Notification Concerning the Investment Proposal of the South Date: Pipeline Project Bulgarian Section

Transcription

1 Notification Concerning the Investment Proposal of the South Stream Offshore Pipeline Project Bulgarian Section DocID: Revision: External DocID: SST-EIA-NOT Rev0 [Comments] External DocID: [Comments] Page: 1 of 11

2 Table of Content 1 Characteristics of the Investment Proposal Summary of the Investment Proposal Need for New Supplies of Natural Gas Benefits the South Stream Offshore Project will bring Description of the Main Processes Location of the Investment Proposal 9 Attachments Attachment 1 Decision by the Council of Ministers on the National Importance of the South Stream Offshore Pipeline Project for Bulgaria Attachment 2 Map of the Bulgarian Section of the South Stream Offshore Pipeline Project External DocID: [Comments] Page: 2 of 11

3 Definitions, Abbreviations & Acronyms Abbreviation bcm EEZ EIA EPA EU EKATTE IEA FEED MARPOL PIG UNECE Description Billion Cubic Meters Exclusive Economic Zone Environmental Impact Assessment Environmental Protection Act European Union Unique classification number of the administrative-territorial and territorial units in Bulgaria International Energy Agency Front End Engineering and Design International Convention for the Prevention of Pollution From Ships Pipeline Inspection Gauges United Nations Economic Commission for Europe External DocID: [Comments] Page: 3 of 11

4 1 Characteristics of the Investment Proposal 1.1 Summary of the Investment Proposal The South Stream Offshore Pipeline Project is the offshore component of the proposed South Stream Pipeline System that will deliver natural gas (97.5% methane) from Russia to Central and South Eastern European Countries. The Offshore Pipeline Project is a new investment proposal being developed by South Stream Transport AG. South Stream Transport AG is an international joint venture of the Russian company OAO Gazprom (50%), the Italian company Eni S.p.A. (20%), the French energy company EDF (15%) and the German company Wintershall Holding GmbH (BASF Group) (15%). South Stream Transport AG is registered in Switzerland. The South Stream Offshore Pipeline Project is a natural gas pipeline system comprising four adjacent and parallel 32 inch (813 mm) diameter steel pipelines extending approximately 923 km across the Black Sea from the Russian coast near Anapa, through the Turkish Exclusive Economic Zone (EEZ), to the Bulgarian coast near Varna. The object of this Investment Proposal is the South (also referred to in this document as the Project ), which passes through approximately 254 km of Bulgarian waters and territory, 230 km of which are within the Bulgarian EEZ, 22 km lie within Bulgarian territorial waters and approximately 2 km are onshore (Ref: Attachment 2). The Project is classified under item 33 of Annex 1 of the Bulgarian Environmental Protection Act (EPA) as a Pipeline for transporting gas, oil or chemicals with a diameter exceeding 800 mm and a length of more than 40 km and is therefore subject to mandatory Environmental Impact Assessment (EIA). The Project was initiated by Gazprom in Feasibility studies were performed between 2009 and 2011, including environmental assessments. Preliminary environmental offshore surveys were conducted in 2009 and Surveys of the Black Sea marine environment and landfall areas commenced at the end of 2010 and are scheduled for completion in the course of Onshore environmental, socioeconomic and cultural heritage surveys commenced in April 2012 and are currently on-going, mapping key aspects of environmental, social, economic, cultural, and historical importance. With the Decision of the Council of the Ministers Nr. 876 of 2 nd December 2011 the Project has been given the status of an object of national importance (Ref: Attachment 1). The indicative overall timeline of the Project (including activities performed to date) is presented below. External DocID: [Comments] Page: 4 of 11

5 1.2 Need for New Supplies of Natural Gas Europe is a major consumer of natural gas. In 2010 total natural gas consumption in the European Union (EU) was estimated to be 522 bcm (Eurogas March 2011). Currently natural gas accounts for approximately 25% of Europe s primary energy consumption (European Environment Agency April 2012). Because of the lower emissions from the combustion of natural gas compared to coal and oil and the contribution it can make toward achieving reductions in CO 2 emission levels, it is widely seen as the fuel of choice. As a result the demand for natural gas is set to increase significantly in future years. The International Energy Agency (IEA) forecast world natural gas demand will increase 63% by 2035 and European demand by at least 20% (IEA World Energy Outlook 2011). Europe however does not have sufficient local reserves to meet demand and currently imports 64% of its gas requirements (Eurogas March 2011). As the level of demand for gas increases and indigenous production goes into decline, Europe will need to find additional sources of gas from further afield. Russia holds the world s largest gas reserves accounting for approximately one quarter of the world s total proven gas reserves (Oil & Gas Journal). The South Stream Project is being designed to meet Europe s need for natural gas and act as the bridge between the vast reserves of natural gas in Russia and the demand centre of Europe. 1.3 Benefits the South Stream Offshore Project will bring The South Stream Offshore Pipeline Project is one of the largest infrastructure projects currently being undertaken in the world. When complete, the Project will supply approximately 10% of the EU s demand for natural gas and make a major contribution toward ensuring Europe s long term energy security. The main benefits that the Project will bring to Bulgaria and Europe are: Major contribution toward ensuring Bulgaria and Europe s security of supply, providing safe and secure deliveries of gas on a long term basis; External DocID: [Comments] Page: 5 of 11

6 Substantial increase in the volume of gas supplied to Bulgaria allowing more consumers access to natural gas (current gas consumption in Bulgaria is 2.8 bcm/year. The South Stream Project will bring up to 1.5 bcm /year of additional gas providing a 50% increase in deliveries); Creation of new employment opportunities such as jobs during the 4 year construction period; The construction of the Project means that Bulgaria will become a major gas transit country and be the beneficiary of annual transit fees that will contribute to the economy of Bulgaria; Investment in Bulgaria over the 4 year construction period on goods and services sourced within Bulgaria from the following industry sectors: construction, engineering, shipping, hotel and catering, financial services, legal services, security and maintenance. 1.4 Description of the Main Processes Capacity, total area utilized, need for other ancillary or supporting activities, which are associated with the proposal s main subject matter; envisaged excavation works, presumed depth of excavations, use of explosives Construction The construction of the Project will be based on proven technology and state-of-the-art materials and equipment to ensure safe operation. The pipelines will be made of steel pipe sections of 12 m in length, which will be welded together on site. The pipe sections will be coated with three-layer-polypropylene to protect the pipeline from corrosion. The entire pipeline will also be protected against corrosion by a cathodic protection system. Some of the pipeline sections will be additionally coated with reinforced concrete to assure stability of the pipeline. Offshore The offshore pipelines will be laid on the sea-floor to a maximum water depth of approximately 2,200m in the Black Sea by means of pipe-lay barges/vessels. The 12m coated steel pipeline sections will be welded on board the pipe-lay barges/vessels and laid on the seafloor. In shallow waters (between 0 m and approximately 30 m water depth) the pipeline will be buried to provide on-bottom stability and as a safety measure to avoid damage from third parties (for example, trawling fishing gear and anchors). The burial of the pipelines will be achieved by laying the pipelines in trenches dredged by means of specialised vessels or barges (i.e. dredgers). Once the pipeline is laid in the trenches, the trenches are backfilled with the sediments previously dredged. Alternatively the pipelines will be buried by post-lay trenching techniques, which enable the burial of the pipeline in soft sediments once it has been laid on the seafloor by means of different methods such as jetting systems (using high pressure jets of water) and ploughs. The sediment cover over the pipelines will be approximately 1 m thick. In the section below the depth of approximately 30 m the pipelines will be laid directly on the seabed without the need to bury the pipeline. It is anticipated that the pipelines will gradually self-bury in areas of soft seabed sediments. In water depths of up to 100 m the pipelines will be coated with reinforced concrete. Several pipe-lay vessels or barges will be used for construction and installation of the pipelines, including shallow-water pipe-laying barges and deep water dynamic positioning pipe-laying vessels. The selection of the pipe-laying technique will depend on any limitations for navigation of the vessels or barges. Once laid, each pipeline will be subject to pre-commissioning to test the integrity of the pipelines. These tests will be in accordance with recognised industry standards. External DocID: [Comments] Page: 6 of 11

7 Onshore The proposed landfall of the pipelines in Bulgaria is approximately 9 km south of the city of Varna, approximately 50 m south of the existing Galata offshore gas pipeline operated by Melrose Resources plc (Melrose). The onshore route is planned to run parallel to the existing Galata gas pipeline from the landfall to connect to an onshore Gas Receiving Terminal, which will be located approximately 2 km from the coast. The onshore Gas Receiving Terminal is outside the scope of the Project and will be constructed by South Stream Bulgaria AD as part of the South Stream Onshore Project - Bulgarian Section 1. The onshore pipelines will be buried for their entire length. For safety reasons, and in order to minimise impacts to existing land uses, the onshore pipelines will have a soil cover of minimum 1 m. The pipelines will be assembled in a conventional way by a construction spread (area) which will gradually move along the construction corridor. The construction corridor of the four pipelines will be in total approximately m wide. The construction spread will be composed of conventional construction vehicles such as excavators, bulldozers and side booms 2. First, the top soil within the construction corridor will be stripped away and stored separately and then a trench of approximately 2.5 m in depth will be excavated for each pipeline. Individual joints of pipe will then be welded and the pipeline will be subsequently lowered into the trench. The soil will be placed back into the trench and the landscape rehabilitated while the construction spread moves forward. The onshore facilities of the Project will comprise block valves, metering facilities, Pipeline Inspection Gauge (PIG) receivers and ancillary facilities required to maintain the required pressure and temperature of the gas delivered to the Gas Receiving Terminal for onward transportation. The ancillary facilities are outside the scope of the Project and fall within the scope of the Gas Receiving Terminal. The execution of the Project shall be undertaken in compliance with international, EU and national standards for the design, materials, fabrication, installation, testing, commissioning, operation and maintenance of pipeline systems Operation When fully operational, the Project will transport an annual capacity of 63 billion cubic metres of gas. During operation, the pipeline will be monitored and controlled from a central control room at a location yet to be confirmed. Continuous measurements of pressure and flow rates will be performed at the inlet and outlet of the pipeline to ensure leak detection. If a leak is detected, emergency shutdown procedures will be implemented. The pipeline system has been designed to allow use of instrumented PIGs, which will be used to inspect the pipeline and clean it during the operational phase. The Offshore Pipeline system will have a design life of at least 50 years Relation to other existing activities approved by means of a site development or another plan within the scope of impact of the investment proposal s subject matter The short onshore section of the Project will run parallel to the existing Galata gas pipeline. All safety requirements for working near another pipeline will be adhered to and a nominal separation distance will be adopted. The landfall and the onshore section of the Project have been located near the Galata gas pipeline in order to minimise environmental, socioeconomic and cultural heritage impacts and bundle the pipelines together in accordance with generally accepted industry practices. 1 The registration number of the notification of the Investment Proposal of the South Stream Onshore Project Bulgarian Section is ОВОС-1144/ г. и г 2 Machines for lifting and lowering the pipeline External DocID: [Comments] Page: 7 of 11

8 1.4.3 Use of existing technical infrastructure or need to develop new technical infrastructure Offshore In order to facilitate the construction of the offshore section of the pipeline temporary storage facilities called marshalling yards will be required. These will be strategically located at ports along the route of the pipeline through the Black Sea. The marshalling yards will take delivery of pipe sections from manufacturers, and temporarily store them before they are shipped out by sea to the pipe-lay barge. Any final stage pretreatment of the pipe sections will be undertaken at the marshalling yard prior to the pipe sections being despatched to the pipe-lay barge. It is envisaged that there will be one marshalling yard at each end of the pipeline (one in Bulgaria, the other in Russia) and up to three marshalling yards in Turkey at port locations along the route of the pipeline. It is envisaged that deliveries of pipe sections to the ports in Turkey will be made on a just in time basis from the marshalling yards in Bulgaria and Russia. Deliveries of pipeline to the marshalling yard from the manufacturer will be made by rail or sea. The marshalling yard located in Bulgaria will ideally be situated in an industrial location within the confines of a port area that has good access to existing road, rail and port infrastructure. In the absence of such facilities the construction of additional infrastructure may be necessary. The marshalling yards will be required for the duration of the construction period. A search is currently underway to identify suitable areas of land at port locations in Bulgaria. Onshore Access roads to facilitate construction of the onshore section of the Project will be approximately 5 m wide and will be located within the m wide construction corridor for the pipeline. An access road will remain over the centre of the easement for the pipeline route following completion of the construction works. It is anticipated that this road will be kept to a standard suitable for access by a typical 4x4 vehicle. The construction and installation requirements for the Project shall require the identification and preparation of temporary work areas. Temporary sites shall be established to support the pipeline installation activities, including space for the shore crossing to accommodate shore pulling equipment. After completion of construction, temporary construction areas will be restored to their original conditions as far as reasonably practicable. In order to safeguard the integrity of the pipeline and ensure access to the pipeline, deep-rooted vegetation and crops will not be able to be reinstated over the underground pipelines within approximately 10 m of the pipeline. Electrical power shall be either supplied by temporary diesel generators or, if possible, a mains connection shall be established during site mobilisation. Any fuel, oil and chemicals necessary for the construction and installation works shall be transported to the construction sites by road vehicle. These materials shall be safely stored in designated secure areas, including temporary secondary containment, and spill prevention measures and provisions for emergency response will be implemented in case of leakages or spillages Natural resources envisaged for use during construction and operation No direct abstraction of groundwater or surface water will be carried out. Potable water shall be made available to support the construction activities (both onshore and offshore) and the temporary workers camp. It is envisaged that this will be delivered to the site in tankers (onshore) and supply vessels (offshore). Topsoil, marine sediments and other geological materials will be retained in temporary storage areas along the pipeline route. These materials will be reused to backfill trenches and excavations, and to restore land after construction. External DocID: [Comments] Page: 8 of 11

9 1.4.5 Waste expected to be generated and forecasts for the treatment thereof The construction and installation works for the Project will generate waste materials, which will be collected, stored, transported and disposed of in accordance with documented and approved Waste Management Plans that comply with Bulgarian law and regulations. Construction wastes that require disposal will be segregated and stored in secure designated areas. Solid wastes will be routinely collected for disposal at licensed and approved waste disposal facilities in accordance with Bulgarian law and regulations. During normal operations, no solid wastes are expected to be produced. Small quantities of wastes may be generated during maintenance activities. Solid wastes shall be routinely collected for disposal at licensed and approved waste disposal facilities in accordance with Bulgarian law and regulations Wastewater - expected type and quantities (household/industrial), envisaged method for the treatment thereof The management of wastewater generated by the construction vessels during the installation of the offshore pipeline shall be undertaken in accordance with National and International standards and requirements, including those of the International Convention for the Prevention of Pollution from Ships (MARPOL). Construction wastewater will include storm water drainage from construction areas. Domestic wastewater and sewage generated during construction of the onshore pipeline will be safely stored at the temporary facility (packaged sewage treatment plant or septic tank) and this will be routinely collected for disposal at licensed and approved wastewater treatment facilities near Varna. No operational wastewater will be produced by the Project. Wastewater will be limited to site drainage of storm water from operations facilities. 1.5 Location of the Investment Proposal Details on the location and area of the proposed project including region, municipality, city district, plots of land, GIS-coordinates (if possible in WGS 1984) ownership The proposed landfall of the pipelines in Bulgaria is located in the municipality of Varna, in the southern part of the city district of Galata, and approximately 9 km south of the city of Varna. It is approximately 50 m south of the existing Galata offshore gas pipeline operated by Melrose (Ref: Attachment 2). Key coordinates of the South Stream Offshore Pipeline Route in Bulgaria projected into WGS84 are as follows: Longitude (E) Latitude (N) Description 30 28'58.6"E 29 9'50.2"E 42 47'1.6"N 42 40'11.8"N Point where alignment crosses Bulgarian EEZ waters Midpoint through Bulgarian EEZ waters 27 55'26.6"E 43 6'27.9"N Landfall location External DocID: [Comments] Page: 9 of 11

10 Initial inquires with the Varna Municipal Land Register (EKATTE 10135) have been made to identify the plot numbers, land usage designation and identity of land owners that may be affected by the onshore pipeline. The results of these enquiries are as follows: Plot , designated for agricultural use, owned by the Municipality of Varna; Plots , , and designated as woodland, owned by the company Shangrela EOOD; Plot protected coastal strip in State ownership; Plot designated as woodland, owned by State forestry State Forest Agency; Plot: designated as woodland, with mixed state and private ownership; Proximity or potential for impact on protected areas, territories of cultural heritage Protected areas crossed by the nearshore and onshore section of the Project are: Natura 2000 Special Protected Area (SPA) Galata (Code BG ) established in accordance with the European Council Directive 79/409/EEC of 2 April 1979 for the conservation of wild birds; Natura 2000 Special Area of Conservation (SAC) Galata (Code BG ) established in accordance with the European Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora; and Nationally Protected Area Rakitnik, designated as protected by Bulgarian Ordinance Nr. PD818/ In addition to the above, the proposed onshore route is approximately 500 m north of the National Protected Area Liman, designated as protected by Bulgarian Ordinance Nr. PD821/ As required by Article 6(3) and (4) of the Habitats Directive (92/43/EEC) an Appropriate Assessment of the potential impacts on protected habitats and species of the Natura 2000 sites will be carried out together with the Project s EIA. No known sites of cultural heritage importance have been identified along the proposed onshore and offshore route. Detailed onshore and offshore archaeological surveys will be performed as part of the Project s EIA. In view of the protected status of the nearshore and onshore areas crossed by the Project and due to the sensitivity of the coastal habitat, mitigation measures will be adopted to avoid or minimise impacts resulting from the Project s construction activities. These may include: The narrowing of the construction corridor through areas of high ecological value; Close cut technologies such as horizontal directional drilling and tunneling under areas of high ecological value to avoid or minimise disturbance to habitats and species of conservation interest; Timing of the construction in order to avoid seasonally sensitive nesting or breeding birds; Undertaking archaeological supervision (watching brief) of onshore construction works and carrying out appropriate investigation and recording of onshore cultural heritage resources (if necessary); Adopting environmental, socio-economic and cultural heritage management measures for construction activities through the preparation of construction site specific Environmental Management Plans and Procedures, which will be part of the Project s Environmental and Social Management System. A comprehensive list of mitigation measures will be provided in the Project s EIA. External DocID: [Comments] Page: 10 of 11

11 1.5.3 Potential for trans-boundary impact Due to its trans-boundary nature the Project falls under Article 3 of the UNECE Convention on Environmental Impact Assessment in a Trans-boundary Context (Espoo, 1991). The Espoo process will run in parallel to the EIA procedure in Bulgaria. Potential trans-boundary impacts of the Project will be limited to the offshore section where the pipelines will be laid directly on the sea-floor by means of pipe-lay vessels (please refer to Section of this document). External DocID: [Comments] Page: 11 of 11

12 Attachments

13 Attachment 1 Decision by the Council of Ministers on the National Importance of the South Stream Offshore Pipeline Project for Bulgaria

14 The decision was made on the base (or within the frame) of the declared laws: Decision No. 876 From 2 nd December 2011 FOR STATEMENT OF GAS PIPELINE "South Stream" in the section to be built in the REPUBLIC OF BULGARIA FOR THE SUBJECT OF NATIONAL SIGNIFICANCE AND NATIONAL OBJECT Pursuant to 5, item 62 1) of the Supplementary Provisions of the Law on Spatial Planning and 1 2) of the Supplementary Provisions of the Law on State Property The Council of the Ministers decide: 1. Declares pipeline "South Stream" in the section which will be built on the territory of the Republic of Bulgaria, as an object of national importance. 2. Declares pipeline "South Stream" in the section which will be built on the territory of the Republic of Bulgaria in item 1, as national object. Prime Minister: /signature/ Bojko Borisov Secretary of the Council of Ministers: /signature/ Posen Seljaskov

15 Attachment 2 Map of the Bulgarian Section of the South Stream Offshore Pipeline Project

16 Romania EEZ LEGEND Proposed pipeline route Communication cables Bathymetry (mbsl) Plot Date: 20/06/2012 File Name: I:\ Information Systems\ _South_Stream\MXDs\Report Maps - Bulgaria\Bulgarian Notification Maps\ _Doc131_MAP Proposed Pipeline Route (Bulgarian Section)_ENG.mxd DOBRICH VARNA Galata Priseltsi Bulgaria EEZ Turkey EEZ Copyright Revision Details Purpose of Issue Project Title Drawing Title By Check For Information SOUTH STREAM OFFSHORE PIPELINE PROJECT - BULGARIAN SECTION PROPOSED PIPELINE ROUTE (BULGARIAN SECTION) Drawn Checked Approved Date DH MB MW 20/06/2012 SSTTAG Reference No. A3 This document has been prepared in accordance with the scope of URS' appointment with its client and is subject to the terms of that appointment. URS accepts no liability for any use of this document other than by its client and only for the purposes for which it was prepared and provided. Only written dimensions shall be used. URS Infrastructure & Environment UK Limited URS Infrastructure & Environment UK Limited Scott House Alençon Link, Basingstoke Hampshire, RG21 7PP Telephone (01256) Fax (01256) km Drawing Number Rev _Doc131_MAP 1 Client Bulgaria territorial waters (indicative) Exclusive Economic Zones Projection: Lambert Conformal Conic SST-EIA-NOT :650,000 Check Date Suffix