PETROVIETNAM GAS PROJECT TOKYO GAS ENGINEERING

MANAGEMENT CONSULTANT CO.,LTD

COMPANY

FEED AND COST ESTIMATION PACKAGE

PVGAS FAST TRACK LNG TERMINAL PROJECT

Project Description

104236-FEED-OR-RPT-08-001

A 03-APR-12 For Review NKN CAO MTR HTN

Rev. Date. Description BY. CH’K REV. APPR.

Tokyo Gas Engineering Co., Ltd.

Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

Contents

1. Introduction

2. General Project Description

2.1 Site Description

2.2 Facility Description

3. Required Function of the Terminal

4. Project Schedule

5. Project Philosophy

6. Permitting and Licensing

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan
Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

1. Introduction

To meet the growing demand of energy in gas supply in Vietnam, “PVGAS Fast Track
LNG Terminal (hereinafter referred to as the “Terminal”) Project” of Petrovietnam Gas
Joint Stock Corporation (hereinafter referred to as “PVGAS”) (hereinafter referred to
as the “Project”) is required to be constructed as soon as practically possible to cope
with the shortage of gas supply. LNG will be unloaded, stored, pumped-up, vaporized
and then metered to be sent to the gas consumers through the distribution pipeline
network. Also the Terminal will function as a key center of energy supply. This
document describes the outline of the Project.

2. General Project Description

2.1 Site description

The site locates at Cai Mep Industrial Zone, Ba Ria-Vung Tau province, Vietnam. The
LNG Terminal facilities will be installed at PVGAS’s free land with the area of 50,000
m2 (200 m by 25 m) or PETEC’s free land with the area of 97,000 m2 (250 m by 390
m) shown in Figure-2-1, and LNG carrier will moor at Thi Vai jetty or PETEC jetty.
Some utility facilities and building such as Air compressor, nitrogen generation
package, river water intake system, piping rack system, central control room, fire
fighting system including pumps and main loop line, which are installed in the land for
LPG project will be utilized as common facilities for both LPG and LNG terminal
facility.
Figure-2-2 shows the condition of Thi Vai river around the Terminal. This river has
following features.
9 The river is narrow and the width of river in front of Thi Vai jetty is only 580 m.
9 There is sharp bent in the upstream side of Thi Vai jetty.
9 About 1,100 vessels with the size of 500 – 80,000 DWT navigate each month.

In this FEED following three kinds of plot plan are studied and prepared.

9 Case 1 : Plot plan of FEED

Thi Vai jetty is used for receiving LNG carriers. LNG tank is installed in
PVGAS’s free land.

9 Case 2 : Plot plan of basic design (Option 1)

PETEC jetty is used for receiving LNG carriers. LNG tank is installed in
PVGAS’s free land.

9 Case 3 : Plot plan of basic design (Option 2)

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan
Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

PETEC jetty is used for receiving LNG carriers. LNG tank will be
installed in PETEC’s free land.

Thi Vai jetty

Land for LPG project

PETEC jetty

PVGAS’s free land

PETEC’s free land

Figure-2-1 Site location

River bend

Thi Vai jetty

PETEC jetty

Figure-2-2 The condition of Thi Vai river around the Terminal

2.2 Facility description

The main function of the Terminal is to store LNG and supply the vaporized LNG to
the customers through pipeline while a part of LNG is transported to the remote area
with truck lorry. After LNG carrier arrives at the terminal, liquid phase unloading arm
and line shall be arranged to unload the LNG to the storage tank by the unloading
pump in the carrier. The maximum size of carrier to be considered is 75,000 m3 in the
case of Thi Vai jetty and 155,000 m3 in the case of PETEC jetty. The size of LNG

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan
Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

storage tank is planned to be 100,000 m3 in the case of adoption of Thi Vai jetty and
180,000 m3 for PETEC jetty as a result of tank capacity study in FEED. During LNG
unloading, BOG is generated due to heat ingress into the cryogenic systems and
physical replacement. A part of BOG is returned to the LNG compartment of the
carrier through the gas phase return arm and return gas line to balance the pressure
of the compartment; the rest of the BOG shall be re-condensed after pressurized by
BOG compressor and mixed with low pressure and sub-cooled LNG. The
re-condensed BOG together with LNG from the storage tank will be sent through
high-pressure LNG pump. Then the LNG is heated and vaporized to gas phase by
utilizing open rack vaporizer (ORV), finally pressure-adjusted and measured before
sent to the pipe network. In future calorific values of send-out gas might be adjusted
in calorific value adjustment facility for which future tie-ins and necessary area are
reserved in initial phase. LNG can be also sent to the truck loading system by
low-pressure LNG pump for LNG transportation by truck lorry. In future, ship loading
to small ship with the capacity of maximum 6,500m3 might be required for which
future tie-ins and necessary piping arrangement is considered in initial phase. The
project is planned to send high-pressure natural gas of design pressure 5-7.5MPaG.

3. Required Function of the Terminal

The LNG Receiving Terminal is composed of the following facilities.

z LNG berth for carriers and associated facilities

z LNG unloading facilities

z LNG storage tank and its associated facilities

z LNG sampling facilities

z BOG treatment facilities

z Natural gas send-out facilities to the pipeline

z Metering facilities

z Truck loading facilities for LNG loading

z Flaring and venting facilities

z River water intake facilities and river discharge facilities

z Fire fighting facilities

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan
Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

z Utilities and infrastructures

z Calorific value adjustment facilities (Future)

z Ship loading (Future)

The required primary functions of the Terminal include, but are not limited to, the
followings:

z Receive, maneuver and moor LNG carriers

z Analyzer of quality of LNG from LNG carriers

z Unload LNG from LNG carriers to LNG storage tank, and return LNG vapor
from the Terminal to the carriers

z Store LNG in LNG storage tank to provide sufficient buffer until next LNG carrier
arrival and possible delays of LNG carrier arrivals

z Handle BOG generated during unloading and from heat ingress during normal
operation,

z Pressurize LNG from LNG storage tank to LNG truck loading skids by
low-pressure, and to vaporizers by high-pressure

z Control the flow of natural gas to send-out pipeline to satisfy the contracted
consumers requirements

z Measure the natural gas flow to the send-out pipeline

z Analyze the quality of natural gas sending out to the pipeline

z LNG transportation to each customer by truck lorry

z Adjust the calorific values to meet the requirement of the pipeline (in future)

z Load LNG stored in LNG tank to LNG ship (Future)

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan
Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

A general schematic process scheme of the Terminal is shown as below.

Ground
Flare
BOG line Re-Condenser
BOG To Pipeline
Compressor
LNG Ship
LP line ORV Metering System
HP
Jetty Pump

Truck Lorry

LP Pump LNG Storage Tank

Figure-3 General schematic process scheme of the Terminal

The Terminal and the related facilities shall be designed for continuous operation of

24-hour per day and 365 days per year basis. The facilities shall be designed to

satisfy customer gas demands and the LNG load-out demand at the delivery points

for 100% availability.

4. Project Schedule

The commercial operation of the Project is scheduled to commence in 2015, and the
Terminal capacity is planed to be 1 MMTPA (Million Metric Tonne Per Annum).

5. Project Philosophy

The Terminal shall be designed for safe and reliable operation of 24 hours, 365 days
per year basis for a service life of at least 30 years with uninterrupted LNG
transportation to customers by truck lorries and with continuous send out of natural
gas to customers through pipeline network. The primary function required for the

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan
Front End Engineering Design & Cost Estimation 104236-FEED-OR-RPT-08-001-Rev.A
For PVGAS Fast Track LNG Terminal Project Project Description

Terminal is unloading, storing, transferring LNG by truck lorries and sending out
natural gas into the pipeline distribution systems. The whole terminal facilities shall be
designed to handle the amount of LNG, corresponding to the expected loading above
mentioned.
As the safety, reliability and quality of the Terminal and equipment are the primary
objectives, Terminal facilities shall be designed to satisfy the LNG customer demands.
Needless to mention, the unscheduled shutdowns of equipment should never
compromise gas send-out availability to consumers. High overall Terminal availability
shall be ensured by suitable redundancy of equipment and systems, and also by
specifying that all equipment and systems must be designed to be well proven that
they have been employed and operated with no problem over many years of
operation in the LNG terminals worldwide. As a result, the design philosophy of the
Terminal will ensure that no failure of any single equipment will result in total
unavailability of gas send-out from the Terminal. As for the preservation of
environment, the Terminal shall be designed and constructed to minimize the adverse
effects on the environment.
LNG source for the terminal has not yet been specified and the Terminal will introduce
wide range of LNG including LNG based on Coal Bed Methane (CBM) and Shale gas.
LNG from these sources shall be considered as design condition in order for
maximizing the flexibility of receiving LNG.

6. Permitting and licensing

The Terminal design shall comply with not only the applicable codes and standards in
Vietnam but also international codes and standards (hereinafter referred to as
“Codes”).

In case of conflict between the requirements of Vietnamese Codes and International

Codes, order of precedence shall be as below:

1) Vietnamese Codes
2) International Codes
In case of conflict exits among the codes and/or standards, PVGAS ask TGE to
present the difference for resolution.
Relevant safety, fire fighting, environmental protection of design should first satisfy
Vietnamese codes, regulations and standards.

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Tokyo Gas Engineering Co., Ltd. Tokyo, Japan