Suitability Assessment for LNG Industry at Abbot Point

129 Pages·2011·3.69 MB·English

by  Queensland Government

Suitability Assessment for LNG
Industry at Abbot Point

May 2011
The following document was prepared by RLMS

On behalf of Department of Department of Employment, Economic
Development and Innovation (Office of the Coordinator-General)

RLMS (Resource and Land Management Services) is an independent
consultancy established in 1990, focusing on the energy, transport,
communications and exploration sectors Australia wide. RLMS specialises in
tenure management, land negotiation and acquisition, route corridor selection,
environmental approvals, mapping, and gas market analysis.

EXECUTIVE SUMMARY

The purpose of this study and assessment is to identify if Liquefied Natural Gas
(LNG) facility/s would be appropriate at Abbot Point and to define critical LNG facility
requirements. It is also a desk top analysis that identifies several potentially suitable
sites for LNG and seeks to better understand the opportunities and constraints at
Abbot Point.

This assessment includes the identification of the land and infrastructure
requirements for LNG facilities (including processing, transport, storage and export)
and the implications of LNG industries for the future development of Abbot Point.
This assessment was undertaken for the Abbot Point area, which includes the Abbot
Point State Development Area (APDSA), the Port of Abbot Point and the proposed
Multi Cargo Facility (MCF).

In outlining the critical requirements for LNG, the report and assessment includes a
summary of LNG production and facilities. The differences between coal seam gas
and natural gas have been discussed and it has been concluded there is little
difference between the two types of gas in planning for LNG facilities. It has also
been determined that the source of gas has no material impact on the LNG plant
requirements.

LNG production and facilities were summarised and opportunities for synergies with
other industries were considered. It was determined that the provision of gas
provides an opportunity for many industries for use in power generation, chemical
production and mineral processing.

This assessment also provides a broad overview of the relevant guidelines,
standards and policies applicable to the LNG industry.

The requirements of LNG facilities have been identified within this report. For
potential future LNG proponents, site selection will be strongly influenced by efforts
to minimise transportation and storage costs of LNG and an ideal site would be close
to a marine terminal. In most respects an LNG facility is typical of other industrial
activities and as such, has similar siting requirements. Further, the LNG industry is
subject to rigorous safety standards which have evolved over several decades and
which relate to the safe operation of LNG facilities. Safety is the key driver in site
selection, rather than infrastructure demands or amenity issues, such as odour and
noise.

Three sizes of LNG plants have been discussed including facilities delivering – 1.5
million tonnes per annum (Mtpa), 3 Mtpa and 10 Mtpa. The report discusses design
in terms of safety and risk. Safety is a significant issue both at the plant and the
berth.

A series of site criteria have been tabulated and are included in Table 5.7. These
criteria are generic and any LNG project would need to supplement this information
by undertaking their own investigation and risk assessments. This assessment
concludes that Abbot Point would be suitable for LNG shipping, provided the LNG
berthing facilities are sited and designed appropriately. Further investigations will be
required to understand requirements for specific plant sizes and operations in
RLMS | FINAL REPORT SUITABILITY ASSESSMENT FOR LNG AT ABBOT POINT MAY 2011

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relation to the arrangement of berths and industries on the proposed Abbot Point
Multi Cargo Facility (including operation restrictions and exclusion zones).

This report notes that a LNG facility would be considered a suitable use of land in the
Industry Precinct of the APSDA, however, it was beyond the scope of this project to
review the suitability of all land within the Industry Precinct for a LNG facility.

For the purpose of this desk top study and assessment, four potential sites for LNG
were reviewed:
a site at the proposed MCF;
a site at the base of Mt Luce;
a site near the foreshore; and
a site at the base of Mt Little.

Impact analysis of the selected potential sites were undertaken. The analysis found
that there were opportunities and constraints related to each of the four sites. The
review and analysis of these four sites were undertaken for the purpose of
understanding the application of LNG facilities requirements. It was not intended to
either limit or confirm the location of LNG facilities at Abbot Point but to use several
potential sites to broadly canvas the opportunities and constraints.

This report includes conclusions which are intended to guide the Department of
Employment, Economic Development and Innovation (Office of the Cordinator-
General) and potential proponents related to the planning and investigations for LNG
facilities at Abbot Point.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ............................................................................................ i
1. INTRODUCTION .................................................................................................1
1.1 Background ..................................................................................................1
1.2 Purpose of the Study ..................................................................................2
1.3 Methodology.................................................................................................2
1.4 Limitations ....................................................................................................3
2. OVERVIEW OF ABBOT POINT.......................................................................4
2.1 Abbot Point State Development Area (APSDA) .....................................4
2.2 Land and Infrastructure Planning Study for the Central Portion of
Abbot Point State Development Area ..................................................................5
2.3 Abbot Point State Development Area Multi-user Infrastructure
Corridor Study ..........................................................................................................5
2.4 Port of Abbot Point ......................................................................................6
2.5 Bowen Abbot Point Flood Modelling Study .............................................9
2.6 Water for Bowen ....................................................................................... 10
3. SUMMARY OF LNG PRODUCTION AND FACILITIES ........................... 11
3.1 LNG Production Process......................................................................... 11
3.2 Natural Gas vs Coal Seam Gas ............................................................. 12
3.3 Synergies between LNG and Existing and Future Industries ........... 13
4. RELEVANT LNG FACILITY GUIDELINES, STANDARDS AND CODES
OF PRACTICE.......................................................................................................... 14
4.1 National Fire Protection Association (NFPA) Standard 59A ............. 14
4.2 SIGTTO Information Paper No 14 – Site Selection and Design for
LNG Ports and Jetties ......................................................................................... 16
4.3 AS3961 The Storage And Handling of Liquefied Natural Gas .......... 16
5. LNG FACILITIES REQUIREMENTS ............................................................ 18
5.1 Proximity of Components of an LNG Facilities .................................... 18
5.2 Safety and Risk......................................................................................... 19
5.3 Land Area .................................................................................................. 24
5.4 Port Considerations ................................................................................. 26
5.5 Services ..................................................................................................... 31
5.6 Access........................................................................................................ 31
5.7 Topography ............................................................................................... 32
5.8 Geology/Stability....................................................................................... 32
5.9 Environment .............................................................................................. 33
5.10 Extreme Weather ..................................................................................... 33
5.11 Summary of Siting Requirements .......................................................... 34
6. POTENTIAL LNG FACILITY SITES............................................................. 37
7. IMPACT ANALYSIS OF POTENTIAL LNG SITES ................................... 38
7.1 Multi Cargo Facility Site........................................................................... 38
7.2 Mt Luce Site .............................................................................................. 40
7.3 Foreshore Site .......................................................................................... 43
7.4 Mt Little Site............................................................................................... 46
8. KEY FINDINGS AND CONCLUSIONS........................................................ 50
9. REFERENCES AND ABBREVIATIONS ..................................................... 53
9.1 References ................................................................................................ 53
9.2 Abbreviations ............................................................................................ 56
RLMS | FINAL REPORT SUITABILITY ASSESSMENT FOR LNG AT ABBOT POINT MAY 2011
APPENDIX A - ENVIRONMENTAL, HEALTH, AND SAFETY GUIDELINES
FOR LIQUEFIED NATURAL GAS (LNG) FACILITIES
APPENDIX B - LIST OF POLICIES AND STANDARDS APPLICABLE TO
THE LNG INDUSTRY
APPENDIX C –APPENDIX FROM SIGTTO INFORMATION PAPER 14 -SITE
SELECTION AND DESIGN FOR LNG PORTS AND JETTIES
APPENDIX D – RISK CONTOUR MAPPING GLADSTONE LNG PROJECTS

RLMS | FINAL REPORT SUITABILITY ASSESSMENT FOR LNG AT ABBOT POINT MAY 2011
1. INTRODUCTION
1.1 Background
Abbot Point is located approximately 20km north west of Bowen, north Queensland.
It is a strategic location due to its remoteness from urban development, ready access
to a deepwater port and major transport linkages. The area includes a range of
environments and is surrounded by mountain ranges. There are a number of
ecologically sensitive areas in and around Abbot Point including the Great Barrier
Reef Marine Park and the Kaili Valley Wetlands.

Figure 1 shows the location of Abbot Point.

The Abbot Point State Development Area (APSDA) was declared by the Governor in
Council on 19 June 2008. It comprises approximately 16,230 hectares, and provides
for the establishment of large scale industrial development of regional, state and
national significance, while protecting environmental, cultural and community values.
The APSDA is a cornerstone of the Northern Economic Triangle Infrastructure Plan
2007-2012.

The APSDA is adjacent to the Port of Abbot Point. This is a major deep water port
facility operated by the North Queensland Bulk Ports Corporation Limited (NQBP).
The Port of Abbot Point is one of a small number of major seaports on the eastern
seaboard of Australia.

The Port of Abbot Point has recently expanded and further expansions are proposed
and being planned. The current growth in export capacity is being driven by coal
development in the northern Bowen Basin and Galilee Basin.

Expansion of the Port at Abbot Point will be supported by the development of the
“Northern Missing Link” rail line which will connect the existing mines of North
Goonyella and Newlands and allow coal trains originating in Central Queensland to
be directed to Abbot Point.

Development of Liquefied Natural Gas (LNG) plants and export facilities is regarded
as a potential opportunity for Abbot Point because:
its distance from urban areas;
of the availability of undeveloped land in proximity to the port which may be
suitable for an LNG plant;
of its reasonable proximity to the reserves of Coal Seam Gas (CSG) in the
region to the south west of Abbot Point; and
in the future the port may have the potential to handle large LNG vessels.

Opportunity exists for a range of export focussed industries within the APSDA. The
State is seeking to maximise the amount of industrial development within proximity of
the port, whilst achieving the objectives of the Development Scheme for the APSDA.
LNG facilities would need to be planned and integrated with other development so
they do not unduly constrain future industries within the APSDA.

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1.2 Purpose of the Study
The purpose of this study was to identify if LNG facility/s would be appropriate at
Abbot Point, to define LNG facility requirements and to identify potentially suitable
sites for LNG sites based on a desk top analysis.

This study identifies the land and infrastructure requirements of LNG facilities
(including processing, transport, storage and export) and the implications of an LNG
industry for the future development of Abbot Point. For the purposes of this study
and assessment, the Abbot Point area includes the Abbot Point State Development
Area (APDSA), the Port of Abbot Point and the proposed Multi Cargo Facility (MCF)
discussed in Section 2 of this report.

It is acknowledged that advanced planning work is underway by NQBP regarding the
MCF and this planning has not included detailed consideration of an LNG industry.
This report considers LNG at a future point, it does not consider the current MCF
planning being undertaken by NQBP.

1.3 Methodology
The study involved five stages as outlined below.
1. Review of data including:
(cid:130) reports prepared about Abbot Point ;
(cid:130) known projects;
(cid:130) information from LNG proponents; and
(cid:130) interviews with the Office of the Coordinator-General, NQBP and the
Hazardous Industries and Chemical Branch (HICB), Department of
Justice and Attorney General.
2. Identification of LNG plant site requirements.
3. Identification of suitable sites at a broad scale, based on the above site
requirements.
4. Assessment of LNG plants on the sites deemed suitable from previous
stages.
5. Identification of the development considerations for LNG facilities at Abbot
Point.

To manage the potentially differing requirements of various sized LNG plants, the
assessment of site requirements has been undertaken on three nominal LNG plant
sizes:
1.5 million tonne per annum (Mtpa) capacity;
3 Mtpa capacity; and
10 Mtpa capacity. This size LNG plant would be a “shared facility” (ie hub). A
hub is considered to be two or more trains operated by separate entities but
using a shared delivery gas pipeline, cryogenic LNG pipelines, storage tank(s)
and/or loading arms at the berth.

These plant sizes are considered to reflect the possible scale of LNG plants that
future proponents may be interested in locating at Abbot Point.

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