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Environmental Guidelines - Table 10

LIQUEFIED NATURAL GAS (LNG) LIQUEFACTION PLANTS
AND REGASIFICATION FACILITIES

Natural Gas Liquefaction Plants may affect air quality from stack emissions and water quality from cooling system discharges. Natural gas-fired combustion turbines associated with liquefaction plants may produce significant amounts of nitrogen oxide emissions. LNG plants, re-gasification plants and associated terminal facilities should be located at sites that minimize the effects of natural hazards, and measures should be adopted to provide for the safe operation of LNG Vessels at the terminal and during in-harbor transit. 

New LNG and re-gasification projects as well as major expansions to these facilities will require submission of an Environmental Impact Assessment (EIA), as outlined in Annex E, identifying the environmental effects of the project and measures to mitigate the adverse impacts. Site selection should minimize the project's impact on sensitive ecosystems such as corals, fisheries and resources of importance to local communities. The EIA should identify impacts to the natural habitant of pier construction, harbor dredging and other project activities. 

The international guidelines presented in this Table are condensed from World Bank Group guidelines set forth in the Pollution Prevention and Abatement Handbook (PPAH) and applicable World Bank Group Operational Policies. Since LNG plants and thermal power plants utilize equipment that is similar in type and size, the quantitative guidelines on emissions and effluents set forth below for LNG plants track those contained in the "Thermal Power Guideline" Table of the PPAH. Additional environmental information and guidance relevant to components of LNG facilities is contained in the World Bank/IFC Guidelines on Port and Harbor Facilities and Gas Terminal Systems.

The PPAH and the World Bank Group Operational Policies referenced in this Table can be found at: http://www.ifc.org/enviro/EnvSoc/pollution/guidelines.htm. In the case of ambiguity between information contained in this Table and the relevant sections of the PPAH and referenced Operational Policies of the World Bank Group, the guidelines presented within the PPAH and Operational Policies as of December 18, 2003 will prevail for purposes of Ex-Im Bank's review and its determination of a project's compliance with guidelines of the World Bank Group. 

AIR QUALITY

STACK EMISSIONS - Concentration of contaminants emitted from the process equipment should not be diluted nor exceed the following limits during normal operating conditions:

Particulates (<10 microns aerodynamic diameter):- 50 mg/Nm³ 
Note: Nm3 refers to a cubic meter at 00C and pressure of 1,013 milibars under dry conditions.

SO2 when using untreated gas: 2,000 mg/Nm3 maximum level of SO2 in exhaust gas

NOx (as NO2):
Combustion Turbines
Gas fuel- 125 mg/Nm3 (dry at 15% oxygen); 86 ng/j or 0.20 lb/million BTU
Furnaces/Heaters
Gas fuel- 320 mg/Nm3 (3% oxygen); 86 ng/j; 155 ppm; 0.20 lb/million BTU

AMBIENT AIR QUALITY - EIAs for LNG plants and large expansions to existing plants should contain air-modeling studies that take into account existing air quality data to assess the quantitative impact of the new plant or expansion on the airshed* of the area. In the case of major expansions to existing facilities, the aggregate emissions from the existing and the new portion the facility should not result in ambient air conditions that exceed local standards or the values set forth below: 

WATER QUALITY
LIQUID EFFLUENTS -. Reduction in the generation of effluents through process modifications and recycling is recommended. Minimization of water usage for cooling by means of air cooling or closed-loop systems is encouraged where feasible. Where dredging activities is required near coastal marine environments, a Dredging Plan will be prepared to assess the increase in turbidity, re-suspension in sediments and the disposal of sediments associated with the dredging together with measures to mitigate impacts to the water quality and aquatic resources. Wastewater, cooling water discharge, domestic sewage and contaminated storm water should be treated to meet the following specified limits before being discharged to surface waters.

Liquid effluent discharges to a public or private central wastewater treatment system may be subject to pre-treatment requirements. For projects potentially causing erosion and sedimentation impacts in receiving waters, a plan should be submitted incorporating measures to mitigate the impacts on water quality and aquatic life. Where dredging activities will be required near coastal marine environments, a Dredging Plan should be prepared to assess the increase in turbidty, resuspension in sediments and the disposal of sediments with measures to mitigate impacts caused on the water quality and the aquatic uses and resources. 

SOLID AND LIQUID NON-HAZARDOUS WASTES

Applicants should provide a waste management plan that incorporates environmentally safe waste management and disposal practices. Recycling or reclamation of materials is encouraged where possible. If recycling or reclamation is not practical, wastes must be disposed of in an environmentally safe manner that incorporates best management practices, as well as in compliance with applicable local laws and regulations.

HAZARDOUS AND TOXIC MATERIALS AND WASTES

Projects that include the handling, storage, treatment and disposal of hazardous materials must include a management plan for those materials which contain the following elements:

• Existing equipment and systems utilizing PCBs or CFCs should be phased-out and disposed of in a manner consistent with the requirements of the host country and in accord with the recommendations set forth in the PPAH ("Industrial Management of Hazardous Wastes").
• Storage and liquid impoundment areas for fuels, raw and in-process materials, solvents, wastes, and finished products should be designed with secondary containment or liners, where required, to prevent the contamination of soil, groundwater and surface waters.
• Maintenance of all hazardous materials in clearly labeled containers or vessels
• Storage and handling of all hazardous materials appropriate to their hazard characteristics: reactivity; flammability; corrosiveness; radioactivity; and toxicity
• Fire prevention systems and secondary containment for storage facilities, where required, to prevent fires or the release of hazardous materials to the environment
• Hazardous wastes must be treated and disposed of in a manner to prevent the contamination of soil, groundwater and surface waters and to avoid the release of toxic substances in the environment.
• A suitable remediation plan should be developed to address the clean-up of contamination in soil and water related to construction activities, where applicable.

NATURAL HAZARDS

LNG plants, re-gasification plants and terminal facilities should be located, designed, constructed and operated to minimize the risk to the project from natural hazards such as earthquakes, tidal waves, floods and fires from surrounding areas. Exclusion zones should be established to minimize the potential impact of the project to surrounding areas from the results of accidents that could produce severe adverse effects.

Plant facilities and terminals should comply with National Fire Protection Association LNG Standards or equivalent standards. Terminal operating procedures, security measures, and Emergency Preparedness and Response Plans should be to best industry practice. Where applicable, ship traffic must adhere to international MARPOL and Law of the Sea (UNCLOS) guidelines for ships movements, recommendations of the International Maritime Organization (IMO) and other relevant treaties and international agreements.

NOISE

The Project boundary or fenceline is the commonly accepted location for evaluating Project related noise impacts, although the outer edge of a buffer zone or other uninhabited area may be appropriate in selected cases.

AMBIENT NOISE: Steady-state noise levels from the Project's operation, measured at noise receptors located outside the Project property boundary, should not exceed the following limits:

RESETTLEMENT, INDIGENOUS PEOPLES, CULTURAL PROPERTY (When Applicable)

Project site selection should take into account and minimize to the extent practical adverse impacts to indigenous and other vulnerable people within the project's area of influence resulting from involuntary resettlement, land use changes, population influx due to increased access caused by the project, or effects on culturally significant artifacts or sites.

Where large resettlement or relocation becomes unavoidable, a Resettlement Action Plan (RAP) must be developed and implemented in compliance with host-country laws and international guidelines such as those of the World Bank Group. (See Operational Safeguard Policies of the World Bank: OP 4.20, Indigenous Peoples; OP 4.11, Safeguarding Cultural Property and OD 4.30, Involuntary Resettlement). 

NATURAL HABITATS (When Applicable)

Project site selection should take into account and minimize to the extent practical impacts to the ecology within the project's area of influence. Care to avoid/minimize impacts should be demonstrated, particularly in the case of important and critical natural habitats as defined in World Bank Operational Policy 4.04; Natural Habitats. For projects situated in sensitive locations, the EIA should address the risk of direct and indirect impacts on the environment of the project's area of influence as well as measures to mitigate these impacts. Guidance in protecting natural habitats is provided in OP 4.04. 

ENVIRONMENTAL MANAGEMENT AND MONITORING (When Applicable)

For Category A projects, an environmental management and monitoring plan (EMP), as described in Annex E, should be provided that sets forth: (a) the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or reduce them to acceptable levels; (b) the actions needed to implement these measures; and (c) actions required to assess the effectiveness of the mitigation measures employed. Specific requirements of the EMP will be made on a case-by-case basis according to the project's environmental sensitivities. The World Bank Operational Policy 4.01 provides guidance with respect to the preparation of an EMP.