Return to DOE Report Table of Contents

Methanol Plantship - 1988

Tenneco Inc.

Table of Contents 80kb

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.