(140c) Cost and Drivers for Lng Plant/terminal Site Preparation and Foundations

Selection of a plant site has a significant influence on the design, construction and operating costs of an LNG plant or terminal. Amongst the principal factors that influence site selection and development, the most critical factors which need consideration for short listing a prospect include proximity to population centers, proximity to end user in the case of LNG terminal, and local perceptions, ecological considerations, environmental considerations and land availability. A detailed commentary on the various factors is provided in the main text.

The drivers for any site preparation activity or foundation strategy consist of both direct and indirect factors. Direct factors relate to the site conditions and functionality of the proposed construction and include the functional layout of the LNG plant and structural requirements, land acreage requirement (plot plan size), availability of land near-shore, finished site elevation, site topography, existing soil/rock and groundwater conditions and logistics. These factors are very site-specific and may not be controlling at every site.

Selection of ground improvement or foundation alternatives at a site should consider the relative strengths, weakness, opportunities and threats of the various options. Selection should be based on the most optimal solution with the least risk.

Indirect factors may cause schedule delays and lead to incremental project costs. These factors relate to uncertainty in soil data, inadequate soil data, improper sampling methods, delays in geotechnical information, underestimation of amount of imported fill in soft soils, reliance on technologies with time dependencies that have a potential for schedule creep, bias of EPC contractors towards certain technologies and seasonal issues.

The cost of site preparation for a typical 3 x 5 MMTPA train LNG plant could range from about 1 % at sites with competent soils to about 5% at sites with incompetent soils.