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Work Order For Optional Services For Customer
Work Order For Optional Services For Customer
To: From:
Shell Global Solutions (Thailand) Limited
PTT Energy Solutions Company 10 Soonthornkosa Road
Limited
Khwaeng Klongtoey
555 Building 2, Head Office, 7th Floor, Khet Klongtoey
Vibhavadi-Rangsit Road Bangkok 10110
Kingdom of Thailand
Chatuchak, Bangkok 10900
Kingdom of Thailand (“Shell Global Solutions”)
(“CUSTOMER”)
For attention of: Bhawana Suphavilai
WORK ORDER
FOR
OPTIONAL SERVICES
UNDER
TECHNICAL SERVICES AGREEMENT
Work Order No.: CDM 138671
Site Scouting and Selection Studies PTT 2nd LNG terminal
This Work Order for Optional Services is subject to the terms and conditions of the
Technical Services Agreement, dated 1 September 2011, between Shell Global Solutions
(Thailand) Limited (“Shell Global Solutions”) and PTT Energy Solutions Company
Limited (‘CUSTOMER”), as amended from time to time (hereinafter ‘Agreement’). Save
as modified by the addition of the provisions in this Work Order, the terms and condition
of the Agreement shall remain unchanged and in full force and effect.
In case of conflict between the terms set out hereunder and the terms of the Agreement,
the terms hereunder shall prevail. Capitalised terms not defined hereunder shall have the
same meaning as ascribed to them in the Agreement.
Shell Global Solutions hereby offers to CUSTOMER the Services specified in paragraph 1
below (the "Services"), as an Optional Service pursuant to Article 4 of the Agreement.
4. Specific Terms
For the purpose of this Work Order, Shell Global Solutions’ total liability for
any claims for any and all damage pursuant to this Work Order howsoever
caused, and whether incurred by any Party or Third Party arising out of or in
connection with the Agreement shall in aggregate be limited to 50% of the Fee
of the Optional Services received by Shell Global Solutions outlined in Article 4
of this Work Order.
Parties acknowledge that the provision of Services under this Work Order via
Customer is at the request of PTTPLC and will not be a precedent for future
Work Orders/Services.
5. Contacts in Shell Global Solutions
The Shell Global Solutions contact will be Mrs Hilde van der Pas
(e-mail: Hilde.vanderpas@Shell.com)
6. Acceptance
Acceptance by CUSTOMER of this Work Order constitutes a binding
agreement between the parties of the matters set forth herein.
This Work Order is valid for acceptance until: 18 May 2012
Signature: Signature:
Name: Name:
Title: Title:
Date: Date:
1. INTRODUCTION
PTTPLC is responsible for the gas supply of Thailand. Given governmental
plans, it is anticipated that a 2nd LNG terminal is required to be in operation
by 2019 (possibly earlier if demand changes). Gas demand is mainly impacted
by the Power generation plans of the Thai government (68 % of electricity is
currently generated by gas). A gas master planning study has not been
conducted.
PTTPLC has not yet determined the source of LNG cargoes and ship size has
not been defined and hence assumed as Qmax. Before commencement of the
services PTTPLC jointly with Shell will identify LNG cargo ship sizes likely to
be in use in the next 10 years.
PTTPLC has conducted site screening, but has expressed interest in additional
ideas from Shell Global Solutions’ for prospective LNG import terminal
locations.
Before the study starts PTTPLC will identify a maximum 8 to 10 sites they
would like the study to cover. PTTPLC’s initial findings are shown in
Attachment 1 : INPUT REQUIREMENTS but the actual 8 to 10 sites they
would like Shell to study, in cooperation with PTTPLC , could vary.
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2. DEFINITIONS
For the purpose of this Work Order:
3. SCOPE OF SERVICES
The services to be provided by Shell Global Solutions to CUSTOMER
(“Services”) in support of the Specified Purpose will involve site reviews and
selection, site visits and SCAN workshop.
Shell Global Solutions will provide the Services and support the study as follow:
● Conduct a desk top review of locations, with advice from PTTPLC on
the number of potential sites (maximum eight to ten sites) and come up
with a high level feasibility assessment based on navigable access,
marine facility space, onshore plot space, utilities and proximity to
customers. (Step 1)
● Screen the high level proposals jointly with PTTPLC to end up with a
shortlist of three (3) to five (5) sites that have the best advantages with
manageable risk. (Step 1)
● Study in further detail the screened results, conduct site visits with civil,
marine and process with local representation from PTTPLC (Step 2)
● Conduct a SCAN workshop, with PTT PLC staff to identify the top
three (3) sites, of the 3 to 5 sites studied in detail to be taken to Phase 2
for detailed investigations. (Steps 2). Phase 2 is outside the scope of work
considered under this Work Order.
The site review shall consider sites from a qualitative point of view. Impact of
metocean conditions from readily available data will be considered. The sites to
be considered will be aligned with the maximum size of the vessel (to be
The site review (Step 2) will also consider whether specific sites are acceptable
to install Gas quality adjustment facilities or to act as an LNG hub for the
region.
The Services involved with this Work Order (Phase 1) include the following
detailed activities:
● Review PTTPLC site screening report which includes the initial findings
described in Section 5: INPUT REQUIREMENTS of this attachment.
● Acquisition and review of charts, port information, metocean
information from PTTPLC and readily available sources
● Review high level metocean, seismic data
● Review locations at a high level (desk top) - regional, local, site specific
● Identify infrastructure marine interface issues
● Identify marine risk opportunities and threats including navigation
● Identification of marine options for development
● Review FSRU/FSU considerations including send out, requirements for
further study and limitations.
● Produce slides on high level site scouting studies with a maximum of
eight (8) to ten (10) options.
● Screen hi-level proposals with PTTPLC staff to produce a shortlist
(three to five sites).
● Revise screened results by Shell Global Solutions’ experts conducting
site visits covering civil, marine, and process aspects. These visits are to
be undertaken with local representation from PTTPLC for 3-5 sites.
● Conduct SCAN workshop with PTTPLC staff and develop a final
report resulting in the top three (3) sites to be reviewed in detail in
Phase 2. (not part of the scope of work for this Work Order)
● Conduct Assurance and review of deliverable.
Shell Global Solutions will provide these Services in an advisory capacity only,
the responsibility of the actual implementation of information presented will
remain with PTTPLC.
4. DELIVERABLES
As deliverables, Shell Global Solutions will deliver the Services as follow:
● Report results of high level site scouting studies with a maximum of eight
(8) to ten (10) options, using Power-point slides (Step 1)
● A short list of screened hi-level proposed sites (3 to 5 sites) (Step 1)
● Pre-read for SCAN workshop (Step 2)
● Scan Workshop related material (Step 2)
● Final presentation to PTT management (Step 2)
● Final Site selection report (Step 2)
5. INPUT REQUIREMENTS
PTTPLC will do the following to enable delivery of the Services:
● Provide a full list of sites and screening report PTTPLC has already
studied, including the initial findings described below and any
additional considerations and information they may have on possible
sites-based on consumer demand and business strategy perspectives.
● Identify the maximum 8 to 10 sites they would like Shell to study, in
cooperation with PTTPLC.
● PTTPLC’s initial findings are as follows:
o Four (4) sites were identified in Eastern Thailand: a) IRPC
(Refinery and Petrochemical complex with existing port), b)
Map Ta Phut (2 sites, one at the existing terminal and the other
one at a nearby location on land to be reclaimed), c) fourth site
in Satahip (between Rayong and Sriracha).
o Western coast line of Thailand: identified one site at
Samutsakorn which is relatively close to Bangkok.
o Southern area: no particular site identified and due to low
demand in that area, with little infrastructure, is not considered
favourably – to be reviewed at a high level.
o Sriracha is considered too congested and is excluded from scope
(to be confirmed)
o Myanmar is primarily seen as a fall-back option in case it would
be difficult (environmental and permit reasons) to build the 2nd
terminal in Thailand. Location in Myanmar would most likely be
6. SCHEDULE
These services will be rendered in 2012 per a mutually-agreed schedule.
An overview is indicated below subject to PTTPLC and Shell Global Solutions
staff availability and will be discussed in detail with PTTPLC prior to the start
of the study.
Activities Duration
Conduct a desk top review of locations and high level feasibility
5 weeks
assessments.(maximum 8 to 10) (Step 1)
Screen the high level proposals jointly with PTT to end up with a 5 weeks
shortlist of 3-5 maximum sites that has best advantages with
manageable risk. (Step 1)
A more detailed study on the screened results by conducting site 3 weeks
visits covering aspects of civil, marine and process with local
representation from PTTPLC. (Step 2)
Conduct SCAN (Site Comparison and Analysis workshop (Shell
methodology), with expected outcome being a shortlist of the top
3 weeks
3 sites to be taken forward for Phase 2 (not part of this Work
Order) detailed investigations. (Step 2)
Shell Global Solutions understands that PTTPLC wishes to complete the site
scouting and selection studies in four (4) months per mutually agreed schedule
and after receipt of all input data, subject to availability of critical resources at
the time of approval. The HSE activities and deliverables required for these
Services are outside this Shell Work Order but are required as input from the
Customer. The content, timing and format for this HSE input will be mutually
discussed and agreed by Shell and Customer prior to the start of the work.
7. RESOURCES
The following main disciplines from Shell Global Solutions will carry out
proposed consultancy services:
● Marine Infrastructure and Geotechnical Engineering experts to assess
the suitability of sites from metocean
● Process experts to provide high level definition of import terminal and
gas quality adjustment requirements
● Nautical experts for LNG shipping and terminal siting and for FSRU
suitability
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