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Contents
4.6 Onshore Pipeline and Equipment
4.6.1 The Purpose
4.6.2 Criteria and Standard
4.6.3 Pipeline Construction
4.6.3.1 Pipeline Hydraulics and Facilities
Locations
4.6.3.2 Design Considerations
4.6.4 Pump Station Specifications
4.6.5 Availability of Power and Back-Up Power
4.6.6 Pipeline Emergency Relief, Shutdown Isolation, and Safety
Provisions
4.6.6.1 Overpressure of Pipeline
4.6.6.2 System Shutdown
4.6.6.2.1 Unplanned Pipeline Shutdown
4.6.6.2.2 Planned Pipeline Shutdown
4.6.6.3 Restarting the Pipeline
4.6.6.4 Pipeline Control Response to Upsets
4.6.6.5 Pipeline Slack Flow
4.6.7 Technical Considerations
4.6.7.1 Material Selection
4.6.7.2 Elastomeric Materials
4.6.7.3 Cathodic Protection
4.6.7.4 Coatings
4.6.7.5 Pipeline Cleaning
4.6.7.6 Corrosion Control
4.6.7.7 Above Ground Requirements
4.6.7.7.1 Pipeline
4.6.7.7.2 Pump Stations/Pressure Reducing Station
4.6.7.7.3 Terminals
4.6.7.7.4 Metering
4.6.8 Pump Stations
4.6.8.1 Design Considerations

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4.6.8.2 Earthing
4.6.8.3 Standby Power
4.6.8.4 Electrical Distribution Facilities
4.6.8.5 Piping
4.6.8.6 Process Drains
4.6.8.7 Fire Protection
4.6.9 Civil Works
4.6.9.1 Site Grading
4.6.9.2 Site Drainage
4.6.9.3 Roadways
4.6.9.4 Paved Areas
4.6.9.5 Fences
4.6.9.6 Dikes
4.6.9.7 Concrete Works
4.6.9.8 Structural Steel Works
4.6.10Pressure Relief Station (PRS)
4.6.11Tumpat/Tanjung Piandang Terminals
4.6.11.1 Location - suma
4.6.11.2 Tank Descriptions To be filled in by
Azreen/Rowan
4.6.11.3 Inventory Control Equipment and
Instrumentation
4.6.11.4 Availability of Power, other Utilities and Back-up
Sources for Critical Operations
4.6.11.5 Emergency and Fire Protection
Equipment Requirements
4.6.11.6 Onshore Administration and
Operational Facilities
4.6.11.6.1 General
4.6.11.6.2 Cargo Check Facilities
Requirements
4.6.11.6.2.1 Inspection
4.6.11.6.2.2 Sampling
4.6.11.6.3 Volume Monitoring
4.6.11.6.3.1 Metering

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4.6.11.6.4 Monitoring and


Communication Systems

4.7 PROJECT IMPLEMENTATION PLAN AND


SCHEDULES
4.7.1 Implementation Plan
4.7.1.1 Front End Engineering and Design
(FEED)
4.7.1.2 Engineering, Procurement and
Construction
Management (EPCM)
4.7.2 Project Schedule

4.8 PROJECT COSTING


4.8.1 Capital Costs
4.8.2 Operating Costs
4.8.2.1 Annual Overall System Operations and
Maintenance Costs
4.8.2.2 Annual Electrical Costs

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4.6 Onshore Pipeline and Equipment

4.6.1 The Purpose


The purpose of this study is to transport crude oil from Tg. Piandang to
Tumpat. The discharge rate of crude oil flow is 1.5 Mbpd for 1st stage
and 2.5 Mbpd for 2nd stage with two (2) nos of 48 “ Ø pipeline is
proposed for a distance of 330 kilometers, which consists of three (3)
pump stations at km 0, km 73, and km 182 (1st stage) and four (4) pump
stations at km 0, km 73, km 152, and km 182 (2nd stage).

4.6.2 Criteria and Standard


The criteria and standards that are applicable to the pipeline design as
follows :
- CFR (Code of Federal Regulations)
- ANSI (American National Standards Institute)
- API (American Petroleum Institute)

4.6.2.1 Engineering Factors Considered in Pipeline


Design
Pipeline design begins with the establishment of project objectives such
as :
- Required throughput
- Origin and destination points
- Product properties such as viscosity and specific gravity
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- Topography of pipeline route


- Maximum allowable operating pressure (MAOP)

With these assumptions as a basis, hydraulic calculations are performed


to determine the following items :
- Optimum pipeline diameter, wall thickness and yield strengths
- Number of and distance between pump stations
- Pump station horsepower (bhp/MW) required

The calculations are usually performed using hydraulic model with


equation to describe the flow of fluids in a pipe. One key equation
calculates pressure losses due to pipe friction. A second key equation
calculates the maximum operating pressure with the thickness diameter
and yield strength of the steel pipe as input. The summary and results
are detailed in Appendix B1.

4.6.3 Pipeline Construction


One of the first activities that must be completed in pipeline construction
is preparing the access/the right of way (ROW) to allow for safety and
efficiency. The actual pipeline (ROW) corridor width for construction will
vary depending on activities, topography and property. The right of way
preparation will include :
- Clearing and Grading
- Stringing
- Trenching
- Pipe Bending
- Welding
- Coating
- Lowering In
- Backfilling
- Surface Reinstatement

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4.6.3.1 Pipeline Hydraulics and Facilities Locations


4.6.3.1.1 Pipeline Hydraulics
A hydraulic analysis has been conducted to locate and size the required
pump stations for the pipeline system as well as size the pipeline itself.
Results are shown in Appendix B1. This analysis was performed for the
entire onshore pipeline system. The profile of the alignment selected has
maximum elevation of 1035 m and minimum elevation of 4 m at Tumpat.

For the 1st development stage, the pipeline throughput of 1.5 Mbpd – 3.0
Mbpd of typical sour crude as per Table 1.5.6.1.1, Appendix B1, for the
2nd development stage, the pipeline throughput of 2.5 Mbpd – 5.0 Mbpd
of typical sour crude as per Table 1.5.6.1.2, Appendix B1, all maximum
pressure regions were computed in different sections of the pipeline
based on the above design flowrates. The optimized location of pump
station points towards a pipeline size of 48 inch given the terrain
conditions along the proposed alignment.

4.6.3.1.2 Pipeline Facilities Location


Three (3) pump stations are required at the following kilometer posts
(km): 0, 73, and 182 for the 1st development stage and additionally one
(1) new pump station ise required at kilometer posts (km) 152, for the
2nd development stage. The pressure relief station (PRS) is at km 212.
The reader is referred to Appendix 4 which provides maps showing the
locations of the pipeline facilities.

For the 1st development stage, the first mainline pump station (PS1)
located at km 0,i.e. within the Tg. Piandang Onshore Terminal Complex.
The next mainline pump station (PS2) located at km 73 is between towns
Selama and Lenggong. Pump station 3 (PS3) is located at km 182 which
is close to Jeli.

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As for the 2nd development stage, all existing 1st development stage
pump stations shall remain and the new pump station (refered to as
PS2A)is at km 152, i.e. close to Banding Island.

The Pressure Relief/Reduction Station (PRS) is located at km 212. This


location is in the northern reaches of the Rantau Panjang town.

4.6.3.2 Design Considerations

4.6.3.2.1 Typical Pipeline Specifications


The following pipeline components would be applicable to the landbridge
project:
• Pipeline Construction Equipment
• Line Pipe
• Pipeline Scraper/Pigging Traps
• Pipeline Block Valves
• Pipeline Check Valves
• Pipeline Relief Valves

4.6.4 Pump Station Specifications


The following types of pump equipment and related ancilliaries are
typically:
• Centrifugal Pump
• Medium-Voltage, Squirrel-Cage Induction Motors
• Low-Voltage, Squirrel-Cage Induction Motors
• High-Medium Voltage Switchgear

4.6.5 Availability of Power and Back-Up Power


The HV electrical grid available along the alignment corridor is reliable
and will be the main source of electrical power for the project. As well
as the terminal site on the coast near Tg. Piandang (including Pump

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Station No. 1), there is also requirement for power to the intermediate
Pump Station No. 2, Pump Station No. 3 and Tumpat terminal. The main
line pumping facilities have a requirement for high voltage power to the
pump drivers (electric motors), power for the station operations: control
room, offices, lights, valve actuators and utility power.

Back-up power is not a critical issue for operational except for safety,
monitoring and shutdown systems. The control and ESD (emergency
shutdown) systems will have back-up power in the form of a UPS
(uninterrupted power supply) DC package. There will be an emergency
generator for emergency lighting and power (for valve actuators, control
room and safety systems), which will run on tank diesel. There will be no
separate back-up power connection for the mainline pumps in the event
that there is a failure with the grid or power connection to the station.

4.6.6 Pipeline Emergency Relief, Shutdown


Isolation, and Safety Provisions
This section relates to pipeline emergency relief, shutdown isolation, and
safety provisions for this study.

4.6.6.1 Overpressure of Pipeline


A pipeline system surge analysis must be conducted at the FEED stage
with consideration that any block valve in the pipeline could be
accidentally closed while upstream pumps continue operating. A
pressure relief system is recommended as protection against
overpressure and to allow for safe remote operation of pipeline block
valves. A worst case scenario is assumed such that any remotely
operated pipeline block valve can be accidentally closed while upstream
pump stations are in operation. It is assumed that manually operated line

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block valves are not in danger of being accidentally closed since some
planning and effort must be expended to close one of these valves.

The pressure relief system is intended to be the absolute final


overpressure protection system of the pipeline and pump stations. The
pressure relief system includes surge relief valves, relief lines to the
relief tanks, relief pumps and associated piping, manifolds and headers.
Crude oil can be pumped out of the relief tank by transfer to the crude
storage tankers or pumped back into the pipeline again.

4.6.6.2 System Shutdown


System shutdown can either be planned or unplanned. Planned
shutdown results from regular/scheduled maintenance activities or
scheduled modifications to the pipeline. Unplanned shutdown results
from an upset/abnormal condition in the pipeline steady state of
operation.

Upset conditions that may result in potential overpressure situations are


monitored and controlled through a protective safeguard system that can
be implemented by direct intervention of operators.

The following sections will outline the shutdown approach proposed for
the various cases.

4.6.6.2.1 Unplanned Pipeline Shutdown


There are three levels of unplanned shutdown: emergency, process and
operational. Emergency shutdown results from a local upset condition or
system utility failure. Process shutdown results from process conditions
deviating from normal levels. Operator shutdowns are restricted to the
failed unit.

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a. Emergency Shutdown
A manual switch at a pump station’s control room activates emergency
shutdown. Shutdown requires block valve closure to isolate the affected
area and the tripping of the pumps. The shutdown signal is transmitted
through the SCADA system for alarm and control response in cases
where design limits are threaten, elsewhere along the pipeline.

An automatic pipeline shutdown can occur if pumps go off-line


unexpectedly. If a pump at a downstream pump station fails, the high
discharge pressure switches (shutoff transmitter) will trip pumps at
upstream pump stations. The pumps at the downstream pump stations
will be shutoff by low suction pressure switches (shutoff transmitter).
The pump recirculation can be activated at the same time.

The central SCADA system will monitor the above events and allow for
corrective measures either manually or automatically at other locations.
It is proposed that the SCADA central command station be stationed in
Tumpat Onshore Terminal.

b. Process Shutdown
Process shutdowns result from deviation in steady state conditions which
are not immediate emergencies but can nevertheless develop into a
serious problem if left uncorrected. For process shutdowns which are
critical, a high integrity shutdown system is required. High integrity,
through more sophisticated technology and backup control mechanisms
ensures that activation of shutdown will not fail. A low integrity system
for less critical shutdowns will not need these safeguards. Process
upsets are monitored by using pressure, temperature, flow and level
transmitters. Redundant pressure transmitters are also provided on
critical services.

c. Operations Shutdown
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Operators can quickly respond, shutdown and isolate the station when
there is indication that potentially hazardous situations are about to
occur such as fire, gas leaks, pipeline ruptures, security breaches or any
natural disaster (landslide,flooding,etc). They may also intervene if there
is a major incident that might put individuals at risk, cause property
damage or result in loss of fluid transmission.

Automatic station shutdown can idle the pipeline pumps in an orderly


fashion in the event of unplanned events. Communications failure will
bring the station automatically to a safe predetermined operating
pressure level. Utility failure, such as loss of electric power or low fluid
pressure, will eventually bring the station to a halt.

There are individual unit shutdowns that will allow the station to
continue operating by either starting stand-by units or reducing
throughput or having the station on standby until operators can identity
and resolve the upset conditions. A failure of a pump or nonessential
equipment item is not critical for pipeline continuous operation. If the
individual unit shutdown is non-critical, then its activation by manual trip
or block valve closure will not shut down the pump station and entire
pipeline.

4.6.6.2.2 Planned Pipeline Shutdown


A planned shutdown of the pipeline can be carried out by shutting down
the pumps and then closing downstream line block valves. Upstream
from the peak elevation of the pipeline, check valves protect the crude
volume to drain from the hydraulic static head. The valve (pressure
control valve) at Tumpat can be opened to drain crude volume to the
storage tank. If only pumps at upstream are shut down, pump at
downstream will be automatically shut off by low suction pressure
shutoff switches (transmitter).

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4.6.6.3 Restarting the Pipeline


After the pipeline has been shut down for a period of time, pumps at
each station should be started one at a time for smooth operation. A
startup procedure for the pump stations is outlined below:

First start and warm-up the motors/pumps. The motors should operate
at idle speed with crude oil circulating to the recirculation header. Pump
speed will be under manual control. Line pack during normal pipeline
shutdown will be such that pump suction pressures will be greater than
the required NPSH (net position suction head) for the pumps. The pump
speed controller will take control of pump speed to hold a constant flow
rate. Then the next pump station will repeat the startup process and so
on till the line is packed up to the highest elevation. Take note that all
these startup operations shall be monitored and controlled remotely from
the main control center for the pipeline.

4.6.6.4 Pipeline Control Response to Upsets


The pipeline automatically adjusts itself during upsets by one or more
pumps going off the pipeline in a pump station and allowing the other
pumps to respond accordingly.

4.6.6.5 Pipeline Slack Flow


Slack flow is not allowed in the pipeline operation. A packed flow in the
pipeline will enable leak detection control.

4.6.7 Technical Considerations


The short and long term effects of corrosion, both internal and external,
will receive careful consideration during FEED. The items of safety and
reliability of operation will be included in the design considerations.
Proven corrosion control technology will be used. Electro-chemical

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corrosion can take place if the following conditions are fulfilled


simultaneously:
• Water present in the liquid state.
• The water contains ionic compunds such as NaCl, HCl, H2S, etc.
• The metallic surface is susceptible to electrochemical attacks.

The primary means of corrosion control will be by proper selection of


materials, such as, pipeline material, external pipeline coatings, valve
materials, scraper traps, etc.

4.6.7.1 Material Selection

Material selection will be given due consideration to:


• Operating conditions of temperature, pressure, flow rate, and
chemical composition of the media.
• Startup and shutdown conditions. This includes factors, such as, fluid
flow and what transient conditions might exist before normal
operations are achieved.
• Upset conditions.
• The effects of cleaning, contamination and microbiological corrosion.

4.6.7.2 Elastomeric Materials


Elastomeric materials mainly used for seals must be suitable for use in a
temperature range of 10 degrees C to 150 degrees C without loss of
sealing qualities.

4.6.7.3 Cathodic Protection


Cathodic protection (CP) should be designed for safe and economical
performance, ease of maintenance and testing. Materials and installation
should conform to applicable codes, local regulations and standards.

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4.6.7.4 Coatings
The external surfaces of the pipeline will be protected by a coating
system. Several coating systems have been used over the years, such as
coal tar, fusion bonded epoxy (FBE), and polyethylene in three layers.

4.6.7.5 Pipeline Cleaning


Cleaning the pipeline on a regular schedule basis (via pigging) is very
important to control internal pipe corrosion and to eliminate scale
buildup in the pipe. Pigging should be conducted on a regular basis to
remove any water that has accumulated/condensed and collected in low
areas along the pipeline.

4.6.7.6 Corrosion Control


Many techniques are available for corrosion monitoring and those most
commonly used are:
• Electrical resistance method.
• Corrosion coupons.
• Polarization resistance techniques.

The methods best suited for corrosion monitoring are corrosion coupons
and electrical resistance probes. It is recommended that the use of
corrosion coupons be considered during FEED for use for monitoring
possible internal corrosion of the pipeline. The selection of areas of use
for corrosion coupons needs further investigation during FEED.

4.6.7.7 Above Ground Requirements


The following above ground requirements that need consideration for
Malaysian Landbridge Pipeline System:

1. Pipeline
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- Cross country pipeline warning sign (marker)


- River crossing sign (marker)
- Highway/road crossing sign (marker)
- Railroad crossing sign (marker)
- Pipeline aerial marker
- Cathodic protection test station
- Above ground pipeline supports
- Pig launching/receiving facilities
- Concrete slab for equipment and facilities
- Mainline valve station above ground piping and facilities
- Gates and fences

2. Pump Stations/Pressure Relief Station


- Pumps, meters, instrumentation and controls and
associated buildings
- Surge Tanks
- Surge relief valve stations
- Diesel tanks
- Pressure reducing valves and associated piping
- Maintenance/warehouse building
- Control room building
- Emergency generators
- Electrical 132/11kV substation
- Satellite dishes and other communications facilities

- Equipment foundations
- Pipe supports
- Gates and fences

3. Terminals
- Surge tanks
- Surge relief valve stations

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- Floating roof storage tanks


- Booster pumps and electric motors
- Metering skid and prover
- Mainline pumps and electric motors
- Aboveground, major interconnecting piping and valves for
main oil transmission
- Electrical 132/11kV substation
- Medium and low voltage electrical switchgear equipment
and buildings
- Medium and low voltage transformers
- Control center facilities and associated building
- Maintenance shop and storage building with shop
equipment
- Emergency generators
- Diesel tanks
- Fire water tank and other fire fighting facilities/equipment
- Satellite dishes and other communications facilities
- Equipment foundations
- Aboveground pipe supports
- Gates and fences

4. Metering
Tank gauging will be used to meter the oil entering tanks at Tanjung
Piandang Terminal from the offshore tankers. The system will include a
metering station and a meter prover. The metering station will have
multiple, parallel meter runs, each with an upstream strainer, straightening
vanes, turbine meter, flow control valve and double block and bleed valves
(with electric valve actuators) at the inlet and outlet. The metering station
will be skid mounted. Meter provers will be of the mechanical displacement
type, with the necessary controls for automatic proving of each meter
separately.

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Finally, custody transfer metering will also be utilized at Tumpat Terminal to


measure oil flows leaving the terminal for delivery to offshore tankers.
Metering of a sufficient accuracy to support adequate leak detection will be
performed at appropriate locations along the pipeline, i.e., at the end of the
pipeline as the oil are delivered to Tumpat storage tank, etc.

4.6.8 Pump Stations


Figure xxx shows a Flow Diagram for a typical mainline pump station.
Mainline pump stations PS1, PS2 and PS3 utilize electric motors as pump
drivers with power from the local electric grid. Appendix B1-1.5.6.1.1 has
previously defined the power required at each pump station for the mainline
pumps. Pump/driver units must be capable of unattended remotely
controlled start-up, shutdown and operation through the SCADA system
throughout the full range of their operability.

4.6.8.1 Design Considerations


Each area where new equipment is installed will be classified in accordance
with API Recommended Practice 500C as applicable. All new high voltage
substations, electrical switchgear buildings and control buildings will be
designed and located in unclassified areas. Electrical equipment required
to be installed in classified areas will be designed in accordance with with
current National Electrical Code (or equivalent) requirements.

4.6.8.2 Earthing
The high voltage substation required for each of pumps stations TP(Tanjung
Piandang) Terminal, PS2, PS3 & TM(Tumpat) Terminal will be grounded
using an underground earth mat connected to driven ground rods. The
grounding system will be designated in accordance with IEEE Guidelines of
Safety in Substation Grounding (or equivalent).

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All non-current carrying structures, storage tanks, vessels, towers, building,


and enclosures shall be effectively bonded and grounded in accordance with
current National Electrical Code (or equivalent) requirements.

4.6.8.3 Standby Power


Back-up/emergency power will be provided at each location for
instrumentation and control, the fire and gas system, the communications
system and lighting. Back-up power will not be provided to run the pipeline
mainline pumps. The primary source of back-up power will be a capacity
designate diesel driven generator. This generator starts automatically upon
loss of utility power. Sufficient diesel storage shall be provided for three (3)
days of operation. The emergency generator will be sized to power the
above mentioned systems with additional capacity to allow for facility
maintenance. Additionally, all critical systems shall be powered through an
Uninterruptable Power Supply (UPS) system.

4.6.8.4 Electrical Distribution Facilities


A dedicated high voltage substation will be installed for each of the pump
stations PS2 and PS3 ; and terminals Tumpat and Tanjung Piandang. The
substation will employ a combination of loop and radial feed design with a
double intake from the utility company’s power line. Power metering will be
installed as required by the utility company. The substation will consist of
an outdoor switchyard, circuit breakers, busbars and oil filled power
transformers. The secondary circuit of this transformers will be connected
by insulated cable to the medium voltage switchgear located in the
switchgear room. The outdoor switchyard will also provide for mounting of
potential transformers, current transformers, and lightning arrestors.

The switchgear building will house the medium voltage swithgears required
to run the motors to the pipeline pumps, motor control center panel, the

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UPS system, the Programmable Logic Controller (PLC) system, SCADA,


battery systems, lighting panels and control panels.

The pipeline pumps will be started directly across the line and will operate
at constant speed. The use of one or more variable speed drive units may be
considered as an economic alternative during the FEED phase of this
project.

A free standing low voltage motor control center (MCC) will be provided to
power small motors and lighting/instrument power transformers. All units
less than (100 amps) will be of draw-out type construction. The step-down
transformer from medium voltage to low voltage will be of oil filled
construction suitable for installation outdoors. Cable connections will be
made through dry type termination boxes.

A small diesel powered emergency generator will be provided at each


pumping station to provide power for lighting, communications, and
maintenance when the utility power is not available. These generators will
be equipped with battery powered starting systems designed to
automatically start the emergency generator upon loss of the utility power.

Separate DC systems rated accordingly at FEED stage, consisting of battery


chargers and battery banks shall be provided for:-
(i) switchgear circuit breaker controls
(ii) communications systems
(iii) UPS system.
All power cabling shall be continuously sheathed metal clad construction
(XLPE type cable) wherever possible. These cables shall be supported on
cable trays/ladders or laid in open concrete trenches. Instrumentation,
control and fire cables shall not be installed in the same cable tray as power
cables. Armoured cables to perimeter lighting will be directly buried except
under road crossings.

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All exterior area lighting will be of a high pressure sodium type operated by
photocell control. Lighting installed inside of switchgear/control buildings
will be of a florescent type operated by switch control. Emergency lighting
will be provided by the UPS system. A few battery operated fixtures will be
provided for emergency exit lighting.

4.6.8.5 Piping
All large size crude oil piping within the pump station is to be exposed
including the receiving and launching barrels, valves and kicker lines,
station bypass line (except at road crossing), station suction and discharge
headers, and individual pump suction and discharge lines. All other piping
is to be buried. The station bypass line is to run under the entrance road to
the pump station.

The incoming and outgoing main pipeline is to pass underground below the
station security fence and under the internal periphery road before going
above ground to the scraper receiver and launcher.

All piping in crude oil service is to be in accordance with CFR (Code of


Federal Regulations), ANSI (American National Standards Institute), API
(American Petroleum Institute), etc.
Valves and fittings are to conform to the following standards:
• API Spec 6D
• API Std 526
• API Std 594
• API Std 599

Piping at equipment is to be arranged and supported such that equipment,


control valves, etc., can be easily removed without disturbing the piping
system or pipe supports. Equipment is to be accessible from both sides for
operation and repair.

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Piping connected to pumps is to be provided with removable spool pieces to


permit removal of the pump without disturbing the piping. Flanged valves
or flanged fittings in pump suction and discharge lines may be considered in
lieu of spool pieces. . All elbows are to be of the long radius type and all
reducers of the long taper type. Eccentric long taper reducers are to be
used in pump suctions with the flat side up.

Temporary cone type start-up strainers are to be installed in all pump


suction lines before starting the pumps. Vents and drains required for
operation, start-up, or hydrostatic testing are to be provided in piping,
except the main line, at high and low points, respectively.

All valves 305mm (12 inches) and larger that are used for operation are to
be motorized. All valves 305 mm (12 inches) and larger that are only used
for maintenance purposes are not to be motorized but are to be fitted with
manual gear operators with hand wheels. Above ground piping is to be
provided with adequate supports, anchors, platforms and stairs. All above
ground piping and appurtenances are to be painted with an appropriate
paint.

4.6.8.6 Process Drains


All drainage from crude oil piping drains, air vents, thermal relief valves,
equipment and scraper traps is to be routed to an underground steel sump
tank. The tank is to be emptied automatically by means of two level
controlled, electric motor driven vertical sump pumps installed in the tank.
One of the pumps is a spare unit. The discharge of the sump pumps is to be
connected to the station suction header.

4.6.8.7 Fire Protection

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Following is a description of the fire protection facilities to be provided at


each pump station:
• Hand portable dry chemical fire extinguishers in the pump and motor
rooms.
• Wheeled portable dry chemical fire extinguisher in the pump room.
• Fire detection and alarm system consisting of cross-zoned smoke
detectors above each pump and each motor and master fire alarm
panel.
• Local alarm panels as needed.

4.6.9 Civil Works


Exact pump station site facilities are to be selected such as to result in the
minimum amount of civil work required for site grading and to ensure that
storm water runoff from surrounding terrain does not enter the facility.

4.6.9.1 Site Grading


Site grading is to be designed such as to result in minimum cut and fill
commensurating with other cost considerations.

4.6.9.2 Site Drainage


Site drainage for storm water is to be designed as a surface drainage
system directing all the water off the site, i.e. away from the facility and
pipeline corridor through the use of site grading, drain, road ditches and
culverts. The direction of drainage is to be away from equipment areas.

Surface drainage from potential hydrocarbon liquid release areas is to be


provided such that drainage is away from equipment, buildings and
facilities. A minimum gradient of 0.25% is to be provided to ensure
adequate runoff from the site. All ditches are to be sloped to provide a
minimum velocity of 0.9 m/sec. Culverts are to be provided as needed. The

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drainage design is to be based on the rainfall data (50 years) established for
the facility area.

4.6.9.3 Roadways
Access to each facility is to be by means of a new road connecting to the
main road. External roads to the facilities are not included in the cost
estimate.
Paved interior security roads are to be provided all around the facility
peripheral fence, located to provide a spacing of 8 meters from centerline of
road to fence.
Paved roadways are to be asphaltic concrete with a minimum width of six
(6) meters. A one (1) meter wide crushed stone base shoulder with a top
coat of asphalt prime coat is to be provided. Roads are to have a high point
at the center and are to be sloped to provide adequate drainage of the
pavement to swales and/or ditches on each side.
Roadways are to be designed for a wheel load of 15 tonnes tandem axle or 9
tonnes single axle.

4.6.9.4 Paved Areas


Paved areas for vehicular parking are to be provided at all buildings and
other facilities, as required. These areas are to be designed for automobiles
and light truck traffic. Asphalt material is to be used for surface cover. The
minimum surface gradient of all paved areas is to be 0.25%.

4.6.9.5 Fences
Security chain-link fences are to be provided as follows:
• Around the periphery of each facility and pigging facility trap area.
• Separation of high voltage switchyard area from the rest of the
facility.

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In addition to a gatehouse controlled main gate, emergency exit gates are to


be provided in the peripheral fences.

4.6.9.6 Dikes
Crude oil storage tanks in tank farms are to be diked with earthen fills, with
slope protection, for liquid containment.

4.6.9.7 Concrete Works

All concrete works are to be in accordance with the following:


• Cast-in-place concrete structures are to be designed in accordance
with BS 8110 (or equivalent).
• Concrete pavements for roads and heavy storage area are to be
designed in accordance with BS 8110.
• Concrete strength for reinforced concrete is to be a minimum 25MPa
at 28 days.
• Grout is to be job mixed sand-cement.
• Steel reinforcing bars are to be designed according to BS 4449 BS
4482
• Anchor bolts are to be BS 5950.
• Welded fabric is to be BS 4483.
• Construction joints in a concrete structure are to be located so as to
least impair the integrity and strength of the structure.
• Slabs at grade for buildings are to be designed in accordance with BS
8110.
• Underground pit structures are to be designed with soil investigated
data. The design calculations of such structures are to include the
effects of ground water pressures and uplift.
• All underground concrete structures are to be coated with a
bituminous layer, as well as any concrete in contact with the soil.

4.6.9.8 Structural Steel Works


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Structural steel design is to be in accordance with BS Specifications and


Codes (or equivalent). Structural Steel materials are to be in accordance
with the following standards (or equivalent):
• Rolled shapes and plates - BS 5950
• Grating Mild Carbon Steel - BS 7668
• Checkered plate - BS 5950
• Welding electrodes - BS 7668

Compression bracing for steel structures is to be designed with wide flange


and structural tee shapes. For tension bracing, single angle or structural
tees will be acceptable. Due to maintenance difficulties, double angle
bracing is to be avoided.
Braces for structures subject to vibration from equipment are to be
designed as compression braces.
Shop connections for structural steel may be bolted or welded. Field
connections are normally to be bolted.

4.6.10 Pressure Relief Station (PRS)

A pressure relief station will be located between kilometers 212-225. The


actual pressure relief settings shall be determined via modeling tests on the
actual determined alignment of the pipeline. This must be carried out with
great precision during FEED.

During this feasibility study stage, we shall be highlighting the requirement


of such station since the east facing elevation drop will generate a high
pressure buildup as it approaches the Tumpat terminal. Typically a few sets
of block valves will be located before and after the PRS, with bypass duties.
Within the PRS, several pressure relief valves with double redundancy will
be installed and set according to the FEED stage modeling and design data
that would be generated. Based on the proposed pipeline we anticipate the

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setting to be at 1,355 psi, i.e. about 10 % above the anticipated operating


pressure and 75% of the MAOP of the pipeline in use. If pressure reduction
facilities are required, we can utilize a number of parallel pressure
reduction valves. These valves will be designed to generate reasonable flow
situations and to prevent excessive cavitations.

It is envisioned that the pressure reduction facilities can be controlled by an


appropriate pressure set point that will be measured at a required location
(high elevation point) and that will ensure positive pressure within the
pipeline without development of any slack line flow.

It is also envisioned that the set point will be accomplished by using pilot
regulators. The output of the regulator will feed into a 3-way, solenoid
operated valve with a set point pressure being selected to actuate the
pressure reducing valve. The solenoid will be energized by the supervisory
control by the pipeline operator’s discretion or by a contact closure from
the local high pressure switch. The system will be designed such that if
communications with the Tumpat Pipeline Control Center and the high
pressure switch contact be lost, the system will go to a prearranged safe
condition that will maintain a line packed condition.

Since power supply requirements for PRS are fairly small, the utility
company will be able to provide supply at 11KV. Power utilization for the
station will mainly be for communication (telecontrol) and SCADA facilities.
It is anticipated that a standby generator be installed to maintain power
supply during power outages.

4.6.11 Tumpat and Tanjung Piandang Terminals

4.6.11.1 Location

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To be filled in by Suma on location and map.

4.6.11.2 Tank Descriptions


To be filled in by Azreen/Latif on layout, content, operation and schematics.

4.6.11.3 Inventory Control Equipment and


Instrumentation
The terminal tank farm inventory (tank gauging) system can provide a
continuous display of fluid levels and temperatures, based on data acquired
from each tank level gauge and temperature probe installed on each tank.
The inventory system will coordinate crude oil delivered into each tank as
well as monitoring specific gravity. Based on real-time data acquired from
the tanks, the tank volume can be computed as well as the available volume
in the tank for delivery of additional crude oil. Software alarms will be
programmed to alarm on high limit to avoid overfilling a tank and on low
limit to avoid drain down of the tanks below the tank suction outlet piping.

In the conceptual control system for the terminal tank tank gauging system,
the data acquisition/control data variables will be measured , namely:
Analogue – flow rates, pressure, temperature, specific gravity
Status – valve open/closed
Control – Valve open/closed
Generated – gross/net totalized flow
Serial – tank level/temperature

In addition to the above tank gauging system for incoming flow, the other
major inventory control equipment at the terminal will be the custody
transfer meter package and meter prover that measures crude oil leaving
the Terminal to the offshore tankers.

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The above tank gauging and metering systems will be integrated by


instrumentation logic. Data will be collected from these systems via the
overall Supervisory Control and Data Acquisition (SCADA) system and
appropriate analysis will be conducted to ensure efficient and safe
operation of the terminal. It is only with the full-scale implementation of a
SCADA system that the pipeline system operator can maintain accurate and
reliable monitoring and control of all pipeline and tank storage inventories.
The SCADA system allows real-time inventory monitoring and integration of
pipeline leak detection based on accurate metering systems information.
SCADA system integration can provide inventory monitoring on an hourly or
daily basis, but can also be programmed to alarm excessive over/short
values so that pipeline operators are immediately aware of anomalies
requiring further investigating as to the source of the over/short anomalies.

Integration of Tumpat and Tanjung Piandang metering/inventory systems


with landbridge pipeline SCADA systems is economically justifiable due to
the requirement for accurate measurement, detailed accounting and precise
record-keeping. Metering data generated will be timely, accurate, reliable
and verifiable and can be used for the immediate generation of appropriate
billing invoices, such as would be required on a crude oil pipeline system.

4.6.11.4 Availability of Power, other Utilities and


Back-up Sources for Critical Operations

Electrical power for the valves, metering, control room and offices, lighting
and general utilities will be provided by the local utility company via a
132kv substation , with localized standby generators during power outages.
Back-up/emergency electrical power at terminal will be provided onsite for
instrumentation and control, the fire and gas systems, the communications
system and lighting. Back-up power will not be provided to run the pipeline
transfer pumps.

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The primary source of back-up electrical power at the terminal will be


several standby diesel generators. These generators will start automatically
upon loss of localised supplied power. Sufficient diesel fuel storage will be
provided for at least three (3) days of operation. The emergency generator
will be sized to power the above mentioned systems with additional capacity
to allow for facilities maintenance. Additionally, all critical systems shall be
powered through an Uninterruptable Power Supply (UPS) system. The UPS
system will be sized to carry these loads for (15) minutes.

4.6.11.5 Emergency and Fire Protection


Equipment Requirements
To be filled in later

4.6.11.6 Onshore Administration and


Operational Facilities

4.6.11.6.1 General
The Tumpat Onshore Terminal will a focal point for overall operations of the
Malaysian Landbridge Crude Oil Pipeline System. The Terminal will contain
all required facilities for the direct operation and maintenance (O&M) of the
system in Tumpat on a day-to-day basis. In the immediate geographical
area, this will include the Tumpat onshore and offshore terminal facilities
operations. The Tumpat Terminal facility will also be the main operations
and maintenance (O&M) center for the cross-country pipeline in peninsula
Malaysia. The onsite terminal O&M offices will be in contact and control
other appropriate (O&M) facilities/personnel distributed along the
Landbridge pipeline route.

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4.6.11.6.2 Cargo Check Facilities Requirements


There will be agreed procedures placed upon all crude cargoes loaded at
from the Landbridge pipeline system.

4.6.11.6.2.1 Inspection
Internationally known agencies such as SGS or Lloyds will provide
personnel at the loading ports to witness the loading, the taking of samples
and the transfer of paperwork reflecting the cargo being carried. This is
likely to be at the behest of the company which ‘owns’ the oil or that
company charged with the further transportation by tanker. Malaysian
Landbridge Inc. will have procedures for co-ordination of third party
inspection, as part of the overall operating procedures, which will be agreed
by those companies, whose oil is to be transited.

4.6.11.6.2.2 Sampling
All cargoes of oil have samples taken from the loading stream, either at
random or at prescribed intervals or locations (such as the tanker cells).
Some of these samples are carried by the tanker captain and would be given
to the inspector at the unloading port for storage for analysis (if there were
any questions about the cargo quality). The pipeline operator will keep a set
of samples at Tumpat, until the cargo is reported delivered to, and accepted
at, its final destination.

4.6.11.6.3 Volume Monitoring


The quantity of oil loaded on to the tanker is monitored via tank depth
inspection, and by the volume of tankage required to store the oil
immediately before loading. This is usually part of the third party inspection
agency’s duty scope, but will also be independently undertaken by the
Tumpat terminal division. The tank volumes at the Tumpat terminal will be

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known, and the volume easily calculated by gauging the depths of oil in the
tanks before loading.

The cells on the tanker to be loaded will also be inspected before loading
and the volumes ‘dipped’ after loading, to provide another method of
computing the volume loaded on board the tanker to compare with the
volume of oil determined from the Tumpat tanks.

4.6.11.6.3.1 Metering
The oil volumes pumped from the Tumpat terminal storage tanks into the
tanker will be metered to a very accurate fiscal standard. This standard will
be agreed by those oil companies or producers whose oil will be transited
through the Landbridge pipeline system.

4.6.11.6.4 Monitoring and Communication


Systems
The monitoring and control of the Malaysian Landbridge pipeline will be
achieved by implementation of a Supervisory Control and Data Acquisition
(SCADA) system. The architecture of the SCADA system for the Malaysian
Landbridge Pipeline will be designed
to meet amongst others the following objectives:

• High reliability and high availability.


• Fault tolerance with no single point of failure.
• Emergency backup capabilities.
• Ease of support , expandability and maintenance.

High reliability and availability will be achieved by making all of the critical
components of the SCADA system redundant as well as incorporating
redundant power supplies in network equipment.

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The telecommunication system provided for the Malaysian Landbridge


Pipeline will be designed to cover both current and future needs in the data,
voice, and mobile communications areas. Proven pipeline industry
approaches and up-to-date technology will be utilized to support the
operations and maintenance of the system.

A voice communication system will be provided which provides high


availability voice communications between all parties, namely the mobile
units, the main pipeline control center in Tumpat, the Tanjung Piandang
onshore and offshore unloading terminal, the pump stations, and the
Tumpat onshore and offshore loading terminal. This system will use
existing cellular and Telekom Malaysia’s (TM) to provide this service.

High speed, satellite based, communication systems can be provided for


data communication between the Supervisory Control and Data Acquisition
(SCADA) Master Terminal Unit (MTU), located in the Tumpat Pipeline
Control Center and the pump stations/pressure reducing station and
Tanjung Piandang Terminal as redundancy communication channel.

4.7 PROJECT IMPLEMENTATION PLAN AND


SCHEDULES
4.7.1 Implementation Plan
The following is a preliminary Implementation Plan based on the available
data to date. This Plan will be updated during Front End Engineering and
Design (FEED) as more accurate and detailed information becomes
available, and as input is received from a broader range of project
participants. This current Plan envisions a two step approach:
1) FEED phase
2) Engineering, Procurement, and Construct Management (EPCM) phase.

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This Implementation Plan describes a “fast track” approach that is not as


traditional, linear, and as time-consuming as the more standard
implementation approach for these type projects.

4.7.1.1 Front End Engineering and Design (FEED)


FEED will include all activities necessary to produce the following:
a. Right-of-Way (ROW) Selection and Survey of pipeline alignment
b. Logistics Study
c. Initial Environmental Study of Sensitive Areas identified in a.
d. Initial Permit Application, Licenses and Approvals
e. Engineering and Design (Which The following list are nor exhaustive):
1. Project Planning and Organization
2. Establishment of Base Case and Alternatives
3. Initial Alignment Drawings
4. Schematic Flow Diagrams
5. Preliminary Process Flow Diagrams and Charts
6. Major and Critical Equipment List With Sizes and Duties
7. Preliminary Equipment Arrangements
8. Single Line Electrical Diagrams
9. Special Studies which may include studies such as:

“Crude Analysis, Steady State and Preliminary Transient Hydraulic


Analysis, Storage Requirements and Terminal Unloading/Loading Rate
Analysis, Preliminary Geotechnical & Hydrographical Studies, Preliminary
Environmental & Disaster Management and Mitigation Plan,
SCADA/Telecommunication Systems Analysis, Long Lead Items List,
Preliminary Materials Metallurgy and Specifications. “

f. Value Engineering and Cost Reduction Studies


g. Procurement Plan
h. Construction Implementation Strategy
i. Updated Cost Estimate Tally for Project

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j. EPCM Packages award

The FEED Phase of the project will culminate in the issuance of EPCM
package(s), negotiations, and selection of an EPCM contractor(s).

There will be parallel pipeline owner activities during this FEED phase.
These activities will include items such as legal documentation and
agreements between all entities and governments, owner structure
definition, Memorandums of Understanding (MOUs), finalization of ‘supply
& offtake’ contracts and project financing.

It is anticipated that the FEED phase will be completed in 6 to 9 months,


starting around September of 2008. Since the FEED is completed in this
“fast track” time frame, it should be highlighted that the feasibility cost
estimate of +20/-10% may well be reasonable. Therefore, for the Malaysian
Landbridge Project, all relevant project participants should understand
these circumstances, be organized, and be coordinated such that this fast
track FEED will be effective in reducing the overall project schedule and
will progress the project smoothly into the next EPCM phase.

Certain components of FEED will be subcontracted to local companies.


Some of these activities are envisioned to be the survey of the ROW [Item
(a) above], input to the logistics study [Item (b) above] and participation in
the Environmental Study [Item
(c) above], assistance with permit applications [Item (d) above], and some
engineering activities such as civil/structural and HVAC design.

It is currently anticipated that local contractors will also be involved in the


procurement plan development and construction execution strategy
development [Items (h) and (j) above] to ensure maximum local content
during procurement and construction.

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4.7.1.2 Engineering, Procurement and


Construction Management (EPCM)
It is currently envisioned that the EPCM contractor(s) will transition
smoothly to detailed engineering and design and procurement activities and
subsequently manage pipeline construction contracts, pump station (and
pressure relief/reducing station) contracts, tank farms and onshore/offshore
terminal facilities contracts.

Thereon, it is anticipated that the detailed engineering will be completed


within 6 months. Early mobilization for construction of the cross-country
pipeline and pump stations will commence beginning July 2009. Detailed
engineering should be sufficiently completed to allow for mobilization and
early construction work on the cross-country pipeline and pump
stations/pressure reduction station starting by late 2009. Due to a
potentially longer construction window for the onshore terminals at Tumpat
and Tanjung Piandang, it is estimated to begin construction approximately 3
months earlier in September 2009.

It is anticipated that orders for long lead items will be placed during FEED
or as soon as major funding is agreed to be committed. Orders for rotating
equipment, instruments, and Supervisory Control and Data Acquisition
(SCADA) equipment can be placed within the 6 six month period thereafter.

Construction completion, testing & commissioning and start up can take


place between May and July of 2011. First oil will start in August 2011.

4.7.2 Project Schedule


Figure XXX provides a preliminary, overall project schedule for the project
based on the above Implementation Plan. The FEED Phase of the project is
anticipated to begin around 1 September 2008 and succeeding activities

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conducted (as described above) such that commercial operations of the


system could begin around 1 August 2011. This 35 month time frame is
considered realistic and feasible. Of course, this schedule will be expanded
in greater detail and accuracy as the project proceeds into the FEED &
EPCM stages.
Figure XXX gives a preliminary schedule for the procurement of long lead
items. Again, this schedule will be refined during FEED.

4.8 PROJECT COSTING


4.8.1 Capital Costs
The capital cost for the Malaysian Landbridge Pipeline System is estimated
at 8.7 billion Malaysian Ringgit . Table xxx gives the details of the estimate.
A recommended contingency of XXX % has been included in the total. The
overall estimate accuracy has been set as +20%, -10%. The estimate is
based on a current cost basis (second quarter 2008).

Pipeline material pricing has been developed from a regional market survey
with the resultant pricing used for the offshore and onshore scopes of work.
This pricing includes the pipe, concrete coating and lining coating.

The offshore pipeline and marine facilities installation costs was arrived at
as a turnkey project cost awarded basis. Several well known global
corporations have submitted their estimates. The supervision for these
activities and any unique equipment required would be provided by a
specialist contractor.

The onshore terminal facilities which includes two tank farm terminals
(Tumpat and Tanjung Piandang), Discharging Booster & Loading Pumping
Stations, and ancillaries were budgeted from quotes from basic storage
tank installed rate per a typically large sized tank (100m diameter). Fill in
with Azreen’s data.

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Pipeline , pumping and booster stations were budgeted using regional


South East Asian pipe manufacturer quotes . A pipeline construction
industry average of 40% and 10% is added for ‘labor & construction’ and
other costs respectively. These estimates that are generally used as factored
estimates with an accuracy of +/- 15 to 20% but can be improved in
accuracy as project specific information is used to verify or replace the
system generated components.

The project parameters used in the development of the project cost estimate
for the facilities are:
1. The Control center at the Tumpat Terminal is considered the master
control center with the Tanjung Piandang terminal having a
completely redundant control center.

2. The Malaysian national power grid provided by Tenaga Nasional Bhd


is the only source of power for all the facilities.

3. The storage tanks are placed in bund areas complete with a


membrane liner. The tank foundations have gravel sub base with ring
beams and sand cement tank bottom areas. Piling works are assumed
for the building construction only.

4. A dedicated water network for fire fighting runs around the tank farm
with a foam system for the tanks themselves.

5. Buildings on the terminal sites would include:


a. Storage / Warehouse c/w OH cranes for maintenance
b. Main Control Center
c. Administrative Office
d. Pump Station and Ancillaries c/w OH cranes for maintenance
e. Substation Main Intake and Emergency Generator

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f. Guardhouse

Buildings at the Pump Stations and Pressure Relief/Reduction Station


would include:
a. Storage / Warehouse / Branch Operation Center
b. Substation Main Intake and Emergency Generator
c. Pump Station and Ancillaries c/w OH cranes for maintenance
d. Guardhouse

6. ROW restoration has been included based on the restoring conditions


to those landscapes as they were before.

7. Basic industry standard environmental considerations have been


assumed.

8. To arrive at the all in labor rate, preliminary information from


contractors in the region was used. This information was received
through knowledge of other recent projects in the country and in
discussion with local contractors. The all in rate includes construction
equipment, small tools, temporary facilities, contractor supervision
and management. The basis of this estimate is RM 22 to RM24 per
worker hour as an overlay on the base wage resulting in an all in
labor cost of RM 30 per worker hour.

9. The labor productivity is based on using experienced contractors from


Malaysia with sufficient skilled labor and working equipment to
accomplish the work. If not available locally, contractors from regional
countries will be brought in to accomplish the work.

10. The following items have not been included in the estimate, as they
are reflective of the basis of the contract and/or the relationship with
government entities.

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a. Insurance
b. Taxes, customs duties, and regulatory compliance costs
c. Environmental remediation cost
d. Security cost
e. Additional costs if world wide cost of materials used increases

4.8.2 Operating Costs

4.8.2.1 Annual Overall System Operations and


Maintenance Costs
Annual overall system operations and maintenance costs (excluding driver
fuel costs) are estimated as 3% of the capital cost presented in Section 9.1
above, i.e. 3% of $1.13 billion per year = $34 million per year. During the
upcoming Front End Engineering and Design (FEED), this estimate will be
updated to a more refined and accurate value.

4.8.2.2 Annual Electrical Costs


The Malaysian Landbridge Pipeline System will receive electrical power
from the local utility company throughout the pipeline route. Total annual
system electrical costs in Malaysia can be estimated by multiplying the
following monthly kilowatt-hour usage by the appropriate unit cost for West
Malaysian electricity (in RM/kWhr). Annual electrical usage for the
operation of the landbridge is approximately RM 36-40 Million.

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Appendix B1

LANDBRIDGE –TECHNICAL STUDY


M&E

1. PROPOSED PIPELINE,
PUMP STATION AND ANCILLIARIES
2. TANJUNG PIANDANG DISCHARGE FACILITY
3. TUMPAT LOADING FACILITY
4. PIPELINE CONSTRUCTION COST

Reference and Tables

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1. Prologue

Pipeline hydraulics deals with the flow of fluids in pipelines. Fluids are
defined as liquids and gases. Liquids are considered to be incompressible
for most purposes. Our main task is to transport crude oil through hundreds
of kilometers of pipelines from vessels to storage tanks and delivery
terminals. We are interested in the required pressure and horsepower for
transporting a liquid from point A to point B in a pipeline. It is clear that the
heavier the liquid, the more pressure and hence more horsepower required
to transport a given quantity for a specified distance. In all these cases we
are interested in determining the optimum pipe size required to transport
given volumes of liquids economically and safely through the pipelines.

1.1 Design parameters and Technical Constraints

Our initial desk study of the proposed alignment gathered in early Mar 2008
and the following parameters of the pipeline hydraulic study, we are able to
propose the pipeline size, nos. and location of the pump stations.

Design parameters:

Total distance: 330 km


No. of pipeline: 2 Nos
Nominal flow rate: 1,500,000 barrels per day
Redundancy: Not applicable
Peak points: Start pt. 4m ASL @ km 0
518m ASL @ km 77
589m ASL @ km 161
1,034m ASL @ km 192

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Valleys: 88m ASL @ km 88 (possible pump station 2 location


Option I)
138m ASL @ km 128 (possible pump station 2
location Option II)

We have based our hydraulic analysis using the Miller Equation.

Q=4.06(M)(D5Pm/Sg)0.5
where M is defined as follows:
M=Log10(D SgPm/cp )+4.35
3 2

Q=Flow rate, bbl/day


D=Pipe internal diameter, in.
Pm=Frictional pressure drop, psi/mile
Sg=Liquid specific gravity
cp=Liquid viscosity, centipoise

We propose to locate the pump stations as follows:


Pump station No. 1 @ 0 km
Pump station No. 2 @ 88 km (Option II @ 128 km)
Pump station No. 3 @ 168 km

Flow rate per pipeline shall be 750,000 bpd.


Initial analysis assumption of pipeline size at 42” diameter with 0.75” wall
thickness.

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1.2 Different pipe thickness analysis

The following available pipe specifications are detailed below :-

Based on the maximum allowable pressure of 1,440 psi, as provided by


ANSI 600 specifications, we have the highlighted possible pipe diameters
and wall thickness of a minimum of 0.75 inches.

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1.3 Different crude viscosity analysis

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1.3.1 Findings:

We can see that the maximum working pressure in the pipeline is below
1,142 psi.
We can assume that the pipe can use ANSI 600 (MAOP: 1,440 psi) standard
for pipe ordering. Note that pump station capacity is in the vicinity between
8-15 MW total per station per line .

Further analysis of working pressures at different flow rate, pipe size and
viscosities are tabled below:

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1.3.2 Findings:

We can select pipe size 42 in diameter with thickness of 0.75 inch as


suitable for our analysis. Note that each pipeline will be able to carry
between 1,250,000 to 1,500,000 bpd, i.e. totaling between 2.5-3 Mbpd for 2
lines without exceeding the MAOP.

1.4 Location for pump station no. 2

Hydraulic analysis in greater detail for the different impact between


selecting either location. Our findings are as follows:

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Maximum working pressure required by the pumps before pump station 3:


896 psi

Difference of P1 & P2 capacity requirement: 50 %

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Maximum working pressure required by the pumps before pump


station 3: 896 psi

Difference of P1 & P2 capacity requirement: 90 %

1.4.1 This result is still not completed subject to the proposed


pump capacities at each location (pump stations 1& 2). We shall
artificially install the various intended pumping capacities at both
locations and have optimized the location to be at KM 88 . With
these capacities installed , we can predetermine the capacity
requirements in pump station 3. Our main consideration in
selection is the capacities in pump stations no. 2 & 3 are similar.

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PS1PS2
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PS3

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HYDRAULIC GRADE LINE FOR MALAYSIAN PIPELINE


LANDBRIDGE

1.4.2 This chart summarizes the total system HGL required to


overcome all the friction losses and elevation obstacles. Take note
that our operating pressure does not exceed 1,200 psi. From the
above we have our proposed final pump station capacity
requirements.

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1.4.3 Extracts of the workings

1.4.4 Conclusions :

In pipelines of great distances (> 40 km) , losses due to bends , fittings ,


contractions and expansions are negligible as compared to losses due to
friction. Our pumping capacity is mainly used to overcome elevation and
friction losses . These elements alone consumes 95% of the pumping

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capacity, the remainder is actually utilized for the kinematic pressure


requirement.

Our preliminary pump capacity requirements are as follows :

Pump Station No 1 km 0 12.06 MW per line at


750,000 bpd

Pump Station No 2 km 88 6.35 MW per line at


750,000 bpd

Pump Station No 3 km 168 6.35 MW per line at


750,000 bpd

In deciding the pump station configuration , we have assumed that same


pump sizes are installed for easy replacement and spare parts stocking .

A proposed pressure Relief Station will be required to let down pressure at


km 220-225 , near the town of Kg Air Lanas , about 14 km from Jeli ,
Kelantan. Pressure build-up is due to the extreme elevation drop on the last
east facing slope in Kelantan.

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1.5 Pumping station analysis

Analysis of the number of pump stations required is carried out with


reference to the limitations of the pipeline sizes and pipe material. Options
A , B , C & D ; corresponding to single , two , three and four pump stations
along the pipeline is analyzed further.

Design criteria for feasibility pipeline

To filter (FILTER 1) for technical feasibility the various combinations of station numbers ,
flowrates up to 5Mbpd for the pipelines (2 Nos) and the test parameters.

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1.5.1 OPTION A : Single Pump Station Analysis

1. Option 1-36”Ø pipeline with w.t. at 0.5 “

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Observation : 36”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 3,200 psi is below the
flow rate of 1,000,000 bpd operating at 3,950 psi, this pipeline parameters is
unsuitable for single pump station.

2. Option 2-42”Ø pipeline with w.t. at 1“

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Observation : 42”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 2,743 psi is below the
flow rate of 1,500,000 bpd operating at 3,800 psi, this pipeline parameters is
unsuitable for single pump station.

3. Option 3-48”Ø pipeline with w.t. at 1“

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Observation : 48”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 2,400 psi is below the
flow rate of 1,500,000 bpd operating at 2,500 psi, this pipeline parameters is
unsuitable for single pump station.

4. Conclusion : Single pump station is not suitable for any pipe sizes/types .

1.5.2 OPTION B : Two Pump Station Analysis

A hydraulic pressure balance point is selected where the same discharge


pressure by the pump stations is required.

At 500,000 bpd , minimum discharge at each station = (50+2000)/2=1025


psi
Minimum suction of 50 psi occurs at km 152 , i.e. pump station
PS2

1. Option 1-36”Ø pipeline with w.t. at 1“

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Observation : 36”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 3,200 psi is below the
flow rate of 1,500,000 bpd operating at 4,150 psi, this pipeline parameters is
unsuitable for two pump stations.

2. Option 2-42”Ø pipeline with w.t. at 1“

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Observation : 42”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 2,743 psi is below the
flow rate of 2,000,000 bpd operating at 3,300 psi, this pipeline parameters is
unsuitable for two pump stations.

3. Option 3-48”Ø pipeline with w.t. at 1“

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Observation : 48”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 2,400 psi is below the
flow rate of 2,500,000 bpd operating at 2,610 psi, this pipeline parameters is
unsuitable for two pump stations.

4. Conclusion : Two pump station not suitable for any pipe sizes/types.

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1.5.3 OPTION C : Three Pump Station Analysis

A hydraulic pressure balance point is selected where the same discharge


pressure by the pump stations is required.

At 500,000 bpd , minimum discharge at each station = (50+2000)/3=685


psi
Minimum suction of 50 psi occurs at km 75 , i.e. pump station PS2, then km
182 PS3.

1. Option 1-36”Ø pipeline with w.t. at 1“

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Observation : 36”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 3,200 psi is below the
flow rate of 2,000,000 bpd operating at 5,713 psi, this pipeline parameters is
unsuitable for three pump stations.

2. Option 2-42”Ø pipeline with w.t. at 1“

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Observation : 42”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 2,743 psi is below the
flow rate of 2,500,000 bpd operating at 3,734 psi, this pipeline parameters is
unsuitable for three pump stations.

3. Option 3-48”Ø pipeline with w.t. at 0.75“

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Observation : 48”Ø with wall thickness of 0.75” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 1,800 psi is below the
flow rate of 2,500,000 bpd operating at 1,924 psi, this pipeline parameters might
be suitable for three pump stations. This needs further investigation.

4. Option 4-48”Ø pipeline with w.t. at 1“

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Observation : 48”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-70 is 2,100 psi is above the flow
rate of 2,500,000 bpd operating at 1,979 psi, this pipeline parameters is suitable
for three pump stations.

5. Conclusion :

Three pump station needs a 48”Ø with a minimum 0f 0.75” wall thickness. This needs further
investigation and shall include tapering the wall thickness with appropriate material yield
strength.

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1.5.4 OPTION D : Four Pump Station Analysis

A hydraulic pressure balance point is selected where the same discharge


pressure by the pump stations is required.

At 500,000 bpd , minimum discharge at each station = (50+2000)/4=513


psi
Minimum suction of 50 psi occurs at km 73 , i.e. pump station PS2, then km
152 PS3 and finally km 184 PS4.
1. Option D1-36”Ø pipeline with w.t. at 1“

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Observation : 36”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 3,200 psi is below the
flow rate of 2,000,000 bpd operating at 5,185 psi, this pipeline parameters is
unsuitable for four pump stations.

2. Option D2-42”Ø pipeline with w.t. at 1“

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Observation : 42”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 2,743 psi is below the
flow rate of 2,500,000 bpd operating at 3,360 psi, this pipeline parameters is
unsuitable for four pump stations.

3. Option D3-48”Ø pipeline with w.t. at 0.75“

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Observation : 48”Ø with wall thickness of 0.75” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-80 is 1,800 psi is above the flow
rate of 2,500,000 bpd operating at 1,774 psi, this pipeline parameters might be
suitable for four pump stations. This needs further investigation.

4. Option D4-48”Ø pipeline with w.t. at 1“

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Observation : 48”Ø with wall thickness of 1” has a limitation of the following MAOPs as per
Table 1. Since the MAOP for the high grade 5LX-70 is 2,100 psi is above the flow
rate of 2,500,000 bpd operating at 1,828 psi, this pipeline parameters is suitable
for four pump stations.

5. Conclusion :

Four pump station needs a 48”Ø with a minimum 0f 0.75” wall thickness. This needs further
investigation and shall include tapering the wall thickness with appropriate material yield
strength.

1.5.5 FILTER 1 : SUMMARY

We are able to summarize the 1st filter as follows :

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1.5.6 Filter 2 : Optimization of pipeline and


pump stations.

With the results from Filter 1, we can analyze the pump stations
development in 2 stages , ie. 1.5 Mbpd and 2.5 Mbpd per pipeline. Pipeline
sizes/type will be tapered accordingly to the 2.5Mbpd per line. Costs
implication will be included.

The pump station location is as follows :

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1.5.6.1.1 The results for development 1 :

1.5.6.1.2 The results for development 2 :

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1.5.6.1.3 System Curve Data: Development Stage


1

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1.5.6.1.4 System Curve Data: Development Stage


2

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1.5.6.1.5 System Curve: Development Stage 1 & 2

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1.6 Pumps and Power Supply

The will be 6 centrifugal duty-pumps and 2 on-standby per line to pressure


up the pipeline for crude transmission located in Tanjung Piandang. There
will be 3 booster duty-pumps and one on-standby per line for the other 2

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pump stations each. These configurations shall apply during Development


Stage 1.

A dedicated substation in Tanjung Piandang (pump station No. PS1) with a


minimum capacity of 75 MW ( e.g. PMU at 132/11kv with 2 Nos x 30 MVA &
1x 15 MVA Transformers) will be required to operate the motors to the
pumps(2 x 22 MW) and all ancillaries for the pump station, offshore booster
pumps ( 3 x 1.5 MW), main pipeline control center and tank farm
operations.

A similar substation of the capacity of 60 MW (e.g. PPU 132/11kv with 2


Nos X 30 MVA Transformers) will be required to operate the motors to the
pumps (2 X 22 MW) and all ancillaries for each pump stations no. PS2 &
PS3.

Power supply for PS2A and upgrading for PS1-3 shall be addressed at the
FEED stage.

Pressure relief station (PRS) shall source power supply from the localized
11Kv reticulation.

A dedicated substation in Tumpat (pump station No. PS4) with a minimum


capacity of 30 MW ( e.g. PMU at 132/11kv with 2 Nos x 15 MVA
Transformers) will be required to operate the motors to the pumps(3 x 5.5
MW) for offshore loading pumps, main pipeline replicate control center and
local tank farm operations.

Power supply from the Malaysian Grid is readily available up to the required
capacity. The 132kv transmission lines pass nearby (within 15-20 km) of the
proposed pipeline corridor.

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2. Offshore Booster Pump : Tanjung Piandang

The nominal pump pressures


available on vessels are
around 100 psi. We have
included this study to
determine whether booster
pumps are required.

Based on the chart and


computations, booster
pumps are necessary as the
HGL line cuts below the
elevation head. Further to
this, there will be the
undesirable negative
pressure build-up in the
pipeline.

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Our assumption for this hydraulic check is as follows:

Minimum pressure available on vessel : 100


psi
Losses through joints and bends : 10
psi
Specific Gravity of crude : 0.950 (100 cSt)
Maximum distance : 21 km
Nominal flowrate : 1,500,000 bpd
Offshore Pipeline : 1No X 48”Ø , t=0.5”

2.1 Extracts of computations as as follows:

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2.2 Conclusion: Preliminary estimates shows that a booster pump


station circa 1,500 kW will be required . This capacity can be located
on the buoy or up to 10 km away from the vessel. Note that power will
be sourced from the onshore tank farm or operations jetty, whichever
is practicable.

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3. Loading Pump Station : Tumpat

There are several


combinations of pipelines
and pumping capacity for
different flow rates. These
combinations are described
below.

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We anticipate a wide range


of loading flow rates, hence
workings for the nominal
flow rate of 1.5 Mbpd and
the maximum of 3.0 Mbpd is
presented.

3.1 Our findings are as follows :

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3.2 Conclusion :

We can propose to install 1 No. 48” Ø to achieve 1.5 Mbpd and install 2 Nos
of 48” Ø to achieve 3.0 Mbpd per SBM installation. The system curves will
be the same. Each pipeline will require circa 7,400 BHP (5.5 MW) pump
capacity.

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4. PIPELINE CONSTRUCTION COST

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Table 4.1 Landbridge material breakdown costs

Table 4.2 Landbridge development Stage 1 costs

Note : Cost of offshore pipelines is excluded in the above computation.


These costs have been included in the marine facilities estimate.

Table 4.3 Landbridge Electricity consumption - Stage DEV.1

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5. Reference & Tables

Table 5.1 Pipe Sizes vs. MAOPs

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ID Task Name Duration Start Finish


1st Half 1st Half 1st Half 1st Half 1st Half 1st Half
Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
M-2 M2 M5 M8 M11 M14 M17 M20 M23 M26 M29 M32 M35 M38 M41 M44 M47 M50 M53
1 Front End Engineering and Design (FEED) 305 days 9/1/08 7/2/09
2 Right-of-Way (ROW) Selection and Survey of pipeline alignment45 days 9/1/08 10/15/08
3 Logistics Study 20 days 10/16/08 11/4/08
4 Initial Environmental Study of Sensitive Areas 20 days 11/5/08 11/24/08
5 Initial Permit Application, Licenses and Approvals 60 days 11/25/08 1/23/09
6 Table 5.2 : ANSI80Maximum
Engineering and Design days 1/24/09 Allowable Operating Pressure
4/13/09
7 Project Planning and Organization 20 days 1/24/09 2/12/09
8 Establishment of Base Case and Alternatives 10 days 2/13/09 2/22/09
9 Initial Alignment Drawings 10 days 2/23/09 3/4/09
10 Schematic Flow Diagrams 10 days 3/5/09 3/14/09
11 Preliminary Process Flow Diagrams and Charts 10 days 3/5/09 3/14/09
12 Major and Critical Equipment List 10 days 3/5/09 3/14/09
13 Preliminary Equipment Arrangements 10 days 3/5/09 3/14/09
14 Single Line Electrical Diagrams 10 days 3/5/09 3/14/09
15 Special Studies 60 days 2/13/09 4/13/09
16 Value Engineering and Cost Reduction Studies 30 days 3/15/09 4/13/09
17 Procurement Plan 20 days 4/14/09 5/3/09
18 Construction Implementation Strategy 20 days 4/14/09 5/3/09
19 Updated Cost Estimate Tally for Project 30 days 5/4/09 6/2/09
20 EPCM Packages award 30 days 6/3/09 7/2/09
21 MOU with involving parties 30 days 4/14/09 5/13/09
22 finalization of ‘supply & offtake’ contracts and project financing 30 days 5/4/09 6/2/09
23 Placement & delivery of long lead items 120 days 5/4/09 8/31/09
24
25 Mobilisation 60 days 7/3/09 8/31/09
26
27 Engineering, Procurement & Construction Management (EPCM)
600 days 9/1/09 4/23/11
28 Onshore Terminals 540 days 9/1/09 2/22/11
29 Tank farm 360 days 9/1/09 8/26/10
30 Pump Station 180 days 9/1/09 2/27/10
31 Administration Centre 180 days 2/28/10 8/26/10
32 Control Room 180 days 8/27/10 2/22/11
33
34 Offshore Marine Terminal 1& 2 500 days 11/30/09 4/13/11
35 SBM 350 days 11/30/09 11/14/10
36 Offshore pipeline 350 days 11/30/09 11/14/10
37 Booster pump station 150 days 11/15/10 4/13/11
38 Power Sub Station 120 days 11/30/09 3/29/10
39 Jetty 120 days 11/30/09 3/29/10
40
41 Power station 180 days 3/30/10 9/25/10
42 Loading Pumping station 180 days 9/26/10 3/24/11
43 Storage/ warehouse 180 days 9/26/10 3/24/11
44
45 Remote pumping/relief station 480 days 11/30/09 3/24/11
46 Power station 180 days 11/30/09 5/28/10
47 Pump station 180 days 5/29/10 11/24/10
48 Storage/Warehouse 120 days 11/25/10 3/24/11
49
50 Pipeline 510 days 11/30/09 4/23/11
51 Corridor clearing 180 days 11/30/09 5/28/10
52 Laying & jointing 120 days 5/29/10 9/25/10
53 Accessories installation 120 days 9/26/10 1/23/11
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54 Testing 90 days 1/24/11 4/23/11
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55
56 Commissioning 100 days 4/24/11 8/1/11
57
58 Commencement of Commercial Operation 0 days 8/1/11 8/1/11 8/1
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