TEMA LIQUEFIED NATURAL GAS PROJECT ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT

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1 TEMA LIQUEFIED NATURAL GAS PROJECT ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT Final Scoping Report - Non-Technical Summary Introduction Quantum Ghana Gas Limited (Quantum) proposes to develop the Tema Liquefied Natural Gas (LNG) Project (proposed Project) in the Greater Accra Region of Ghana. Before Quantum is given permission to start this project they need to do a study called an Environmental and Social Impact Assessment (ESIA). The ESIA advises both the Ghanaian Government and international banks that may lend money to the proposed Project about the changes (impacts) that are likely to happen because of the proposed Project. It also suggests how these changes can be managed. This document provides: background information on the proposed Project; an introduction to the Environmental and Social Impact Assessment Process and what has taken place to date, including a summary of the Final Scoping Report; and details of the Stakeholder Engagement process for the ESIA and how the public can become involved in the rest of the ESIA process. In other words, this document gives a summary of what environmental and social changes Knight Piésold Ghana Limited think will happen and what studies will be undertaken as part of the ESIA. It also explains how you may get involved in the process. Knight Piésold C O N S U L T I N G

2 FINAL SCOPING REPORT - Background to the Project Quantum is a developer, owner and operator of electricity generation assets and power-related infrastructure throughout Africa. Quantum plan to develop the proposed Project, which will include all the necessary infrastructure to import, store, re-gasify and deliver regasified LNG to off-takers in the Greater Accra Area. The proposed Project will include infrastructure in the sea (Marine) and on land (Terrestrial) and will cross two administrative districts in the Greater Accra Area, namely Tema and Kpone, as seen in the map overleaf. The Tema Area includes predominantly heavy and light industrial developments, but also has a number of large coastal communities such as Tema New Town and Bankuman. The Kpone area has less industrial developments but also has a number of coastal communities.. So, what is LNG? LNG is produced by cooling natural gas to a very low (cryogenic) temperature until the gas becomes a liquid. The process reduces the volume of the natural gas to 1/600th of its un-liquefied volume. This much smaller volume allows large amounts of natural gas to be transported economically over long distances by special ships called LNG carriers When the LNG is offloaded at its destination (the Tema LNG Project location), it is then re-gasified by heating it, which allows it to return to its gaseous state. The resultant natural gas is then distributed to customers via natural gas pipelines and reticulation systems which transport the gas to power stations which provide electricity to domestic and industrial users. The process is shown in the diagram below.

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4 What will the proposed Project include? The proposed Project shall have the following components and infrastructure: Floating Storage and Regasification Unit (FSRU) - The FSRU will berth at the offshore mooring jetty, located between 12-15km off the coastline of Tema. It will have an overall length of 295m, a width of 44m and will be able to store approximately 170,000 m 3 of LNG. The FSRU initial send-out rate capability will be 250 MMscf/d (able to supply approximately 1,250 MW of combined cycle electricity) with the ability to deliver up to 750MMscf/d. Offshore Mooring and Support for Floating Units (FSRU as well as LNG Supply Vessels) - The Floating Units will be permanently held in position by a mooring jetty, which will be connected to a subsea pipeline via a flexible riser. The mooring system will rest on permanent piles in the seabed and support a permanently moored storage and re-gasification vessel, an LNG trading vessel and a riser from the subsea pipeline. Subsea Gas Pipeline the subsea pipeline will be made from 18 inch carbon steel seabed pipe which will be laid on the seafloor in order to transport the gas from the flexible riser base of the FSRU to the onshore metering station. The pipeline will be designed to comply with international standards (ASME B31.8) and will have concrete ballasts to prevent it from floating to the surface. Landing Facilities and Distribution Pipelines - The subsea pipeline will run from the FSRU under the sea to landing facility and a metering station. The metering station will be able to monitor the amount of gas being distributed to the six planned Independent Power Producers, who will then provide electricity to other parts of Ghana. The metering station will also be able to monitor the pressure of the gas in the pipeline to detect any leaks.

5 The Environmental and Social Impact Assessment Process Before Quantum may continue with their proposed Project, they are required to undertake a process called an Environmental and Social Impact Assessment (ESIA). In order to get the ESIA approved it needs to be completed according to Ghanaian law (Environmental Assessment Regulations (LI 1652) of 1999 and the EPA Act 490 of 1994). Because Quantum may also borrow money from international banks, Quantum needs to follow international standards and requirements (the Equator Principles and International Finance Corporation s (IFC) Performance Standards). The Equator Principles and IFC Performance Standards identify important environmental and social issues that a Project needs to understand and manage before the banks will lend money to a proposed Project. Because of both the Ghanaian Environmental Protection Authority (EPA) and the funders requirements, Quantum needs to complete an ESIA. The aim of the ESIA study is to predict how the proposed Project will change (impact) the environment and the people in both good and bad ways. The study will make a conclusion about how serious these changes are likely to be (impact assessment). The ESIA study also identifies the best ways to avoid or reduce negative impacts and ways to support the positive changes that may happen because of the proposed Project (mitigation plans). The Process The ESIA process and the associated stakeholder engagement process are both divided into 4 key phases: 1. Screening: The Screening Phase identifies what environmental and social issues the ESIA will focus on. 2. Scoping: The Scoping Phase identifies the changes (impacts) that are expected to happen because of the proposed Project. The Scoping Phase was completed in August 2014 and a Scoping Report sent to the EPA and stakeholders for review. 3. Specialist Studies: The Specialist Studies collect information from the area to understand the environment and people in the area and how the proposed Project is likely to impact them. The Specialist Studies associated with this ESIA have commenced. 4. Impact Assessment: The Impact Assessment identifies how large and important impacts are likely to be, and how these impacts can be avoided or reduced. Again, a report (Draft ESIA) will be made available for the EPA and stakeholder review. Screening Knight Piésold Ghana Limited have been appointed as the independent environmental and social specialists to do this ESIA study. The results of the ESIA are sent to the EPA to give them advice on the best way to make sure the proposed Project manages environmental and social issues. Record of Decision Scoping We are here. Impact Assessment Specialist Studies

6 Initial Thoughts on the Expected Changes from the Proposed Project Scoping The Scoping Phase is now complete and included the following activities: Desktop Review of all available secondary information; A Scoping Site visit by environmental and social specialists; The use of a Rapid Impact Assessment Matrix and Environmental Risk Matrix to identify and prioritise potential environmental and social impacts; Initial stakeholder engagement with a variety of key stakeholders including government ministries and agencies, public organisations and project partners; The noting of initial stakeholder issues and concerns; Development of a Terms of Reference (ToR) which defines what specialist studies will be undertaken and what will need to be look at further in the Impact Assessment Phase; and The submission of a Scoping Report to the Ghana Environmental Protection Authority (EPA). A number of potential changes (potential impacts), during the Scoping Phase, have been identified as likely to happen because of the proposed Project. These impacts will be studied and understood in more detail through the Specialist Studies and Impact Assessment Phases in the ESIA. These include: Effects of the Project on the Marine Environment - The FSRU and the subsea pipeline may impact on seawater quality, fish and other sea life, and the movement of ships and fishing boats. Effects of the Project on the Terrestrial Environment The pipeline, roads and metering station may impact on plants, surface water quality air quality and noise in the Project area. Effects to the people living close to the Project The Project may need to move people for Project infrastructure. The Project may also increase the number of people coming into the area and may increase the number of people using the local schools, clinics, etc. The proposed Project may employ local people for construction and operation and use the services in the local area. This may increase the employment in the area however the number of people to be employed will need to be confirmed. More Information on the Impact Assessment Phase The Impact Assessment Phase uses the information collected during the Specialist Studies (which are currently taking place) to identify the types of changes that may happen to the environment and the people in the area around the proposed Project. During the Impact Assessment phase, specialists will put together a first ESIA report (draft ESIA). This will summarise the findings of the specialists including: The types of changes that are likely to happen due to the proposed Project; A prediction of who will be affected and how important these impacts will be (assessment of the impact); and The mitigation plans for how to deal with the impact to minimise negative impacts and support positive impacts. The results described in the draft ESIA report will be made public and discussed with stakeholders. The final ESIA report will only be finished once the specialists have considered stakeholder opinions about both the impact rating and the appropriateness of the mitigation plans for how to reduce negative changes and support positive changes. The final ESIA report will be submitted to the EPA who will then decide if the proposed Project will be given permission or not and under what conditions. The international banks who may give money to Quantum will also decide whether they want to give financing to the proposed Project depending on the result of the ESIA study. Engagement with stakeholders during this phase will include with national, regional and local stakeholders as well as experts who can comment on the impact assessment and mitigation plans.

7 Stakeholder Engagement Stakeholders are defined as any people or groups at the national, regional or local level that are either affected by the proposed Project or interested in it. The reason for talking to people about the proposed Project and the ESIA study is to make sure that stakeholders have a chance to comment on the ESIA, including the impact assessment and the mitigation plans suggested. Engagement also allows Quantum to communicate information about the proposed Project to potentially affected people. It is important to engage stakeholders the whole way through the ESIA study. Quantum, the Government of Ghana and potential funders are all interested in what the stakeholders say as they make their decision about how to continue with the proposed Project. Knight Piésold Ghana Limited are independent consultants who are conducting the engagement process. Our team commits to making sure that engagement is open to all people, especially people who will be affected by the proposed Project. Engagement will be done in a way that is culturally appropriate and by ensuring that stakeholders are given enough of the right information at the right time to make sure they are able to engage in a meaningful way. A summary of the engagement activities that have been and will still be undertaken is provided below. 2 nd Quarter 2014 PROJECT ANNOUNCEMENT Complete Stakeholder Mapping to identify key Interested & Affected Parties (I&APs) Formal announcement of proposed Project to identified stakeholders (including government bodies and public organisations) Announcement letter and Background Information Document (BID) distribution Placement of site notices inviting I&APs to register Placement of newspaper adverts inviting I&APs to register Key I&AP focus group meetings 3 rd Quarter th Quarter 2014/ 1 st Quarter nd /3 rd Quarter 2015 SCOPING Complete IMPACT ASSESSMENT DECISION MAKING Announce availability of Draft Scoping Report for public review Lodge Draft Scoping Report available in the mass media Hold meetings with I&APs. Update Draft Scoping Report, Comment and Response Report Submit Final Scoping Report to EPA for review Notify Stakeholders of the Final Scoping Report Make the Final Scoping Report available at public locations and on the Project website for stakeholder reference Share information with stakeholders during baseline studies Announce availability of Draft ESIA and ESMP Reports for review Draft ESIA and ESMP Reports available at public places and Project website for review and comment Hold public meetings with I&APs. Update of Draft ESIA and ESMP Reports based on stakeholder comments Submit Final ESIA and ESMP for public review Submit Final ESIA and ESMP to the EPA for consideration Announce decision from competent authorities to I&APs. Provide the needed information for appeals process in announcement Become Involved: by visiting the Project website - Here you can download the Final Scoping Report or updated Project information; and by contacting Knight Piésold and by registering an interest in the Project. Registration will allow you to receive further communication about the ESIA process and the proposed Project. Knight Piésold s contract details are as follows: Knight Piésold Ghana Limited Physical Address: No. 20, 2 nd Close Airport Residential Area Post: P.O. Box CT 4122, Cantonments, Accra Phone: l

8 Project Development Team: THE CLIENT CLIENT ESIA CONSULTANT Front End Engineering Design LNG Metocean and Import Analysis Front End Engineering Design