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Amended

Background Information Document

Proposed construction of the Xaris Gas Fired Power Plant and Gas Supply Facility in Walvis Bay

P u r p o s e o f t h i s d o c u m e n t :

This is the second version of the previous document circulated on

the 26th of February 2015. Its purpose is to elaborate on

amendments made to the project scope:

Enviro Dynamics has now been appointed to undertake an

Environmental Impact Assessment (EIA) process that is to

Equator Principles (EP) as well as the International Finance

Corporation (IFC) Standards.

Three separate EIA studies will be undertaken to assess the:

o Berthing area of the FSRU and transport of the gas from

the ship along a trestle jetty to the port premises

(including associated dredging activities);

o Overland pipeline from the port premises to the power

plant (including the port premises);

o Power plant including a purification plant to supply

process water from Birds Paradise.

The following components have been eliminated from the

project scope:

o The desalination plant is no longer the preferred

alternative for supplying water to the power plant.

o The FSRU ship supplier will conduct their own EIA for

the ship based processes including process water

discharge.

O v e r v i e w

Xaris Energy Namibia (Pty) Ltd proposes to import liquefied

natural gas (LNG) into the Walvis Bay area. It will be regasified

for use at a power plant that will be constructed approximately

10 km east of Walvis Bay. The development will consist of the

following components:

Floating Storage Regasification Unit (FSRU)

Light trestle and overland pipelines for transporting

the gas

Open cycle gas turbine power plant and water

purification plant.

Enviro Dynamics has now been appointed to re-do the

Environmental process so that it complies with the requirements

of the Equator Principles (EP) as well as the International Finance

Corporation (IFC) Standards.

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N e e d f o r t h e d e v e l o p m e n t

Electricity demand continues to grow and due to Namibia’s reliance

on procurement of power from other countries facing shortages

themselves, a supply deficit is expected over the short-medium

term (Key contracts expire in June 2016). To that end, NamPower

has appointed Xaris Energy (Pty) Ltd to develop a 300MW power

plant. The Proposed Project could potentially:

assist in ensuring security of power supply,

reduce Namibia’s reliance on electricity imports,

contribute through the development of gas infrastructure

from which various industries can leverage off, and

result in secondary spin-off benefits such as job creation in

construction and operation of the power plant.

have economic benefits to Namibia in that the electricity can

be sold to neighbouring countries.

P r o j e c t L o c a l i t y

The proposed locations of each of the project components are

illustrated in Figure 1. It includes in-land, coastal and marine

habitats of Walvis Bay in the Erongo Region of Namibia:

Liquefied Natural Gas (LNG) would be imported on an LNG

Carrier, transferred to a permanently moored FSRU located

approximately 2.4 km from the shore within the Walvis Bay

North harbour.

From the FSRU it is regasified and redistributed via a 2.4 km-

long trestle pipeline and 12.5 km over-land pipeline to the

power plant

The power plant is located on 40 hectares of land within the

proposed heavy industrial zone of the Walvis Bay Municipality

(Farm 58), just east of Dune 7.

What is Liquefied Natural Gas (LNG)?

It is natural gas (predominantly methane, CH4) that has been

converted to liquid form for ease of storage or transport. It is

odourless, colourless, non-toxic and non-corrosive. It is stored in

liquid form due to the reduced space that is required.

What is a Floating Storage Regasification Unit (FSRU)?

It is the vessel that is used for the storage and regasification of

natural gas by heating up LNG to its original gaseous state. The FSRU

will be permanently moored and will receive LNG via.

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nclude a map indicating the five

Figure 1: Project components and the location of each.

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1 . F l o a t i n g S t o r a g e R e g a s i f i c a t i o n

U n i t ( F S R U )

LNG is supplied from a LNG carrier (LNGC) that is moored

alongside the FSRU for the period of regasification.

The FSRU (Figure 3) is fitted with two 30cm high pressure gas

connections (one on either side) for delivery of high pressure

gas. Cooled LNG is transferred to the FSRU from the LNGC

via cryogenic (operated under low temperatures) flexible

hoses at flow rates up to 6,000 m3/h.

LNG is regasified on the FSRU through a process that

includes heating and compressing of LNG to 70 to 100 Barg.

FSRU would remain connected to the GasPort in the Single

Berth or Buoy configuration

Parameter LNG carrier FSRU

Cargo Capacity (m3) 173,400 151,000

Maximum Delivery: 589,935m3/h

The FSRU do not require any services to be provided and

operate independently from the port.

1.1. Jetty

The jetty will consist of:

o “Sea island” including Breasting Dolphins, Mooring

Dolphins, Loading Platform, Walkways, Quick Release

Hooks, Fenders, Navigational Aids, Utilities, Gangway

o Trestle & related pipelines from FSRU to Port Station

via a light trestle (Figure 2)

Will be a fixed structure of reinforced concrete deck on

piles.

1.2. Berthing and mooring systems

The Berthing Management System (BMS) will provide the

facilities for the vessel to dock, and will include functions

for met-ocean monitoring (weather forecasting, climate

studies, operations & safety, resource assessment,

maritime safety and marine domain awareness, among

others).

1.3. High pressure gas loading arm

Mounted at the FSRU berth.

Used to convey high pressure re-gasified LNG from the

FSRU to the jetty gas delivery point.

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1.4. Port premises

Houses the FSRU gas control room.

Footprint of approximately 110m x 120m to allow for back

pressure control equipment.

1.5. FSRU Safety and Exclusion Zone

200 m safety radius offset from other vessels in transit.

500 m safety radius between LNG vessels and other marine

infrastructure.

1.6. Dredging

The dredging scope for this project includes:

o Widening of the planned entrance channel to 230m

from entrance to the LNG berthing terminal.

o Dredging of a 265m radius turning circle for the LNG

ships.

o Dredging for the LNG berthing pocket.

o The entrance channel, the berthing pocket as well as

the turning basin have a minimum MLLW (mean lower

low water) depth requirement of 16.5m.

2 . P i p e l i n e s f o r t r a n s p o r t i n g L N G

Regasified LNG from the FSRU is distributed into a high-

pressure manifold linked to the high pressure loading arm,

which convey the gas into the gas pipelines transported via

the trestle to the port premises.

Parameter Trestle pipeline Overland

Location From the manifold to an

onshore metering terminal

at the port station

From the port premises to

the power plant

Description 2.4 km long carbon steel

pipeline along a trestle

structure (which will

accommodate the

electrical and instrument

cables.)

12.5 km long trenched,

carbon steel pipeline in

existing municipal

servitude, with a way leave.

Pressure 70 – 100 bar (gauge

pressure)

70 to 100 bar (gauge

pressure)

Flow rate 814,109.34m3/h 814,109.34m

3/h

Parameters minimum 15 cm in size 61 cm in size (provision for

future expansion)

A Safety Shutoff Valve (SSV) will be provided at the Power

Plant site boundary.

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3 . O p e n C y c l e G a s T u r b i n e P o w e r

P l a n t

3.1 Plant Layout

Footprint area of 40 ha in the proposed noxious and heavy

industrial zone of Walvis Bay.

6 gas turbine bays with 6 gas turbines (GTs) (General Electric

LM6000PC SPRINT machines) operating in open-cycle (heat

content of the exhaust gases exiting the turbine is discarded

instead of reusing it in a heat exchanger to preheat the

combustion air entering the combustor) generating 11.5kV

power.

Designed for an operational life of 25 years from the date of

commencement of commercial operation.

3.2 Plant Operations

Piped gas is supplied to the Plant’s gas receiving and

metering station.

42.2 – 49.4 MW of electrical power generated per turbine –

SPRINT Air-cooled technology used to cool the turbines and

keep temperature at 15°C.

Water injection is used for Nitrous Oxide (NOx) emission

control and evaporative cooling.

3.3 Power Generation and Distribution

Generated power to be distributed via a high voltage

220 kV substation located within the site boundary.

Two emergency diesel generators will be provided for

safe shutdown of Power station. The units shall consist of

a diesel engine directly coupled to a generator, mounted

on a common steel base with a fuel tank and a self-

contained enclosure. In case of failure of normal power

supply the diesel generators shall start automatically to

supply power to the essential loads of the power station

for a safe shutdown.

The power station shall be designed to allow operation

for limited periods in island mode (island mode operation

is defined as operation with the power station isolated

from the Namibian network, supplying its own auxiliary

equipment). This islanded mode would be sustained for at

least 20 minutes without tripping.

Plant will initially be sized to yield 300 MW of base load

power to the national grid of Namibia.

11.5 kV power generated per gas turbine is reticulated

using 11 kV single core cables in trefoil on racks to the

Generator Circuit Breaker and GSU.

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4 . W a t e r p u r i f i c a t i o n p l a n t

The construction of a desalination plant no longer forms

part of the project description.

Excess water from Birds Paradise will be pumped through

pipelines (approximately 10km) to the power plant.

A water purification plant will be constructed at the

power plant site treating the semi-purified water from

Birds Paradise to a quality required for the power plant.

Power plant water consumption: 500,000 m3/annum

The water from the purification plant will be used to

provide for service water demands and fire fighting.

5 . O t h e r s i t e i n f r a s t r u c t u r e

The Power Station will generate its own power, water

purification and a sewage plant will be constructed on

site.

During construction:

o Power will be provided by Xaris through generators or

by connecting to the Erongo RED supply.

o Water will be provided by Xaris via containers or by

connecting to the Walvis Bay council supply.

During operations the following will apply:

o Sewage will be a temporary facility supplied by the

Contractor (EPC)

o Temporary roads will be supplied by the Contractor

during construction

Water Reticulation network:

o Utility water for own use will be obtained from Bird’s

Paradise, purified and stored in utility water and fire

water tanks.

o Potable water shall be delivered on site by pipeline

from the municipal water supply authority. It shall be

piped to standpipes and buildings as required. Potable

water piping shall be HDPE, mechanically protected

where installed on pipe-racks.

Sewer network:

o Gas Turbine waste wash water and oily residue from

the oily water separator collected for removal and

disposal by a specialised contractor.

o Sewage to be treated on site using a packaged sewage

treatment plant.

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o Solid and construction wastes shall be collected,

stored and transported in accordance with the

applicable regulations and local authority’s

requirements.

Road network:

o Current access is available via M44 to the Power Plant

site. New roads for the industrial area are not

expected to be available in time.

o Permanent roads will have to be supplied through

Roads Authority (RA) or Council (or NamPort for port

premises) as required.

o NamPort Access roads are available for interim

period.

Figure 3: The FSRU vessel.

Figure 2: The light trestle jetty structure.

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I s s u e s i d e n t i f i e d

Potential environmental impacts on the inland and marine

environment affected by the construction and operation of the LNG

facilities include:

Potential Inland Impacts:

Air pollution associated with the construction and operation

of all facilities particularly the FSRU and power plant.

Noise and pollution from construction and operation

activities particularly during the operation of the FSRU.

The effects of leaks or ruptures in the gas pipelines.

Effect on the Walvis Bay airport due to electromagnetic

interference from the turbines at the power station and the

height of the structures.

Water balance and quality of water from Birds Paradise.

Potential Marine impacts:

The intake of water from the bay by the LNG Carriers and

FSRU.

Increased vessel traffic in the Walvis Bay Port area.

Disturbance of seabed communities during the construction

of the berths and trestle jetty.

Impacts associated with dredging activities e.g, Removal of

the bottom sediment and associated communities, increased

suspended sediment concentrations and turbidity during

construction and dredging.

Potential impacts on fisheries (e.g. mariculture, recreational

fisheries, through the movement of vessels and operation of

power-generation barges). Fish recruitment, migrations and

community health

Mariculture – both established and potential growth areas

based on current leased water areas in the bay.

Localised commercial fisheries and the large-scale fisheries in

the Walvis Bay area and the movement of fisher vessels

associated with these establishments.

Fish recruitment, migrations and community health. This

would apply to all fisheries resources exploited in the

proximity

E n v i r o n m e n t a l P r o c e s s

An Environmental Impact Assessment (EIA) study was completed by

an external consultant in 2014. However, the EIA has been

withdrawn by the client.

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Enviro Dynamics has subsequently been appointed to undertake

and environmental process that satisfies the requirements of the

Environmental Management Act (Act No. 7 of 2007) and its

regulations (2012) and complies with the requirements of the

Equator Principles as well as the International Finance Corporation

(IFC) Standards.

Performance standards

In order to qualify for these international standards, criteria are

prescribed in terms of social and environmental compliance. The

following Equator principles may apply to this project:

PS1 - Assessment and Management of Environmental and

Social Risks and Impacts

PS2 - Labour and Working Conditions

PS3 - Resource Efficiency and Pollution Prevention

PS4 - Community Health, Safety and Security

PS6 - Biodiversity Conservation and Sustainable Management

of Living Natural Resources

Environmental Assessment (EA) process

Due to time constraints and changed circumstances the proponent

has opted to treat the three major components of the project as

separate EIAs, with a combined public participation process and

separate Environmental Management Plans for each component:

Berthing area of the FSRU and transport of the gas from the

ship along a trestle jetty to the port premises (including

associated dredging activities);

Overland pipeline from the port premises to the power plant

(including the port premises);

Power plant including a purification plant for the refinement

of water from Birds Paradise.

The SFRU ship supplier will conduct their own EIA for the ship based

processes including process water discharge.

The approach with these EIA studies is to:

Undertake combined public consultation for the project as a

whole;

Establish the environmental risk of each project component,

its alternatives and various components based on the findings

of the specialist studies;

Prepare three separate EIA reports and EMPs;

Public review of the EIAs and EMPs;

Prepare and submit final documents to Directorate of

Environmental Affairs (DEA) and finance corporations for a

decision;

Communicate the decision to I&APs;

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Specialist Studies

Based on the required performance standards the following

specialist inputs have been initiated for the various project

components (separate EIAs):

EIA component Specialist input Specialist consultant

Berthing area of the FSRU and transport of the gas from the ship along a trestle jetty to the port premises (including associated dredging activities);

Evaluating sediment dynamics model for dredging of the FSRU berth and the trestle jetty foundations.

PRDW Consulting Port and Coastal Engineers

Evaluating marine ecology for the FSRU berth and trestle jetty.

Pisces Environmental Services

Air pollution dispersal models at the FSRU and OCGTPP Rayten Engineering Solutions

Overland pipeline from the port premises to the power plant (including the port premises);

Air pollution dispersal models at the FSRU and OCGTPP Rayten Engineering Solutions

Power plant including a purification plant for the refinement of water from Birds Paradise.

Air pollution dispersal models at the FSRU and OCGTPP Rayten Engineering Solutions

Noise pollution and dispersal model at the OCGTPP. Safetech

Water balance and quality of water from Birds Paradise Geo Business Pollutions

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P u b l i c p a r t i c i p a t i o n

All parties who may be affected directly or indirectly, or those who

are interested in the project, including those members that have

previously been registered, must be consulted about this proposed

development. Matters so raised will, amongst others, be addressed

as part of this Environmental process.

Your registration as an I&AP is a key component of the process.

Through your participation you actively take responsibility for the

utilisation of our legislation, as well as contributing to ensuring

responsible environmental management and decision making.

Registration will ensure that you are kept up to date with

developments in the process, and that you are invited to the

relevant meetings.

A public meeting is scheduled to which you are invited:

Date: Thursday, 12 March 2015,

Time: 18h00

Venue: Immanuel Ruiters Primary School, Kuisebmond,

Walvis Bay

If you have an interest in the project, you are invited to attend this

meeting. Additional meetings with the relevant authorities will

also be held in Walvis Bay and Windhoek.

Your role as a stakeholder/Interested & Affected Party (I&AP):

Attend meetings and obtain information about the proposed

project;

Raise any issues that you have in respect of the proposed

project;

Provide the proponents with additional information which

needs to be considered in the project design; process of

evaluating the impacts; and the decision making process; and

Review and comment on the draft reports prepared during this

Environmental process.

You can become involved:

by registering as an I&AP (this is necessary to ensure your

name is added to the contact list);

by submitting your comments or requests for information to

the stakeholder public participation team in Windhoek (see

registration form);

by attending consultation meetings; and

by reviewing the draft documents as they are circulated for

comment.

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Eloise Carstens

Tel: 061-223 336

Fax: 061-307 437

Email: eloise@envirod.com

Once you have registered you will be added to our stakeholders list

and included in all further communication regarding the project.

To register:

Fax or e-mail your request to Enviro Dynamics or inform the

consultant at the consultation meetings.

Contact us to express your interest in this project before the

19th of March 2015.