region (1972-2010) .............................................................. 16 Table 7: Vessel Characteristics of 90000 cum ...................................................................................... 17


1 Executive Summary Page 1

1 Executive Summary

The Indian economy presently is believed to have established itself on a healthy growth path and this would increase going forward the energy consumption in the country. This increase in consumption is expected to be supplemented by an alteration in the primary energy mix of India on account of the substitution of oil by natural gas. As per “Vision 2030” Natural Gas Infrastructure in India Report by Industry Group for Petroleum & Natural Gas Regulatory Board, In future, the natural gas demand is all set to grow significantly at a CAGR of 6.8% from 242.6 MMSCMD in 2012-13 to 746 MMSCMD in 2029-30.

Currently the natural gas demand far exceeds domestic supply in India and the situation is likely to prevail in future as well. Given that there are very few new domestic sources available, additional demand is to be catered through RLNG. The natural gas deficit arising from the demand-supply mismatch is the potential that can be catered to by imported gas (i.e., regasified LNG). Southern region LNG demand deficit will be 19% in FY25 and 15% in FY35.

Therefore, it is proposed to import liquefied natural gas (LNG) to Kakinada Deepwater Port and re-gasify it to meet the needs of GMR Energy Limited three power plants and other existing/ upcoming power plants and other industries would also benefit from the proposed LNG facility at Kakinada Port. With this, the project envisages to import 1.75 MTPA of LNG for the captive use of GEL power plants and the balance for other domestic users.

The LNG facility is proposed to be developed at Berth 7 of KDWP. Berth 7 is already constructed and facilities required for LNG import need to be developed. At the ToR stage, two locations for regasification facility are being examined i.e. Location 1 being setting up regasification facility in the backup area available behind Berth 7 and Location 2 being setting up the regasification facility within the available land of GMR barge mounted power plant. Land required for development of LNG facility including regasification is ~48.1 acres in case of Location 1 and ~52 acres in case of Location 2. Considering location 2 as an eventual choice for regasification facility it would be necessary to lay on shore insulated cryogenic pipeline of ~3.2 km length.

The LNG Carrier (LNGC) ranging in size from 80,000 - 90,000 m³ will be handled. The volumes of dredging would be limited to about 1.5 million cum considering the widening of the approach channel and turning circle. The construction and operation phase power requirement will be of the tune of 500 KW and 8 MW. The construction phase water requirement will be ~900 KL which will be sourced from existing supply of KDWP. Freshwater requirement during the operation phase of the project is 3.24 KLD and will be met through existing supply of KDWP. A sewage treatment plant (STP) of 2.5 KLD will be developed for treatment of sewage and reuse of treated wastewater will be carried out for irrigation of greenbelt and green areas. The estimated project cost for Location 1 is approximately INR 471 crores and Location 2 is INR 651 crores. Construction work will take around 6 months for development of 1.75 MTPA of LNG facility. The project envisages to generate direct employment of 72 and indirect employment of around 150.

2 Introduction

GMR Holdings Private Limited (GHPL) and LNG Express India Pvt. Ltd. through their SPV are proposing to import LNG at Kakinada Deep Water Port (KDWP) in the state of Andhra Pradesh and supply LNG/RLNG to meet the demand of domestic customers.


2 Introduction Page 2

It is imperative to utilize the global softening of LNG prices for benefit/obligation of the industries meeting the emission norms using clean energy. Some of the industries are facing environmental concerns, Maintenance & Operational problems by using coal, rice husk, coal gas, biofuel bricks and other fuels. By bringing the LNG in to these above sectors, it will minimize and eliminate the above issues to a larger extent over a period of time thereby reducing greenhouse gases.

GMR Energy Limited has been operating three power plants i.e. 220 MW barge mounted power plant near KDWP and 1138 MW gas based power plants at Vemagiri. Proposed LNG facility will cater gas requirements of the power plants to operate at optimum plant load.

Additionally, it is envisaged that other existing and upcoming power plants would also benefit from the proposed LNG facility at Kakinada Port.

2.1 Project Background

The Indian economy presently is believed to have established itself on a healthy growth path and this would increase going forward the energy consumption in the country. This increase in consumption is expected to be supplemented by an alteration in the primary energy mix of India on account of the substitution of oil by natural gas. The share of natural gas in the energy mix of India is expected to increase to 20% in 2025 as compared to 11% in 2010 (As per the ‘Hydrocarbon Vision 2025’ report). However, given that all the plans for expansion in natural gas supply in the country with the help of additional RLNG terminals, nationwide transmission pipeline network and transnational pipelines are expected to materialize by 2025, it is envisaged that the share of natural gas in the primary energy mix would reach 20% till 2030 if not more.

In recent years the demand for natural gas in India has increased significantly due to its higher availability, development of transmission and distribution infrastructure, the savings from the usage of natural gas in place of alternate fuels, the environment friendly characteristics of natural gas as a fuel and the overall favourable economics of supplying gas at reasonable prices to end consumers. In future, the natural gas demand is all set to grow significantly at a CAGR of 6.8% from 242.6 MMSCMD in 2012-13 to 746 MMSCMD in 2029-301. The supply of natural gas is likely to increase in future with the help of increase in domestic gas production and imported LNG. However, the expected increase in domestic production at present is significantly lower than earlier projections due to a steady reduction in gas output from the KG D6 field.

Currently the natural gas demand far exceeds domestic supply in India and the situation is likely to prevail in future as well. Given that there are very few new domestic sources available, additional demand is to be catered through RLNG.

Kakinada Deep Water Port is situated on East Coast of India (Latitude 16056' N Longitude 82015'E) which is an all-weather Port developed in a naturally sheltered bay called as Godavari Sand Spit (also called as Hope Island). Kakinada Bay, with water spread of about 2.5 sq.km is encircled and protected up to three quarters of its perimeter by the mainland and the "Hope Island". Hope Island had originated about 200 years ago from the mouth of the river littoral drift along the shoreline and had extended to a length about 11 nautical miles so far, thus forming into a natural breakwater protecting the entire eastern portion from the fury of the sea and providing tranquillity and shelter to the ships which are berthed at anchor in

1 “Vision 2030” Natural Gas Infrastructure in India Report by Industry Group for Petroleum & Natural Gas Regulatory Board



the Kakinada Bay. Thus, the Port of Kakinada has become one of the safest natural harbours on the East Coast of India.

Kakinada Deep Water Port offers a very strategic location for development of LNG import handling facility and related infrastructure to meet the natural gas demand of the power plants and other domestic users in the region. The regasified LNG will be supplied to existing gas grid pipeline running parallel to Kakinada Port and some quantity of LNG in cryogenic state will also be transported to domestic customers using mobile tankers who are not connected through natural gas pipeline.

2.2 Need and Justification of the Project

The Indian natural gas industry is relatively unseasoned, accounting for only 8–9% of the total energy consumption, while the world average is around 23.5%. In developed countries, the share of natural gas in the total energy basket is around 28–34%, while in other emerging countries like China, natural gas contribution to the total energy mix is as high as 33%. In India, consumption of natural gas has been steadily growing at 8.9% between 2001 and 2012 and is expected to grow further due to the advantages of lower costs and lower emissions. Natural gas consumption witnessed a steep year-on year increase of 21.5% at 56 Million Tonne Oil Equivalent (mtoe) in 2010 over 46 mtoe in 2009 and 25.5% year on year over 2008 owing to the cost-effective and cleaner nature of gas and the increased availability due to commencement of production from Reliance Industries Limited (RIL) in the Krishna-Godavari (KG) Basin.

Natural gas is mainly consumed in the power generation and fertilizer industry, together accounting for 77% of the total consumption. The power sector consumption in 2010 was more than 45%. In the power sector, natural gas consumption grew by more than 69% in 2009–2010 as compared to 2008-2009 (Ministry of Petroleum and Natural Gas), which can be attributed to the increased allotment of gas from the KG Basin to power plants, following the commencement of production from the RIL KG Basin block. Other major users include the petrochemicals industry and the city gas distribution (CGD) network.

While the domestic demand has been growing steadily, production has not grown on par to meet this demand, making way for LNG imports. LNG traffic through Indian ports has been growing rapidly over the past five years posting a CAGR of 14.8%.

Demand for natural gas is also expected to grow given the higher level of overall economic activity in the country, lower volatility of gas prices as compared to liquid fuels, and rising environmental concerns, which increases the demand for cleaner fuels like gas. Power, fertilizer, and CGD sectors are expected to continue as the major consumer sectors of natural gas accounting for 86% of the natural gas demand. Growth in use of natural gas consumption in the country is expected to be driven by increased usage of gas in the above sectors and the growing demand from CGD. Based on the study conducted, the natural gas demand projections are given below:



Table 1: Natural Gas Demand Projects FY16 FY17 FY20 FY25 FY30 FY35 FY40

Base Case Demand 264 286 366 547 800 1144 1589

Optimistic Demand 291 316 403 603 883 1262 1753

Note 1: Figures in mmscmd; Source: CRIS Analysis

Note 2: For the optimistic case, the additional demand from power sector slippages have been added to the base case demand.

The natural gas deficit arising from the demand-supply mismatch is the potential that can be catered to by imported gas (i.e., regasified LNG). The potential for LNG imports that can meet this demand is given below:

Table 2: Demand and Potential LNG Requirement in India Units FY16 FY17 FY20 FY25 FY30 FY35 FY40

Base Case

Demand mmscmd 264 286 366 547 800 1144 1589

Production mmscmd 163 173 207 275 360 469 604

Deficit mmscmd 101 113 159 272 441 675 985

LNG Import Potential MT 27 30 43 74 119 182 266

Optimistic Case

Demand mmscmd 291 316 403 603 883 1262 1753

Production mmscmd 163 173 207 275 360 469 604

Deficit mmscmd 128 142 197 329 524 793 1149

LNG Import Potential MT 35 38 53 89 141 214 310

Source: CRISIL Infrastructure Advisory

Regional shares of the nationwide demand deficit and the volumes of LNG required based on the distribution of consumers are as shown below:

Table 3: Regional LNG Requirement for Base Case

Region FY25 FY35 FY25 FY35

Percentage LNG Demand

East 7% 3% 5 8

North 32% 28% 24 64

South 19% 15% 14 36

West 42% 54% 31 64

Source: CRISIL Infrastructure Advisory

Under this strategy, it is proposed to import liquefied natural gas (LNG) at Kakinada Deep Water Port and re-gasify it to meet the needs of GMR Energy Limited two power plants and other existing/upcoming power plants and other industries will benefit from the proposed LNG facility at Kakinada Port.

The project envisages to import 1.75 MTPA of LNG at KDWP, 0.85 MTPA is for the captive use of GEL power plants and the balance for other domestic users.

2.3 Employment Generation

The project envisages to generate direct employment of 72 and indirect employment of around 150.

2.4 Organisation of the Report

The PFR is prepared as per the Guidelines issued by the Ministry of Environment and Forests (Guidelines for preparation of Pre-Feasibility report for obtaining prior environmental


3 Project Description Page 5

clearance in terms of the provisions of EIA notification, 2006) dated December 30, 2010. In accordance with the guidelines, this report is structured into the following sections2:

Chapter 1 : Executive Summary Chapter 2 : Introduction Chapter 3 : Project Description Chapter 4 : Site Analysis Chapter 5 : Planning Brief Chapter 6 : Resettlement & Rehabilitation Plan Chapter 7 : Project Schedule & Cost Estimate Chapter 8 : Analysis of Proposal

2.5 Consultants Appointed

GHPL had appointed Engineers India Limited (EIL) to carry out pre-feasibility study for setting up the LNG facility at Kakinada Port.

L&T Infrastructure Engineering Limited (LNTIEL) was appointed as EIA consultant and also for the preparation of Pre-Feasibility Report (PFR) as per the guidelines issued by Ministry of Environment, Forests and Climate Change (MoEF&CC).

3 Project Description

3.1 General

In this chapter, a brief description of location, overview of LNG facility, site conditions, meteorological conditions and oceanographic conditions of project site are presented.

3.2 Location

The LNG facility is proposed to be developed at Berth 7 of KDWP. Berth 7 is already constructed and facilities required for LNG import need to be developed. At the ToR stage, two locations for regasification facility are being examined which would be subject to further study during the DPR stage and the options are given below and shown in Figure 1:

Regasification Location Option 1: The first location being examined is setting up regasification facility in the backup area available behind Berth 7.

Regasification Location Option 2: The second location being examined is setting up the regasification facility within the available land of GMR barge mounted power plant located at ~1.5 km from Berth 7.

2 The subsections under each section have also been structured as per the Guidelines as applicable to the current project



Figure 1: Regasification Facility Options

3.3 Overview of LNG Facility

The proposed LNG facility consists of the following:

Development of necessary facilities/equipment for ship berthing and mooring, LNG unloading arms with all safety measures

LNG Storage and transportation Onshore Insulated Cryogenic Pipeline LNG Regasification Facility

Control room Pig receiver and launcher/filter Pressure control system Metering Skid

Pipeline for connectivity to existing gas distribution grid

3.3.1 LNG Handling Capacity

The project envisages a start-up capacity of 1.75 MTPA which comprises of a captive use by GMR Energy Limited to the tune of ~0.85 MTPA and the balance would comprise of domestic piped and non-piped domestic users within radius of 450 km.

3.3.2 LNG Storage

LNG storage of 15,000 cum will be developed at Berth 7. The LNG storage tank shall operate at slightly above atmospheric pressure and approximately at (-) 162°C. The boil-off gas (BOG) handling system will be available at Berth 7. In case of regasification facility at



Location 2, an additional storage of 1000 cum will be developed near barge mounted power plant.

3.3.3 LNG Unloading and Regasification

The LNG Carrier (LNGC) ranging in size from 80,000 - 90,000 m³ will be handled. LNG will be unloaded continuously at a discharge rate of 400 to 500 m3/hr or less and pumped to LNG storage and regasification facility. In Location 1, unloading of LNG and regasification facility will be at Berth 7 of KDWP and in Location 2, unloading will be at Berth 7 and regasification facility will be at barge mounted power plant. The details of both are given below:

3.3.3.1 Location 1 – Unloading and Regasification Facility at Berth 7

Conventional LNG vessels will be moored at Berth 7 of KDWP and entire facility will be installed on Berth 7 for storage of LNG, Re-gas and Tanker loading. Multilayer Super Insulated Vacuum Jacketed LNG Transfer Pipeline shall connect the shore side of unloading arm with inlet flange of shore based flat bottom LNG storage tank. Flat bottom LNG storage tank shall have net capacity of 15000 m3 capacity. The Boil off gas generated during transfer and storage of LNG shall be vaporized using Ambient Air Vaporizers and after due compression with the help of Boil off gas compressors transfer to high pressure gas pipeline through natural gas buffer storage tanks and required pressure control mechanism, and metering. High pressure centrifugal multi stage LNG pumps connected with Flat Bottom Storage Tank shall be utilized for boosting pressure of LNG. High pressure LNG will be transferred to regasification station to be developed at Berth 7. LNG regasification facility will utilize high pressure stainless steel lined aluminum finned fan forced ambient air cryogenic vaporizers.

Tanker loading terminal will receive low pressure LNG with the help of low pressure stream of LNG centrifugal pumps connected to the flat bottom storage tank. The tanker loading terminal will enable loading LNG into 40 and 50 m3 LNG tankers having pay load of 15.5 and 20 MT each for onward transmission to end user customers. The tankers plying on the road shall comply with required safety standards, codes, regulations and performance. The flow diagram is given in Figure 2.

3.3.3.2 Location 2 – Unloading at Berth 7 and Regasification facility at Barge Mounted Power Plant

Conventional LNG vessels will be moored at KSPL Port Berth 7. Multilayer Super Insulated Vacuum Jacketed LNG Transfer Pipeline shall connect the shore side of the unloading arm with inlet flange of shore based flat bottom LNG storage tank. Flat bottom LNG storage tank shall have net capacity of 15000 m3 of LNG. The Boil off gas generated during transfer and storage of LNG shall be vaporized using Ambient Air Vaporizers and after due compression with the help of Boil off gas compressors transfer to high pressure gas pipeline through natural gas buffer storage tanks and required pressure control mechanism, and metering. Tanker loading terminal will receive low pressure

LNG with the help of low pressure stream of LNG centrifugal pumps connected to the flat bottom storage tank. The tanker loading terminal will enable loading LNG into 40 and 50 m3 LNG tankers having pay load of 15.5 and 20 MT each for onward transmission to end user customers. The tankers plying on the road shall comply with required safety standards, codes, regulations and performance.

LNG will be transported through cryogenic pipeline of ~3.2km from Berth 7 to the storage tank at barge mounted power plant. Vacuum Insulted Cryogenic storage tank of 1000 m3



capacity will be installed at Barge Mounted Power Plant. High pressure centrifugal multi stage LNG pumps connected with 1000 m3 Storage Tank shall be utilized for boosting pressure of LNG. High pressure LNG will be transferred to regasification stations. Two (02) types of Re-gas systems i.e. Hot Water Bath Regasification System and Fan Forced Ambient Air Vaporizer will be utilised. The re-gasified LNG in the form of high pressure natural gas will be transferred to custody metering station and inject natural gas into the gas grid for onwards transmission to end user consumers connected to pipeline. The flow diagram for option 2 is given in Figure 3.



Figure 2: Location 1 – Unloading and Regasification facility at Berth 7 of KDWP



Figure 3: Location 2 – Unloading at Berth 7 and Regasification facility at Barge Mounted Power Plant



3.4 Analysis of Alternatives

3.4.1 Scenario 1

Scenario 1 includes the mooring of LNG vessel of size 125000 to 140000 cum capacity with buoys to the west of Hope Island in open sea conditions for ship to ship (STS) operations. Thereafter, transportation of LNG by smaller shuttle tankers to LNG floating storage tanker stationed at the proposed jetty near the barge power plant site. In this scenario, Re-gasification facility is proposed in area adjacent to barge mounted power plant.

3.4.2 Scenario 2

Scenario 2 includes the mooring of LNG vessel of size 125000 to 140000 cum capacity with buoys to the west of Hope Island in open sea conditions for ship to ship (STS) operations. Thereafter, transportation of LNG by smaller shuttle tankers to LNG tanker stationed at berth number 7 of KDWP jetty. In this scenario, Re-gasification facility is proposed at area behind berth number 7 of KDWP.

3.4.3 Scenario 3

Scenario 3 includes berthing of LNG vessel of size 80000 to 90000 cum at Berth No. 7 of KDWP Port. The vessel will use the existing navigation channel of KDWP to reach Berth No. 7. In this scenario the regasification facility will be either behind Berth 7 or near barge mounted power plant.

3.4.4 Advantages of Selected Scenario

Above three scenarios have been studied for the location of proposed LNG facility. Based on the following aspects, Scenario 3 has been finalised:

LNG vessel will be berthing at Berth No.7 by using the existing navigation channel with some widening.

Dredging requirement will be less and therefore disposal of material will also be less No disturbance to movement of fisher crafts because in Scenario 1 & 2 mooring of

mother vessel and shuttle tanker movements will cause hindrance to fishing crafts. Construction activities are limited to development of LNG import facilities as Berth No. 7

is already available. Activity will be away from Hope Island and Eco-sensitive Zone of Coringa wildlife

sanctuary No requirement of new navigation channel and turning circle for the feeder LNG shuttles Less number of vessel movements In case of Scenario 3, Boil off gas from the LNG Carrier can be completely recovered,

pre-heated, compressed and utilized compared to scenario 1 and 2 where STS operations are planned.

As water required for Hot water bath heater will be sourced from barge mounted power plant, therefore, cryogenic energy in LNG can be recovered to improve efficiency of barge mounted power plant and this will meet National cold conversion program from Government of India which inline is complied with and also meeting the requirements of OISD 194 (Part 4.9)


4 Site Analysis Page 12

4 Site Analysis

4.1 General

The prevailing environmental parameters of the project site are essential to assess suitability of site and for planning. This chapter details the location of site, connectivity, existing features, meteorological conditions, oceanographic conditions, environmental aspects and other infrastructure.

4.2 Connectivity to Site

KDWP is located on the Kakinada to Samalkot arterial road connecting to NH-5. Road connectivity from Kakinada is good and includes the National Highway 214 (NH-214) from Kathipudi to Ongole which also joins National Highway 16 (NH-16). Two state highways connect Kakinada to Rajahmundry.

The nearest airport to Kakinada is at Rajahmundry, which is located approximately 65 km from the city, and has flight services to Chennai, Hyderabad and Vijayawada. The nearest major airport is at Visakhapatnam, which is at a distance of 145 km and has the services of many airline operators flying to major cities across the country and outside India.

Kakinada is well connected by broad gauge railway to Hyderabad, Visakhapatnam and Chennai. Through a branch line, Kakinada is connected to Samalkot Junction (13 km) which is on the Chennai-Howrah trunk line, where most express trains stop and provide connectivity to Kakinada with major regional towns and cities. A railway connection exists at Kakinada Port Railway station. Connection to the deep water port has been taken at NFCL. A Reception and Dispatch yard and two spurs to the berths have been provided for facilitating movement of bulk cargo to the stacking yards behind the berths.

4.3 Topography

The land near the coast, both at Kakinada Harbour and the area around the Bay of Kakinada is flat with sandy soil and with an average level of ~2.5 m above mean sea level.

4.4 Existing Land use Pattern

Only 53% of 10 km radius is land area and the remaining 47% is Bay of Bengal. The table below presents the land use.

Table 4: Landuse Pattern in the Study Area S. No. Landuse Area in Acres Percentage (%)

1 Hope Island 1891 4.6

2 Agricultural Land 13488 33

3 Settlements 9051 22

4 Plantations 6332 15

5 Industrial Area 673 2

6 Mud Flats 1495 3.5

7 Barren Lands 256 0.6

8 Water Bodies 1419 3.5

9 Salt Pans 2783 6.8

10 Forest (Mangroves) 3054 7.4

11 Dry water bodies 135 0.3

12 Port Area 163 0.4

13 Others 368 0.9

Total 41108 100.00



The land use distribution depicts about 33% is agricultural land and about 15% area is under plantations. Casuarina and cashew plantation are observed along the coast.

4.5 Existing Kakinada Deep Water Port

Kakinada deep water port (KDWP) is located on the coast of Kakinada, Bay of Bengal in Andhra Pradesh. The geographical location of the Port is 16°58'35" N and 82016'45" E. The port is naturally protected by Hope Island towards eastern side.

Main Jetty has Six (06) berths and One (01) OSV berth. Total length of quay (7 berths) is ~1900 m and the length of OSV berth is 58m. The OSV Jetty has two finger jetties of 4 x 90m with berthing faces of 2 x 40 m. NRW extension with multipurpose berth of length 635 m (North)/ 150 m (South). The port has the navigation facilities i.e. navigation channel of length 10 km and channel of -14.5 m depth, berthing area of depth -14.5 m and turning circle diameter is 500 m.

Liquid bulk imports include of POL products edible oil, phosphoric acid, sulphuric acid and ammonia. Dry bulk cargo imports include fertiliser raw material, coal, wood and pulp. Exports of cargo include iron ore, cement, clinker, white minerals such as bentonite, feldspar and general cargo like steel coils, billets, slabs, granites, grains, OSV rings etc.

4.6 Meteorological and Oceanographic Parameters

4.6.1 Meteorological Conditions

The climate in the area is tropical monsoon type. Wind patterns are governed by the SW & NE monsoons and transition periods between them, dividing the year into four seasons. The two transition periods, March-May (pre-monsoon / summer) and October-November (post-monsoon) are characterized by occurrence of Cyclonic storms, the latter period being more active. The South-West monsoon (June-September) is characterized by strong, persistent wind and rough seas. Majority of the annual rainfall in the region is during South-West monsoon (June-September).

The general climatological condition as per recorded data at Kakinada is presented below:

The highest recorded temperature is 47.20C (May-June) and lowest 13.90C (December) Relative humidity varies from 61% to 90% The average annual rainfall in Kakinada area is about 1115 mm (1100-1150 mm). The highest recorded monthly rainfall is 834.4 mm in October, 1994 The predominant wind direction during North-East monsoon is from North through East.

Wind speeds greater than 30 kmph are for about 22% of the time, while the transitional periods are characterized by low speed variable winds, when there are no storms.

The tropical depressions / cyclones in Bay of Bengal occur very frequent especially during post-monsoon season (October-November-December). Though occur rarely, the cyclones during pre-monsoon and SW monsoon are generally more intense in nature. The most severe storm effected the project region was in November 1996 which tracked across in the southern part with sustained wind speeds of 115 knots (59 m/s).

The weather is hot and humid during most part of the year. The hottest part of the year is May & 1st week of June with maximum temperatures around 38–42°C. The coolest part of the year is January, with minimum temperatures around 18–20°C. The project area gets most of the annual rainfall during southwest monsoon season (June-September) although a significant rainfall occurs during the northeast monsoon season from mid-October to mid-December. Tropical Depressions & Cyclones in the Bay of Bengal are frequent, few of which



affect the project area. Prevailing winds in Kakinada are usually south westerly for most part of the year except during October to January when wind blows from northeast and east. Kakinada recorded an average annual rainfall between 1100 mm and 1150 mm in the last 10 years. The climatology of the area do not pose any constraint for the project apart from cyclones.

4.6.2 Oceanographic Conditions

4.6.2.1 Bathymetry

The bathymetry of the region is reduced to Chart Datum using predicted tides at Kakinada Port. The bathymetry inside the Hope Island varies from a minimum of 1.5m from Light House at Hope island and 1.8m at Southwest corner to a maximum depth of 15.7m from Kilometre Point (KP) 10.570. The Main KDWP Inner channel is marked with depth ranging between 13.4 m @ KP 0.000 and 15.1m @ KP 3.754 and shoals up to either side of the channel with a general slope of approximately 1:25. The Main KDWP Outer Channel is marked with depths ranging between 14.2m @ KP 5.534 and 15.7 at KP10.570 and shoals up to either side of the channel with a general slope of approximately 1:22 except nearer to Hope Island region. Towards the Hope Island region between KP 4.000 and KP 6.000, in the eastern side of the survey area, depth decreases to 1.5m with a slope of approximately 1:12. In the Main Berth and Turning circle area, the depth ranges between 11.2 and 14.5 m. Approach Basin is marked by the depth varying between 4.2m and 13m.

4.6.2.2 Geo-Technical Conditions

Kakinada Deep Water Port had undertaken marine geotechnical investigations within the harbour area and the soil classification up to a depth of 8.5 m from the sea bed consist of very soft silty clay with traces of shell fragments and with low N values. The layer between 8.5 to 10m consist of silt with sand and clay particles and low to moderate SPT. Beyond 10m very stiff clay with moderate to high SPT is observed.

4.6.2.3 Tides

Near Kakinada tides are semi-diurnal with a mean spring range of 1.3m and mean neap tidal range of 0.5m. The maximum current speeds are 0.4 m/s during spring tide and 0.15 m/s during neap tide. The tidal levels with respect to chart datum as reported in Naval Hydrographic Chart No. 3009 are as follows:

Mean High Water Spring - 1.5 m w.r.t CD Mean High Water Neap - 1.1 m w.r.t CD Mean Low Water Neap - 0.6 m w.r.t CD Mean Low Water Spring - 0.2 m w.r.t CD Mean Sea Level - 0.9 m w.r.t CD

During October, the spring tide heights are notably higher reaching 2.0 m mainly due to persistent northeast winds. The above values clearly indicate that tidal variation is limited to 1.3m.

4.6.2.4 Currents

The currents monitored during monsoon season in Kakinada bay, the maximum current speed at mid-depth was observed as 0.7 m/s. and the directions varies between northeast and southwest. The reported current values are within permissible limits for the project activities.



4.6.2.5 Waves

The rough sea conditions prevail during SW monsoon season with waves >2m height during 68% of time and also in NE monsoon season with waves >2m height for about 32% of time. These however do not affect Kakinada Bay area (project site), as it is protected by Hope Island from the east as well as south sides. The predominant offshore wave directions:

During November – March waves are predominantly from Northeast During March – September waves from Southwest are predominant During October (transition period) waves from SW and from NE are equally common

Significant wave heights during the NE monsoon vary between 0.2 m to 0.8 m and the corresponding wave periods vary between 5 and 7 seconds. These ranges in wave Height and period account for more than 90% of the observations indicating that waves during the NE monsoon are generally low. Significant wave heights during SW monsoon are slightly higher with heights between 0.4 m to 1.2 m, the corresponding wave periods 6 – 9 seconds. Long waves with periods between 9 and 11 seconds are also observed during both the monsoons and their percentage of occurrence is only 11% and 18% time during the NE and SW monsoons respectively. The near shore waves on annual basis are predominant in east-southeast directions. Based on the above wave data, it can be prima-facie concluded that tranquil conditions prevail in the basin for mooring and ship navigation.

4.6.2.6 Wind

The average wind speed does not exceed 19 kmph for about 87% of time and the direction of wind varies with period of monsoon. In general wind speeds are stronger in the evening. Wind are mainly from NE (29.6%), SW (20.4%), E(15.8%) and S(11%)

During south west monsoon, the wind speeds are weak averaging 1.5 m/sec and during NE monsoon, windare moderate to average (3m/sec). The land and sea breeze effect is characteristics to the NE monsoon causing the average wind speed to increase from 1.5- 2.5 m/sec at 8.00 hrs to 2.5-3 m/sec at 17.00 hrs. The direction is from landward during the day and seaward during the night.

4.6.2.7 Depression/Storms in Bay of Bengal

The data on number of cyclones and depressions in Kakinada region for 80 years indicate the risk of severe cyclones is highest in may and june and from September till November. The number storms and depressions that have developed in the Bay of Bengal in the Kakinada region during 1891-1971 is given below

Table 5: Depression/Storms in Kakinada region (1891-1971) S. No Month Storms Depressions Total

1 January - - -

2 February - - -

3 March - - -

4 April - - -

5 May 4 2 6

6 Jine 2 2 4

7 July - - -

8 August 1 2 3

9 September 6 28 34

10 October 12 12 25

11 November 6 3 9

12 December 1 1 2

Total 33 50 83


5 Planning Brief Page 16

It can be seen there from that a total of 83 storms and depressions have been observed near Kakinada during the above period of which 33 were cyclonic storms. During the cyclone of 1969, maximum wind speed exceeded 12 on the Beaufort scale and wave heights exceeded 5m outside Kakinada Bay. The sea level rise during the passage of the storm was reported to be 3.35 m, which is 1.86 above the normal spring tide level.

Information on cyclonic storms are available in the E-Atlas for the period 1972 and 2007 Storm data from UNISYS for the period 2008 and 2010. Between 2008 and 2010, UNISYS shows only one storm during May 2010, and no depressions.

Frequency of Occurrence of Storms and depressions in the vicinity of Kakinada Port in 2 x 2 Degree Sector (Source: IMD E-Atlas 1972-2007 and UNISYS 2008-2010)

Table 6: Depression/Storms in Kakinada region (1972-2010)

Month Storms Depression Total

January --- --- ---

February --- --- ---

March --- --- ---

April --- --- ---

May 1 1 2

June 1 4 5

July --- 1 1

August --- 3 3

September 1 2 3

October 4 13 17

November 1 --- 1

December --- --- ---

Total 8 24 32

A very severe cyclonic storm, Phailin, occurred from October 8 to 14, 2013 and made a landfall close to Gopalpur, Orissa. The cyclonic storm recorded wind speeds of 200 kmph with a maximum storm surge of 2 m above the astronomical tide. The cyclonic storm had an impact on Kakinada with a heavy intensity of rainfall recording up to 180 mm in a period of 24 hr. However, the storm surge at Kakinada was negligible. A severe cyclonic storm, Helen, made a landfall at Machilipatnam during November 18 to 21, 2013. Wind speed of 120 kmph was recorded between Kakinada and Machilipatnam with a maximum storm surge of 1.5 m above the astronomical tide. Another severe cyclonic storm, Hudhud, made a landfall at Visakhapatnam on October 12, 2014. Wind speeds of 80 kmph were recorded between Kakinada and Machilipatnam with a maximum storm surge of 1.5 m above the astronomical tide.

5 Planning Brief

The development is planned for the following activities

Extension of existing Berth 7 of KDWP to the southern side (Details of extension would be finalised during the DPR stage)

To carry out widening of the approach channel based upon ship sizes and PIANC guidelines (the necessity of widening would be determined during the DPR stage by way of ship navigation simulation studies)

On shore Insulated Cryogenic pipeline in case regasification skid is located at barge mounted power plant

Establishment of regasification skid Pipeline for connectivity to existing gas grid



5.1 Layout of the LNG Facility

The layout of the LNG facility at Kakinada Deep Water Port is given as FD0101. Land required for development of LNG facility including regasification is ~48.1 acres in case of Location 1 and ~52 acres in case of Location 2.

5.2 Vessel Characteristics

It is proposed to handle LNG vessel of size 80000 to 90000 cum. The characteristics of 90,000 cum LNG vessel are given below:

Table 7: Vessel Characteristics of 90000 cum S. No Parameter Dimensions

1. Length 240m

2. Breadth 40m

3. Draft 11.0m

4. Dead weight tonne 46508

5.3 Channel Requirements

The existing navigation channel within Kakinada Deep Water Port has a bed width of 160 m with adequate side slopes.

The navigational requirement as per PIANC guidelines stipulates channel width of 5 times the beam of design vessel. It is therefore necessary to take up navigation simulation study to ascertaining the widening of approach channel and the extent thereof.

5.4 Turning Circle

The existing turning circle has a diameter of 500 m and considering the LOA of the design vessel as 240m. The turning circle requirement of LNGC is 480m which is twice the LOA of design vessel.

5.5 Dredging and Disposal

The volumes of dredging are minimal and the extent would be limited to about 1.5 M cum considering the widening of the approach channel and turning circle.

During the DPR stage the dredged disposal study would be undertaken by way of mathematical modelling analysis and the disposal area would be determined. The existing designated dumping area of KDWP would also be made use of.

5.6 Breasting/Mooring Dolphins

The detailed project report would undertake the detailed analysis of the existing length of Berth 7 and by duly considering the safety radius as per OISD guidelines, determine the extension towards the south. The extension would be required for safe mooring of the vessel and suitable mooring dolphins with an approach platform would be developed.

5.7 Unloading Platforms

As berth 7 is available and same will be used as unloading platform, only suitable number of unloading arms would be provided on the platform.



5.8 LNG Storage

LNG storage of 15,000 cum. will be installed at Berth 7. The LNG storage tank shall operate at slightly above atmospheric pressure and approximately at (-) 162°C. An additional storage of 1000 cum will be developed in case of development of regasification facility at barge mounted power plant.

5.9 Cryogenic Pipeline

Considering Location 2 as an eventual choice for regasification facility it would be necessary to lay onshore cryogenic pipeline of ~3.2 km length.

5.10 Regasification Facility/Technology

5.10.1 At Location 1

Fan Forced Ambient Air Regasification facility will be used. In this technology, multiple banks of fan forced ambient cryogenic vaporizers are used in parallel and serious combinations. Cryogenic LNG is fed into the inlet manifold system and distributed through banks of fan forced vaporizers. Fans on the top of the ambient vaporizers force down fresh ambient air from the top at all times and this provides required energy to re-gasify the LNG. Outlet temperature of RLNG remains 10 to 15° lower than ambient air.

During the process moisture condenses surrounding the fins and after a few hours banks of vaporizers are interchanged and switched over for operations. The banks of vaporizers which have completed their duty go through a cycle of defrosting and after this cycle of defrosting they are ready for the next cycle LNG regasification operation. Interconnecting piping on inlet and outlet along with valves, instrumentation are provided for accurate distribution of LNG for re-gasification. Forced air circulation allows for accurate heat exchanger and also prevents excessive ice build-up around the heat exchanger fins. Shorter switching cycles also ensure that the ambient temperature surrounding the Regasification station remain closer to discharge temperature of gas.

It is estimated that air temperature surrounding regasification station up to 10 Meters of distance, which will be well within boundary limits of the regasification station shall be approximately 15 to 20° below ambient depending on moderate wind condition and wind velocity.

5.10.2 At Location 2

A combination of Hot Water Bath Regasification system and Fan Forced Regasification System will be used. Hot water from the power plant is required to be cooled and also chilled for the process cooling requirement. In regular practice, cooling towers are used for cooling the hot water to a temperature near ambient temperature. For further reducing the water temperature, chillers are used. Since cryogenic energy is available in the form of LNG stored at -162°C, the process water will be cooled to the required temperature. This available differential temperature in the form of LNG is quite large, therefore it is possible to achieve very low temperature to obtain highest efficiency of cooling and power production. The system deploys a water bath made out of concrete construction in which all stainless steel heat exchanger is submerged along with required tabulators and agitators. Hot water from the power plant runs into the bath and cold water from the bath is sent back to the power plant. Stream of high pressure LNG is run through multiple passes through the heat exchangers and in the process LNG is regasified. Adequate number of temperature sensors,


6 Resettlement and Rehabilitation Plan Page 19

water level indicators and sensors, valves and gauges, etc. are installed on the equipment for the operating and safety requirements. Therefore from the concept development stage it is decided to recover cold from LNG in the form of cryogenic energy and utilize the same for process cooling for the barge mounted power plant, to improve the cooling efficiency covering the NCCD initiatives and OISD 194 (Part 4).

Fan forced ambient air regasification system will be used to re-gas the balance quantity of LNG after utilizing the cryogenic energy at hot water bath.

5.11 Distribution Details

The LNG and RLNG distribution details are provided in sections 3.3.3.1 and 3.3.3.2 and are shown in Figure 2 and Figure 3.

5.12 Utilities

5.12.1 Power

The construction phase power requirement will be of the tune of 500 KW and will be sourced from existing grid or KDWP power supply. During operation phase 8 MW of power will be met partly from existing grid and partly from power generators by using Boil off gas.

5.12.2 Water

The construction phase water requirement will be ~900 KL which will be sourced from existing supply of KDWP.

In case of Location 2 regasification facility, the water requirement for Hot Water Bath Regasification system will be 3280 m3/hr. This is a close loop water circulation system received from the barge mounted power plant and cooled water is supplied back to the power plant. Potable water requirement during the operation phase will be around 3.24 KLD and will be met through existing supply of KDWP.

5.12.3 Environment Management

There is no waste water generation in the LNG Storage and Re-gasification system; however, during the process of fan forced re-gasification system there is clean water generation for which a collection and utilization plan will be prepared. This clean water is the result of moisture condensed, iced – deiced and collected in the trench below the regasification station. Utilising of this clean water for potable use will be explored. Alternatively, this trench can be connected to storm water drainage if no use is envisaged.

A sewage treatment plant (STP) of 2.5 KLD will be developed for treatment of sewage and reuse of treated wastewater will be carried out for irrigation of greenbelt and green areas.

5.13 HTL/LTL and CRZ Map

The HTL/LTL and CRZ Map with proposed LNG facility is given as FD0102.

6 Resettlement and Rehabilitation Plan

There will not be any land acquisition and hence no R&R Issues with the project development.


7 Project Schedule and Cost Estimates Page 20

7 Project Schedule and Cost Estimates

7.1 Project Implementation

After obtaining necessary clearances from statutory authorities, the development of LNG facility will be completed within 6 months.

7.2 Cost Estimates

The estimated project cost for Location 1 is approximately INR 471 crores and Location 2 is INR 651 crores.

8 Analysis of Proposal

Demand for natural gas is also expected to grow given the higher level of overall economic activity in the country, lower volatility of gas prices as compared to liquid fuels, and rising environmental concerns, which increases the demand for cleaner fuels like gas. Power, fertilizer, and CGD sectors are expected to continue as the major consumer sectors of natural gas accounting for 86% of the natural gas demand. Growth in use of natural gas consumption in the country is expected to be driven by increased usage of gas in the above sectors and the growing demand from CGD.

Presently the consumers who are connected through gas grid are getting benefits of natural gas. As laying a new pipeline to small scale industries is not a viable option, therefore, we propose to transport considerable volumes of LNG to all potential users in extremely safe conditions by road tankers. This enables use clean and environment friendly fuel at optimum level.

Under this strategy, it is proposed to import liquefied natural gas (LNG) at Kakinada Deep Water Port and re-gasify it to meet the needs of GMR Energy Limited three power plants and other existing/upcoming power plants and other industries will benefit from the proposed LNG facility at Kakinada Port.

FIGURES

L&T INFRASTRUCTURE ENGINEERING LIMITED (Formerly Known as L&T-RAMBØLL CONSULTING ENGINEERS LIMITED)

6-3-1192/1/1, 5th Floor, Block No.3, White House, Kundan Bagh, Begumpet, Hyderabad – 500 016 Ph: 91-040-40354444; Fax: 91-040-40354430

gmr holdings private limited -...

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