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European Bank for Reconstruction and Development London, UK Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report Doc. No.P0000763-1-H8 Rev.1 - October 2017 Rev. 1 Description Second Issue GASCO comments implemented Prepared by M. Bogliolo / S. Leo Servidio / P. Ricchetti Controlled by M. Morando Approved by G. B. De Franchi Date October 2017

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European Bank for Reconstruction and Development London, UK

Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation

Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

Rev. 1

Description Second Issue GASCO comments implemented

Prepared by M. Bogliolo / S. Leo Servidio / P. Ricchetti

Controlled by M. Morando

Approved by G. B. De Franchi

Date October 2017

Doc. No.P0000763-1-H8 Rev.1 - October 2017

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Rev. Description Prepared by Controlled by Approved by Date

1 Second Issue

GASCO comments included

M. Bogliolo S. Leo Servidio

P. Ricchetti M. Morando G. B. De Franchi 06/10/2017

0 First Issue M. Bogliolo

S. Leo Servidio P. Ricchetti

M. Morando G. B. De Franchi 07/09/2017

All rights, including translation, reserved. No part of this document may be disclosed to any third party,

for purposes other than the original, without written consent of RINA Consulting S.p.A.

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

Page 1

TABLE OF CONTENTS

Pag.

LIST OF TABLES 2

LIST OF FIGURES 3

ABBREVIATIONS AND ACRONYMS 4

1 EXECUTIVE SUMMARY 5

2 BASIS OF DESIGN 7

2.1 SITE DATA 7

2.1.1 Climatic conditions 7

2.1.2 Battery Limits 7

2.1.3 Electric Data 7

2.1.4 Gas Characteristics 7

2.2 ENERGY PRICES 8

2.3 OPERATIONAL DATA 8

2.4 GAS NETWORK SCENARIO 9

2.5 CAPEX AND OPEX ESTIMATION 9

2.5.1 CAPEX for Equipment and Materials 9

2.5.2 CAPEX for Services 10

2.5.3 OPEX Estimation 10

3 DAHSHOUR BASELINE OPTION 11

3.1 BASELINE DESCRIPTION 11

3.2 BASELINE PERFORMANCE DATA 12

3.3 BASELINE CAPEX AND OPEX 13

3.3.1 Baseline CAPEX 13

3.3.2 Baseline OPEX 14

4 ENERGY EFFICIENCY SOLUTION DESCRIPTION 15

4.1 OVERVIEW 15

4.2 WASTE HEAT RECOVERY UNITS 18

4.3 HEATING OIL CIRCUIT 19

4.4 ORGANIC RANKINE CYCLE 20

4.5 BALANCE OF PLANT 24

5 EEO PERFORMANCE DATA 25

5.1 CASE SUMMARY 25

5.2 PERFORMANCE TABLES 25

6 FINANCIAL ANALYSIS 30

6.1 CAPEX ESTIMATION 30

6.2 OPEX ESTIMATION 31

6.3 FINANCIAL ANALYSIS RESULTS 32

REFERENCE DOCUMENTS 1

APPENDIX A: EEO EQUIPMENT AND MATERIALS DATA SHEET

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

Page 2

LIST OF TABLES

Table 1.1: Dahshour Financial Summary 6

Table 2.1: Climatic Conditions 7

Table 2.2: Battery Limits 7

Table 2.3: Gas Characteristics 8

Table 3.1: Baseline Performances 12

Table 3.2: Baseline CAPEX 13

Table 3.3: Baseline Resources Consumptions 14

Table 5.1: Rated Performances 26

Table 5.2: Operating Performances 28

Table 6.1: CAPEX for Compression Capacity Extension 30

Table 6.2: CAPEX for EEO Equipment and Materials 30

Table 6.3: CAPEX for EEO Solution Services 31

Table 6.4: EEO Solution Resources Consumptions 31

Table 6.5: EEO Solution Maintenance Cost 32

Table 6.6: Electricity Price Forecast 32

Table 6.7: Gas Price Forecast 33

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

Page 3

LIST OF FIGURES

Figure 2.1: Compression Capacity Forecast 9

Figure 3.1: Baseline General Arrangement 11

Figure 4.1: Energy Efficiency Solution Schematic 15

Figure 4.2: Process Flow Diagram 16

Figure 4.3: Compressor Station Layout 17

Figure 4.4: Option 1, compact cylindrical WHRU, Installation above Gas Turbine 19

Figure 4.5: ORC Thermodynamic Chart 20

Figure 4.6: Simplified Process Flow Diagram 21

Figure 4.7: ORC Process Flow Diagram 22

Figure 4.8: ORC General Arrangement 23

Figure 6.1: Cash Flow 34

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

Page 4

ABBREVIATIONS AND ACRONYMS

DCS Distributed Control System

E&S Environmental & Social

EBRD European Bank for Reconstruction and Development

EEO Energy Efficiency Opportunity

EGAS Egyptian Natural Gas Holding Company

ENPPI Engineering for the Petroleum and Process Industries

GASCO Egyptian Natural Gas Company

GC Gas Compressor

GT Gas Turbine

HO Heating Oil

HR Heat Recovery

LHV Low Heating Value

LPG Liquefied petroleum gas

MOIC Ministry of International Cooperation

MOP Egyptian Ministry of Petroleum and Mineral Resources

ND Nominal Diameter

NG Natural Gas

O&M Operation & Maintenance

ORC Organic Rankine Cycle

P Pressure

P&ID Piping and Instrumentation Diagram

PFD Process Flow Diagram

PIP Project Implementation Plan

PP&R Procurement Policies and Rules

SLD Single Line Diagram

RH Relative Humidity

T Temperature

TE Turbo-Expanders

TOC Table of Contents

TOR Terms Of Reference

TS Thermal Supply

UFD Utility Flow Diagram

VFD Variable Frequency Drive

WHRU Waste Heat Recovery Unit

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

Page 5

1 EXECUTIVE SUMMARY

The Dahshour Compression Station includes N.4 gas compression trains of the same size, each of them equipped with a gas turbine drive by GE / Nuovo Pignone, model MS 5002C, in open cycle.

The site capacity is planned to be increased by extending the plant with the installation of N.2 additional compression trains of the same nominal capacity as the existing ones. In view of this expansion, it would be profitable to implement energy efficiency opportunities, by using the large amount of heat available in the gas turbines’ hot exhausts. No thermal users are present at site; for this reason, the proposed solutions are aimed at converting the recovered heat from the gas turbines into electrical power covering both the variable speed motor driven compressor and plant internal electric power requirements through an Organic Rankine Cycle (ORC) Power Plant.

The baseline situation for comparison of costs and benefits of the proposed Solutions is the expansion of the site gas capacity without any energy efficiency measure: it means that two new GT driven additional trains would be installed, with the same capacity of the four existing ones.

A preliminary screening study analyzed four alternatives of Energy Efficiency Opportunities; the selected best option is aimed to drive one of the new compressors by an electric motor with VFD, and use the ORC Power Plant to supply the electrical power needed by the Compression Station in the future configuration; the total recovered duty from 4 running GT is 124.3 MWt and the plant is constituted of the following main equipment:

N.5 waste heat recovery units installed at the outlet of each gas turbine;

Heating oil circuit complete with piping, recirculation pumps, tanks and accessories;

ORC Power Plant with air-cooled condenser;

Balance of plant: foundations and steel structures, electrical and I&C interconnections, utilities extension.

The present feasibility study is aimed to provide energy assessment of the selected solution, performances and conceptual basic documentation (process flow diagram and layout), estimation of CAPEX and OPEX with feedback from suppliers of technological items, schedule and milestones of the project.

A financial analysis has been conducted to evaluate the economic feasibility and the payback time of the selected solution, compared with the above described baseline.

The energy tariffs are as per the ministerial decree 312 of 2017 regarding the fiscal year 2017-2018 and the corresponding savings are based on the escalations that would be anticipated for the change in energy prices due to the country plan for energy prices without subsidy for the future three to five years.

The following table summarises the main findings of the selected solution; a recommended 15% contingencies contribution has been added to the preliminary CAPEX estimation, which is based on budgetary proposal of the most important technological equipment and price estimation for small equipment, materials, and services.

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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Table 1.1: Dahshour Financial Summary

PARAMETER UNIT A2

Delta CAPEX with 15% contingency MUSD 33.27

Yearly Natural Gas Savings MWh/y 552,124

Yearly Electricity Savings MWh/y 23,520

GHGs Reduction tCO2/yr 123,290

Delta OPEX for maintenance MUSD/yr -0.76

Average Yearly Energy Savings MUSD/yr 15.25

Payback Time year 2.3

IRR % 45%

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

Doc. No.P0000763-1-H8 Rev.1 - October 2017

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2 BASIS OF DESIGN

2.1 SITE DATA

2.1.1 Climatic conditions

Dahshour Gas Compression Station is located at Dahshour area, about 40 kilometres south of Cairo. The reference climatic conditions of the site are as follows:

Table 2.1: Climatic Conditions

PARAMETER UNIT VALUE

Ambient temperature (min / max) °C +4 / +45

Barometric pressure (min / max) mbar 1009 / 1018

Relative Humidity (min / max) % 54% / 98%

2.1.2 Battery Limits

Battery limits operating conditions for inlet / outlet natural gas are:

Table 2.2: Battery Limits

PARAMETER UNIT INLET OUTLET

Pressure bar(a) min 25.3 / max 50.0 71.0

Temperature °C min 14.6 / max 32.7 max 55

2.1.3 Electric Data

Dahshour compression station is connected with the electrical grid by 2 incoming feeding lines at 22 kV for power supply to the gas compression units, auxiliaries, and buildings.

The medium voltage supply is lowered to 400 V for the users by means of N.3 22kV / 0.4 kV transformers, rated 2.5 MVA each (with other 3 transformers in stand-by), plus N.1 22kV / 0.4 kV transformer rated 1 MVA.

The evaluation of site electric consumption in the different scenarios was based on the following data, referred to normal plant operation:

Auxiliary consumption of 1 gas compressor: 250 kW

Auxiliary consumption of 1 gas turbine drive: 150 kW

Site common utilities: 800 kW

2.1.4 Gas Characteristics

Fuel Gas for the gas turbine drives is taken from the network. A common gas conditioning skid is installed for pressure regulation, heating and filtering the gas to the existing four units; an additional final filtration skid is provided for each gas turbine.

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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The characteristics of natural gas compressed in the Dahshour plant are shown in the following table:

Table 2.3: Gas Characteristics

PARAMETER UNIT RICH GAS LEAN GAS

Specific Gravity 0.708 0.567

Gross Heating Value BTU/SCF 980 1180

Gas Composition

Nitrogen %mole 0.05 0.76

Carbon Dioxide %mole 3.99 0.15

Methane %mole 80.23 97.32

Ethane %mole 10.07 1.71

Propane %mole 3.88 0.04

Iso-Butane %mole 0.57 0.02

Normal-Butane %mole 0.69 0.00

Iso-Pentane %mole 0.21 0.00

Normal-Pentane %mole 0.12 0.00

Normal-Hexane %mole 0.12 0.00

Heptane and Heavier %mole 0.07 0.00

Gas Limit Specifications

Hydrogen Sulphide (H2S) ppm vol < 8

Total Sulphur mg / Sm3 < 150

Mercaptan (RSH) mg / Sm3 < 15

Carbon Dioxide %mole < 4.0

Oxygen mole < 0.1

Hydrocarbon Dew Point °C < 5 at any pressure

Water Dew Point °C < 0 at 71 bar(a)

2.2 ENERGY PRICES

The energy prices used for financial analysis are based on a reasonable assumption of possible future prices based on the Consultant experience and on current prices for GASCO:

Electricity price: 44 USD/MWh

Natural Gas price: 0.165USD/Sm3 (equivalent to 17.20 USD/MWh)

2.3 OPERATIONAL DATA

The yearly costs and savings associated to plant operation have been evaluated on the basis of 50 working weeks per year (8,400 operating hours per year).

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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2.4 GAS NETWORK SCENARIO

The need of natural gas in the south area of Egypt in increasing, and the necessity of an expansion of Dahshour compression station has already been envisaged by GASCO; from the current operation with N.3 compression trains running at nominal capacity, in the next years two important milestones will be met:

In summer 2019, it is expected that N.4 compression trains will operate at nominal capacity in order to provide the required natural gas flow rate; by that time, GASCO requires that at least one additional compression train is installed and ready for use at Dahshour site (train E);

In summer 2021 it is expected that N.5 compression trains will operate at nominal capacity in order to provide the required natural gas flow rate; by that time, GASCO requires that the sixth additional compression train is installed and ready for use at Dahshour site (train F).

The forecast of natural gas requirement in the next years is shown in the following chart; the identification of the baseline scenario for Dahshour gas compression station is referred to the compression capacity requirement for the site at the date of year 2021.

Figure 2.1: Compression Capacity Forecast

2.5 CAPEX AND OPEX ESTIMATION

CAPEX estimation includes two main voices, associated to Equipment & Materials and to Services; OPEX estimation includes two main voices, associated to costs for resources (fuel gas and electricity) and for plant maintenance.

2.5.1 CAPEX for Equipment and Materials

The cost for equipment and materials is made of two main voices:

1. Procurement (all costs due to the supplier of a specific material, equipment, or package);

2. Construction (all costs due to the contractor of the site erection, commissioning & start-up).

Procurement: all costs associated to the procurement of equipment / materials until they are available at site and ready for installation; in addition, this voice takes into account other goods and services provided by the supplier of the equipment and included in the purchase contract, namely:

0

1

2

3

4

5

0

5

10

15

20

25

30

35

40

45

50

aug-17 aug-18 aug-19 aug-20 aug-21 aug-22 aug-23

nu

mb

er

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pre

ssio

n t

rain

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ser

vice

Op

erat

ing

Cap

acit

y (M

Mm

3/d

ay)

Dahshour Compression Capacity- Forecast

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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Engineering (inside the scope of supply e.g. a gas compression train, ORC plant);

Supply;

Factory Assembly;

Shop Tests;

Transport to Site;

Documentation and Certificates;

Supervision to Installation and Start-Up (by personnel of the equipment supplier);

Spare Parts for 2 years.

Construction: all costs associated to the site activities required for the installation, commissioning, test, and start-up of the equipment / material or system, until the beginning of the commercial operation, namely:

Site Storage;

Dismantling of existing parts when necessary for the new installation;

Installation (for equipment), Erection, Construction (foundations, building, etc.);

Precommissioning and Commissioning;

Site Tests (construction, SAT).

CAPEX of the most expensive equipment is based on budgetary proposal by some relevant suppliers; at the current degree of engineering development, a 15% contingency factor was added to the estimated CAPEX.

2.5.2 CAPEX for Services

The cost for project services and various activities is divided into the following voices:

1. Engineering (Basic and Detail Design, with the exclusion of engineering for equipment and packages);

2. Construction Management (Site Management, Material Handling, Planning and Cost Control, etc.);

3. Owner Services (Permits, Tender Management, Design Review, Site Supervision, etc.).

2.5.3 OPEX Estimation

The consumption of primary energy sources (natural gas / electricity) is calculated starting from evaluation of heat and material balances in different operating scenarios, which are mainly on different ambient conditions (winter and summer boundaries) and, when applicable, different process scenarios. Each operating scenario is associated to a number of operating hours per year, in order to evaluate the total yearly consumptions and the associated operating costs.

The OPEX associated to plant maintenance is evaluated as a percent of the cost of supply for the major items which are involved in maintenance activities; for some of such equipment (Gas Compressors, Gas Turbine, Organic Rankine Cycle) a LTSA (Long Time Service Agreement) with the relevant supplier is recommended.

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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3 DAHSHOUR BASELINE OPTION

3.1 BASELINE DESCRIPTION

The compression station configuration in the baseline scenario includes the extension of the existing four gas compression trains with N.2 new trains, both driven by gas turbines in open cycle; these two additional gas compression trains are for simplicity named train E and train F, respectively.

In the baseline configuration, realization of any energy efficiency measure is not foreseen.

The new trains have been assumed to be identical to the four existing ones, i.e. two gas compressors of the same capacity, each coupled by a gas turbine as mechanical drive; the operating scenario involves N.5 compression trains in service + N.1 compression train in stand-by, at nominal gas capacity.

The compression station capacity extension includes the following main items:

N.2 Gas Compression Trains, of the same capacity as existing ones, each driven by a Gas Turbine in open cycle (including gas coolers and auxiliaries);

Natural Gas filtration and conditioning skids for use as gas turbine fuel;

Process Interconnections to the natural gas main headers at the suction and delivery of the new gas compressors;

Extension of utilities and safety systems (fire & gas detection, fire fighting, vent & flare, compressed air, etc..); electrical and I&C systems (power supply, instrumentation and integration in the existing control system and ESD system);

Foundations and civil work.

The Dahshour site has a dedicated area for the installation of two additional compression trains, as shown in the general arrangement here below; available space is large and allows plant extension without any layout critical aspects, (safety, maintenance, and equipment accessibility).

Figure 3.1: Baseline General Arrangement

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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3.2 BASELINE PERFORMANCE DATA

Two different cases have been analysed for the baseline option, associated to the limit seasonal conditions (winter and summer); the performance data are shown in the table below:

Case BW Baseline Performances, Winter Conditions

Case BS Baseline Performances, Summer Conditions

Table 3.1: Baseline Performances

Case Summary

Case identification Case BW Case BS

Air temperature °C 5 45

N° of Gas Compressors in service 5 5

N° of Motor driven compressors 0 0

N° of Gas Turbines driven compressors 5 5

Gas Turbines

Shaft power of each gas turbine kW 17,962 17,962

Gas Turbine heat rate kJ/kWh 13,775 14,254

Natural Gas low heating value kJ/kg 49,097 49,097

1 Gas Turbine fuel consumption kW 68,730 71,120

kg/h 5,040 5,215

GT Exhausts temperature °C 443 560

GT Exhausts Mass Flow kg/s 97.78 88.31

Exhausts Composition total %mol 100.00% 100.00%

N2 %mol 75.61% 72.29%

O2 %mol 15.53% 13.65%

Ar %mol 0.91% 0.86%

CO2 %mol 2.39% 2.88%

H2O %mol 5.57% 10.31%

Site electric consumptions (process)

Gas Compressors aux consumption kW 1,250 1,250

Gas Turbines aux consumption kW 750 750

MV Motor and VFD consumption kW

Site common utilities consumption kW 800 800

Margin for startup & upgrades kW

Total site process consumption kW 2,800 2,800

Electric balance

Site process consumption kW 2,800 2,800

HO system consumption kW

ORC auxiliary consumption kW

ACC electric consumption kW

Other EEO electric consumption kW

Total site electric consumption kW 2,800 2,800

SITE ELECTRIC BALANCE kW -2,800 -2,800

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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The increase in compression capacity will cause an increase in the fuel gas consumption for the two additional GTs in service, and an increase of the plant electric consumption for the auxiliaries of the two new compression trains (gas compressors + gas turbines).

Each gas turbine works at 17,962 shaft power and requires about 69.9 MW of fuel gas input power, with about 150 kW electric auxiliary consumption (mainly for lube oil fan cooler, control panel, HVAC); each gas compressor has about 250 kW electric auxiliary consumption (mainly for after cooler fans).

The yearly gas and electricity consumptions have been evaluated on the basis of 8,400 working hours per year, which correspond to 50 operating weeks; they are evaluated as additional consumptions associated to the installation of the new trains, both with gas turbine drives in open cycle.

3.3 BASELINE CAPEX AND OPEX

The estimations of CAPEX and OPEX associated to the baseline for Dahshour gas compression station is used for comparison of the correspondent data of the energy efficiency based solution, to perform a financial analysis based on the difference between the two alternatives.

3.3.1 Baseline CAPEX

The following table shows the CAPEX estimation for the baseline option, including Equipment & Materials (split between Procurement and Construction, as described below in chapter 2), and Services.

Table 3.2: Baseline CAPEX

Equipment / Material Qty. Procurement

MUSD Construction

MUSD

Gas Compression Trains (Gas Turbine driven) 2 52.20 0.60

Gas Process Interconnections LOT 0.32 0.25

Foundations LOT 0.90 1.35

Steel Structures LOT 0.35 0.53

Electric Equipment and Materials LOT 0.54 0.28

I&C Equipment and Materials LOT 0.57 0.31

Utilities extension LOT 0.44 0.23

Services In charge to MUSD

Engineering Engineering Company / EPC 2.94

Construction Management EPC 4.12

Owner Services GASCO /Consultant Company 2.94

The estimated CAPEX for baseline, without contingencies and taxes, is equal to 68.87 MUSD comprising:

Procurement of equipment and materials: 55.32 MUSD;

Construction, commissioning & start-up: 3.55 MUSD;

Engineering & Management Services: 10.00 MUSD.

With the application of 15% contingency, the total CAPEX for the baseline option is equal to: 79.20 MUSD

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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3.3.2 Baseline OPEX

The two main elements that contribute to the plant operating costs are:

1. Purchase of for primary energy sources (gas and electricity): in the case of gas, the resource cost is given by the loss of revenues associated to the unsold gas;

2. Maintenance of the installed equipment and systems; this is evaluated as a percent of the supply cost for the major items.

The yearly consumptions of fuel gas and electricity have been calculated for the whole site, including the four existing compression trains; the gas consumption is based on the average fuel gas flow to the gas turbines between the winter and summer conditions, where the gas turbines have different heat rates.

Table 3.3: Baseline Resources Consumptions

PARAMETER UNIT

Winter gas consumption MW 343.6

Summer gas consumption MW 355.6

Average gas consumption MW 349.6

Yearly gas consumption MWh/y 2,936,832

GHG emission for gas consumption ton CO2 /yr 593,240

Electric power consumption MW 2.8

Yearly electricity consumption MWh/y 23,520

GHG emission for electricity consumption ton CO2 /yr 11,784

The estimated yearly maintenance cost for the N.2 new compression trains + gas turbine drives is 4.90 MUSD, assuming an yearly cost equal to 10% of the supply CAPEX for a long time service agreement contract.

RINA CONSULTING Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation Dahshour Feasibility Study Report

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4 ENERGY EFFICIENCY SOLUTION DESCRIPTION

4.1 OVERVIEW

In this scenario the two new gas compression trains E and F will be equipped as follows:

one additional gas compressor (train E) driven by a gas turbine, identical to the four existing ones;

one additional gas compressor (train F) driven by an electric motor with VFD.

This solution is aimed to recover only the necessary heat to produce the electric power required for the site self consumptions (including the new motor), without exporting electricity to the external grid: however, it will be connected to the grid to maintain stability and to use grid as backup in case of ORC failure; the basic assumption for this solution is that it will not be possible to export electric power to the grid. As a result, a small part of the heat available in the gas turbine exhausts will not be recovered.

The plant will be composed of the following main equipment:

N.5 waste heat recovery units installed at the outlet of each gas turbine (four existing and one new);

heating oil circuit complete with piping, recirculation pumps, tanks and accessories;

organic Rankine cycle for electric power generation; it will include evaporator, turbine, condenser, circulation pump, and electric generator; the gross power output of the turbine will be equal to the total site electric consumptions.

Balance of plant: foundations and steel structures, electrical and I&C interconnections, utilities extension.

In normal operation five compression trains will be in service: 4 trains will be driven by gas turbines, and the fifth train will be the one driven by the new electric motor.

A schematic of the configuration with nominal performance data is shown below; a process flow diagram and the layout of the installation are provided in the following pictures.

Figure 4.1: Energy Efficiency Solution Schematic

TRAIN E

spare

TURBINE FOR

ELECTRIC

POWER GEN.

3.7

MWe

TRAIN B

TRAIN D

31

MWt

GRID

WHRU

ORGANIC RANKINE CYCLE

18.7

MWe

HEATING

OIL

CIRCUIT

SITE CONSUMPTIONS

(PROCESS - UTILITIES)

(WHRU - HEATING OIL)

GT

MS5002 C

EVAPORATOR

& OTHER

EQUIPMENT

WHRU

TRAIN F MOTOR

WITH VFD

WHRU

0

MWe

NEW GT

MS5002 C

WHRU

GC

SITE

ELECTRIC

BALANCE

123

MWtGC

HEAT RECOVERY (HR)

GC

TRAIN A

GT

MS5002 C

GT

MS5002 C31

MWt

ORC AUXILIARY

CONSUMPTION

31

MWt

24.6

MWe

2.2

MWe

GC

31

MWt

GC

GT

MS5002 C

WHRU

GC

TRAIN C

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Figure 4.2: Process Flow Diagram

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Figure 4.3: Compressor Station Layout

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4.2 WASTE HEAT RECOVERY UNITS

Waste heat recovery units are heat exchangers that recover the heat from the gas turbines exhaust gases to heat a thermal oil fluid (heat vector).

In order to ensure operation of compressor trains in any conditions, the proposed arrangement is the twin stack one: the existing exhaust stack will be kept and a duct piece including a three-way diverter will be installed between turbine exhaust and stack; the WHRU will have its own stack.

This will allow to completely by-pass the WHRU in case of ORC unit unavailability and/or heating oil circuit shut-down without overheating (and thus coking) the oil residues in the coil.

Furthermore, since the unit is not designed for dry running, material of construction is carbon steel.

By-pass diverter is a three-way twin set dampers mechanically linked, pneumatically actuated, with fail-close action of bypass.

The design and installation of WHRUs shall be checked and approved by the gas turbines manufacturer (GE), since they must comply with all requirements and specifications of the existing gas turbines, in particular:

The backpressure at the gas turbine discharge generated by the WHRU shall be, in any operating condition, within the limits indicated by the gas turbine manufacturer;

The installation of the WHRU shall not cause limitations or interference with the maintenance activities on the gas compressors / gas turbine drives, including space necessary for lifting and handling of the main components which may be subject to disassembly from the package.

The WHRU will be of the compact circular concentric helical coil type (used in offshore) installed above the turbine.

The installation does not entail modification to exhaust duct and turbine auxiliaries: the existing exhaust stack will be kept and a duct piece including a three-way diverter will be installed between turbine exhaust and stack.

Steel structures and relevant foundations need to be installed to support both duct with diverter and WHRU with its own stack.

Installation of WHRUs will be done shutting down one compression train at a time, and increasing the loads of the other trains. In case of above ground installation, the crane will lift the turbine stack and then will place the assembly WHRU-transition duct-diverter damper (single lift) on the already erected supporting structure.

Installation time is 3-5 days.

The tube is constituted by a helical finned coil tube, installed concentrically in a compact circular casing.

This construction offers the following key advantages for a brownfield installation:

High efficiency;

Low pressure drop gas side (i.e. gas turbines performances are not affected);

Compact footprint;

Reduced weight and hence smaller supporting structure;

Low wind resistance;

Single lift item (installation is easy and fast).

The coil is connected to inlet and outlet headers.

Data and performance of this WHRU can be found in the data-sheet in Appendix A.

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Figure 4.4: Option 1, compact cylindrical WHRU, Installation above Gas Turbine

4.3 HEATING OIL CIRCUIT

Hot oil circuit is composed by the following components:

1. Heating Oil circulation pumps;

2. Side filter sized for the 10% of oil flow, provided to remove debris from piping and solid residues due to oil coking;

3. Storage tank sized for the full oil inventory in case of emptying of the circuit for maintenance or oil replacement with filling pumps;

4. Expansion drum sized for thermal expansion of full volume from minimum ambient temperature to design temperature, blanketed with nitrogen, located at an elevation higher than top of WHRU;

5. Drain drum sized for the expansion drum volume in case of leakage with vertical pumps;

6. Intercept valves (manual and actuated), control valves, thermal relief valves; line accessories and instruments required for a and reliable and safe operation.

The heating oil circuit piping will have two main headers from and to WHRUs of nominal size 20”, will be routed on the existing pipe rack located between compression trains and aftercoolers.

DIVERTER DAMPER

EXISTING STACK

WHRU

NEW WHRU STACK

EXISTING SILENCER

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All pumps will be compliant to API 610 and API 682 (mechanical seals); circulation and filling pumps will be vertical in-line, OH3 type in order to minimize footprint. Mechanical seals will be provided with dedicated closed circuit air-cooling systems. Heating oil circuit is not composed by any long lead items, therefore it will be installed and commissioned before WHRUs and ORC delivery.

For detailed information regarding the equipment, please refer to data-sheets in Appendix A.

4.4 ORGANIC RANKINE CYCLE

The ORC plant produces electricity and discharges heat at low-temperature as secondary product through a closed thermodynamic cycle, which follows the principle of the Organic Rankine Cycle (ORC).

In the ORC process, designed as a closed cycle, the organic working medium (cyclopentane) is pre-heated and vaporized through heat exchange with the thermal oil. The generated vapour is expanded in a turbine that drives a generator. Leaving the turbine, the organic working medium (still in the vapour phase) passes through the regenerator that is used to pre-heat the organic liquid before vaporizing, therefore, increasing the electric efficiency through internal heat recovery; the organic vapour then condenses in an air-cooled condenser.

After the condenser, the working medium is brought back to the pressure level required (for turbine operation) by the working fluid feed pump and then preheated by internal heat exchange in the regenerator. The condensing heat is delivered to the cooling system, given by the air-cooled condenser.

Figure 4.5: ORC Thermodynamic Chart

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Figure 4.6: Simplified Process Flow Diagram

The operation of the ORC plant is fully automatic in normal operating conditions as well as in shut down procedures without any need of supervision personnel. In case of faulty conditions, the ORC plant will be switched off automatically and separated from the hot source circuit and from the electrical connection to the Compressor Station.

The ORC module is designed to automatically adjust itself to the actual operating conditions: variations on hot and cold sources temperatures and flows (in reasonable span times) will not affect the functionality of the system (but just the power output).

In case of fault, the ORC turbogenerator automatically and safely stops, and the Electric Generator disconnects from the plant.

When operating at partial load the process parameters and the Electric Power output automatically change self-adapting to the available Thermal Power.

The organic fluid vapour is expanded in the turbine and the internal energy of the vapour is converted into mechanical energy. Thanks to the thermodynamic properties of the organic fluid adopted, the vapour that flows in the turbines is superheated (dry vapour), with evident benefits in terms of wear and tear of the mechanical components.

For detailed information regarding the equipment, please refer to data-sheets in Appendix A.

EXPANDER

GENERATOR

REGENERATOR

AIR CONDENSER

EVAPORATOR

PREHEATER

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Figure 4.7: ORC Process Flow Diagram

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Space requirement of ORC Plant is mainly dictated by air cooled condenser, as shown in General Arrangement in figure 4-10; since the system uses indirect heat exchange through heating oil, it can be located in any area of the Compressor Station. The area identified for ORC Plant is the free area west of the flare (figure 4-3).

Figure 4.8: ORC General Arrangement

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4.5 BALANCE OF PLANT

All auxiliaries needed for proper operation of the Plant and for the interconnection will be included.

This comprises bulk materials such as steel structures, piping supports, instruments, electrical cables and junction boxes, the equipment for grid interconnection (switchboards and panels), thermal insulation, interconnection to existing DCS, connection to and extension of utilities:

Venting and flare;

Instrument air;

Fire-water;

Closed drain;

Open drain;

Fire and gas;

Emergency electrical power connection;

UPS system.

Membrane type nitrogen generator package and nitrogen circuit will be added for purging/blanketing of ORC Plant and heating oil system.

Adequacy of existing instrument/service air compressor capacity will be checked in order to ensure new plants requirements; if necessary, the air compressor used for nitrogen generation will be sized to cover also instrument air additional consumption and new service air connections.

All new piping and cables will follow as much as possible the routing of the existing pipe racks and cableways.

A new pipe rack will be erected crossing the roads to flare and to emergency gate: this rack will host the hot oil headers from/to ORC Power Plant.

For detailed information regarding the equipment, please refer to data-sheets in Appendix A.

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5 EEO PERFORMANCE DATA

5.1 CASE SUMMARY

The preliminary evaluation of the performances of the selected solution has included different operational cases, which provide useful information for the sizing of the main equipment and for the estimation of the yearly costs and savings.

In all cases the plant compression capacity is relevant to future scenario 2021, with N.6 compression trains installed (four existing and two new ones), and N.5 compression trains in service at nominal capacity. One new gas compressor is driven by a medium voltage electric motor, and the power supply is provided by the generator of the ORC plant.

Four different cases have been analysed, which result from the combination of two seasonal conditions (winter and summer extreme conditions) with two different degrees of performance levels:

1. Rated Performances;

2. Operating Performances.

The Rated Performances represent the sizing cases for the main equipment and packages, the Operating Performances show the real conditions during the plant operation, and provide data for the calculations of yearly costs and savings associated to operation.

The difference between the two scenarios is the net power output of the ORC generator, which is 600 kW higher in the Rated Performances data, to take into account additional power for compressor train start-up and future increase of the site consumptions.

In all cases the site electric balance is ZERO, which means that the power generated by the ORC plant equals the sum of all the site consumptions.

The four cases are summarized and identified as follows:

Case RW Rated Performances, Winter Conditions

Case RS Rated Performances, Summer Conditions

Case OW Operating Performances, Winter Conditions

Case OS Operating Performances, Summer Conditions

5.2 PERFORMANCE TABLES

In the following tables the performance data for the rated cases (RW, RS – winter and summer) and the operating cases (OW, OS – winter and summer) are shown.

The results show that the sizing case for the waste heat recovery units is in winter, due to the lower gas turbine exhausts temperature; in summer conditions, the required performances of electric site balance are obtained with a fraction of the exhausts sent to the by-pass (respectively 19% for rated and 21% for operating cases), because the duty available in the exhausts is higher than in winter.

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Table 5.1: Rated Performances

Case Summary

Case identification Case RW Case RS

Air temperature °C 5 45

N° of Gas Compressors in service 5 5

N° of Motor driven compressors 1 1

N° of Gas Turbines driven compressors 4 4

Gas Turbines

Shaft power of each gas turbine kW 17,962 17,962

Gas Turbine heat rate kJ/kWh 13,982 14,468

Natural Gas low heating value kJ/kg 49,097 49,097

1 Gas Turbine fuel consumption kW 69,761 72,186

kg/h 5,115 5,293

GT Exhausts temperature °C 443 560

GT Exhausts Mass Flow kg/s 97.78 88.31

Exhausts Composition total %mol 100.00% 100.00%

N2 %mol 75.61% 72.29%

O2 %mol 15.53% 13.65%

Ar %mol 0.91% 0.86%

CO2 %mol 2.39% 2.88%

H2O %mol 5.57% 10.31%

1 WHRU gas side

bypass % opening % 0% 19%

GT exhausts flow through WHRU kg/s 97.78 71.58

GT exhausts flow through bypass kg/s 0.00 16.73

Gas at coil inlet temperature °C 443 560

Gas at coil outlet temperature °C 155 175

Gas temperature at stack °C 155 248

GT exhausts recovered duty MWt 30.4 31.1

1 WHRU heating oil side

HO recovered duty MWt 30.41 31.08

HO inlet temperature °C 120 157

HO outlet temperature °C 270 310

HO specific heat (average) kJ/kg-C 2.25 2.25

HO density kg/m3 900 900

HO flow rate kg/s 90.0 90.0

m3/h 360 360

1 WHRU overall

Cold side temperature approach °C 35 18

LMTD °C 87 89

UxA kW/°C 351 351

heat transfer area (finned) m2 9,227 9,227

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heat transfer coefficient (finned) W/m2-C 38.0 38.0

Heating Oil Circuit

Return temperature (WHRU inlet) °C 120 157

HO total flow rate m3/h 1,440 1,440

Pressure drop - WHRUs bar 2.0 2.0

Pressure drop - piping & valves bar 3.0 3.0

Pressure drop - allowances bar 1.0 1.0

Total HO system pressure drop bar 6.0 6.0

HO pumps required head m 68.0 68.0

margin over pump required head % 6% 6%

HO pumps chosen head m 72.0 72.0

HO pumps thermodynamic efficiency 70% 70%

HO pumps electric efficiency % 92% 92%

Total HO pumps consumption kW 395 395

HO other consumptions and margin % 14% 14%

Total HO system ELE consumption kW 450 450

Organic Rankine Cycle

Total GT exhausts recovered duty MWt 121.6 124.3

HO circuit heat losses % 1% 1%

Thermal Duty transferred to ORC MWt 120.4 123.1

ORC gross efficiency (turbine + gen) % 20.0% 20.0%

ORC gross power output MWt 24.1 24.6

Site electric consumptions (process)

Gas Compressors aux consumption kW 1.250 1.250

Gas Turbines aux consumption kW 600 600

MV Motor and VFD consumption kW 18.700 18.700

VFD chiller kW 150 150

Site common utilities consumption kW 800 800

Margin for startup & upgrades kW 600 600

Total site process consumption kW 22.100 22.100

Electric balance

Site process consumption kW 22.100 22.100

HO system consumption kW 450 450

ORC auxiliary consumption kW 1.325 1.846

ACC electric consumption kW 361 369

Other EEO electric consumption kW 0 0

Total site electric consumption kW 24.236 24.765

SITE ELECTRIC BALANCE kW -150 -150

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Table 5.2: Operating Performances

Case Summary

Case identification Case OW Case OS

Air temperature °C 5 45

N° of Gas Compressors in service 5 5

N° of Motor driven compressors 1 1

N° of Gas Turbines driven compressors 4 4

Gas Turbines

Shaft power of each gas turbine kW 17,962 17,962

Gas Turbine heat rate kJ/kWh 13,982 14,468

Natural Gas low heating value kJ/kg 49,097 49,097

1 Gas Turbine fuel consumption kW 69,761 72,186

kg/h 5,115 5,293

GT Exhausts temperature °C 443 560

GT Exhausts Mass Flow kg/s 97.78 88.31

Exhausts Composition total %mol 100.00% 100.00%

N2 %mol 75.61% 72.29%

O2 %mol 15.53% 13.65%

Ar %mol 0.91% 0.86%

CO2 %mol 2.39% 2.88%

H2O %mol 5.57% 10.31%

1 WHRU gas side

bypass % opening % 0% 21%

GT exhausts flow through WHRU kg/s 97.78 70.03

GT exhausts flow through bypass kg/s 0.00 18.28

Gas at coil inlet temperature °C 443 560

Gas at coil outlet temperature °C 163 177

Gas temperature at stack °C 163 257

GT exhausts recovered duty MWt 29.6 30.2

1 WHRU heating oil side

HO recovered duty MWt 29.60 30.25

HO inlet temperature °C 129 161

HO outlet temperature °C 275 310

HO specific heat (average) kJ/kg-C 2.25 2.25

HO density kg/m3 900 900

HO flow rate kg/s 90.0 90.0

m3/h 360 360

1 WHRU overall

Cold side temperature approach °C 35 17

LMTD °C 84 86

UxA kW/°C 351 351

heat transfer area (finned) m2 9,227 9,227

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heat transfer coefficient (finned) W/m2-C 38.0 38.0

Heating Oil Circuit

Return temperature (WHRU inlet) °C 129 161

HO total flow rate m3/h 1,440 1,440

Pressure drop - WHRUs bar 2.0 2.0

Pressure drop - piping & valves bar 3.0 3.0

Pressure drop - allowances bar 1.0 1.0

Total HO system pressure drop bar 6.0 6.0

HO pumps required head m 68.0 68.0

margin over pump required head % 6% 6%

HO pumps chosen head m 72.0 72.0

HO pumps thermodynamic efficiency 70% 70%

HO pumps electric efficiency % 92% 92%

Total HO pumps consumption kW 395 395

HO other consumptions and margin % 14% 14%

Total HO system ELE consumption kW 450 450

Organic Rankine Cycle

Total GT exhausts recovered duty MWt 118.4 121.0

HO circuit heat losses % 1% 1%

Thermal Duty transferred to ORC MWt 117.2 119.8

ORC gross efficiency (turbine + gen) % 20.0% 20.0%

ORC gross power output MWt 23.4 24.0

Site electric consumptions (process)

Gas Compressors aux consumption kW 1.250 1.250

Gas Turbines aux consumption kW 600 600

MV Motor and VFD consumption kW 18.700 18.700

VFD chiller kW 150 150

Site common utilities consumption kW 800 800

Margin for startup & upgrades kW

Total site process consumption kW 21.500 21.500

Electric balance

Site process consumption kW 21.500 21.500

HO system consumption kW 450 450

ORC auxiliary consumption kW 1.289 1.797

ACC electric consumption kW 352 359

Other EEO electric consumption kW 0 0

Total site electric consumption kW 23.591 24.106

SITE ELECTRIC BALANCE kW -150 -150

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6 FINANCIAL ANALYSIS

6.1 CAPEX ESTIMATION

The CAPEX estimation for the proposed energy efficiency solution was divided into three main groups:

1. The capacity extension of the gas compressor station, with the installation of N.2 new compression trains (one driven by gas turbine and one driven by electric motor);

2. The installation of the waste heat recovery system on the exhausts of N.5 gas turbines, the heating oil circuit, and the Organic Rankine Cycle plant with electric generator, including a new MV panel to feed the electric motor and interconnection with the existing electric system;

3. Engineering Services, Construction Management, and other Owner Services that were evaluated on the overall amount of purchased goods and works.

The following tables illustrate the various contributions to the project cost.

Table 6.1: CAPEX for Compression Capacity Extension

Equipment / Material Qty. Procurement

MUSD Construction

MUSD

Gas Compression Trains (Gas Turbine driven) 1 26.10 0.30

Gas Compression Trains (MV Motor driven) 1 16.80 0.45

Gas Process Interconnections LOT 0.32 0.25

Foundations LOT 0.90 1.35

Steel Structures LOT 0.35 0.53

Electric Equipment and Materials LOT 0.79 0.51

I&C Equipment and Materials LOT 0.57 0.31

Utilities extension LOT 0.44 0.23

Table 6.2: CAPEX for EEO Equipment and Materials

Equipment / Material Qty. Procurement

MUSD Construction

MUSD

WHRU 5 7.09 0.37

Heating Oil Circuit LOT 1.59 0.60

Organic Rankine Cycle Plant LOT 16.73 1.04

Foundations LOT 1.23 1.07

Steel Structures LOT 0.52 0.05

Electric Equipment LOT 0.63 0.49

I&C Equipment LOT 0.38 0.25

Utilities extension LOT 0.76 0.24

HO Thermal Insulation LOT 0.18 0.17

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Table 6.3: CAPEX for EEO Solution Services

Services In charge to MUSD

Engineering Engineering Company / EPC 4.18

Construction Management EPC 5.85

Owner Services GASCO /Consultant Company 4.18

The total estimated CAPEX for the proposed solution (including the extension of gas compression capacity), without contingencies and taxes, is equal to 97.80 MUSD comprising:

Procurement of equipment and materials: 75.38 MUSD

Construction, commissioning & start-up: 8.21 MUSD

Engineering & Management Services: 14.21 MUSD

With the application of 15% contingency, the total CAPEX of the proposed solution is equal to: 112.47 MUSD

6.2 OPEX ESTIMATION

The two main elements that contribute to the plant operating costs are:

1. Purchase of for primary energy sources (gas and electricity): in the case of gas, the resource cost is given by the loss of revenues associated to the unsold gas.

2. Maintenance of the installed equipment and systems; this is evaluated as a percent of the supply cost for the major items; for some of such equipment (Gas Compressors, Gas Turbine, Organic Rankine Cycle) a LTSA (Long Time Service Agreement) with the relevant supplier is foreseen.

The yearly consumptions of fuel gas and electricity have been calculated for the whole site, including the four existing compression trains; the installation of WHRU increases gas turbines heat rate and fuel consumption, due to the back pressure at the exhaust of the gas turbines. The site electricity balance is ZERO, and so the yearly costs for electricity purchase.

Table 6.4: EEO Solution Resources Consumptions

PARAMETER UNIT

Winter gas consumption MW 279.0

Summer gas consumption MW 288.7

Average gas consumption MW 283.9

Yearly gas consumption MWh/y 2,384,708

Electric power consumption MW 0

Yearly electricity consumption MWh/y 0

The estimated yearly maintenance costs for the N.2 new compression trains (one gas turbine driven and one motor driven) and for the equipment included in the proposed EEO is 4.14 MUSD; in the below table, some details are provided.

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Table 6.5: EEO Solution Maintenance Cost

ITEM / SYSTEM OPEX estimation

Yearly costs (% of supply)

OPEX estimation Yearly costs

MUSD

Gas Compressor with Gas Turbine drive 10% 2.45

Gas Compressor with Motor drive and VFD 5% 0.76

WHRU and Heating Oil Circuit 2% 0.15

Organic Rankine Cycle and Generator 5% 0.78

6.3 FINANCIAL ANALYSIS RESULTS

When compared with the baseline option, the proposed solution shows a higher initial capital expenditure, with significant yearly savings related to the lower gas consumption and net electricity site balance. Maintenance costs for the EEO proposed solution will be lower than the ones for the baseline, because the installed ORC plant is subject to lower maintenance than the gas turbine used in the baseline.

The comparison between the investigated EEO and the baseline option leads to the following main data:

The CAPEX difference between the EEO solution and the baseline option is 33.27 MUSD;

The OPEX difference between the EEO solution and the baseline option is -0.76 MUSD;

The yearly electrical savings of the EEO are: 23,520 MWh/year;

The yearly natural gas savings of the EEO are: 552,124 MWh/year;

The average yearly energy savings of the EEO are 15.25 MUSD/year;

The payback time of the proposed Energy Efficiency solution is: 2.3 years.

For the financial analysis, RINA Consulting has used the Egyptian official prices forecast for electricity and gas, as reported in the following table.

Table 6.6: Electricity Price Forecast

Medium Voltage Power Supply (22 or 11 kV)

Fiscal Year 2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

2022-2023

2023-2024

2024-2025

Energy Tariff (EGP/kWh)

0.52 0.60 0.64 0.69 0.74 0.79 0.84 0.90 0.96

Maximum Demand Charge

(EGP/kW/month) 45 60 63 67 71 75 79 83 88

Average Energy Tariff (EGP/kWh)

equivalent to Maximum Demand

Charge

0.095 0.126 0.133 0.141 0.150 0.158 0.166 0.175 0.185

Total Average Billed Energy (EGP/kWh)

0.61 0.73 0.77 0.83 0.88 0.94 1.01 1.08 1.15

USD/MWh 34.16 40.36 43.04 46.01 49.15 52.47 56.00 59.74 63.83

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Table 6.7: Gas Price Forecast

Natural Gas Tariff

Fiscal Year 2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

2022-2023

2023-2024

2024-2025

Natural Gas Tariff for non

intensive energy

consumers (USD/MMBtu)

5.00 5.00 5.50 6.00 6.00 7.00 7.00 7.50 7.50

USD/MWh 17.06 17.06 18.76 20.47 20.47 23.88 23.88 25.59 25.59

In case GASCO provides dedicated price forecast for this specific site, RINA Consulting will add a different financial scenario.

Detailed results of the financial analysis are illustrated in the following Figure.

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Figure 6.1: Cash Flow

MARBO/SERLE/PAORI/MARMO/GIODE:chrtx

Operation Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Operation Period - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Benefits from Raw Materials Saving - - - - - - - - - - - - - - -

Benefits from Energy Saving 12,458 14,420 14,503 15,533 15,629 15,629 15,629 15,629 15,629 15,629 15,629 15,629 15,629 15,629 15,629

Benefits from Water saving - - - - - - - - - - - - - - -

Other Revenues / Saving 760 760 760 760 760 760 760 760 760 760 760 760 760 760 760

Gross Profit - 13,218 15,180 15,263 16,293 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389

Investment Costs 33,266- - - - - - - - - - - - - - - -

Net Cash Flow 33,266- 13,218 15,180 15,263 16,293 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389 16,389

Discounted Cash Flow 33,266- 12,239 13,015 12,117 11,976 11,154 10,328 9,563 8,855 8,199 7,591 7,029 6,508 6,026 5,580 5,167

Discount Factor 8.0%

Pay Back Period (PB) 2.32 years

Internal Rate of Return (IRR) 45%

Net Present Value (NPV) USD

Benefit over Cost Ratio ( BCR) 4.07

102,081,000

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REFERENCE DOCUMENTS

3231-200-KED-001 Rev 2 Electrical One Line Diagram (7 Sheets)

3231-200-KPE-100 Rev 9 Plot Plan

- Gas Turbine Data Sheet MS5002C (Nuovo Pignone)

- Gas Turbine Performance Curves MS5002C (Nuovo Pignone)

- Gas Turbine Layout Drawings MS5002C (Nuovo Pignone)

4656-330-ACA-001 Rev0 Dahshour Compression Station Units E&F - Process Design Basis

4656-330-RT-001 Rev0 Dahshour Compression Station Units E&F - Driver selection study

4656-330-KXB-01/02/03 Dahshour Compression Station Units E&F - PFD & Balances Rev. 0

- Dahshour Compression Station Units E&F – Request for Quotation and Technical / Commercial Proposals by Suppliers of new gas compressors (gas turbine driven and motor driven alternatives).

- Dahshour Compression Station Units E&F – Request for Quotation and Technical / Commercial Proposals by Suppliers of Organic Rankine Cycle for power generation (from gas turbine waste heat recovery).

P0000763-1-H2_rev1 Energy Efficiency Investments in the Gas Midstream Sector in Egypt: Feasibility Study and Project Preparation.

Dahshour Technology Screening Report

AP

PEN

DIX

A

Appendix A EEO Equipment and Materials Data Sheet Doc. No.P0000763-1-H8 Rev.1 - October 2017

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

Doc. No.P0000763-1-H8 Rev.1 - October 2017

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Waste Heat Recovery Units

The selected solution for Waste Heat Recovery Units (WHRUs) is of the twin stack type, with separate bypass stack and diverter damper; the following table summarizes the relevant main characteristics of the option with WHRU installed above GT:

Table A.1: WRHU Data Sheet

Waste Heat Recovery Units

Number of items 5

Type Cylindrical with separated bypass diverter damper, twin stack

Maximum Nominal Duty KWt 36,400

Exhaust gas maximum pressure drop mbar 25

Tubes design temperature °C 600

Tubes type Finned helical coil

Design Code for tubes AMSE VIII Div.1/ASME IX

Bypass damper type Twin mechanically linked louver type

Actuator Pneumatic fail-open

Hot Oil connections type Flanged #300

Materials

Casing Carbon steel

Tubes and fins Carbon steel

Damper Carbon steel

Overall dimensions and weights

Outside Diameter (including insulation) mm 5,600

Height including stack and GT connection mm 20,90

Empty weight kg 121,000

Operating weight kg 140,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Circulation Pumps

The heating oil circulation pumps are chosen in 3x50% redundancy because of high total capacity; since space constraint is not an issue, horizontal pumps will be used. The following table summarizes the equipment characteristics.

Table A.2: Heating Oil Circulation Pumps Data Sheet

Heating Oil Circulation Pumps

Number of items 3 x 50%

Fluid Thermal Oil

Rated capacity m3/h 750

Rated head m 72

Shutoff head m < 90

Design Pressure barg 20

Design Temperature °C 350

Reference Codes API 610, API 682

Pump type Centrifugal horizontal radially split, between bearing (BB1)

Impeller type Closed

Seal type Tandem cartridge mechanical seal, balanced, with metal bellows, air cooling package included

Materials API CLASS S-6

Casing

Impeller

Shaft

carbon steel

12% Chromium Steel AISI 420

Motor voltage V 6,000

Motor rated power kW 220

Dimensions (mm) Length

Width

3,000

1,500

Weight kg 4,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Filling Pumps

These pumps are dedicated to circuit filling and they take suction from the heating oil storage tank; N° 2x100% pumps will be installed, centrifugal horizontal type; the main relevant data are shown below.

Table A.3: Heating Oil Filling Pumps Data Sheet

Heating Oil Filling Pumps

Number of items 2 x 100%

Fluid Thermal Oil

Rated capacity m3/h 50

Rated head m 50

Shutoff head m <90

Design Pressure barg 20

Design Temperature °C °C

Reference Codes API 610, API 682

Pump type Centrifugal, horizontal centreline mounted, OH3 API Type

Impeller type Closed

Seal type Tandem cartridge mechanical seal, balanced, with metal bellows, air cooling package included

Materials API CLASS S-6

Casing

Impeller

Shaft

carbon steel

12% Chromium Steel AISI 420

Motor voltage V 400

Motor rated power kW 11

Dimensions (mm) skid

height

1,000

500

Weight kg 200

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Drain Drum Pumps

These pumps are dedicated to discharge the heating oil drain drum and send the heating oil to the storage tank; N° 2x100% pumps will be installed, centrifugal horizontal type; the main relevant data are shown below.

Table A.4: Heating Oil Drain Drum Pumps Data Sheet

Heating Oil Drain Drum Pumps

Number of items 2 x 100%

Fluid Thermal Oil

Rated capacity m3/h 25

Rated head m 50

Shutoff head m < 90

Design Pressure barg 20

Design Temperature °C 350

Reference Codes API 610, API 682

Pump type Centrifugal, Vertical VS2 API Type

Impeller type Closed

Seal type Tandem cartridge mechanical seal, balanced, with metal bellows, air cooling package included

Materials API CLASS S-5

Casing

Impeller

Shaft

Carbon steel

12% Chromium Steel AISI 420

Motor voltage V 400

Motor rated power kW 7,5

Dimensions (mm) Shaft length 4 m

Weight kg 500

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Storage Tank

The main storage tank is sized for the total heating circuit inventory volume; the main data are shown below.

Table A.5: Heating Oil Storage Tank Data Sheet

Heating Oil Storage Tank

Number of items 1

Fluid Thermal Oil

Type Vertical, fixed conical roof

Reference Codes API 650

Blanketing Nitrogen, inlet / outlet pressure control valves

Design Pressure barg 5

Design Temperature °C 350

Corrosion allowance mm 3

Material carbon steel

Finishing Internal / external painting

Heat Insulation YES

Geometric Volume m3 410

Available Volume m3 304

Dimensions (mm) diameter

height

9,000

6,500

Weight (kg) dry

operating

60,000

424,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Expansion Drum

The heating oil expansion drum is sized to recover the volume increase of the circuit total inventory from ambient temperature to maximum operating temperature; this drum must be installed at the highest point of the heating oil circuit, in particular above the top elevation of the WHRUs. The main data are shown below.

Table A.6: Heating Oil Expansion Drum Data Sheet

Heating Oil Expansion Drum

Number of items 1

Fluid Thermal Oil

Type Horizontal cylindrical

Reference Codes

Blanketing Nitrogen, inlet / outlet pressure control valves

Design Pressure barg 5

Design Temperature °C 350

Material carbon steel

Finishing Internal / external painting

Corrosion allowance mm 3

Heat Insulation YES

Geometric Volume m3 85

Available Volume m3 64

Dimensions (mm) diameter

length

3,400

10,000

Weight (kg) dry

operating

20,000

97,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Drain Drum

The heating oil drain drum is sized to recover the volume of heating oil deriving from the drainage of the item with the maximum heating oil inventory: this is the case of the expansion drum. For this reason, the heating oil drain drum will be of the same geometry and size. The main data are shown below.

Table A.7: Heating Oil Drain Drum Data Sheet

Heating Oil Drain Drum

Number of items 1

Fluid Thermal Oil

Type Horizontal cylindrical

Reference Codes

Blanketing Nitrogen, inlet / outlet pressure control valves

Design Pressure barg 5

Design Temperature °C 350

Corrosion allowance mm 3

Material carbon steel

Finishing Internal / external painting

Heat Insulation YES

Geometric Volume m3 85

Available Volume m3 64

Dimensions (mm) diameter

length

3,400

10,000

Weight (kg) dry

operating

20,000

97,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Organic Rankine Cycle

The ORC Power Plant is sized to produce the electric power required by Compression Station plus a margin for future users.

The Evaporator is the first heat exchanger to receive heat from thermal oil; here evaporation of cyclopentane take place.

Table A.8: Evaporator Data Sheet

ORC evaporator

Number of items 1

Exchanger type Shell & Tube

Reference Codes TEMA, HEI, ASME VIII

Tube Side Shell Side

Fluid Cyclopentane Thermal Oil

Design pressure (barg) 37.5 13

Design Temperature (°C) 340 340

Materials Shell

Shell Covers

Tubes

Tubesheet

carbon steel

carbon steel

carbon steel

carbon steel

Internal diameter (mm) 2300

Tube length (mm) 12000

Weight (kg) dry

operating

85,000

100,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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The preheater is located upstream the evaporator.

Table A.9: Preheater Data Sheet

ORC Preheater

Number of items 2

Exchanger type Sheel & tube

Reference Codes TEMA, HEI, ASME VIII

Tube Side Shell Side

Fluid Cyclopentane Thermal Oil

Design pressure (barg) 37.5 13

Design Temperature (°C) 340 340

Materials Shell

Shell Covers

Tubes

Tubesheet

carbon steel

carbon steel

carbon steel

carbon steel

Internal diameter (mm) 1,870

Tube length (mm) 10,000

Weight (kg) dry

operating

38,000

50,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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The Regenerator (or Recuperator) is located at the outlet of the ORC turbine, to recover the sensible heat before condenser.

Table A.10: Regenerator Data Sheet

ORC Regenerator

Number of items 2

Exchanger type Finned coil inside shell

Reference Codes TEMA, HEI, ASME VIII

Coil Side Shell Side

Fluid Cyclopentane Thermal Oil

Design pressure (barg) 37.5 13

Design Temperature (°C) 340 340

Materials Shell

Tubes

Fins

carbon steel

Ni-Cu 90-10

Copper or aluminium

Internal diameter (mm) 2100

Tube length (mm) 10000

Weight (kg) dry

operating

40,000

50,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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The ORC turbines use the expansion of the working fluid to produce mechanic power and through a gearbox to drive the generator for electric power production.

Table A.11: ORC Turbine Data Sheet

ORC Turbine

Number of items 2

Flow Axial or radial (inflow or outflow)

Type Multistage,

Nominal mechanical power (MW)

15

Lubrication Forced lubrication

Seals Mechanical seals

Weight (kg) 20,000

Table A.12: Electrical Generator Data Sheet

Generator

Number of items 1 or 2 as per Supplier standard

Type Synchronous, 3 phases

Service factor 1

Voltage (V) 11,000

Frequency (Hz) 50

Cooling Air cooled IC31

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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The condenser is sized to condense the maximum flow of organic fluid in summer conditions (45 °C air temperature).

Table A.13: Air cooled Condenser Data Sheet

ORC air cooled condenser

Exchanger type Induced draft

Reference Codes ASME VIII – API 661

Tubes type Finned

Fans drive Belt

Fans electric motors ON/OFF

Design pressure (barg) FV/15 barg

Design Temperature (°C) 200

Materials Tubes

Fin

Headers

carbon steel

aluminium

carbon steel

Tube length (mm) 13,000

N° of bays 12

N° of bundles 36

N° of fans per bay 2

Total N° of motors 24

Fan electric motors rated power (kW)

55

Weight (kg) 500,000

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Feed pumps extract the liquid cyclopentane from condenser hot well and send it to regenerator.

Table A.14: Feed Pumps Data Sheet

ORC feed pumps

Number of items 5 x 25%

Fluid Cyclopentane

Rated capacity m3/h 350

Rated head m 250

Shutoff head m <300

Design Pressure barg 40

Design Temperature °C 200

Reference Codes API 610, API 682

Pump type Centrifugal multistage, between bearing (BB1 or BB2)

Impeller type Closed

Seal type Double mechanical seal API 682 Plan 54

Materials API CLASS S-6

Column and Casing

Impeller

Shaft

Carbon steel

12% Chromium Steel AISI 420

Motor voltage V 400

Motor rated power kW 800

Weight kg 1,500

RINA CONSULTING ENERGY EFFICIENCY INVESTMENTS IN THE GAS MIDSTREAM SECTOR IN EGYPT: FEASIBILITY STUDY AND PROJECT PREPARATION Appendix A

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Heating Oil Piping

The heating oil circuit will be made in carbon steel piping with the main characteristics shown in the table below; the selected EPC Contractor shall be responsible to for the complete system design and shall perform all piping calculations during the detail engineering phase, including pipe sizing, pressure drop calculation, pipe thickness calculation, stress analysis, design of supports etc.

Table A.15: Heating Oil Piping

Heating Oil Piping

Material Specification Carbon steel (ASTM A106Gr.B or equivalent)

Design Pressure barg 20

Design Temperature °C 350

Max fluid velocity in pipe m/s 3.0

Corrosion Allowance mm 3

Reference Pipe Thickness for Nominal Diameter ND

ND ≤ 1”

1” < ND ≤ 2”

ND > 2”

Sch.160

Sch.80

Sch.40

A preliminary estimation of heating oil piping line length and piping Material Take-Off was made on the pipe route and position of main equipment shown in the layout; piping data are shown in the following tables.

Table A.16: Heating Oil Piping Data

Line size flow rate velocity weight length

m3/h m/s kg/m m

Common Header 20” 1440 2.0 183.4 310

1 Branch to WHRU 10” 360 2.0 60.3 40

Table A.17: Heating Oil Piping MTO

Line Allowance for MTO

weight of N.2 lines for delivery and return (kg)

Common Header 10% 125,092

1 Branch to WHRU 25% 6,031

5 Branches to WHRU 30,155

Heating Oil Piping MTO 155,247

The piping MTO includes allowances to take into account vertical lines, curves and equipment interconnections; these allowances are higher for the branch connections to the waste heat recovery units.

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