Croatia: Gas storage project Krk environment impact study presented, high expectations for market share of future storage

, SEE Energy News

They are at the same time seeking for a strategic partner, customers and suppliers of gas for the terminal, which could start operating in 2018. In the Ministry of Environment and Nature it was submitted Environmental Impact Study for the construction of terminal for liquefied natural gas on the island, which Oikon company made ​​for a client.

The EIS predicts construction of land terminal with capacity of 6 billion m3 per year, and it would be built on Cape Zaglav, in the industrial zone Dina Petrokemija. From the source in the Ministry of Economy, we found out that it is expected the convening of the expert committee for evaluation of the study, which by getting the green light should be addressed in a public hearing.

It is anticipated that public consultation lasts for 30 days because the local communities and NGOs are already familiar with the intervention. If everything goes smoothly, the consent about the acceptability of the Studiy on the environment could be made around Christmas and location permit two months later.

They say in MINGO that in parallel with the process of assessment of the Studiy, two processes are conducted – the purchase of land from the Hypo bank, with which deals DUUDI, and negotiations with potential interested investors, in order to the conclusion of a strategic partnership.

After issuance of building permits and obtaining rights of servitude over the land, and defining strategic partnership, follows contracting for the CPI contractor (engineering, procurement and construction of the terminal), who should obtain a building permit. Construction could begin earliest to late next year or in the first quarter of 2015, in order terminal began operating in 2018.

A team working on a project based on the feasibility study and intensive contacts, estimates that terminal in the first phase could reach a capacity of 5 billion m3, and the key of such good terminals usability is in very optimistic talks with Ukraine’s Naftogaz. Ukraine, which consumes 50 billion m3 of gas per year, is seeking to procure large quantities of gas from sources other than Russian, and as building of their own terminal on the Black Sea tripped over, the Krk LNG makes them a good solution.

Another potential gas buyers are Austrian OMV, Hungarian MVM and Slovak SPP. We find that there is great interest in the management of the terminal as well as from gas supplier companies. Apart from Qatar, American companies that trade in gas shale also stand out and their expansion overseas is only a matter of time. It is not impossible that the gas which will arrive at Krk is from two suppliers, and it is interesting that the feasibility study showed that the terminal on Krk is with re-gasification price very competitive with LNG terminal in Rovigo.

We should say a few words about the environmental study. When it comes to the choice of technology, the key difference of Krk land terminal in relation to the terminal capacity from 10 to 15 billion m3 per year, which wanted to build Adria LNG consortium, is the use of evaporators with submerged burner (SCV). With these evaporators liquefied gas under pressure is evaporated by heat of combustion gas. Adria LNG consortium on the other hand for liquefying gas wanted to use ORV vaporizers that rely on the warmth of the seawater, which in this case is rated environmentally unacceptable due to the application of chlorine. However, the application of SCV evaporator means increased emissions of pollutants in the ambient air. Regarding the emissions of harmful compounds of nitrogen dioxide for the full capacity of the terminal, EIS suggests building the chimney height of 55 meters.

Project envisages storage of LNG in two road tanks with total capacity of 360,000 m3. For possible expansion of the terminal in the future, it is foreseen the position of a possible third tank. Tanks are a height of about 55 meters and a diameter of about 80 meters. It is foreseen also the construction of connecting pipeline LNG terminal – MRS Omisalj DN 1000/100 bar and a length of 3.2 km.
Furthermore, the construction of a new dock for LNG tankers northwest of the planned terminal location, which will be able to receive LNG ships with a capacity of 75,000 m3 to 265,000 m3. It is expected annual turnover of 50 to 80 ships which will enter Rijeka bay and out of it through Vela door, passage between Istria and Cres.

The construction of the terminal, according to the EIA, will not have a greater impact on the maritime traffic in the area, although traffic is expected to increase to a maximum of around 3,200 docking annually over the next 10 years. Tourism in the terminal area will suffer damage, which in direct tourism industry it can count the damage estimated at 173,000 per year over the next 30 years.

The study deals with the possibility of rough domino effect of accidents on the terminal, given its proximity to the terminal, Dina drives and JANAF, for which it was concluded that domino effect can not be. Although the fate of Dina is currently unknown, it was taken into account the maximum capacity of the plant, and situations such as the collapse of ethylene, VCM and LNG storage.

“Within the Project LNG terminal, based on more detailed information, there will be a complete report on the safety of the LNG terminal in accordance with the Regulation on the prevention of major accidents involving dangerous substances, which provides details of the procedure. Studies at the level of the environmental impact by proper setting position of the main facilities is essential to establish that the insured the necessary safety distance between individual risk structures, systems and components, including the relations between DINA petrochemical and LNG terminals. Conclusion of created processing, is how sufficient safety distance are provided, using conservative methods of treatment, and that the suggested disposition gas terminal meets the established criteria. LNG terminal will not create unacceptable risks. Scenarios of the escalation of critical events on LNG terminal, either at plant DINA Petrokemija, are not likely, and would not create an unacceptable risk,” says the study, which recommended a number of measures to reduce the risk of land and sea, and tribulation state program during preparation and construction, and terminal operation. According MENP confirmation from 16 July, procedure has no significant negative impact on the conservation objectives of the ecological network.

Source; Serbia Energy See desk/CRO MINGO