Methanol Plantship

Methanol Plantship - 1988

Tenneco Inc.

Section 1 402kb	Restriction						i
	Frontispiece						ii
	Executive Summary						iii
	Plantship Model						vii
	Table of Contents						viii
	1.0	Introduction					1
	2.0	Project Description					2
		2.1	Bona Fides of Participants				4
			2.1.1	Advisors and Expert Counselors to the Project			4
			2.1.2	Project Development Team/Responsibilities			5
			2.1.3	Marine Architect/Engineer - Waller Marine			6
			2.1.4	Process Engineer - Davy McKee			7
Section 2 583kb			2.1.5	Bank of New England			10
			2.1.6	Arthur Young and Company			14
	3.0	Project Structure and Tax Consequences					28
		3.1	Organizational Structure				28
			3.1.1	Plantship Ownership			28
			3.1.2	Profile of Investors			29
			3.1.3	Plantship Operation			29
				Cayman Islands Operating Company
				Corporate Tax
				Branch Remittance Tax
				Other Withholding Taxes
			3.1.4	Marketing Operation			30
				Intercompany Pricing Rules
				Subpart F Rules
				PFIC Rules
				Imported Property Considerations
Section 3 414kb	4.0	Project Financial Assessment					33
		4.1	Introduction				33
			4.1.1	Capital Uses			33
			4.1.2	Capital Sources			35
			4.1.3	Debt Facilities			36
			4.1.4	Equity			41
			4.1.5	Spread Sheet Assumptions/Sensitivities			41
			4.1.6	Pro Formas			44
			4.1.7	Risk Profile			45
		4.2	Natural Gas Supply Agreements				48
		4.3	Methanol Off-Take Agreements				49
Section 4 624kb	5.0	On-Shore Methanol Plant Economics
	6.0	Plantship and Planned Operations					53
		6.1	Technical Feasibility, Manpower and Raw Material Resources				53
			a	Brief Description of Manufacturing Process
			b	Special Requirements
				Special Technical Complexities
				Needs For Know-How
				Special Skills
			c	Probably Sources of Equipment Supply
			d	Availability of Manpower and Infrastructure Facilities
				Manpower
				Infrastructure Facilities
				(1)		water
				(2)		electric power
				(3)		crew rotation/consumables resupply
				(4)		communications
				(5)		transportation
			e	Sources, Costs and Quality of Raw Materials; Relations with Support Industries
				Raw Material Source/Supply
				Relations with Support Industries
			f	Import Restrictions
				Natural Gas Feedstock
				Materials Imported to Trinidad-Tobago
				Materials Imported to United States
				Methanol Imported to United States
			g	Proposed Plant Location (in relation to:)
				Suppliers
				Markets
				Infrastructure
				Manpower
			h	Proposed Plant Size
	7.0	Technical Specifications, Methanol Plantship Project					61
		7.1	Vessel Narrative				62
		7.2	Design Considerations				62
			Production Capacity
			Storage Capacity
			Crew/Crew Accommodations
			Process Plant Type/Arrangements
			Mooring and Natural Gas Supply System Interfaces
			Product Transfer
			Essential Support Systems
			Regulatory
			Self-Sufficiency
		7.3	Plant Vessel Cost				64
	8.0	Process Plant Narrative					65
		8.1	Process Plant Design Changes From DOT Plantship				65
			Electric Power Generation
			Methanol Converter
			Pressure Swing Absorber
			Other
		8.2	Heat Rejection Design Basis				67
		8.3	Modularization				68
		8.4	Oxygen Plant				69
		8.5	Pre-Contract Engineering				69
Section 5 584kb	9.0	Field Development, Gas Collection and Delivery					71
		9.1	Field Description				71
		9.2	Field Development				71
		9.3	Drilling and Completions				72
		9.4	Pipeline and Riser Installation				72
		9.5	Gas and Delivery Process Equipment				73
		9.6	Field and Delivery System Operations and Maintenance				76
		9.7	Conditions and Assumptions				76
			Drilling
			Pipelines
			Process Equipment
	10.0	Services: Towing and Resupply/Line Handling
		10.1	Tow Service				79
		10.2	Utility Vessel				80
	11.0	Owner and Operator's Issues					81
		11.1	Environmental				81
		11.2	Local Intrastructure Interfaces				81
		11.3	Drydocking and Inspection				84
		11.4	Insurance Issues of Consequence				85
		11.5	Insurability and Insurance Rates				85
			Insurance During Construction
			Towing Insurance
			Operating Insurance
			Special Package Insurance Coverage
			Other Insurances
			a	Turret Mooring System, Flowlines, Risers
			b	Shuttle Tanker (12 months operation)
			c	Utility Vessel/Service-Supply Boat (12 months operation)
			d	Employees/Crew
			e	Cargo/Product Methanol (12 months operation)
		11.6	Marine Consultants, Surveyors, Inspection Services				87
		11.7	Risk Management				87
Section 6 633kb		11.8	Contingency Planning				92
			a	Classification of Risks and Exposures
			b	Contingency Planning Factors
	12.0	Product Methanol Transportation					99
	13.0	Project Schedule					102
		13.1	Pre-Contract Engineering				102
		13.2	Project Management, Plan Approval, Supervision				104
			1)	Project Term
			2)	Activity Descriptions
				a	Tender Review and Negotiations
				b	Plan Approval and Equipment Procurement
				c	Construction Supervision
				d	Modules and Mooring Turret Installation
				e	Mooring and Riser Completion
		13.3	Vessel Construction Schedule (Provisional)				107
		13.4	Methanol Plant				107
		13.5	Gasfield/Delivery System Development and Installation				108
	14.0	Project Technical Assessment					110
	15.0	Conclusions					113

Figures and Tables

(in order of appearance)

Figure 1	North Coast Marine Area, Trinidad-Tobago	3
Figure 2	Quarterly Average Methanol Prices	42
Figure 3	Draft Off-Take Agreement	50
Table 1	Manning and Accommodation List	55
Figure 4	Avon - Type Umbilical Clamp	74
Figure 5	Echo - Track; Seafloor West of Florida	75
Figure 6	Emission Sources: 3,002.8 TDP Methanol Plant	82
Table 2	Estimate Emissions: 3,002.8 TDP Methanol Plant	83
Figure 7	The Risk Management Regimen	89
Table 3	Loss Pattern	91
Figure 8	General Arrangement, Methanol Product Tanker	100
Figure 9	Methanol Planthship Project Schedule and Critical Path	103
Figure 10	Field Development and Gas Delivery Systems Schedules	109

Appendix

Table of Contents 26kb

Section 1 201kb	Restriction				i
	Frontispiece				ii
	Table of Contents				iii
	A	Capital Requirements			1
		A.1	Plant Vessel Capital Cost Summary		2
			A.1.1	Vessel Construction Cost Basis and Quotations	2
				Waller Marine Inc. Request for Quote	3
Section 2 291kbkb				Hyundai Inc. Quotation.	11
		A.2	Process Plant Capital Cost Summary		13
		A.3	Gas Field Development Capital Cost Summary		24
		A.4	Owner's Expense Capital Cost Summary		28
		A.5	Working Capital and Contingency		28
		A.6	Interest Expense		29
		A.7	Schedule of Cash Flow During Construction		30
Section 3 327kbkb	B	Operating Revenue and Expenses			31
		B.1	Average Operating Revenue		31
			B.1.1	Base Case	31
		B.2	Other Expense Elements		33
			B.2.1	Feedstock	33
			B.2.2	Personnel	33
			B.2.3	Insurance	33
			B.2.4	Spares/Maintenance and Repair Supplies	34
	C	Methanol Markets			35
		C.1	Methonal Supply		36
		C.2	Methonal Demand Forecast		36
			C.2.1	Chemical Feedstock Sector Demand	37
			C.2.2	Stationary Neat Fuel Demand	38
			C.2.3	Fuel Blending Demand	41
		C.3	Conclusions		41
Section 4 212kb	D	Vendor List, Domestic Sources			42
		D.1	Vessel		43
		D.2	Process Plant		48
		D.3	Gas Collection/Delivery Systems		73
Section 5 535kb	E	Product Study: Methanol vs Methanol and Ammonia			76
		E.1	Technical Considerations		76
		E.2	Ammonia Market Considerations		77
	F	Plantship Study: Conversion vs Purpose-Built			79
		F.1	VLCC Conversion vs. New Construction (General)		79
		F.2	VLCC Market Conditions		80
		F.3	VLCC Conversion vs. New Construction - Cost Estimates		80
		F.4	Conclusions		81
	G	Process Plant Design Detail			82
		1	Process Description		82
		2	Technical Information		86
			A. Process Description		86
Section 6 329kb			B. Raw Material & Utilities Imported		100
			C. Product & Waste Streams Exported		101
			D. Electrical Power Summary		102
			E. Equipment List		102
		3	Discussion		103
			A. Catalytic Partial Oxidation (CPO)		103
			B. Tube Cooled Methanol Converter (TCC)		105
		4	Process Flow Diagram		106
		5	Design Engineering		108
Section 7 716kb	H	Investment Policy of Trinidad and Tobago/Ministry of Industry, Enterprise and Tourism			120
	I	Administrative Facilities - Chaguaramas			156

Disclaimer: This report contains dated material and should not be used as a guide in actual implementation of any project or facility associated with the information contained in the report.