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Gela - Malta Project

April 2009

2

Basis and Criteria of the Study

Results

Budgetary Estimate Summary

3

SUMMARY OF THE STUDY

The study represents an updating of a previous evaluation performed in 2002 and is based on the following requirements:

Malta shore approach at Delimara,

Export pressure = 54 barg

Minimum delivery pressure = 39 barg,

Flowrate scenario:

Max Peak = 106570 Sm3/h

The hydraulic study performed according to the same approach adopted in 2002 leads to the definition of the following pipeline diameter

OD = 18”

The expected accuracy of the estimate is ± 20%

4

Basic Data

5

Gas Composition and Characteristics

Equation of State = PR Peneloux

Gas Composition

Component Mol%

Methane 86.7854

Ethane 6.2315

Propane 1.4872

i-Butane 0.2707

n-Butane 0.4140

i-Pentane 0.1305

n-Pentane 0.1080

Exane 0.0375

Eptane 0.0053

Nitrogen 4.1520

Carbon Dioxide 0.3711

Water 0.0068

Total 100.0000

Gas Characteristic

@ STD Conditions: 1.013bar, 15°C

Value

Gas Molecular Weight (kg/kmol) 18.39

Gas Density (kg/m3) 0.779

6

Malta Required Flowrate

0

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

10

3 x

SC

M/h

Hour

Mid-season week day Mid-season Weekend day Summer Week day

Summer Weekend day Winter Week day Winter Weekend day

Peak day

7

Pipeline Data

Pipeline characteristics

Pipe Material Steel Grade API 5L-X65

SMYS 450 MPa

SMTS 535 MPa

Steel Density 7850 kg/m3

Young Modulus 207000 MPa

Poisson Ratio 0.3

Coefficient Of thermal Expansion 1.16 x 10-5 °C-1

Sea Water Density 1026 kg/m3

Concrete Density 3040 kg/m3

Corrosion Coating Density 1300 kg/m3

Corrosion Coating Thickness 2.5 mm

Corrosion Allowance 0 mm

Out of roundness 1.5% OD

but maximum 15 mm

Thickness tolerance ±0.75 mm for t ≤ 15 mm

±1.00 mm for t > 15 mm

8

Soil Data

KP KP SOIL GELA-MALTA

Dr Su D50

From To kN/m3 Deg. % kN/m

2 mm

0 4.4 Fine SAND with occasion Shell becoming medium toward coast

9 44 85-100 -- 0.09-0.16 0.7

(max.)

4.4 7.9 Silty Fine SAND with Occasional Shell. Possible Presence of clayey SAND.

9 32 35-65 -- 0.07-0.1

7.9 10.2 Very Soft Silty CLAY with Occasional Shell 7.5 -- -- 2 0.009-0.013

10.2 21.2 Very Soft Silty CLAY 4.5-5.5 -- -- 2-4 <0.002

21.2 36 Very Soft Silty/Sandy CLAY. Occasional presence of Shell Fragments.

7 -- -- 8-10 0.01-0.03

36 51 Very Soft Silty CLAY. Occasionally some intrusions of sandy CLAY,

5.5* -- -- 6* 0.003

51 95 Very Soft Sandy CLAY, containing some shell fragments

8.0* -- -- 8-15* 0.01-0.04

95 115 Very Soft Silty/Sandy CLAY at top, changing in fine SAND in depth.

4.0*

1-2*

<0.002

8.5* 40* 50-65* <0.074

115 136 Fine to Medium SAND with Occasional Shells. Possible intercalation of Clay and Silt.

8.5* 36-44*

60-100*

-- 0.06-0.2*

136 145 Fine SAND with high content of Shells, concretions and corals.

9.0* 40-44*

80-100*

-- 0.09-0.16 0.7

(max.)*

145 148 Fine to Medium SAND with high content of shells/corals fragment.

8.5* 36-44*

60-100*

-- 0.06-0.2*

148 LTE Gravely SAND. High Probability of Rock Outcrops. 7.0-8.5* 30-36*

35-65* -- 0.1-0.9*

9

Hydraulic Analysis - Inlet and Delivery Gas Conditions

Gas Condition Value

Inlet Gas Pressure (barg) 54

Inlet Gas Temperature (°C) 18

Delivery Gas Pressure (barg) ≥39

Delivery Gas Temperature (°C) As per result of the hydraulic simulations,

in peak day conditions

10

Hydraulic Analysis – Data Input

Pipe and Soil data:

Steel grade: X65 Pipe internal roughness: 25 microns Corrosion Coating Thickness: 2.5 mm.

Pipeline Material Thermal Conductivity

W/m K

Steel 50

Corrosion Coating (PE) 0.3

Overweight Concrete 2.33

Soil Thermal Conductivity

W/m K

Wet Sand 2

Dry Sand at Gela 1

Dry Sand at Malta 1.5

11

Hydraulic Analysis – Data Input

Pipeline Burial Configuration:

The pipeline is assumed buried in the onshore sections and in the coastal areas (i.e. for WD<30m at Gela side and for WD<35-40m at Malta side). The pipeline is considered unburied in the deep water.

Pipeline Burial Depth (from the pipeline top)

m

Onshore Sections 1.5

Offshore Sections 1

12

Results

13

Scenario 16” OD Pipeline Gela – Malta (Delimara): Process Analyses Results

Scenario A - 16" ND Pipeline

- Pressure Trends-

30

32

34

36

38

40

42

44

46

48

50

52

54

56

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Time [h]

Pre

ssu

re [

barg

]

Pressure Supply at Gela Terminal (P/L Inlet)

Pressure Delivery at Delimara Terminal (P/L Outlet)

Minimum Delivery

Scenario A - 16" ND Pipeline

- Flow Rates Trends-

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Time [h]

Flo

w R

ate

[S

cm

/h]

Gas Supply at Gela Terminal (P/L Inlet)

Gas Delivery at Delimara Terminal (P/L Outlet)

14

Scenario 18” OD Pipeline Gela – Malta (Delimara): Process Analyses Results

Scenario A - 18" ND Pipeline

- Flow Rates Trends-

0

20,000

40,000

60,000

80,000

100,000

120,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Time [h]

Flo

w R

ate

[S

cm

/h]

Gas Supply at Gela Terminal (P/L Inlet)

Gas Delivery at Delimara Terminal (P/L Outlet)

Scenario A - 18" ND Pipeline

- Pressure Trends-

30

32

34

36

38

40

42

44

46

48

50

52

54

56

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Time [h]

Pre

ssu

re [

barg

]

Pressure Supply at Gela Terminal (P/L Inlet)

Pressure Delivery at Delimara Terminal (P/L Outlet)

Minimum Delivery

15

Scenario 18” OD Pipeline Gela – Malta (Delimara): Wall Thickness Analyses Results

Gela - Malta (Delimara) - OD=18" - Pd=75 bar

WT=10.3

WT=15.9

-200

-180

-160

-140

-120

-100

-80

-60

-40

-20

0

0 20000 40000 60000 80000 100000 120000 140000

KP (m)

Wa

ter

De

pth

(m

)

0

2

4

6

8

10

12

14

16

18

20

Wa

ll T

hic

kn

es

s (

mm

)

WD (m) Min WT (mm) Selected WT (mm)

Min Buckle Arrestors Thickness (mm) Selected Buckle Arrestors Thickness (mm) Min Prop Buckl

16

Scenario 18” OD Pipeline Gela – Malta (Delimara): On Bottom Stability and Layability Analyses Results

Gela - Malta (Delimara) - OD = 18" - Pd=75 bar

CCT= 90.0

CCT= 60.0

CCT= 40.0

CCT= 60.0

CCT= 90.0

-200

-150

-100

-50

0

50

0 20000 40000 60000 80000 100000 120000 140000

KP (m)

Wa

ter

De

pth

(m

)

0

10

20

30

40

50

60

70

80

90

100

Co

nc

rete

Co

ati

ng

Th

ick

ne

ss

(m

m)

WD (m) Selected CCT (mm)

17

Budgetary

Estimates

18

Budgetary Estimates - CAPEX

CAPITAL COSTS Scenario

OD = 18"

Lenght (km) 154.0

Steel Weight (Kton) 17.763

Inch 18

Management and Design Meuro 15

Materials Meuro 53

Construction Meuro 138

TOTAL Meuro 206

19

Budgetary Estimates - OPEX

OPERATING COST

Scenario

OD = 18"

Periodical cost for Pipelines and Shore approaches Surveys (Every two year operations)

Meuro 2.2

Periodical cost for Internal Line Inspection (Every seven years operations)

Meuro 1.4

TOTAL per year Meuro/year 1.3

20

The budgetary cost estimate has been evaluated in Euro on the basis of in house data

bank. Particularly, the following cost for procurement of steel pipeline have been considered:

Budgetary Estimates Notes

2,000 Euro/ton

21

Main exclusions from the budgetary estimate:

• Capital taxes, import duties and levies

• Owner costs, taxes, etc.

• Paid interests and/or financial charges

• Financial arrangements, bonds, guarantees, cash flow burning and similar

• Taxes, duties, fees, VAT, etc. of any nature

• Costs associated with the Builder All Risk (BAR), Third Party Liability (TPL) or other

related Project Insurances including Insurances during the operation period

• Land acquisition and Right of Way

• All permits and licences including special Project environmental protection

arrangements

• Certification

• Any extraordinary intervention on pipelines and plants.

• Weather Down-Time or Weather Stand-By

Budgetary Estimates Exclusions