LNG PDD Whru

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board
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\CLEAN DEVELOPMENT MECHANISM PROJECT DESIGN DOCUMENT FORM (CDM-PDD) Version 03 - in effect as of: 28 July 2006 CONTENTS A. B. C. D. E. General description of project activity Application of a baseline and monitoring methodology Duration of the project activity / crediting period Environmental impacts Stakeholders comments Annexes Annex 1: Contact information on participants in the project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring plan

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SECTION A. General description of project activity A.1. Title of the project activity: Title of project activity: Waste Heat Recovery projects for gas turbine generators CDM document version No: 1 Date of the CDM document: 4/11/2009 A.2. Description of the project activity: The project of waste heat recovery for GTG aims to reduce the GHG generated from the fuel gas burning in the hot oil heaters by partially stopping oil heaters (heat generators) operations and utilize the heat generated from the flue gases of GTGs to heat the hot oil instead, in order to obtain the heat duties required by heat consumers (Refer to the project boundaries for the list of heat consumers). The heating duty for the ELNG facilities is generated by hot oil heaters (heat generators). The required heat is obtained by burning of fuel gas in the hot oil heaters. The base line scenario is the same as the scenario existing prior to the start of implementation of the project activity (refer to selection of base line scenario). Main environmental benefits The main environmental benefit from the project activity arises from the replacement / Displacement of an amount of heat energy generated by operation of the existing 4 oil heaters. The project activity displaces energy from fossil fuels based heat generation of the company and hence reduces CO2 emission. The heaters capacity is 154.96 GJ/hr while the new heat capacity of the WHR is 120 GJ/hr. The source of heat of the Project activity comes from the temperature of flue gases emitted from GTG, in the absence of the project activity; the heat accompanied with the flue gases would release to atmosphere. Thus, save environment from thermal pollution. It is worth mentioning that the difference in heat duties between the existing system and the proposed WHR shall be compensated by the one or two oil heater (s) partial operation (for short time of the year) to meet the remaining heat duty requirements of the LNG facilities. The total CO2 emission reduction for the entire crediting period of 10 years has been calculated as 295, 50 tonne CO2equivalent.

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Another benefit other than being reduction of CO2 emissions are Sustainable development through better energy efficiency and improvement of local environment. The project activity will lead to sustainable development and promote sustainable Industrial growth by conserving natural resources and preventing the thermal impact even though no such statutory requirement exists in Egypt. The project is the first submitted project of the Oil/Gas sector in Egypt which will encourage other Oil/Gas companies to understand and apply CDM. Social benefit The proposed project will have indirect positive impact on society, as it is help to conserves the future generations right of utilizing the natural resources by optimizing the usage of natural resources. The project activity increases the indirect employment due to the project activities for skilled manpower and Professionals. In the same time the implementation of the CDM project activities by ELNG internal resources as part of a capacity building project within ELNG to generate more projects that are environmental friendly and promote a sustainable development culture inside the company. The project is a step towards improve energy efficiency and achieve near-zero waste initiatives in Egyptian LNG facilities. Economical Benefits The proposed project aims to install 4 waste heat recovery units for ELNG gas turbine generators which facilitate to stop some of the plant oil heaters; this will reduce fuel consumption which maximizes the quantity of gas liquefied /year and reduce the time required to liquefy the contracted amount of gas along the project life time. A.3. Project participants: Name of Party involved (host) indicates a Host Party) Egypt Ministry of State for Environmental Affaires A.4. Private and/or public entity(ies) Project participants (as applicable) Kindly indicate if the Party involved wishes to be considered as project participant (Yes/No) No
Egyptian LNG Private entity
Technical description of the project activity:

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A.4.1. Location of the project activity: A.4.1.1. >> EGYPT A.4.1.2. Region/State/Province etc.: >>El Beheria Govenerrnate, A.4.1.3. City/Town/Community etc.: >> IDKU A.4.1.4. Details of physical location, including information allowing the unique identification of this project activity (maximum one page): >>>>The Egyptian LNG (ELNG) is a tolling facility that is liquefy natural gas and located 3120'52"N & 3019'14"E, 3 km from the town of Idku and 40 km east of Alexandria on the Egyptian Mediterranean Coast and on the east side of Abu Qir bay. The topography for the general area is flat with little relief except for isolated dunes along the coastline. The proposed project will be located inside Egyptian LNG facility. Host Party(ies):
Map (1): Geographical location of the project A.4.2. Category(ies) of project activity: Sectoral Scope Category 4 (Manufacturing industries)
The project activity may be principally categorized in category 4 Energy Industries (Manufacturing
industries) as per Scope of Projects activities enlisted in the list of sectoral scopes and approved base line and
monitoring methodologies on the website of UNFCCC for accreditation of Designated operational Entities.
A.4.3. Technology to be employed by the project activity: >> Technology to be employed

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Natural gas liquefaction process is carried out in 2 parallel identical production trains. Once liquefied, LNG takes up about one six-hundredth of the space it occupied in its gaseous form, making it easier to store and transport over long distances. The LNG is stored at slightly above atmospheric pressure in double wall cryogenic LNG tanks and is exported as a liquid through LNG tankers. ELNG electric power generation system consists of four gas turbine generators (GTGs). Each GTG is rated at 14.5 MW the flue gases flow from GTG is around 63 kg/s with temperature around 356 C. The operating philosophy of GTG in the Egyptian LNG plant is to operate three out of four GTGs to provide the required electricity , the forth GTG is on standby as backup in case of one GTG fails. The ELNG facilities were originally designed to operate with 4 oil heaters. The project aims to reduce the GHG generated from the fuel gas burning of the 4 oil heaters existing in the LNG. Hot oil system is a closed loop circulation system designed to supply the process heating duties for the LNG plant hot oil consumers (heat consumers). Refer to the project boundaries for the list of consumers. Heat consumers are equipments required to have certain temperature in order to maintain its functions inside the LNG liquefaction factory. The heat energy requirement of the consumers in the project boundary is (185.902 GJ/hr) for mode is divided as follow: a. Feed Gas Heater (E-1106 ) is equal to 35 GJ/hr ( mode 1 only) a. Solvent Reclaimer (E-1205) is equal to 0.921 GJ/hr b. Regeneration Reboiler (E-1204) is equal to 36.8 GJ/hr c. NGL Recovery Column Reboiler (E-1702) is equal to 17.69 GJ/hr d. Make up Fuel Gas Heater (E-2201) is equal to 3.06 GJ/hr Egyptian LNG consist of 2 identical liquefaction production unit, each production unit has a hot oil System contains two parallel hot oil heaters, each heater is designed to provide 50 % of the production train duty, thus the number of oil heaters in the ELNG facility is 4 heaters. The fuel gas is supplied to the heaters from low pressure fuel gas system. Hot oil ((Mobiletherm 605 thermal transfer fluid) is heated in the hot oil heaters from an inlet temperature 150C to outlet temperature 246C. outlet hot oil temperature is directly proportional to the fuel gas supply. Cold Hot oil from consumers is returned back to the hot oil surge drum where the cycle starts again.

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The waste heat recovery (WHRU) unit is designed to utilize heat from the exhaust flue gases of gas turbine generators (GTGs) (refer to A.2. for more details about GTGs) and further used to heat the hot oil. The Waste heat recovery units will be retrofitted directly to the exhaust system of the four GTGs to heat the hot oil up to the intended temperature 247C to achieve the following goals: Save the energy lost with GTGs exhaust gases. Decrease the Green House Gases (GHG) emissions. Solve problem of the lack of hot oil duty in winter time. Increase plant Thermal Efficiency by saving the hot oil heaters fuel gas.
The Determination of the operation philosophy of the WHRU and oil heaters depends on two factors as follow: 1. Operation post 2012 where the feed gas temperature increased due to the implementation of new compression station in the upstream plant which will lead to increase the temperature of the feed gas above the current temperature thus the required heat duty of the plant will be much lower. 2. Operation in winter time (4 months of the year) and summer time (8 months of the year) as the required heat duties depend on the ambient temperature. The mode of operation (different operation philosophy) of the heat generators (WHRU and hot oil heaters) after the project activity is as follow: 1. Mode 1: post WHRU start up until 2012. (3 WHRU + 2 fired heaters) In this mode of operation, one of the liquefaction trains will use 3 WHRU.the other train is operated with two fired heaters. 2. Mode 2: post 2012 until 2025, in winter time. (3 WHRU + 1 Oil Heater) In this mode of operation, one of the liquefaction trains will use one WHRU and one fired heater, the other train will use two WHRU. 3. Mode 3: : After 2012 until 2025, in summer time.( 3 WHRU + no Oil Heater operation) In this mode of operation, one of the liquefaction trains will use one WHRU; the other train will work with two WHRU.

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By stopping burning of fuel gas in oil heaters, fuel gas is saved and converted to LNG (liquefied natural gas). In the absence of the project activity the flue gases temperature (waste heat) will released to atmosphere and the heat duties required to heat the heat consumers in the LNG plant is gained by the 4 oil heaters. The project aims to reduce this amount of CO2equivalent/year as much as possible.
TYPE Hot oil heater Gas turbine Waste heat recovery
ELNG Code 1H-3401A/B TG-3101/2/3/4 W-3401A/B/C/D
MANUFACTURE Uniflux Exotherm Siemens N/A
MODEL N/A SGT 500 N/A
DESIGN CAPACITY 38.74 GJ/hr 14.5 MW 40 GJ/hr
ENERGEY SOURCE Fuel Gas Fuel Gas Flue Gases
Table 1 - Equipment details
The simplified flow diagram is shown below for the new WHRU and existing oil heaters:
Hot oil heater WHRU
Fig 1 Process flow diagram of one waste heat recovery unit

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Hot Oil Heater Hot Oil Heater Train 1
GTGs
Train 2
Figure 2 GTGs and Hot Oil Heaters location A.4.4. Estimated amount of emission reductions over the chosen crediting period: Estimation of emission reductions (Tonnes of CO2e) Year 2011 34111
2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual average over the crediting period of estimated reductions (tonnes of CO2e) Annual Average emission per year of estimated CO2e emission reduction in tones of CO2eq
68222 68222 68222 68222 68222 68222 68222 68222 68222 648109 64810
A.4.5. Public funding of the project activity:

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>>There is no public funding available to the project activity from parties included in Annex 1.

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SECTION B. Application of a baseline and monitoring methodology B.1. Title and reference of the approved baseline and monitoring methodology applied to the project activity: Reference: Approved consolidated baseline and monitoring methodology ACM0012. Ver3.2 Title: Consolidated baseline methodology for GHG emission reductions from waste energy recovery projects And Tool for the demonstration and assessment of additionality (Version 05.2) ( B.2. Justification of the choice of the methodology and why it is applicable to the project activity: As stated in the Consolidated baseline methodology for GHG emission reductions from waste energy recovery projects, the consolidated methodology is for all the waste heat in an identified WECM (Waste Energy Carrying Medium) stream/s that will be utilized in the project activity that would be released to atmosphere in the absence of the project activity at the existing facilities. The waste heat is an energy source for generation of heat in element process (e.g. hot oil). The WHRU is the aimed to utilize the waste energy in the form of waste heat generated from the flue gases of GTGs gas turbine generators (WECM). This waste heat will be used to heat one of the Egyptian LNG heat element process (i.e.: hot oil), instead of obtaining the same energy from combustion of fuel gas in the hot oil heaters. The waste heat generated from flue gases (WECM) will be utilized to heat hot oil. The table below provides justification to the applicability criterias as per ACM0012, version 03.2.

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ACM0012 applicability criteria

1 Type-1: All the waste energy in identified WECM streams that will be utilized in the project activity, is, or would be flared or released to atmosphere in the absence of the project activity at the existing or new facility. The waste energy is an energy source for: Cogeneration; or Generation of electricity; or Direct use as process heat source; or For generation of heat in element process (e.g. steam, hot water, hot oil, hot air); Or for generation of mechanical energy.
Justification The proposed project activity is applied under Type-1 waste energy project, where (waste heat) was released to atmosphere in absence of the project activity in the existing facility. Waste energy is an energy source for generation of heat in element process (hot oil).
If the project activity is based on the use of waste pressure to generate electricity, electricity generated using waste pressure should be measurable; Energy generated in the project activity may be used within the industrial facility or exported from the industrial facility; The electricity generated in the project activity may be exported to the grid or used for captive purposes; Energy in the project activity can be generated by the owner of the industrial facility producing the waste energy or by a third party within the industrial facility; Regulations do not constrain the industrial facility that generates waste energy from using fossil fuels prior to the implementation of the project activity; The methodology covers both new and existing facilities. For existing facilities, the methodology applies to existing capacity. If capacity expansion is planned, the added capacity must be treated as a new facility; The emission reductions are claimed by the generator of energy using waste energy. In cases where the energy is exported to other facilities, an official agreement exists between the owners of the project energy generation plant (henceforth referred to as generator, unless specified otherwise) with the recipient plant(s) that the emission reductions would not be claimed by recipient plant(s) for using a zeroemission energy source; For those facilities and recipients included in the project boundary, that prior to implementation of the project activity (current situation) generated energy on-site (sources of energy in the baseline), the credits can be claimed for minimum of the following time periods: The remaining lifetime of equipments currently being used; and Credit period.
The project does not utilize waste pressure energy, thus this criteria is not applicable. The energy (heated hot oil) generated is used within the industrial facility. The project does not generate electricity and therefore this criteria is not applicable Energy in the project activity is generated by the (ELNG) within the industrial facility. There are no regulations that constrain the industrial facility from using fossil fuel prior to the implementation of the project activity. The application covers the ELNG facility with the existing capacity. No added capacity expansion is planned. The emission reduction will be claimed by generator alone. The project activity does not export energy to any other facility(s).
4 5
8 9
10
The remaining lifetime of generation equipments (GTGs) currently (until 2025) is greater than CDM crediting period (until 2019).1,2

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Waste energy that is released under abnormal operation (for example, emergencies, shut down) of the plant shall not be accounted for.
The project activity does not consider waste energy that is released under abnormal operation.
The proposed project activity meets all the applicability conditions in ACM0012, version 03.2.
B.3.
Description of the sources and gases included in the project boundary:
The geographical extent project boundary shall include the following: a. The hot oil heaters where process heat in the element process (hot oil) energy is generated (generator of process heat). b. WECM which is the flue gases of GTG that provide auxiliary heat (from exhaust) to the waste heat recovery process (WHRU) is included within the project boundary; and c. The process heat consumers in the Egyptian LNG plant where the process heat in the element process energy used. The process heat consumers are as follow: a. b. c. d. e. Feed Gas Heater (E-1106 ) Solvent Reclaimer (E-1205) Regeneration Reboiler (E-1204) NGL Recovery Column Reboiler (E-1702) Make Up Fuel Gas Heater (E-2201)
Figure (2) illustrate the spatial extent of the project boundary comprises from the waste heat sources which is the GTG That provides auxiliary heat to the waste heat recovery units (WHRU) (project activity), and the specific heat consumers in the Egyptian LNG plant that will be connected physically to the waste energy recovery unit and is already connected to the existing generator of process heat (hot oil heaters) Overview of emission sources included in or excluded from the project boundary is provided in Table 1.
Figure B.3.1 and Figure B.3.2 illustrates Baseline scenario and project boundary.

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Figure 1 existing hot oil heaters system simple flow diagram
Figure 2 waste heat recovery unit simple flow diagram

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Source Electricity generation, grid captive source
Gas CO2 CH4 N2O
Included? Excluded Excluded Excluded Included Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Excluded Included Excluded Excluded Excluded Excluded Excluded
Justification / Explanation 1. Electricity generation is GTG is out of the project boundary 2. emissions from power generation will not change by the project activities Main emission source Excluded for simplification Excluded for simplification No cogeneration plant exist No cogeneration plant exist No cogeneration plant exist No steam is used in the flaring processes No steam is used in the flaring processes No steam is used in the flaring processes No supplemental fossil fuel will be used No supplemental fossil fuel will be used No supplemental fossil fuel will be used No supplemental electricity will be used No supplemental electricity will be used No supplemental electricity will be used Waste heat recovery will not used to produce electricity Waste heat recovery will not used to produce electricity Waste heat recovery will not used to produce electricity No cleaning activity is required for the waste heat recovery unit.
Fossil fuel consumption for thermal energy

Baseline
CO2 CH4 N2O CO2 CH4 N2O
Fossil fuel consumption in cogeneration plant
Baseline emissions from generation of steam used in the flaring process, if any
CO2 CH4 N2O
Supplemental fossil fuel consumption at the project plant
CO2 CH4 N2O
Supplemental electricity
CO2 CH4 N2O
Project activity
Electricity import to replace captive electricity, which was generated using waste gas in absence of project activity
CO2 CH4 N2O
Project emissions from cleaning of gas
CO2 CH4 N2O
Table 2: Summary of gases and sources included in the project boundary

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B.4. Description of how the baseline scenario is identified and description of the identified baseline scenario: The baseline scenario is identified as the most plausible baseline scenario among all realistic and credible alternative(s). Realistic and credible alternatives should be determined for: Waste energy use in the absence of the project activity; and
There is no waste energy-use in the project boundary all waste energy from the operation of the hot oil heaters and the gas turbine generators (GTGs) are emitted to atmosphere with out any utilization of any kind. Power generation in the absence of the project activity;
The power generation in Egyptian LNG is not relevant to the activities associated with the project, except that the WHRUs is directly (physically) connected to the GTG which is the power generation equipments in Egyptian LNG. The utilizing of flue gases as a source of heat in the waste heat recovery unit will decrease the thermal pollutions emitted from the GTG as the temperature of flue gases is estimated to decrease from 356 C to 150 C. Heat generation in the absence of the project activity; and
The heat generated from the equipments with in the project boundary is summarized as follow: 1. Heat generated from hot oil heaters equal to 154.96 GJ/hr. 2. Heat generated from gas turbine generators as the temperature of flue gases is equal to (120 GJ/hr). Mechanical energy generation in the absence of the project activity.
The WHRU will not generate any mechanical energy; there is no change in the mechanical energy with the implementation of the project activities. Multiple sub-systems generating energy in the project activity scenario In determining the baseline scenario, existing hot oil system provide an output more than the combined output of all WHRU that will be installed on the exhaust stack of the GTGs in the project activity scenario. Thus an operation of one oil heater in addition to the operations of 3 WHRU is required during winter time (mode 3 operation) to meet the heat duties required during that time (the highest required heat case scenario for the LNG plant) The above mentioned baseline operations is already existing and approved by the environmental authority of Egypt. The fuel source utilized is natural gas. Therefore the alternatives as identified for the project activity should provide the same heat, energy output as in the project activity scenario and should include the alternate use of the waste energy utilized in the project activity.

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Step 1: Define the most plausible baseline scenario for the generation of heat using the following baseline options and combinations For the use of waste heat, the realistic and credible alternative(s) is to utilize WECM that is released to the atmosphere (as combustion products). The facility where the waste energy is generated, consumed and produced is Egyptian LNG As per the ACM-12, the following facilities shall be considered while determining the baseline option: 1. For the industrial facility where the waste energy is generated; 2. For the facility where the energy is produced; and 3. For the facility where the energy is consumed. The energy generator, the waste energy generator and recipient plant are the same which is Egyptian LNG. For the use of waste energy, the realistic and credible alternative(s) is, inter alia: W1: WECM is directly vented to atmosphere without incineration or waste heat is released to the atmosphere; The current practice is that WECM is flue gases which are a product of burning, The WECM is not passed through a process before it vented to atmosphere. Thus, this option is one of the credible and realistic baseline scenarios for the project participants.
W2: WECM is released to the atmosphere (for example after incineration) or waste heat is released to the atmosphere; The current practice is that WECM is flue gases which are a product of burning. The WECM is not passed through a process before it vented to atmosphere.. Thus, this option is not one of the credible and realistic baseline scenarios for the project participants.
W3: Waste energy is sold as an energy source; Currently there is no waste energy sold as an energy source inside ELNG facilities, Transportation of flue gases waste heat to an energy consumer out side is not technically and financially possible option. The technical team of the project did not identify even one option to sell, in the future, the flue gases as energy source. Thus, this option is not a credible and realistic baseline scenario for the project participant.

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W4 Waste energy is used for meeting energy demand; There is no waste energy used to meet the energy demand of ELNG facility and all waste heat from GTG is directly vented to atmosphere Thus, it cannot be considered as a credible and realistic baseline scenario.
W5: A portion of the waste gas produced at the facility is captured and used for captive electricity generation, while the rest of the waste gas produced at the facility is vented/flared; There is no waste gas captured inside ELNG facility and all waste heat from GTG is directly vented to atmosphere Thus, it cannot be considered as a credible and realistic baseline scenario.
W6: All the waste gas produced at the industrial facility is captured and used for export electricity generation. There is no waste gas captured inside ELNG facility and GTGs which is used in power generation is not directly connected to the national electrical grid. Thus, this option is not a credible and realistic alternative scenario.
From the above, the likely baseline scenario for the WECM (waste flue gases from GTGS) is option W2 Other alternative mentioned in the approved consolidated methodology were investigated and all (except W2) were excluded.
For heat generation, realistic and credible alternative(s) includes, inter alia: H1: Proposed project activity is not undertaken as a CDM project activity; The financial feasibility shows that this option is not financially viable. The same has been discussed in section B5. Thus, this option is not a credible and realistic baseline scenario for the project participant. H2: On-site or off-site existing/new fossil fuel based cogeneration plant; Reference to the ACM12, This option is only available for type 2 projects. The project activity is a type 1 project as indicated in section B2, thus, this option is not a credible and realistic baseline scenario for the project participant.

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H3: On-site or off-site existing/new renewable energy based cogeneration plant; Reference to the ACM12, This option is only available for type 2 projects. The project activity is a type 1 project as indicated in section B2, thus, this option is not a credible and realistic baseline scenario for the project participant. H4: An existing or new fossil fuel based oil heaters (oil heaters used instead of boilers); There is an existing fossil fuel based oil heaters plant within the project boundary. The existing scenario is business as usual scenario where existing or new fossil fuel based oil heaters is meeting heat requirements of heat consumers inside LNG plant. Thus, this option is a credible and realistic alternative scenario. H5: An existing or new renewable energy or other waste energy based boilers; As Per the ACM 12, this is not applicable for type 2 project. H6: Any other source such as district heat; There is no other source for heat generation. Thus, this option is not a credible and realistic alternative scenario. H7: Other heat generation technologies; No other heat generation technologies available for the project activity, No potential hydro power generation facilities around the sites and there are no wave energy facilities near by the manufacturing facility. In addition to the previous, all renewable energy mentioned have a very high fluctuations and seasonal variation of the maximum output, which will severely impact the reliability and availability of the ELNG plant. Solar energy is available in Egypt; however installation of new solar turbines to produce electricity a long with a WHRU to produce the required heat duty is not financially feasible and will have a very high capital cost. Reference to the above, alternative H7 is not a credible and realistic alternative scenario. H8: steam/Process heat generation from waste energy, but with lower efficiency; There is no steam generation within the project boundary. The required heat energy and the design efficiency of new proposed waste heat recovery is relative to the waste heat energy emitted from the GTGs. In addition, a production of heat energy with lower efficiency will not generate the required heat energy by the consumers of ELNG. Thus, this option is not a credible and realistic alternative scenario. H9: Cogeneration with waste energy, but at a lower efficiency. The required heat energy and the design efficiency of new proposed waste heat recovery is relative to the waste heat energy emitted from the GTGs. In addition, a production of heat energy with lower efficiency

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will not generate the required heat energy by the consumers of ELNG. Thus, this option is not a credible and realistic alternative scenario.
From the above, the likely baseline scenario of heat generation for the WECM (waste flue gases from GTGS) is option H4 Other alternative mentioned in the approved consolidated methodology were investigated and all (except H4) were excluded. All the above baseline options were developed based on various combinations of baseline options. Exclusion of some baseline options is justified with documented evidence. Step 2: Identify the fuel for the baseline choice of energy source taking into account the national and/or sectoral policies as applicable The baseline fuel is natural gas which is available in abundance in Egypt and there is no supply constraint, and there is contract to provide ELNG with a 1.8 trillion SCF of natural gas until 2025. Step 3: Step 2 and/or Step 3 of the latest approved version of the Tool for the demonstration and assessment of additionality To identify the most plausible baseline scenario, both Step 2 and Step 3 of the Tool for the demonstration and assessment of additionality has been used for the alternatives identified in Step 1 above. The economic attractiveness of each option is evaluated with respect to the current situation and each option is evaluated for a common set of barriers. The outcome of this analysis is: From the baseline analysis, the only credible and plausible alternative that remains after evaluation is W2; Continuation of current practice by releasing waste energy to atmosphere and Scenario H4 where existing hot oil heaters produces the heat is the most reasonable choices as Baseline Scenario. Step 4: If more than one credible and plausible alternative scenario remain, the alternative with the lowest baseline emissions shall be considered as the most likely baseline scenario As per the above discussion as there is only one credible / plausible alternative that remains at this stage of assessment, the alternative (H4) is identified as the baseline scenario for the project activities. As per the methodology, scenario 1 is chosen as the baseline option

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Baseline options and scenario applicable to the project activities Scenario 1 Baseline options Waste energy Heat energy W2 H4 Description of the situation
Waste heat energy from GTGs is directly vented to atmosphere and is not passed through a process before it vented to atmosphere (waste flue gases is released to the atmosphere). The most plausible credible option for heat generation is an existing fossil fuel based oil heaters plant within the project boundary. Table 4: Combinations of baseline options and scenarios applicable to this methodology
B.5. Description of how the anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity (assessment and demonstration of additionality): As per the decision 17/CP.7 and 18/CP.9 a CDM activity is additional, if anthropogenic emissions of GHGs by sources are reduced below those that would have occurred in the absence of registered project activity. The tool for the demonstrations and assessment of additionality (version-05.2) approved at the 39th meeting of CDM executive board requires the project participant to demonstrate and assess additionality, as per the steps given below. In steps A to D. After studying realistic and credible alternatives available to project activity in B.2, it is proved that the generation of heat from oil heaters using fuel gas is the baseline scenario. Egyptian LNG hereby proceeds to establish the additionality of proposed project activity using the tool for the demonstration and assessment of additionality (version-05.2) of 39th meeting of CDM executive board. All selected additionality tool indicators showed that the project activity faces financial, technology and investment barriers and in the absence of CDM finance these barriers would have adverse impact in implementation of the project activity. The base line methodology outlines steps to demonstrate additionality as follow: Step A: Identification of alternative to project activity in consistent with the mandatory laws and regulations. Identify realistic and credible alternatives including:
Step A. 1: Proposed activity undertaken without being registered as a CDM project activity.
The project activity faces financial, technology and investment barriers and in the absence of CDM finance these barriers would have adverse impact in implementation of the project activity.

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Step A. 2: All other plausible and credible alternative No other plausible and credible alternative Step A. 3: continuations of the current situations In absence of the proposed project activity Egyptian LNG would meet the complete heat requirement by
heat consumers from natural gas based hot oil heaters and emit the GHG into atmosphere in the same time, gas turbine generators will emit waste heat to atmosphere (i.e.: business as usual). Enforcement of applicable laws and regulations: All the identified realistic and credible alternative scenarios are in compliance with current legal and regulatory requirements of the country and EB decision on national and /or sectoral Policies and regulation. There is no law or other requirement to reduce/control the GHG and waste heat emissions due to the process of liquefaction of natural gas in Egypt.
Step B: (or step 2 of the additionality tool); Investment analysis to determine that the project activity is not the most or financially attractive. Sub-step 2a. Determine appropriate analysis method A simple cost analysis (Option I of the Additionality tool) will not be appropriate for assessing
investment analysis of this project as The project activity generates the economic benefits due to energy saving (i.e.; saving in Natural gas quantities previously used in auxiliary firing in hot oil heaters and converted to the production trains without increasing of the design or rated capacity of the LNG plant which will lead to increase bonus fees to ELNG). Then, Option II (the investment comparison analysis) or Option III (the benchmark analysis) of the additionality tool should be used. ELNG select Option II
Sub-step 2b: Option II. Apply investment comparison analysis
The most suitable analysis method for the project type and decision-making context is calculation of NPV. Net Present Value (NPV) used to assess the financial feasibility of the project activities. Sub-step 2c. Calculation and comparison of financial indicators The amount LNG (liquefied natural gas) is less than the fuel saved where the process of converting of natural gas to liquefied natural gas involves some losses which depend on some factors such as plant availability, thermal efficiency and processing losses. 1. Plant availability 2. Thermal efficiency 3. Processing losses

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The lifetime of the project activity is estimated by the original equipment manufacture which is 20 years. However, the remaining lifetime of the ELNG facility is 16 years only. Therefore IRR model is ascertained till 2025 considering energy savings and CDM revenue inflow start in year 2011 and end in year 2019. The financial/economic analysis was based on parameters that are standard in the market, considering the specific characteristics of the project type such as plant availability and thermal efficiency and LNG processing losses. At the time when the investment decision was made, ELNG has an actual price quotation for the waste heat recovery unit. Thus no major change in the cost estimation is expected from the time of issuing this PDD.
Confidential Note: Please note that the economics referencing the Processing Fee should be treated as confidential information as it is based on the project documents between the Train Users and the Train Companies. The below paragraph will explain the investment analysis worksheet:
1. Summary of cost estimation:
Below is the summary for all costs associated with the WHR project in US $:
a. Engineering cost actual $500,000. b. Main unit is estimated to cost $5,150,000, which are the sum of: i. The main unit is estimated to cost $5,000,000 based on quotations received from potential suppliers; ii. $150,000 an estimate for transportation cost, and iii. Materials cost of $1,066,593 based on the prices of recent similar orders; piping $410,695, valves $326,180 electrical $35,504, and instrumentation $ 294,214. iv. Civil works are estimated to value $623,637 consistent of $350,000 for foundation and $273,637 for steel structure based on a recent offer. v. An Installation contract which includes scaffold and main unit installation should cost $813,089 based on recent offers/cost index. The total estimated CAPEX totals $8,153,319 +/- 20% accuracy. Operating & Maintenance (O&M) cost is estimated to be 2.5% of capital cost which is $203,833. Total cost is therefore the sum of CAPEX and O&M, which equals $8,560,984.
2. Final sheet: The economic scenarios presented demonstrate three different cases/scenarios that ELNG faces regarding
this project:

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a. The Do Nothing Baseline Case: In this scenario ELNG decides not to pursue the project to reduce carbon emission with zero capital
investment (no Capital nor operating costs). The only cash flow is the positive cash flow of the Processing Fee. The Processing Fee is the fee paid by the Train Users (Sellers) to the Train Companies for liquefaction services. Part of the Processing Fee, ELNG gets compensation for fail days, mainly days when the Sellers do not deliver full gas to the Train Cos. Assuming 10.98 fail days flat over the 15 years of ELNG life time, the NPV of this scenario (discounted at the rate of 4% from Reuters 15 year T-Bonds) is $ 70,178,587
b. ELNG WHR Case: This case assumes that ELNG starts the Waste Heat Recovery (WHR) units and proceeds with the project
in 2011. The capital investment is $8,153,319, as explained in detail in the (I-Summary of Cost Sheet), for the first year. For the operating cost, it is assumed that O&M would be 2.5% of the initial capital cost 203,833.No other operating cost is assumed. The impact of the WHR project is that it will enhance the plant efficiency by enabling the plant to produce more LNG from the same amount of feed gas, in the same time will reduce GHG emissions. This is achieved by burning less of the gas as fuel gas to generate heat. ELNG will produce slightly more LNG which will attract a processing fee; the actual production component will be higher if the plant is more efficient as the outset of this project. The assumption in this case is that the fail day was the same as in the base case. The NPV of this scenario (discounted at the rate of 4% from Reuters 15 year T-Bonds) over 15 years is $67,322,050
c. WHR without CDM revenues The difference between what ELNG would normally get in the Do Nothing case and the second case
WHR Case should be the determinant factor here. The delta between case 1 & 2 is actually negative $2,856,527 which means that financially, ELNG is better off not going on with the project since it means additional costs incurred.
d. WHR with CDM revenues The difference between what ELNG would normally get in the Do Nothing case and the second case
WHR Case adding the CDM revenues as constant value equal to $ 300,000 per year for the first two years and $ 650,000 per year for the remaining 8 years of the 10 years registering period. The delta between case 1 & 2 is positive $1,947,485 which means that financially, ELNG is better going on with the project.

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Outcome of step 2: Based on the investment analysis it could be concluded that the project activity is unlikely to be the financially attractive without CDM benefits. Step C: Barrier analysis. As per the tool for the demonstrations and assessment of additionality (version-05.2) approved at the 39th meeting of CDM executive board requires the project participant to demonstrate and assess additionality, step C is not required after implementation of step B. however, ELNG decide to go through the barrier analysis because the overall integrity of / and the inherent safety of the type of technology used in the project activities were discussed during the detailed engineering phase of the project and during HAZOP3. Sub-step 3b. Show that the identified barriers would not prevent the implementation of at least one of the alternatives (except the proposed project activity). The only realistic alternative to the proposed CDM project activity is the continuation of current practice, as explained in Section B.4 and the barriers identified could not prevent implementation of the alternatives except the project activity.
Step D: Common practice analysis. As per the tool for the demonstrations and assessment of additionality (version-05.2) approved at the 39th
meeting of CDM executive board requires the project participant to demonstrate and assess additionality, step C is not required after implementation of step B. Sub-step 4a. Analyze other activities similar to the proposed project activity. No other liquefied natural gas plants have installed WHRU on GTGs to recover waste heat for the purpose of heating hot oil in the EGYPT. It is customary and by practise to vent flue gases GTGs. However, utilizing of waste heat recovery in 2 plant amongst the oil and gas plants in Egypt is practiced for energy efficiency purpose and the 2 gas plants were originally designed to include this WHRU, in additions none of them were submitted as a CDM project.
Company Name SEGAS UGDC RASHPETCO SIDI KERIR petrochemicals MIDOOR refinery AMOC refinery APC GASGCO
WHRU technology utilization Yes but Not on GTGS Yes No No No No No No
Submit as CDM project No CDM No CDM No CDM -

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WEBCO No LAB No EPC No Suez refinery No Sub-step 4b. Discuss any similar options that are occurring.
The Egyptian national laws and regulations of the power sector and oil and gas sectors in the EGYPT does not provide incentives to enhance energy efficiency in plant except for enhancing the power factors inside facilities that is utilized power.
Outcome of Step 4: The common practice analysis shows that no similar activities can be observed similar to the proposed
project activity.

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B.6.
Emission reductions: B.6.1. Explanation of methodological choices: >> Baseline Emissions The baseline emissions for the year y shall be determined as follows:
BE y = BEEn,y + BEflst,y
Where: BEy = the total baseline emissions during the year y in tons of CO2 BEEn,y = The baseline emissions from energy generated by project activity during the year y in tons of CO2 BEflst,y = Baseline emissions from steam generation, if any, using fossil fuel that would have been used for flaring the waste gas in absence of the project activity (tCO2e per year), calculated as per equation 1c. This is relevant for those project activities where in the baseline steam is used to flare the waste gas = 0 (where there is no steam generation for used to carry flue gases to the exhaust of the GTG , the flue gases is emitted to atmosphere by natural draft) Then: Baseline emissions for the base line scenario The Baseline Scenario represents the situation where the heat from a fossil fuel based element process (i.e.: hot oil heaters). The project activity is generation of heat only, and then sub-sections number of the ACM00012 is used for estimating baseline. Thus, sub section (b) of B5 of the ACM 12 were used for calculation of the baseline emissions from energy generated by project activity during the year y in tons of CO2 (BEEn,y). Where (BEEn,y) = (BEther,y). Baseline emissions from thermal energy (BEEn,y)
BE y = BEEn,y
Where: BEther,y = Baseline emissions from thermal energy during the year y in tons of CO2
f cap = Energy that would have been produced in project year y using waste energy generated in base year
y expressed as a fraction of total energy produced using waste source in year y. (The ratio is 1 if the waste energy generated in project year y is same or less than that generated in base year. The value is estimated using equations (1f), or (1f-1) or (1f-2), or (1g), (1g-1) or (1h))
f wcm = Fraction of total heat generated by the project activity electricity using waste energy.

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This fraction is 1 if the heat generation is purely from use of waste energy. If the element process providing heat uses both waste and fossil fuels, this factor is estimated using equation (1d/1e) HG j,y = Net quantity of heat (enthalpy) supplied to the recipient plant j by the project activity during the year y in TJ (It should be noted that no additional fuel outside the hot oil generator is fired to heat the feed oil. for hot oil generator this is expressed as difference in energy content between the hot oil supplied to and returned by the recipient plant(heat consumers) to element process of cogeneration plant). EF heat,j,y = The CO2 emission factor of the element process supplying heat that would have supplied the recipient plant j (heat consumers) in absence of the project activity, expressed in tCO2/TJ and calculated as follows:
Where: EF CO2,i,j = The CO2 emission factor per unit of energy of the baseline fuel used in i th oil heaters used by recipient j (hot oil consumers), in tCO2/TJ, in absence of the project activity EP,i,j = Efficiency of the ith element process (hot oil heaters ) that would have been supplied heat to j th recipient (hot oil consumers), in the absence of the project activity WS i,j = Fraction of total heat that is used by the recipient j in the project that in absence of the project activity would have been supplied by the ith hot oil heaters. MG i,j,y,tur = Mechanical energy generated and supplied to the recipient j, which in the absence of the project activity would receive power from a steam turbine i, driven by steam generated in a fossil fuel boiler. Refer monitoring table for the guidance to estimate this parameter = 0 mech,tur = The efficiency of the baseline equipment (steam turbine) that would provide mechanical power in the absence of the project activity. = 0 Note: MG i,j,y,tur and mech,tur is equal to zero as ther is no mechanical energy generated and supplied to the recipents ( hot oil consumers ) nor the base line equipment ( hot oil heaters)

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Efficiency of the element process or hot oil heaters ( EP,i,j) is based on: (i) Assume a constant efficiency of the element process and determine the efficiency, as a conservative approach, for optimal operation conditions i.e. design fuel, optimal load, optimal oxygen content in flue gases, adequate fuel conditioning (temperature, viscosity, moisture, size/mesh etc), representative or favorable ambient conditions (ambient temperature and Calculation of CO2 emission factor of the element process supplying heat that would have supplied the recipient plant j (heat consumers) in absence of the project activity,
Parameters EF CO2,i,j
Description The CO2 emission factor per unit of energy of the baseline fuel (natural gas) used in i th oil heaters used by recipient j (hot oil consumers), in tCO2/TJ, in absence of the project activity
Value
Reference
55
tco2/TJ
EP,i,j
Efficiency of the ith element process (hot oil heaters ) that would have been supplied heat to j th recipient (hot oil consumers), in the absence of the project activity
100%
Hot oil heater data sheet
WS i,j
Fraction of total heat that is used by the recipient j in the project that in absence of the project activity would have been supplied by the ith hot oil heaters.
100%
Plant operating conditions
EF heat,j,y
The CO2 emission factor of the element process supplying heat that would have supplied the recipient plant j (heat consumers) in absence of the project activity, expressed in tCO2/TJ
55
tco2/TJ

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Calculation of Baseline emissions from thermal energy (BEEn,y)
Parameters
Description Energy that would have been produced in project year y using waste energy generated in base year expressed as a fraction of total energy produced using waste source in year y. (The ratio is 1 if the waste energy generated in project year y is same or less than that generated in base year. The value is estimated using equations (1f), or (1f-1) or (1f-2), or (1g), (1g-1) or (1h))
Value
Reference
f cap
f wcm
This fraction is 1 if the heat generation is purely from use of waste energy. If the element process providing heat uses both waste and fossil fuels, this factor is estimated using equation (1d/1e) 1
HG j,y
Net quantity of heat (enthalpy) supplied to the recipient plant j (hot oil consumers) by the project activity during the year y in TJ (for hot oil generator this is expressed as difference in energy content between the hot oil supplied to and returned by the recipient plant(heat 1240.416
consumers) to element process of cogeneration plant). EF heat,j,y The CO2 emission factor of the element process supplying heat that would have supplied the recipient plant j (heat consumers) in absence of the project activity, expressed in tCO2/TJ BEther,y Baseline emissions from thermal energy during the year y in tons of CO2 68222.88 55

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Capping of baseline emissions The approved methodology ACM12 requires that baseline emissions to be capped irrespective of planned / un planned or actual increase in output of ELNG, change in operations parameters and practice, change of fuel type and quantity resulting into increase in generation of waste energy. As mentioned in the ACM12, project proponent shall select one of three methods to calculate the fcap. Method-2 used in case of project activities implemented in a new facility or in facilities where three-year data on production is unavailable.
The project proponent used Method 1 to estimate the cap as ELNG is more than three years operating facility and data required to calculate F cap is available. Case 1: In case the waste energy is in the form of waste heat of WECM .
Q WCM,BL = Average quantity of WECM released in atmosphere in three years prior to the start of the project activity (Mass unit (kg) of WECM or other relevant unit). Q WCM,y = Quantity of WECM used for energy generation during year y (mass unit (kg)) Cp wcm = Specific Heat of waste energy carrying medium (WECM) (TJ/kg/deg C)
t wcm y,= Average temperature of Waste Energy Carrying Medium (WECM) in year y (Deg C or any other
appropriate unit)
t wcm BL,= Average temperature of Waste Energy Carrying Medium (WECM) in three years prior to the
start of the project activity (Deg C or any other appropriate unit)
t ref = Reference temperature to be used to determine available energy in WECM (either 0 deg C or 25
deg C or other appropriate temperature with proper justification) NCV WCM,y = Average net calorific value of waste gas in year y (if WECM is waste gas), which has unburnt components such as carbon particles, CO or CH4 that will provide energy in waste energy recovery equipment on combustion of gas. (TJ/kg) NCVWCM,BL = Average net calorific value of waste gas (if WECM is waste gas), three years prior to implementation of project activity which has unburnt components such as carbon particles, CO or CH4 that will provide energy in waste energy recovery equipment on combustion of gas. (TJ/kg)
P WCM y, = Average pressure of WECM in year y (kg/cm2 (a) or any other appropriate unit)

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P WCM BL, = Average pressure of WECM in three years prior to the start of the project activity (kg/cm2 (a)
or any other appropriate unit)
P ref = Reference pressure of WECM (either 1 atm. or other appropriate pressure with proper
justification)
H WCM y, = Average enthalpy of WECM in year y (kJ/kg or any other appropriate unit) H WCM BL, = Average enthalpy of WECM in three years prior to the start of the project activity (kJ/kg or
any other appropriate unit)
H ref = Reference enthalpy to be used to determine available energy in WECM ( 0 kJ/kg or other
appropriate enthalpy with proper justification)
d wcm,y = Average density of WECM at actual temperature and pressure in year y (kg/m3 at actual
conditions)
d wcm,BL = Average density of WECM at actual temperature and pressure in three years prior to the start
of the project activity (kg/m3 at actual conditions)
9.81/109 = Factor to convert kg-m into TJ (To be used when pressure is expressed in kg/m2. For all other
units of pressure, the conversion factor should be defined appropriately).

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Calculation of Capping of baseline emissions (Case 1: In case the waste energy is in the form of waste heat of WECM).
Parameters Q WCM,BL
Description Average quantity of WECM released in atmosphere in three years prior to the start of the project activity (Mass unit (kg) of WECM or other relevant unit).
Value
Reference
7.51E+09
calculated
Q WCM,y
Quantity of WECM used for energy generation during year y (mass unit (kg)) 7.51E+09 calculated
Cp wcm
Specific Heat of waste energy carrying medium (WECM) (TJ/kg/deg C) 1.12E-09 calculated
t wcm y,
Average temperature of Waste Energy Carrying Medium (WECM) in year y (Deg C or any other appropriate unit) 365 actual data
t wcm BL,
Average temperature of Waste Energy Carrying Medium (WECM) in three years prior to the start of the project activity (Deg C or any other appropriate unit) 365
t ref
Reference temperature to be used to determine available energy in WECM (either 0 deg C or 25 deg C or other appropriate temperature with proper justification) 15.5
NCV WCM,y
Average net calorific value of waste gas in year y (if WECM is waste gas), which has un-burnt components such as carbon particles, CO or CH4 that will provide energy in waste energy recovery equipment on combustion of gas. (TJ/kg) 0 No calorific value for waste gas
NCVWCM,BL
Average net calorific value of waste gas (if WECM is waste gas), three years prior to implementation of 0
No calorific value for waste gas

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project activity which has un-burnt components such as carbon particles, CO or CH4 that will provide energy in waste energy recovery equipment on combustion of gas. (TJ/kg)
P WCM y, P WCM BL,
Average pressure of WECM in year y (kg/cm2 (a) or any other appropriate unit) Average pressure of WECM in three years prior to the start of the project activity (kg/cm2 (a) or any other appropriate unit) 1.2 1.2
P ref H WCM y, H WCM BL,
Reference pressure of WECM (either 1 atm. or other appropriate pressure with proper justification) Average enthalpy of WECM in year y (kJ/kg or any other appropriate unit) Average enthalpy of WECM in three years prior to the start of the project activity (kJ/kg or any other appropriate unit) 698.1 698.1 1.013
H ref
Reference enthalpy to be used to determine available energy in WECM ( 0 kJ/kg or other appropriate enthalpy with proper justification) 1134
d wcm,y d wcm,BL
Average density of WECM at actual temperature and pressure in year y (kg/m3 at actual conditions) Average density of WECM at actual temperature and pressure in three years prior to the start of the project activity (kg/m3 at actual conditions) 1.265 1.265
9.81/109
Factor to convert kg-m into TJ (To be used when pressure is expressed in kg/m2. For all other units of pressure, the conversion factor should be defined appropriately). 9.81E-09
F-cap
Capping of baseline emissions

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Project Emissions
Project Emissions include emissions due to Combustion of auxiliary fuel to supplement waste gas/heat. The above scenario is due to the backup operation of heaters in case of failure of waste heat recovery unit. It worth mention that There is no Electricity emissions due to consumption of electricity for cleaning of gas before being used for generation of energy or other supplementary electricity consumption. Project emissions are calculated as follow:
Where:
PE = Project emissions due to project activity PE AF y, = Project activity emissions from on-site consumption of fossil fuels by the cogeneration
plant(s), in case they are used as supplementary fuels, due to non availability of waste energy to the project activity or due to any other reason. =0
PE EL y, = Project activity emissions from on-site consumption of electricity for gas cleaning equipment
or other supplementary electricity consumption (as per Table 2: Summary of gases and sources included in the project boundary) =0
PE EL port y,Im , = Project activity emissions from import of electricity replacing captive electricity
Generated in the absence of the project activity for Type-2 project activities. =0 Then PEy = 0

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Project Emissions
Parameters
Description Project activity emissions from on-site consumption of fossil fuels by the cogeneration plant(s), in case they are used as supplementary fuels, due to non availability of waste energy to the project activity or due to any other reason.
Value 0
Reference
PE AF y,
PE EL y,
Project activity emissions from on-site consumption of electricity for gas cleaning equipment or other supplementary electricity consumption (as per Table 2: Summary of gases and sources included in the project boundary)
PE EL port y,Im
Project activity emissions from import of electricity replacing captive electricity Generated in the absence of the project activity for Type-2 project activities.
PE y
Project Emissions
Leakage No leakage is applicable under this methodology. Emission Reductions Emission reductions due to the project activity during the year y are calculated as follows:
ER y = BE y PE y
Where: ER y = Total emissions reductions during the year y in tons of CO2
PE y = Emissions from the project activity during the year y in tons of CO2 = 0 BE y = Baseline emissions for the project activity during the year y in tons of CO2=68222.88
Since the project emissions are non-existent in the project activity so the emission reductions (ERy ) equal the baseline emissions (BEy) Then ER y = BE y = 68222.88

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B.6.2. Data and parameters that are available at validation: (Copy this table for each data and parameter) Data / Parameter: or EP,i,j Data unit: % Description: Baseline efficiency of the element process (hot oil heaters) Source of data used: Manufacturers data or data from similar plant operators or project participants data Value applied: 100 % Maximum efficiency of 100%/ Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: QWCM,BL Mass unit (kg) of WECM or other relevant unit Average quantity of waste energy released in atmosphere by WECM in three years prior to the start of the project activity. Source of data is manufacturers specifications. 7.51E+09 Estimated based on information provided by the technology supplier and the external expert on the waste energy generation per unit of product and volume or quantity of production.
ref
t , ref P , ref H
deg C , kg/cm2 (a), kJ/kg respectively or other appropriate unit Reference temperature, pressure and enthalpy Use the following values or other appropriate pressure with proper justification: 0 for reference temperature. 15.5 Manufacture reference temperature

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Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
twcm,BL deg C or other appropriate unit Average temperature of WECM in three years prior to the start of the project Activity To be measured using appropriate temperature measuring instrument (e.g. Pressure gauge, Manometer etc.) 365 To be averaged based on daily measured values
Data / Parameter: Data unit: Description: Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment: Data / Parameter: Data unit: Description:
H WCM BL,
kJ/kg or any other appropriate unit Average enthalpy of WECM in three years prior to the start of the project Activity From engineering data books 698.1 Measure daily temperature and pressure of WECM, average it annually. At yearly averaged value of pressure and temperature, find enthalpy of WECM.
Source of data used: Value applied: Justification of the choice of data or description of measurement methods and procedures actually applied : Any comment:
QOE,BL GJ/hr Output/intermediate energy that can be theoretically produced (in appropriate unit), to be determined on the basis of maximum recoverable energy from the WECM, which would have been released (or WECM would have been flared or energy content of WECM would have been wasted) in the absence of CDM project activity. For estimating the theoretical energy, manufacturers specifications can be used. 40 *4 Based on equipment specifications, i.e. utilizable energy differential, energy transmission efficiency, etc.

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B.6.3. Ex-ante calculation of emission reductions: >> Refer to B.6.1 B.6.4 >> Summary of the ex-ante estimation of emission reductions:
Estimation of emission reductions (Tonnes of CO2e) 34111
Year
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Annual average over the crediting period of estimated reductions (tonnes of CO2e) Annual Average emission per year of estimated CO2e emission reduction in tones of CO2eq
68222 68222 68222 68222 68222 68222 68222 68222 68222 648109 64810
B.7.
Application of the monitoring methodology and description of the monitoring plan:
All data collected as part of monitoring plan should be archived electronically and shall be kept at least for 2 years after the end of the last crediting period. 100% of the data shall be monitored. The following data shall be monitored. For Project emissions: 1. Quantity of fossil fuels used as supplementary fuel; 2. Net calorific value of fossil fuel; 3. CO2 emission factor of the fossil fuel; 4. Quantity of electricity consumed by the project operations; 5. CO2 emissions factor of electricity consumed by the project operations. While the quantity of fossil fuels fired are measured using calibrated flow meters, other data items are only factors obtained from reliable local or national data. If local data is not available, project participant may use default factors published by IPCC.

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For Baseline Emissions: Depending on baseline emission scenario 1, the following data items need monitoring: Quantity of heat supplied to the recipient plant(s); Properties of heat (e.g. pressure and temperature of the steam) supplied to the recipient plant(s); Properties of heat return to element process (e.g. pressure and temperature of the condensate return) supplied by the recipient plant(s) to the project plant; Efficiencies of element process that would have been built in the absence of the project activity; B.7.1 Data and parameters monitored: FFi,y NM3 or ton Quantity of fossil fuel type i combusted to supplement WECM in the project activity during the year y, in energy or mass units Measurement records of recipient plant(s) 0 Nm3/hr
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:
Continuously and aggregated monthly
Any comment:
Fuel flow meters will undergo maintenance/calibration subject to appropriate industry standards. Records of measuring devices shall ensure the data consistency. Fuel purchase records/receipts by recipient plants shall be used to verify the measured data This data item is measured in volume units and mass units
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5
wsi,,j Gj/hr Fraction of total heat that is used by the recipient j in the project that in absence of the project activity would have been supplied by the ith hot oil heaters Estimated from data on heat consumption by recipient j. And Data sheet of the heater 38*4

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Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied: Any comment:
Yearly
No QA/QC necessary for this data item
QWCM,y Mass unit (kg) Quantity of WECM /Waste Gas used for energy generation during year y Generators of energy 7.51E+09
Calculated.
Measuring equipment should be calibrated on regular equipment. During the time of calibration and maintenance if it will be disconnected for long time, alternative equipment should be used for monitoring There is a technical limitation exist that prevents the measurement of waste gas at the inlet to the WHRU, as there is no measuring point at 2 elevation of the gas turbine stalk. However it is under study to install a flow meter. EFCO2,i,j Tonnes CO2/TJ CO2 emission factor per unit of energy of the fossil fuel used in the baseline generation source i (i=is) providing energy to recipient j IPCC default values. 52
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: QA/QC procedures to be applied:
IPCC guidelines
No QA/QC necessary for this data item

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Any comment: Data / Parameter: Data unit: Description: HGj,y TJ Net quantity of heat supplied to the recipient plant j by the project activity during the year y in TJ. In case of hot oil generator this is expressed as difference in energy content between the hot oil supplied to and returned by the recipient plant(s) to element process of cogeneration plant). Recipient plant(s) actual measurement records 0.1536
Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring frequency: QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment:
No additional fuel outside the oil generator should be fired to heat the feed oil. The respective enthalpies should be determined based on the mass (or volume) flows, the temperatures Continuously, aggregated annually Measuring equipment should be calibrated on regular equipment. During the time of calibration and maintenance if it disconnected for long time , alternative equipment should be used for monitoring
EFCO2,i,j Tonnes CO2/TJ CO2 emission factor per unit of energy of the baseline fuel used in ith heaters used by recipient j, in tCO2/TJ, in absence of the project activity IPCC default values 52
IPCC guidelines
Yearly No QA/QC necessary for this data item

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be
EFCO2,j Tonnes CO2/TJ CO2 emission factor of fossil fuel (tCO2/TJ) that would have been used at facility j for flaring the waste gas IPCC default values 52
IPCC guidelines
EFCO2,i Tonnes CO2/TJ CO2 emission factor per unit of energy or mass of the fuel type i IPCC default values. 52
IPCC guidelines
Qi,h kg/h Amount of individual fuel (and other fuel(s)) i consumed at the energy generation unit during hour h Project participants

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used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment:
680
Flow measurement Lab analysis results of density of fuel gas.
Continuously Measuring equipment should be calibrated on regular equipment. During the time of calibration and maintenance if it disconnected for long time , alternative equipment should be used for monitoring
NCVi or NCVWCM,y (TJ/kg) Net Calorific Value annual average for each individual consumed fuel and/or WECM No calorific value for flue gases 0
Good practice guidance
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected
Qwcm,h kg/h Quantity of WECM recovered in hour h Generator of WECM 0

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emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency
No applicable
Continuously
Cpwcm TJ/kg-deg C or other suitable unit Specific Heat of WECM or fuel From standard engineering data books/ textbooks. Example reference Fundamentals of Classical Thermodynamics; Gordon J. Van Wylen, Richard E. Sonntag and Claus Borgnakke; 4 Edition, 1994, John Wiley & Sons, Inc. 1.12E-09
Once every six-month for the first year. If it can be established that the CP of WECM does not change, one constant figure can be used for entire crediting period.
QA/QC procedures to be applied: Any comment:
There is no necessity to use the specific heat of fuel if the index i in equation represents fuel as sensible heat of fuel is considered to be zero
Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of
twcm,h or ti,h (deg C or other appropriate unit) The temperature of WECM in hour h To be measured using appropriate temperature recorder (temperature data logger) 365
Use appropriate instrument (e.g. digital temperature data logger)

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measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment: Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment:
Measured continuously, averaged hourly
t wcm y
deg C or other appropriate unit Average temperature of Waste Energy Carrying Medium (WECM) in year y To be measured using appropriate temperature measuring instrument 365
Use appropriate instrument (e.g. digital temperature indicator)
Measured daily, averaged yearly
H WCM y
kJ/kg or any other appropriate unit Average enthalpy of WECM in year y To be referred from the engineering data books 698.1
Measure temperature and pressure at which the enthalpy has to be determined
Measured daily, averaged yearly Temperature and pressure measured daily, averaged yearly. Determine enthalpy at average temperature and pressure of WECM.

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Data / Parameter: Data unit: Description: Source of data to be used: Value of data applied for the purpose of calculating expected emission reductions in section B.5 Description of measurement methods and procedures to be applied: Monitoring Frequency QA/QC procedures to be applied: Any comment:
EFheat,j,y Tonnes CO2/TJ CO2 emission factor of the heat source that would have supplied the recipient plant j in absence of the project activity, expressed in tCO2/TJ IPCC default values. 52
IPCC guidelines
B.7.2. Description of the monitoring plan:
The proposed project activity will be operated and managed by the project proponent. Data mentioned in B7 will be recorded by plant personnel and stored in plant information system. In order to ensure project performance an annual QA/QC and bi-annual environmental internal audit will be conducted. Installed meters will be calibrated according to the preventative maintenance schedule program. The piping and instrumentation will be designed to ensure safe and reliable operations of the WHRUs.
B.8. Date of completion of the application of the baseline study and monitoring methodology and the name of the responsible person(s)/entity(ies): Egyptian LNG El Beheria Govenerrnate Egypt. www.egyptianlng.com Date of completion the final draft of the baseline section is 24/6/2010 is the -------------

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SECTION C. Duration of the project activity / crediting period C.1. Duration of the project activity:
C.1.1. Starting date of the project activity: >>March 2008
C.1.2. Expected operational lifetime of the project activity:

>> 20 years 0 months C.2. Choice of the crediting period and related information: C.2.1. Renewable crediting period: C.2.1.1. Starting date of the first crediting period: >> Fixed crediting period has been chosen for the project activities C.2.1.2. Length of the first crediting period: >>>> Fixed crediting period has been chosen for the project activities C.2.2. Fixed crediting period: C.2.2.1. >> 15, March, 2012 C.2.2.2. >> 10 years 0 months Starting date:
Length:
SECTION D. Environmental impacts >> D.1. Documentation on the analysis of the environmental impacts, including transboundary impacts: >> ELNG has Egyptian Environmental Affairs Agency (EEAA) approval on the Environmental Impact Assessment for the project activities4. D.2. If environmental impacts are considered significant by the project participants or the host Party, please provide conclusions and all references to support documentation of an environmental impact assessment undertaken in accordance with the procedures as required by the host Party: >>for environmental impacts with the potential of negative environmental impact, ELNG will adopt and apply appropriates mitigation measures to reduce such impacts.

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SECTION E. Stakeholders comments E.1. Brief description how comments by local stakeholders have been invited and compiled: >>A local stalk holder consultation meeting was organized on the 14th of June, 2010 at ELNG. The stalk holders comprised from IDKU city representatives, shareholders, NGOs and RASHPETCO (ELNG upstream gas plant) in addition to Egyptian DNA, EEAA (Egyptian Environmental Affairs Agency) and CDM APU (Awareness and promotion unit) representatives All stalk holders were informed by meeting through a letter from the HSE manger of ELNG. The notifications were sent 5 days before the meeting. The Agenda of the meeting was as follow: 1. Welcome note and brief description of ELNG environmental activities and CDM initiatives by the operational director of ELNG facility. 2. Welcome note from the HSE manger. 3. Presentation of the CDM Kyoto protocol shows the important of stalk holder participation in CDM projects. 4. Presentation of the proposed projects including brief in technical, socio economics and environmental benefits. 5. Open discussion about the projects and ELNG activities and recording of comments. E.2. Summary of the comments received: >> at the beginning of the meeting and during the welcome note of the OD, Mr. Mohamed Ahmed Bermo head of Literare club in Idku , comments on the ELNG activities and his opinion that this activities may impact on the plants and agriculture activities near IDKU city, then he asked Mr. OD what kind of services and community projects were developed by the company to improve the environment and quality of life of Idku resident, Mr. OD response to the comments explaining the mechanism and plan and how this was in the ELNG agenda since the original project start date. In addition, for agricultural area, Mr. OD explained that the type of activity carried out by ELNG doesnt impact on the agriculture and environment, this due to that ELNG doesnt use any materials that have significant impact on the environment and all waste generated from its activities is well managed through waste disposal contract in the same time all fuel used inside the plant in natural gas which is the cleanest fossil fuel and all emission analysis reports show that ELNG complying with Egyptian environmental law. finally, Mr. OD mentioned that even the company have no obligation and are complying with the Egyptian environmental

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law, today we are discussing a project that is considered an improvement to the environment and promotion of community development. Mr. Mohamed comments that ELNG need to purplish some flyers or newsletter about ELNG community development activities. After that meeting agenda proceed. At the end of the meeting some question raised by the participant as follow: What is the wind direction? Please highlight to the participant the wind direction on the company site map. (EEAA representative Eng. Hoda Mostafa) ELNG highlighted the wind direction and distances with IDKU on the geographical map in presentation. What the benefits to the local community from such project? ELNG explained there is an existing long partnership between the company and its stakeholder since start up date of the original project, this partnership includes many mutual activities and a community development program that have an annual budget, the project is a small change with the activities and like increasing the one level in a building in the same time using the same materials but with less fuel. By applying this project ELNG and its stakeholders contribute in saving the environmental and enhance the company image in addition this initiative will be start point for other CDM projects that may have larger carbon emission reduction. The number of employees that will enter the site during the construction of the project is considered small comparing to those who already working in the original project. Take in consideration that a considerable number of workers inside ELNG facility are/ were employed in the operation/ construction phase of the project. However, ELNG may consider the employment of workers from IDKU if skilled competent workers who can perform the job are available. What if there is leak from the coil of hot oil in the WHRU? What kind of protection the company have to prevent such leakage? The natural draft of stalk of GTG will help not form explosion mixture and there must be a way to detect such leak which will be considered during the detail design of the unit. In addition, the materials selection of such coil is very important and ELNG aware of this issue and by selecting materials with a good quality that with stand the temperature the probability of leakage will be minimized. Also, the company have QA/QC program for selection, inspection and supervise installing of such coils. There will be a decrease of temperature of the flue gases of GTG, Does the emission of GTG reduced by installing WHRU? No, this issue is with minor impact, however. It will decrease the temperature of flue gases emitted to atmosphere. And there will be no reduction of emissions from GTG. It will be the same below the law requirements.

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Does the flue gases of GTG flammable? No. it is mainly CO2 and H2O How come that CO2 is not mentioned in the Egyptian law as pollutant that ELNG have to control? AS CO2 is directly emitted from any human activity including industry and it is directly related to the economic and luxury of life, EGYPT and many other countries cannot make CO2 emissions reduction compulsory as this will severely impact its economy, however this can implied one day in the future through one of the international agreement between government. One of the proposed solutions of CO2 level in atmosphere is what ELNG consulting you today. Does ELNG will sell the existing oil heaters? No it will act as back in case of failure or shutdown of the WHRU. Does the existing concert designed to with stand the new unit? Few minor modification will happened in the in the base of GTG.ELNG will make sure that no impact on the existing concrete base. All comment received from the participant is positive and request that project to be applied in other pants related to the oil and gas sector in Egypt. E.3. Report on how due account was taken of any comments received: >> None of the comments and request of stakeholders requires an action by ELNG during different stages of the proposed project.

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Annex 1 CONTACT INFORMATION ON PARTICIPANTS IN THE PROJECT ACTIVITY Organization: Street/P.O.Box: Building: City: State/Region: Postcode/ZIP: Country: Telephone: FAX: E-Mail: URL: Represented by: Title: Salutation: Last name: Middle name: First name: Department: Mobile: Direct FAX: Direct tel: Personal e-mail: Egyptian LNG
IDKU
EGYPT 00202276200 Yasser.fathy@egyptianlng.com www.Egyptianlng.com Yasser Mohamed Fathy Senior HSE Engineer Fathy Yasser Yasser HSE 0020127877778
Yasser.fathy@egyptianlng.com

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Annex 2 INFORMATION REGARDING PUBLIC FUNDING
Public funding from annex 1 country is not involves in this project

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Annex 3 BASELINE INFORMATION As mentioned in B6.2 and B7

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Annex 4 MONITORING INFORMATION

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1 2
Refer to the original design documents of Egyptian LNG facilities Reference EIA of Egyptian LNG. 3 HJ0015-00-SR-REP-9000-Rev-0 4 EEAA approval on the WHRU project

LNG PDD Whru

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DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Egyptian LNG Private entity

Technical description of the project activity:

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

A.4.3. Technology to be employed by the project activity: >> Technology to be employed

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

TYPE Hot oil heater Gas turbine Waste heat recovery

ELNG Code 1H-3401A/B TG-3101/2/3/4 W-3401A/B/C/D

MANUFACTURE Uniflux Exotherm Siemens N/A

MODEL N/A SGT 500 N/A

DESIGN CAPACITY 38.74 GJ/hr 14.5 MW 40 GJ/hr

ENERGEY SOURCE Fuel Gas Fuel Gas Flue Gases

Table 1 - Equipment details

Hot oil heater WHRU

Fig 1 Process flow diagram of one waste heat recovery unit

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Hot Oil Heater Hot Oil Heater Train 1

A.4.5. Public funding of the project activity:

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

ACM0012 applicability criteria

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Description of the sources and gases included in the project boundary:

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Figure 1 existing hot oil heaters system simple flow diagram

Figure 2 waste heat recovery unit simple flow diagram

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Source Electricity generation, grid captive source

Gas CO2 CH4 N2O

Fossil fuel consumption for thermal energy

CO2 CH4 N2O CO2 CH4 N2O

Fossil fuel consumption in cogeneration plant

CO2 CH4 N2O

Supplemental fossil fuel consumption at the project plant

CO2 CH4 N2O

CO2 CH4 N2O

CO2 CH4 N2O

Project emissions from cleaning of gas

CO2 CH4 N2O

Table 2: Summary of gases and sources included in the project boundary

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

WHRU technology utilization Yes but Not on GTGS Yes No No No No No No

Submit as CDM project No CDM No CDM No CDM -

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

DESIGN DOCUMENT FORM (CDM PDD) - Version 03 CDM Executive Board

Hot oil heater data sheet