Annex 2A-1 Evaluation Outcomes of Preliminary Screening Study for GRS Locations

Evaluation Criteria	Site A	Site B	Site C	Site D
Site Location	It comprises a strip of the western side of the west ash lagoon. The area currently features a concrete barge landing and a large concrete hardstand storage space. A pumping station compound located near the southern end of the site is not place any unmanageable constraints on the development of GRS facilities on the adjacent area.	It comprises a new reclamation adjacent to the existing GRS. Two options based on the different locations of the reclamation were considered: Option 1 is an area between the existing Yacheng pipeline and the BPPS cooling water outfall, which is the location previously defined in the HKLNG EIA and Environmental permit; Option 2 is an area between the existing Yacheng pipeline and the Western Ash lagoon.	It comprises an area at the north eastern end of the existing GRS that would be an extension of the existing compound on which the existing GRS stands. Much of the site area is presently natural hillside that would have to be cut to create a flat area for the GRS. It should be noted that the existing power cables that supply electricity to Shekou cross the proposed site area and that a small portion of the existing GRS compound would have to be utilised to form the new site.	The existing GRS features three areas that do not presently have any equipment or piping installed. Additionally, the slug catcher is redundant and could be removed, creating more space area on the south side of the pipe rack. Work previously done for the HKLNG project showed there is sufficient space for one additional pipeline terminal and GRS.
Pipeline Shore Crossing	The pipelines could approach the site from the Northwest and be constructed through the existing seawall. Note that in all cases the pipeline would have to cross the existing power cables that supply electricity to Shekou.	The pipelines could approach the site from the Northwest and be constructed through the new seawall in a “slot” prepared during seawall construction. Note that in the case of Option 1 the pipelines may have to cross the existing Yacheng pipeline depending on pipeline design.	The pipelines could approach the site from the Northwest and be constructed through the existing seawall.	The pipelines could approach the site from the Northwest and be constructed through the existing seawall to the north of the Yacheng pipeline.
Fuel Gas Heater Route	Fuel gas headers could easily be routed parallel to the existing sea wall to a mixing & handling facility constructed within the existing GRS compound.	Fuel gas headers could easily be routed to a handling facility constructed within the existing GRS compound.	Fuel gas headers could easily be routed to a handling facility constructed within the existing GRS compound.	Fuel gas headers could easily be routed to a handling facility constructed within the existing GRS compound.
Constructability	Site preparation is expected to be limited to consolidating the existing ground, filling where required to extend the available site area beyond the existing hardstand and constructing a secure boundary fence. Existing access roads to the ash lagoon are presently used by heavy trucks and are considered suitable for construction access. The existing concrete wharf is considered suitable for handling of materials and equipment delivered by barge and there is a large amount of space that could be used for temporary storage of materials and equipment during construction. Provision of construction power and water from BPPS could be easily arranged and in general, construction activities would not be expected to affect or be affected by external factors related to the existing GRS or power station. Access and egress by at least two separate routes can easily be maintained for emergency situations.	Site preparation would involve construction of the boundary seawall and reclaiming the site areas within to extend the existing reclamation. Existing access roads through BPPS and around the perimeter are considered suitable for construction access. The existing heavy lift wharf in BPPS is considered suitable for handling of materials and equipment delivered by barge and there is an amount of space within the BPPS property that could be used for temporary storage of materials and equipment during construction. Provision of construction power and water from BPPS could be easily arranged and in general, construction activities would be expected to affect or be affected by external factors related to the existing GRS or power station to a limited extent. Access and egress by at least two separate routes can easily be maintained for emergency situations.	Site preparation would involve cutting the hillside adjacent to the NE end of the existing GRS. Existing access roads through BPPS and around the perimeter are considered suitable for construction access. It should be noted that the existing cables that supply electricity to Shekou currently cross the proposed site area. The existing heavy lift wharf in BPPS is considered suitable for handling of materials and equipment delivered by barge and there is an amount of space within the BPPS property that could be used for temporary storage of materials and equipment during construction. Provision of construction power and water from BPPS could be easily arranged and in general, construction activities would be expected to affect or be affected by external factors related to the existing GRS or power station to a limited extent. Access and egress by at least two separate routes can easily be maintained for emergency situations.	Construction within the existing facility would have to be carried out while the existing facilities are in operation. Previous studies performed in the course of HKLNG project FEED indicate that the work can be completed however a number of constraints and risks exist that do not exist on a Greenfield site. Existing access roads through BPPS and around the perimeter are considered suitable for construction access. The existing heavy lift wharf in BPPS is considered suitable for handling of materials and equipment delivered by barge and there is an amount of space within the BPPS property that could be used for temporary storage of materials and equipment during construction. Provision of construction power and water from BPPS could be easily arranged and in general, construction activities would be expected to affect or be affected by external factors related to the existing GRS or power station to a limited extent. Access and egress by at least two separate routes can easily be maintained for emergency situations.
Operability	The site is expected to offer an ideal operating environment for the proposed facilities.	The site is expected to offer an ideal operating environment for the proposed facilities.	The site is expected to offer an ideal operating environment for the proposed facilities.	The site is expected to offer a suitable ideal operating environment for the proposed facilities, however operation of the different facilities by different operators will need to be handled carefully and interfacing procedures put in place ensuring safety and reliability.
Impact on Existing Operations	Impact on existing operations during construction and operation are expected to be limited to minor works required to route the new GRS export headers into the existing GRS compound for connection to the new gas management facilities.	Impact on existing operations during construction and operation are expected to be limited to minor works required to route the new GRS export headers into the existing GRS compound for connection to the new gas management facilities.	Impact on existing operations during construction and operation are expected to be limited to minor works required to route the new GRS export headers into the existing GRS compound for connection to the new gas management facilities. It is likely that the existing Shekou power supply cables would have to be repositioned in the course of site preparation.	Impact on existing operations during construction and operation could be limited by planning the construction work to be performed in small increments over a suitable schedule period. The potential must be recognized, however, for a mishap during construction or operations having an adverse impact on the current operation.
Available Space	Relative to the site area required for the new GRS facilities there is adequate space both for the permanent facilities and for temporary construction laydown areas.	Relative to the site area required for the new GRS facilities there are constraints on the space available for reclamation that include the BPPS cooling water outfall, the existing Yacheng pipeline and the existing power cables that supply electricity to Shekou.	Relative to the site area required for the new GRS facilities there are constraints on the space available that make substantial slope cutting the only means of providing sufficient space for the new facilities. These include the existing GRS compound to the west and the existing West Ash Lagoon to the east.	Relative to the site area required for the new GRS facilities there are tight constraints on the space available for new facilities. The existing vent stack exclusion area imposes a large obstacle and investigation into alternative arrangements needs to be carried out during subsequent engineering studies and design work.
Layout Options & Flexibility	The site provides flexibility in size and shape for the proposed new GRS compound having few physical constraints that could impede the development.	The site provides limited flexibility in size and shape for the GRS compound because of the physical constraints that exist as well as the limits on reclamations.	The site provides limited flexibility in size and shape for the GRS compound because of the physical constraints that exist as well as the practical limits on slope cutting.	The site provides limited flexibility in layout options because of the physical constraints that exist.
Future Expansion	The potential for future expansion of the facilities is not known, however the space required for the GRS is small compared with the existing clear area available at this site and therefore it is expected that future expansion could easily be accommodated.	The potential for future expansion of the facilities is not known, however the space required for the GRS will have to be reclaimed, as would any additional area identified for future expansion. Thus a considerable amount of pre-investment would be involved if plans for future expansion are considered.	The potential for future expansion of the facilities is not known, however much of the space required for the GRS will have to be cut from the hillside, as would any additional area identified for future expansion. Thus a considerable amount of pre-investment would be involved if plans for future expansion are considered.	The potential for future expansion of the facilities is not known, however it is felt that there would be insufficient space in the existing compound for future expansion unless the Yacheng supply ceased and the relevant facilities were removed to make space available for other new facilities.
Safety, Risk & Health Issues	None identified	None identified	None identified	None identified
Environmental Issues	None identified	Moderate consequences for marine ecological and water quality impacts due to reclamation activities	Catastrophic consequences for vegetation and slope cutting	None identified
Financial Impact	Moderate consequences for site formation (cost for land fill), foundation construction, land acquisition and compensation costs.	Catastrophic consequences of site formation – reclamation & disposal of contaminated spoils Moderate consequences for shore crossing, land acquisition and compensation costs.	Catastrophic consequences of Slope Cut& disposal of contaminated spoils Moderate consequences for land acquisition and compensation costs	Moderate consequences for future expansion and flexibility
Schedule Impact	Catastrophic consequences of onshore land gazettal issues and competing with Govt for usage of site (landfill)	Moderate consequences of land gazettal issues	Moderate consequences of permitting/ approval and land gazettal issues	None identified
Commercial/ Regulatory Concern	Decommissioning of the Ash Lagoon would require an EIA itself which is seen to be undesirable and prone to schedule delay. Land acquisition by HKSAR Government would also be complex given a conflict of interest.	Acquisition of the land would be covered by either a plot extension (extension of the existing BPPS plot) or by acquisition of a new land lot under the provisions of the FSRO and Lands Department processes. This is expected to be relatively straightforward and achievable within the target timeframe.	Acquisition of the land could be a complex process because of its current natural state. Site formation would necessitate clearing of all vegetation and aggressive slope cutting. Opposition from green groups and other stakeholders could be expected, leading to further delays to the project.	Potential legal/ commercial issues that would have to be resolved with the operator of the existing GRS at BPPS. Construction of new plant in the Greenfield site carries appreciably more safety risk and there is the added complexity of potential interference with current operations.
Conclusion	NOT PREFERRED because of insurmountable schedule impacts associated with permitting/ approval and land acquisition	PREFERRED considering an approved EIA for a similar location is present.	NOT PREFERRED because of the financial and schedule impacts associated with permitting/ approval and land acquisition, and terrestrial habitat loss.	PREFERRED as there is limited external, uncontrolled impacts.

Safety, Risk & Health Issues, Environmental Issues, Financial Impact and Schedule Impact were evaluated, analysed and prioritised into three broad categories (Catastrophic, Moderate, and Insignificant), based on the extent of impacts. The ranking protocols developed for this review is presented in Annex 2A-2

The design capacity of a GRS is described in Annex 2A-3.

Annex 2A-2 Ranking Protocols for the Preliminary Screening Study

Annex 2A-3 Design Capacity of a Gas Receiving Station

Design Capacity of a Gas Receiving Station (GRS)

It is critical that each GRS has sufficient capacity to accommodate the generating capacity of the BPPS as well as future needs. This design can ensure that in case failure/ depletion of gas is found in any of the pipelines, the remaining pipeline(s) and the associated GRS(s) (i.e. in the worst case, only one pipeline and one GRS can be in operation) can still provide sufficient capacity to handle BPPS/ HK's fuel need. Such a design can ensure a secure supply/ use of natural gas as fuel. It is also important to note that the size of land required for each GRS does not reduce in proportion to the GRS capacity.

During the early stage of this Project CAPCO has optimised the design of the two proposed GRSs and the present layout of the GRSs represents a minimal land requirement, taking into account the engineering and commercial requirements as well as the construction risk associated with operating gas stations.

Need for the Existing CNOOC GRS

The existing CNOOC GRS is designed to provide sufficient capacity to accommodate the generating capacity of the BPPS under an individual supply contract. It is understood that depletion of the gas supply for the Y-13 pipeline (Yacheng 13-1 field) is expected as early as 2012, but the rate of depletion is unknown and it is expected that the diminishing supply from Yacheng 13-1 will still be used by the BPPS well into the near future (but at lower supply rates). It is therefore crucial that at present the CNOOC GRS, and any part of it, stays in operation and is not decommissioned to allow for a secure supply of gas to HK.