Excelerate will maintain overall responsibility for the environmental and social management of the installation and operation of the project. An Environmental and Social Impact Assessment (“ESIA”) has been developed as part of the project development, described further below. An Engineering, Procurement and Construction (EPC) consortia consisting of Geocean Entrepose (Geocean) and Macgregor (Norway) has been selected and will be appointed for the Project. Similarly, for the operations phase of the project, an operations and maintenance (O&M) contractor, EXMAR Ship Management (ESM), has been selected to operate the FSRU vessel, with a ports services contractor, Svitzer, having been retained to undertake the port services and tug operations.
Environmental & Social Policies and Management Systems:
At the corporate level, Excelerate has implemented an environmental policy which states the company’s strategic commitment to the management of environmental and social performance. The policy commits to complying with host national laws and regulations; designing and operating Excelerate facilities to ensure the protection of human health and the environment; the assessment of risks prior to commencing on any given activity; the provision of adequate training for employees; engagement to improve technology regulations; provision of the resources necessary to support environmental activities; and monitoring and reporting for continuous improvement.
As noted previously, the Excellence is an existing vessel currently in operation which was purpose built as an FSRU with onboard LNG regasification and high pressure natural gas export capabilities in addition to cargo storage and transfer systems found on conventional LNGCs. The FSRU has been assessed and classified against applicable International Maritime Organisation (IMO) codes and regulations. The IMO is a specialized agency of the United Nations, and is the global standard-setting authority for the safety, security and environmental performance of international shipping. To achieve these standards, a system of marine classification has been developed to assess compliance with technical and engineering standards for the design, construction and life-cycle maintenance of vessels. The Excellence FSRU has been Classified as a type 2 LNG carrier whose design and management systems are regularly assessed against relevant IMO standards and by Bureau Veritas, a French Classification Society. Both the FSRU and support vessels deployed for the project are required to meet IMO standards for safety, security and environmental management, with all vessel environmental and safety management systems being audited annually against the IMO’s SOLAS and MARPOL requirements and by Bureau Veritas.
The FSRU is required to dry dock at 5-yearly intervals and will have intermediate in-water surveys performed at site between 24 and 36 months after each major docking. The Excellence FSRU will undergo a full dry docking within 6 months prior to commencing operations for the Moheshkhali LNG project.
The supporting infrastructure, namely the 7.5 km pipeline, the Pipeline End Manifold (PLEM), delivery point and mooring system will be designed to meet a number of applicable good international industry codes and standards including those of the American Petroleum Institute; the American National Standards Institute; International Organisation for Standardisation; ASTM; Det Norske Veritas; and the Oil Companies International Marine Forum Guidelines for the design, operation and maintenance of multi-buoys mooring.
With regard to contractors assisting with the project development, Geocean, who will lead the consortium undertaking the installation of the fixed infrastructure of the project, is a marine contractor based in Marseille, France, having operated for 30 years in the offshore oil and gas industry and operates a fleet of specialized vessels and equipment. The company operates an integrated management system organised to comply with ISO 9001 and ISO 140001.
As noted previously two contractors have been retained to assist with the project’s operations phase. With regard to the FSRU operations, ESM, based in Belgium, is a maritime and offshore asset management company providing crew, commissioning services, operational management and maintenance services for FSRUs and specializing in performing ship-to-ship transfers of LNG and other offshore units. Excelerate and ESM have worked together since 2003, with ESM being the technical manager for Excelerate’s FSRUs worldwide as is the case for the current project. The company operates an integrated management system which is organised to comply with a number of ISO standards including ISO 29001 (quality management system for product and service supply organizations for the petroleum, petrochemical and natural gas industries); ISO 14001 (environmental); OHSAS 18001 (occupational health and safety) and ISO 9001 (quality).
Svitzer, a Maersk Group Company, is based in Denmark having been in operation since 1833. Svitzer will be providing towage and vessel support services for the project. Svitzer has recently revised, and is implementing its safety management system that complies with OVMSA (Offshore Vessel Management and Self-Assessment), a code that incorporates best practices from other standards, including: OHSAS 18001, ISO 9001, ISO 14001, the International Maritime Organisation’s International Safety Management (ISM) Code, the UK Health and Safety Executive and the Australian Maritime Safety Authority (AMSA).
Environmental and Social Assessment:
A regulatory Environmental Impact Assessment is required by the Government of Bangladesh. The Bangladeshi Department of Environment (DoE) issued Terms of Reference for the project EIA during November 2011, with an EIA submitted in 2012. The Department of Environment approved the EIA and provided Site Clearance and Environmental Clearance in January, 2016.
As part of IFC’s financing an ESIA was required and has been completed in a manner consistent with IFC’s Performance Standards. The ESIA builds on the original EIA, and integrates a number of supplemental studies to support impact evaluation, including an air emissions inventory; air emissions dispersion modelling; LNG leak simulation modelling; thermal plume dispersion modelling; sediment dispersion modelling; navigability and water suitability assessment and Critical Habitat Assessment.
The project company has completed an offshore environmental baseline survey, sampling sediment, water and benthos. The survey builds upon a previous geophysical sampling campaign in 2008. Results from the 2008 and 2016 surveys show a shallow bathymetry, comprised of muds and sands. The 2016 environmental baseline survey found no sensitive seabed features, with macrofauna species richness and diversity found to be low. No marine mammals or turtles were observed during the survey. Water and sediment quality was found to be generally good, with the exception of nickel which was found to slightly exceed indicative ecological effect thresholds (Effects Range Low).
Installation of the subsea infrastructure will take place almost entirely offshore. These installation activities will involve limited disruption of the sea floor primarily as a result of trenching and post-trenching activities for the burial of the pipeline. Sediment modelling indicates that sediments will become suspended in the water column temporarily returning to ambient levels within 12-24 hours. The delivery point is located approximately 30m from the high tide line with a permanent footprint of approximately 45m x 45m, as described further in the PS6 section below.
Human settlement is limited to the eastern shore of Moheshkhali Island and there is no settlement within 6km of the project’s on-shore delivery point. As the construction site will be accessed from the water, installation activities will have a negligible human impact. The closest fishing communities are located in the villages of Ghatibhanga (within Kutubjom Union), Boro Dale (within Boro Moheshkhali Union), and Panirchara (within Hoanak Union), with navigable distances to the FSRU location of 17 km, 20 km and 31 km respectively. Artisanal fishing activities are generally focused toward the intertidal zones of the project area (commercial fishing activities not permitted in water depths of less than 40 m in Bangladesh). Artisanal fishing activities will be limited from operating within a permanent 500 m radius (safety zone) established for the FSRU and its pipeline connection to shore. As outlined further in the PS4 section below, Excelerate has previously engaged with and advised Port Authorities, other agencies, local government officials, fishing agencies, and fishing association leaders of this safety zone. Impacts to fishing communities as part of the ongoing project operations are expected to be limited and site-specific, although fishing communities did express concern over the safety zone during project consultation. As part of IFC’s investment, Excelerate will develop a transparent grievance redressal mechanism to address concerns raised by local stakeholders, including the fishing community, with regard to impacts and mitigation [ESAP #5].
Management Programs:
Excelerate is ultimately responsible for the management and supervision of all project activities. A framework Environmental and Social Management Plan (ESMP) for the project has been developed and is described further in Chapter 6 of the project ESIA. The framework ESMP describes the structure and processes that will be applied to development and operation activities to assess and monitor compliance and effectiveness of the mitigation measures. The elements of the framework plan will be incorporated into an integrated ESMP that will be implemented in order to deliver the project environmental and social regulatory compliance objectives and other related commitments.
The integrated ESMP will be a component of the overall integrated management system for the project. A construction phase ESMP and the relevant management plans and programs will be in place in advance of the project installation [ESAP #2]. As part of IFC’s investment, the project company will review, and where required augment existing operational management systems developed as part of the vessel’s flag state requirements, to cover both the FSRU and the fixed infrastructure to shore consistent with host national law, international maritime law and IFC’s Performance Standards [ESAP #1].
As noted previously, Excelerate will rely on its contractors for many aspects of environmental and social performance. As part of IFC’s investment, Excelerate will perform a bridging analysis to evaluate the adequacy of subcontractor plans and procedures and to ensure all aspects of the project are covered. Excelerate will integrate the main results of the bridging analysis into a bridging document and will require that each contractor operates according to its own requirements as well as the requirements of the project ESIA [ESAP #2]. The training, procedures and implementation of plans described will require that contractors perform actions that will mitigate or help to minimize potential project impacts [ESAP #2].
As outlined further in the PS 6 section below, the delivery point is located within an area defined as Critical Habitat according to IFC Performance Standard 6. In order to provide a clear set of actions and responsibilities to minimize and mitigate potential impacts to biodiversity for the project and to define required monitoring, a Biodiversity Action Plan (“BAP”) will be developed [ESAP #7].
Emergency Response:
As part of IFC’s investment, Excelerate will develop a number of Emergency Response Plans (“ERPs”) to ensure responses to potential incidents that might result from project activities are undertaken in a safe, rapid, effective and efficient manner. Such ERPs are also required by international maritime law including a Shipboard Emergency Plan and a Ship Security Plan along with a corresponding Port Facility Security Plan for the project. Such plans provide the response framework for a number of different shipping incidents and specific gas carrier scenarios [ESAP #3]. The emergency plan will provide the structure for response to any incident and requirements for communication with owners, local and national authorities and services.
The project’s ERPs will be designed to directly address all emergency situations and their consequences and establish command and control over the incident scene, ensure the safety of responders, develop plans of action, and facilitate communications. Emergency situations to be addressed in the ERP will include spills (diesel, chemical spills, etc.); fire and/ or explosion; personnel (injuries, fatalities, missing person, etc.); evacuations; natural disasters (hurricane, earthquake, etc.); transportation – personnel or equipment (vessel collision, etc.); security (kidnap/extortion, piracy, etc.); media/public relations (could result from any of the incidents above).
Within the ERP, response procedures, key contacts (within and outside of Excelerate), notification procedures and Medical Evacuation Plans (MEDEVAC) will be clearly defined. Similarly, Excelerate will review and ensure that each subcontractor will have its own specific ERPs, although it is the responsibility of Excelerate to ensure all scenarios are covered and that contractors are aligned in the event of an incident.
Monitoring and Reporting:
Beyond the routine inspection and monitoring activities required by international maritime law, audits will be carried out internally by Excelerate to ensure compliance with host national and international regulatory requirements as well as their own corporate EHS standards and policies. Audits will also cover contractors monitoring and inspection activities during the project installation and operations phases, to ensure contractor activities are in compliance with contractual requirements as defined in the project ESAP and project ESMP. Audits shall be performed by qualified staff and the results shall be communicated to Excelerate executive management. The audits will include a review of compliance with the requirements of the project ESMP [ESAP #4].
Organizational Capacity:
Excelerate has an extensive depth of experience in the application and operation of good international industry health, safety, security and environmental practice in the FSRU market.
As part of IFC’s investment, Excelerate will review, strengthen as necessary and maintain an organizational structure that defines roles, responsibilities and the authority to implement Excelerate’s integrated management system. Key environmental and social responsibilities will be defined and communicated to the relevant personnel and to partners and contractors alike. Sufficient management sponsorship and human and financial resources will be provided on an ongoing basis to achieve effective and continuous environmental and social performance.
Training:
In addition to the training requirements indicated in the project framework ESMP, training requirements of vessel crews are specified in the IMO Standards of Training, Certification and Watchkeeping for Seafarers (“STCW”) Convention. A wide variety of training is required, including: marine firefighting, water survival, spill response and clean-up, emergency medical procedures, hazardous materials procedures, confined space entry, and training on operational procedures.
Training requirements are also indicated in individual subcontractor management systems. For example, training for local vessel operators in the ERP and other mitigation requirements will be needed at the start of construction and throughout operations. Similarly, and as part of IFC’s financing, Excelerate will develop training programs for contractors operating within Critical Habitats [ESAP #7].
Anowara-Moheshkhali Pipeline Associated Facility:
The Moheshkhali Floating LNG Project will connect to the Anowara-Moheshkhali pipeline, which is owned and operated by GTCL, a Petrobangla subsidiary. At the time of the signing of the Terminal Use Agreement between the Company and Petrobangla in July of 2016, 88km of the 89.4km pipeline had been constructed. There are currently no defined projects being developed or at an advanced stage of planning that would share the GTCL pipeline. Consequently, the Anowara-Moheshkhali pipeline is considered an associated facility.
In order to characterize potential environmental and social impacts associated with the installation of the pipeline, and to evaluate what risks those impacts may pose for the project, Excelerate commissioned a rapid environmental and social assessment survey of the pipeline route. At the time of the survey – December 2016 – construction of the pipeline had been completed, with the exception of one river crossing section and reclamation work at various points along the pipeline Right of Way (ROW). The findings of this survey have been incorporated into the overall project ESIA.
The pipeline begins at the delivery point and travels eastward through the Sonadia Island Ecologically Critical Area (“ECA”) for approximately 3.5 km, of which 2.3 km are mangroves and the remaining are abandoned salt pans. The pipeline turns northward through active aquaculture, agriculture, and limited forested areas. Approximately 26 km of the right of way (“RoW”) in the south crosses sparsely populated mud flats used for salt harvesting and shrimp farming. The remaining pipeline route (approximately 60.5 km) is more populated and passes through mixed agricultural and forested areas near homesteads. However, the pipeline route largely avoids physical impacts to houses and permanent assets. The field survey characterizes the social impacts of the pipeline construction as “low” to “moderate” overall. Similarly, the field survey characterized the environmental impacts of the pipeline construction project as “moderate” and reversible.
The responsible authorities – the District Deputy Commissioners – are reported to have acquired the pipeline ROW on behalf of GTCL in accordance with the Bangladesh Acquisition and Requisition of Immovable Property Ordinance of 1982. Observations and interviews carried out by the survey team with land holders during the field survey indicate that the acquisition of the pipeline ROW permanently displaced only one household. Based on available data, field observations and satellite data the ESIA estimates that approximately 630 households were impacted during the construction period. As is typical with linear projects of this sort, the ROW land take may only impact a small percentage of each affected household’s land holdings and only during the construction period. GTCL allows farming and other subsistence activities to be restored within the ROW (with the exception of tree plantation). As such, the ESIA has assessed the social impacts of the pipeline construction as temporary and reversible.
To ensure that the outcome of the GTCL pipeline construction conforms to the requirements of applicable Performance Standards, Excelerate will: a) develop a specific communication protocol which will consist of periodic formal communications with the downstream operator to ensure the Anowara-Moheshkhali Pipeline is being operated and maintained appropriately, including where available the review of Petrobangla/ GTCL Anowara-Moheshkhali Pipeline monitoring reports; b) continuously monitor the operating pressure, temperature and flowrate of the subsea pipeline from the FSRU and in the event of any anomalies, immediately notify the downstream operator; c) subject to host nation approvals, undertake two additional Associated Facility pipeline surveys, once during the first quarter of project construction and once during the final quarter of project construction, to be undertaken in a manner that compliments the Project ESIA Associated Facility pipeline survey; and e) to the extent feasible, document report and facilitate the resolution of any identified stakeholder grievances or anomalies to Petrobangla/ GTCL and appropriate local government authorities. (ESAP #5).