OIL REFINED PRODUCTS PIPELINE

FROM TUXPAN VERACRUZ STORAGE & RECEPTION TERMINAL

TO CDAD. SHAGÚN HIDALGO STORAGE & DISTRIBUTION TERMINAL

TECHNICAL PROPOSAL FOR FRONT END ENGINEERING DESIGN

 TABLE OF CONTENT

1. PRESENTATION OF THE PROJECT ........................................................................................3

1.1. General .................................................................................................................................................3
1.2. Summary of Pipeline Coordinates and Characteristics ....................................................3
1.3. Results of Hydraulic Analysis......................................................................................................4
2. DESCRIPTION OF THE WORKS ..............................................................................................5
2.1. Scope .....................................................................................................................................................5
2.2. FEED development methodology..............................................................................................8
2.2.1. Description .............................................................................................................................8
2.2.2. Class II Cost Estimate .........................................................................................................9
2.2.3. Pipeline Design Basis .........................................................................................................9
3. LIST OF DELIVERABLES ........................................................................................................ 10
3.1. General documentation .............................................................................................................. 10
3.2. Process .............................................................................................................................................. 11
3.3. Mechanical ....................................................................................................................................... 13
3.4. Safety Engineering and Studies............................................................................................... 14
Methodology of the execution for Fire Protection Study ............................................................. 15
Methodology of the execution for pumping location study ......................................................... 16
3.5. Electrical ........................................................................................................................................... 16
3.6. Civil ..................................................................................................................................................... 17
3.7. Automation and Control............................................................................................................. 19
4.8 Class II Cost estimate ................................................................................................................... 22
4.9 Design Reviews .............................................................................................................................. 22
4. PROGRESSION/SCHEDULE ................................................................................................... 23
5 CONDITIONS OF THIS TECHNICAL PROPOSAL.............................................................. 23
5.1 Exclusion .......................................................................................................................................... 23
5.2 Pre-requisite ................................................................................................................................... 23
5.3 Execution time ............................................................................................................................... 24
5.4 Dates................................................................................................................................................... 24
5.5 Review by CUSTOMER ................................................................................................................ 24
5.6 Scheduling and Progress Report ............................................................................................ 25
5.7 Performance of work................................................................................................................... 25
5.8 Confidentiality ................................................................................................................................ 25
5.9 Language........................................................................................................................................... 26
6 ADDITIONAL SCOPE ............................................................................................................... 26
6.1 Soil Study .......................................................................................................................................... 26
6.2 Topographical and Hydrology Studies ................................................................................. 26
1. PRESENTATION OF THE PROJECT

1.1. General
The project will consist in executing a Front-End Engineering Design contract for the
construction of a Pipeline for a refined product transfer from Storage and Reception Terminal
located in Tuxpan, Veracruz to a Storage and Distribution Terminal at Cdad. Shagún Hidalgo.
The Pipeline is set to transport Regular and Premium Gasoline, Distillate such as Diesel and Jet
Fuel and Naphtha in a first phase. The pipeline will be designed to handle a normal flow capacity
of 150,000 BPD with a maximum capacity of 200,000 BPD. It is estimated that at startup the
pipeline will operate a minimum volume of 80 KBD to be increased to a minimum level of 100
KBD and maximum one of 150 KBD in 2 years, and to 200 KBD in 5 years’ timeframe.
Based on the Hydraulic Study defined during the Conceptual Design, the pipeline will be
supported by three (3) pumping stations, one located in Tuxpan Terminal as a starting point,
and 2 pumping stations to be located along the pipeline trajectory, in addition to check valves,
other valves and pig traps located along the pipeline.

1.2. Summary of Pipeline Coordinates and Characteristics

Diameter Selected
20”

Length
207 Km according to projected trajectory. However, pipeline length may vary according to
topographical study and a complete route and trajectory analysis and may reach up to 250 Km.

Pipeline Locations and Altitudes

• Starting at: Tuxpan, Veracruz

Location Latitude 20° 46’ 97” N
Length 97° 24’ 1” O
Altitude 10 m s.n.m.

• Arrival at: Cdad. Sahagún, Hidalgo

Location Latitude 19° 46’ 32” N
Length 98° 34’ 28” O
Altitude 2,346 m s.n.m.

• Higher Point: Distance Km 196 + 0000

Altitude 2,721 m, s.n.m.
The final point of trajectory in Cdad. Sahagún is located at 11 Km from the higher point, which
is 375 m below this point.
Pipeline Specs

20” pipeline, API 5L X52, and 0.500” thickness (alternative in X65)

Operational Capacity

Minimum flow 100 KBD

Normal flow 120 KBD
Maximum flow 180 KBD

Pumping Stations

First station Pumping Km 000+000 Tuxpan

Second station Repumping Km 107+000* Tuxpan-Cd. S.
Third station Repumping Km 129+000* Tuxpan-Cd. S.
* Approximate Km

Trajectory Interferences Summary

States 3
Municipalities 16
Interferences 121
National Park protected area 1

States to be crossed Municipalities

Departure Veracruz 3
Intermedia Puebla 9
Arrival Hidalgo 4

Trajectory Interferences (121)

Rivers 36
Pemex 1
Telmex 2
Caretera Federal 20
Carretera Estatal 9
Camini Municipal 17
CFE Distribution Line 13
CFE Transmission Line 12
Gas pipelines 4
Others (Constructions) 4

1.3. Results of Hydraulic Analysis

The following table presents the results obtained from the Hydraulic Analysis performed during
the Conceptual study to handle a flow of 180 KBD, which will be used as basis for FEED
Development:
 CRITERIA 20”

Speed (ft/s) 6.0

Pressure drop (friction and elevation) (Kg/cm2) 295.6

Pressure drop only by friction (kg/cm2) 77.4

Pressure discharge (as if only exist one pumping station in Hidalgo) (kg/cm2) 295

Total energy consumed per day for hydraulic concept (elevation and friction) (Kwh) 230,011

Energy consumed in one day for hydraulic concept only friction (kg/cm2) 62,467

No. of Pumping Stations 3

No. of total pumps of 60 KBD 12

Power per pump considering 80% efficiency (Hp) 1400

Thickness at the exist of each pumping station (inches) 0.5

Other parameters such as erosion, vibration, noise, contamination risk and other operating risks
will be part of the FEED study.

2. DESCRIPTION OF THE WORKS

2.1. Scope
Developing, constructing and operating a large diameter pipelines involves considerable capital,
operating and maintenance costs and include risks such as overruns, declining volumes, license
to pass through indigenous communities, safety issues and security. Consequently, a well
prepared and developed Front End Engineering Design is required to cope with uncertainties
and mitigate risks.
The primary goal for the scope of this project is to develop a FEED study for the construction of
a Pipeline for a refined product transfer from Storage and Reception Terminal located in Tuxpan,
Veracruz to a Storage and Distribution Terminal at Cdad. Shagún Hidalgo.

A conceptual analysis has been made for the pipeline yielding a pipeline length of 250 km and a
diameter of 20” to support a flow of 150,000 to 200,000 bpd of oil products. An estimated route
of the pipeline goes from sea level altitude at Tuxpan Terminal to 2000 mts altitude at Hidalgo
Terminal, passing through a higher point of 2700 mts altitude.
The FEED Scope of Work proposed by LITWIN will consider the management and coordination
activities, documents and engineering drawings as deliverables for the definition and design of
the pipeline as well as the auxiliary systems, pumping booster stations, SCADA system, industrial
services, and all other facilities and equipment required for the operations. In addition, the
objective of the FEED consists in preparing the documentation required for the implementation
of a Class II Cost Estimate, according to AACE (Association for the Advancement of Cost
Engineering).

As the pipeline will be constructed outside the project battery limits on land owned by others
and being a transport mean for hazardous liquids, the FEED study will extend to cover all
procedures, environmental impact study, communities’ response study specially the one related
to indigenous communities, and local entities permitting in order to cope with divergent needs
of a wide range of stakeholders.

The secondary goal of FEED is to develop a good project cost estimate that can be used for
budget authorization and as a control baseline for execution phase work. It will also reflect a
series of elements to narrow the capital, operating and other cost range to reduce uncertainty
and risks for the project decision makers during the construction and Operation & Maintenance
phases.

Finally, the deliverable of the FEED will also provide for technical and execution planning in
sufficient detail to support an accurate EPC cost estimate and a firm price commercial offer for
Project execution.

While the project at this stage is likely several years from being an operating asset, providing
input for operations and maintenance at this phase is well worth the cost of including this
function during FEED. In that sense, the FEED study proposed by LITWIN will cover the
following documentations:

3.1.1. Technical

From a technical perspective, outcome from FEED will include items such as the following:

• Process flow diagram

• Construction Schedule
• Class 2 cost estimate
• Major equipment list
• Preliminary routing
• Control strategy (SCADA system)
• Operating philosophy
• Maintenance philosophy
• Permitting strategy
• Booster pumps stations
• Specifications for long lead time items
• Telecommunication system
• Drivers (motors, engines, turbines)
• Pipes
• Leak detection system
• Batch cutting system
• Downgrade/regrade volume estimate
As well as:
• Project execution plan
• Design basis document

The design basis document will also include strong guidance to the operations and
maintenance design which is performed during the detailed engineering and design phase of
the project. During FEED, numerical estimates and assumptions shall be tightened to between
+ 25% and + 10%

3.1.2. Commercial, Political, Social and Regulatory

Commercial terms such as volumes and rates along with their impact on revenue must be
identified in FEED study. The cost of political governmental factors including taxes and other
fees, social factors like employment of nationals and the cost of providing amenities along the
route for local communities, and regulatory provisions must be understood and quantified in
detail, as understanding these factors during FEED avoids project impacting surprises later in
the project.

3.1.3. Environmental, Cultural, and Security

Equally important, FEED Study should set a clear understanding of environmental and
cultural issues and developing plans to address and mitigate any negative impacts from the
project. Security along the line must be maintained to avoid products smuggling and other
theft activities which means security plans, procedures and agreements documents at Local
and Federal level must be developed in the considerable detail during this phase.

3.1.4. Additional Cost Analysis

Additional cost analysis should be conducted in FEED study to reflect operation and
maintenance expenses which has a considerable impact on taking the financial decision for
building the pipeline. Crude oil pipeline expenses fall into four broad categories which are the
following:

• Power supported by existing electrical grids, engines or turbines powered by natural

gas, fuel oil or fuel from the line itself should be considered.
• People,
• Maintenance, and
• Other such as housing, catering, security, and other related items at remote pump and
other station sites.
 2.2. FEED development methodology
The FEED scope of work will consider the management and coordination activities, documents
and engineering drawings as deliverables for the definition and design of the as well as the
auxiliary systems, industrial services, and feed and product storage facilities required for the
operations.

2.2.1. Description
FEED will be executed following a dynamic but staged workflow, with established key
milestones such as design reviews and completion of relevant studies.
Initially the Project Scope and the Project Basis of Design will be defined in sufficient detail to
identify major cost components and schedule determinants. The design basis will consider the
required pipeline route by tranches, pumping station capacities, route and site conditions,
adequacy and operational flexibility necessary, among other considerations and design criteria
to be considered so that the pipeline and its adjacent facilities meet the production, safety and
operational reliability objectives.
The set of Project Design Specifications and Standards is also assembled at early stage of FEED,
in order to be used during the basic design and also applicable for the detailed engineering
phase.
Based on the results of the conceptual engineering packages review, the basic engineering
proceeds with the definition and sizing of main process equipment and packaged units. With the
design of the main equipment a set of Piping and Instrument diagrams (P&ID) will be developed
and reviewed to show and reflect the equipment sizing, the process automation, the control
system configuration, the overpressure protection and emergency shutdown protection
strategies to ensure a plant safety design. This is followed by P&ID review and a hazard and
operability analysis studies.
Overall Plot Plan with equipment locations is in continuous development during FEED and lead
by Piping Discipline; main piping routing design is also performed during FEED result according
to the process flow configuration and the process safety study.
Equipment layout and piping routing for main process lines at this stage is supported by 3D
modeling, specifically to aid in subsequent material estimates for large bore piping, valves and
accessories.
Interface Management will be implemented during FEED phase in order to ensure that all
involved parties are using the same design basis and are timely provided with updates to any
data relevant to their design.
Process design and plant layouts definition will allow engineering disciplines to develop their
basic design and bulk material estimate effort can proceed, as well as their respective equipment
definitions.
Bulk material quantities and construction item work quantities estimates are produced and
classified as per an established Cost Estimate breakdown per engineering discipline, such as
piping materials and accessories, civil works, concrete and steel structures, electrical
equipment, instruments, control and safety valves, etc.
Mechanical specifications and datasheets for the main process equipment, auxiliary systems,
package units will be produced including the key and necessary design parameters to allow
equipment sizing and definition by vendors.
Preparation of specifications of the major process equipment and auxiliary systems is the key
activity, looking for the higher possible level of data included in the datasheets and technical
requisition packages in order to obtain equipment quotations for highest confidence in the Cost
Estimate produced at the end of the FEED.

2.2.2. Class II Cost Estimate

A Cost Estimate developed based upon the documents and information produced during the
FEED and according to following strategy:
Class II Costs Estimate as per AACE (American Association of Cost Engineering).
Supported by budgetary quotations of major process equipment and major packaged
equipment.
Based on the type of engineering that will be developed, the Expected Accuracy for the Cost
Estimate is +/- 10% with an 80% probability.
Cost Estimate for the FEED phase:
• Engineering and Management Services
• Procurement of equipment and bulk material.
• Process, Mechanical and Packaged Equipment Installation.
• Civil, Piping+ Painting+ Insulation, Electrical, Instrumentation and Telecom works.
• Construction expenses/facilities.
• Indirect costs.
• Contingency.

2.2.3. Pipeline Design Basis

Pipelines and Pumping facilities envisaged will be designed and engineered primarily in
accordance with the provisions of the latest edition of the following Codes and standards:

• ASME B 31.4: Pipeline Transportation Systems for Liquid Hydrocarbons and other
Liquid
• OISD 118: Layout for Oil & Gas Installation, OISD 119: Selection, Operation and
maintenance of Pumps,
• PNGRB guidelines.

The pipeline will withstand all installation, testing and operating condition/ loads. All
necessary calculations will be carried out to verify structural integrity and stability of the
pipeline for the combined effect of pressure, temperature, bending (elastic), soil/pipe
interaction, external loads and other environmental parameters as applicable during all phases
of work from installation to operation. Allowable stress limit shall be as per ASME B 31.4.
Such calculations shall include, but are not limited to following:
 • Buoyancy control and stability analysis for pipeline section to be installed in areas
subjected to flooding/submergence. Unless specified, specific gravity of installation
in such area shall be at least 1.2.
• Stress analysis at crossing of rail and highway etc.
• Crossing analysis of rivers by HDD as applicable.
• Pipeline expansion and its effect on station piping (above ground/below ground).

Pipeline will also be checked for adequacy against anticipated earthquake loading and any
special measures such as increase in wall thickness/ grade/ select backfill etc. as required to
ensure safety and integrity of the pipeline system are implemented.

Mainline will be provided with pigging facilities (wherever specified) suitable for handling
all types of pigs including intelligent pigs.

3. LIST OF DELIVERABLES
This proposal for FEED for the Tuxpan-Hidalgo Pipeline Project comprises the following
activities:

1. Review and confirmation of the conceptual design, scope and cost estimate prepared by
Owner
2. Development of a Front-End Engineering Design and specification package to allow for
the contractors’ and suppliers bidding process, as well as applying for environmental
and CRE regulatory permits.
3. Development of a Class 2 cost estimate and project schedule

In general, since the FEED and Bid-Package preparation is schedule-driven, appropriate

measures will have to be taken to satisfy the owner’s milestones. Work teams will be
established in Geneva and Mexico to fully optimize resource deployment. Documentation
will be developed to the extent required by the cost estimating effort, and to allow an
expeditious transfer to EPC contractors.

Following is a detailed description of the scope of work and work execution methodology by
discipline.

3.1. General documentation

• General Project Description
• Site Description
• Project Philosophies
• Project Technical Specifications
• Codes and Standards
• Project Execution Plan
• Division of Responsibility (DOR) and Interface Management
• Master Document Index
• Schedule for FEED execution
 • Approved Vendor List
• Start-up and 2-Year Spare Parts List Template

3.2. Process

Process discipline shall work in close coordination with the other engineering disciplines for
the development of Front End Engineering Design and Bid Package development.

Activities

- Site Survey
- Coordination with other disciplines.
- Review project information and determine additional data that may be required to define
the design bases.
- Support to Facilities location studies
- Hydraulic Calculations
- Process Simulation and Heat and Material Balances; these activities will give to Process
discipline all information about process conditions (temperature, pressure and flowrate,
as well as, physical and transport properties of fluids involved in the different process
scenarios to evaluate.
- Equipment Process Data Sheets; Process discipline will include the process data
corresponding to all mechanical equipment (pumps, filter, tanks Air Instrument package,
Tanker Truck loading bays). that are involved in the scope of work.
- Instruments Data Sheets; Process discipline will include the process data corresponding
to all instruments (pressure, temperature and level), as well as the process data required
for control and ON OFF valves that are involved in the scope of work.
- Equipment List
- Electrical Area Classification
- Support to Plot Plan
- Support for the Class II Cost estimate
- Support to other discipline
- Operation Philosophy
- Block Flow Diagram (BFD)
- Process description including utilities
- PFD - Station Inlet/ Outlet Manifold
- UFD - compressed air, nytrogen, potable water, close drain (if applicable)
- ESD philosophy philosophy
- Equipment List for each pump stations
- Cause and Effect Diagram
- Process piping lines sizing calculation
- Calculation report for utilities/Equipment sizing (compressed air system, diesel fuel system, etc.)
- Calculation report for pressure safety valves
- Pumps station pressure drop calculation
Documents and Drawings

- Pipeline design basis memorandum

- Pipeline Hydraulic Calculation report
- PFD System Flow Diagram Pipeline
- PFD System Flow Diagram Pumping Station
- P&ID Legend and Symbols
- P&ID General Pipeline
- P&ID MLV Typical Arrangement
- P&ID Pumping Station Typical Arrangement
- P&ID - Legend and Symbols
- P&ID - Pig Trap
- P&ID METERING and inlet /outlet MANIFOLD
- P&ID intermediate pumps station 1
- P&ID intermediate pumps station2
- P&ID pressure regulation station
- P&ID receiveing station
- P&ID Instrument air for each station
- P&ID Inert Gas system for each station
- P&ID close drain system for each station
- P&ID potable water for each station
- P&ID Diesel system for each station
- P&ID Collecting, treatment and discharge system of domestic and rain wastewaters per station

Design Basis Memorandum

This document will include inlet and outlet process conditions (compositions, flowrate,
temperature, pressure, density, etc.) process requirements, environmental data, service
factor, design criteria, standards. Additionally, in this document will be included a process
description, and preliminary operating procedure, line and equipment list and a preliminary
utilities requirements.

Hydraulic Calculation Report

Hydraulic calculations will be conducted to estimate the process variables required by
other disciplines. All design premises and assumptions (including use of velocity and
pressure drop criteria as appropriate), for all areas included within the scope of work as
well as the hydraulic calculation results will be included in this document.

PIPEPHASE Program will be used.

Process Flow Diagrams (PFD´s)

LITWIN will prepare the PFDs indicating the process streams, design information of the
equipoment and its respective mass and energy balance, including compositios, flows
(molar, mass and volumetric), specific gravety or density, moleculat weight, absolute
visciosity, phase, thermal conductivity, heat capacity, temperature, pressure and enthalpy.

Piping & Instruments Diagram (P&ID´s)

LITWIN will prepare preliminary P&ID´s indicating equipment, main lines, some
secondary lines, instruments and basic control loops. For equipment, will be indicate as
minimum design conditions, capacities, material specification, insulations and any other
relevant characteristics. Pipelines will be defined by minimum size, number, piping class
and insulation (if it is applicable).

The following documents will be issued

• Pipeline design basis memorandum

• Pipeline Hydraulic Calculation report
• PFD System Flow Diagram Pipeline
• P&ID Legend and Symbols
• P&ID General Pipeline
• P&ID MLV Typical Arrangement
• P&ID Measurement and Regulation Station Typical Arrangement

3.3. Mechanical

Activities

- Coordination and support with other engineering disciplines in order to ensure the
proper flow of technical information to the entire project.
- Review project information and determine additional data that may be required to define
the design bases as final objective.
- Support to Cost Estimate.
- Site survey to determine the feasibility of the installation’s equipment.
- Procurement assistance including bidding process activities such as: clarifications and
proposals review and evaluation.
- Support to the elaboration of equipment lists including equipment essential parameters.
- Design criteria of Mechanical equipment.
- Preliminary sizing and/or preliminary selection of mechanical equipment of long time
delivery.
- Prepare general technical specifications for the equipment and packages.
- Prepare data sheets for the equipment and packages.
- Prepare requisitions of long time delivery equipment.
Documents and Drawings

- Data Sheet of Main Line Pumps (Pumping Stations)

- RQM for Main Line Pumps
- Selection of Line Pumps
- Specifications for pig receiving & launching skids
- Data sheets for pig receiving & launching skids
- Data shetts of Measure and Regulation skid
- RQMs for pig launcher and receiver
- RQM for Measure and Regulation skid
- Specification for supply of launching/receiving scraper trap
- Specification for atmospheric pressure tanks
- Specification for compressed (instrument) air package
- Specification for Inert gas (nytrogen) package
- Specification for centrifugal pumps
- Specification for utility services pumps
- Data Sheet for firewater tank
- Data Sheet for potable water tank
- Data sheet for distilate Tank
- Data Sheet for oily water (drainage) vessel
- Data Sheet for diesel storage vessel
- Data sheet for pumps
- Data sheet for fire water electrical pumps
- Data sheet for fire water diesel pumps
- Data sheet for drainage pumps

Programs to be used by Mechanical Discipline:

- COMPRESS
- AutoCAD V.2018
- Microsoft Word and Microsoft Excel

3.4. Safety Engineering and Studies

As part of the scope of work of Safety Engineering and Studies Discipline will be develop the
following activities in order to perform the Fire Fighting System, Electrical Power Studies
and the Special Studies for the project.
The scope of Engineering Safety and Studies shall be structured as follow:

Activities:

- General Coordination
- Contribution to Design Basis Memorandum, with the design basis of fire protection
system.
- Safety philosophy
- Hazardous area classification drawings for each stations
- Escape Route and Safety Sign Layout for each station
- Fire water demand calculation for each station
- P&ID fire water for each station
- F&G detection philosophy
- Fire & Gas detection layout for each pump station
- Fire water network layout drawing for each station

3D MODEL for pumps stations

- 3D model echipment, buildings, fence, road, paving

- 3D model piping, steel structures, foundations

For the pipeline, Engineering Safety and Studies will develop the deliverable as follow
document:

- Pumping Station Location Study

- Pipeline Fire Protection requirements

Methodology of the execution for Fire Protection Study

To comply with the scope of the discipline, the following methodology is proposed:

Engineering activities will be executed in the sequence of the workflow needed to feed
other disciplines, which require information firefighting system generated by the Safety
Engineering and Studies Discipline for the preparation of Basic Engineering.

The first activity will be the collection of data, in order to gather all the information
associated with Conceptual engineering for firefighting system. With this information and
that provided by the other disciplines, an assessment of the risks involved for the creation
of the bases and design criteria, this document will be based on the international or
Mexican standards.

Subsequently, with reference to the basis and design criteria and the standards, we proceed
to the equipment location as well as the route for pipes and equipment’s location.

According to firefighting system required in each area: water demand, foam demand, CO2
Demand will be estimated and requested to the system available in that area.
Methodology of the execution for pumping location study
It is part of this scope to develop the location facilities studies.

These studies basically constitute a validation of the facilities locations proposed in the
conceptual engineering. The validation is performed by a multidisciplinary team, starting
from the information obtained of the conceptual engineering.

In a multidisciplinary meeting, integrated by the project team, performs technical

evaluation of facilities locations, proposal in the conceptual engineering, in order to
validate technical feasibility and compliance with the premises established for the project.

Once feasibility is validated, the Safety Engineering and Studies group will develop a
document for support and validate formally the facilities locations for pumping stations
facilities.

3.5. Electrical

Activities:

- Coordination with other disciplines.

- Review project information and determine additional data that may be required to define
the design bases.
- Electrical single line diagrams for the pumping stations
- Support to procurement and Class II cost estimate
- Preliminary Cathodic protection Calculations
- Preliminary Cable Calculation
- Preliminary Raceways calculation
- Preliminary lighting calculation
- Electrical Equipment Data Sheets and specification.
- Electrical requisition and technical evaluation.
- Preliminary design for lighting, grounding, raceways and power system.
- Preliminary details installation for lighting, raceways, power, grounding system.
- Power supply plans
- General One Line Diagram for each station
- Electrical consumers preliminary list
- Specification for electrical equipment
- Specification for electrical cables
- Specification for transformers (if any))
- Equipment data sheets for MV and LV
- General technical specification for UPS
- Calculation of grounding system
- Calculation of interior and outdoor lighting installations for each station
- Cable list for each station
- Main cable routing drawings for each station
- MTO for bulk cables of main lines for each station
- Tipical installation details - power
- Tipical installation details - grounding
- Tipical installation details - light

Documents and Drawings

- MV One Line Diagram

- LV One Line Diagram
- Electrical Power Study: Load summary
- Electrical Power distribution technical scope
- Electrical material list
- Electrical material take off
- General Electrical labor job description
- Diagram on earth terminals and on lightning discharge protection
- Diagram of outdoor and interior lighting installations
- Diagram of lightning discharge protection
- Key single line diagram (General layout for the interconnection of electrical boards)
- General layout for outdoor &interior wiring (cable routing for power, lighting, socket, etc)
- Electric poles layout for each area for each station
- Substation Equipment preliminary arrangement drawings for each station

3.6. Civil

Activities:

- Client Information Review.

- Existing Studies Review (Topographical, Geotechnical and Hidrology).
- Site Survey Visits.
- Coordination with Other Disciplines.
- Support to Class II Cost Estimate.
- Support to development of Design Basis Memorandums.
- Support to development of Pumping Station Location Study.
- Support to development of Pumping Station Typical Layout.
- Support to development of General Plot Plans.
- Support to development of Fire Protection Studies.
- Support to development of Facilities Location Studies.
- Support to development of Electric Power Studies.
- Support to Preparation of Bid of Detailing Engineering Package.
- Civil works specification
- Pumps station shelter - architectural preliminary design (typical for intermediate stations)
- Control room - architectural preliminary design (typical for intermediate stations)
- Electrical substation - architectural preliminary design (typical for intermediate stations)
- Warehouse - architectural preliminary design
- Workshop- architectural preliminary design
- Office building (dinning room and bathroom) - architectural preliminary design
- Administrativ building - architectural preliminary design (typical for intermediate stations)
- Control gate - architectural preliminary design
- Shade for fire Water pumps preliminary design
- Hazardous waste area shade - preliminary design (for 2 intermediate stations)
- Recovered oily water pit (typical for intermediate stations)
- Buildings, shelters and shade structures
- Buildings foundations
- Site arrangement for foundations, ducts and supports
- Concrete standard design drawings (pits, manholes, monitors, etc)
- Tanks foundations plans (potable water, fire water, distilled)
- Diesel tank pit drawing
- Pig foundation plans
- Pipe and equipment supports plans
- Foundation for electrical poles
- Pits and tranches layout
- Fencing and acces gate design
- Open drain and sewer plans
- Preliminary Road, Paving Arrangements for each station
- Calculation of road structure
- Site plan with access road route to the stations
- Underground layout
- Buildings -sanitary, HVAC, air-conditioning, plumbing systems
- Control room and electrical station - sanitary, HVAC, air-conditioning, plumbing systems

Documents and Drawings:

- Route Map & Profile Drawings.

- Pipeline Profile Drawings.
- Preliminary Civil Calculations.
- Preliminary Structural Calculations.
- Civil Material Take Off.
- Structural Material Take Off.
- Buildngs Architecture Specifications
- Specifications for contract of Topographical Survey
- Detection of Underground Installations Study
- Specifications for contract of Geoplogical Study, including Geoplogical Study and Soil
Resistivity Study
- Specificactions for contract of Hidrology Study.

Programs to be used by Civil Discipline:

 - STAAD PRO will be used for the preliminary calculations of structures.
- "Zapata" Program (“In-House” Program). will be used for the preliminary
calculations of foundations
- FLOWMASTER will be used for the preliminary design of drainage.
- AutoCAD 2018 will be used to prepare the drawings.
- For the documents Microsoft Word, Microsoft Excel and Acrobat Professional
will be used.

3.7. Automation and Control

Activities:

Automation and Control Discipline will develop the following scope of work during the
execution of the FEED including the following activities:

- Coordination
- P&ID symbology review
- Data base
- Cost estimated support
- Mechanical package support
- Instrument air package support
- EPC contractor package
- Fill station skid support (flow computer, flow meter)
- Support to fire protection study (detectors location sketches)
- Specification for SCADA including integration with TMS/DCS in Tuxpan and Hidalgo
- Specification for ESD, FGS and Metering Systems
- Specification for Leak Detection System
- Specification for Batch Cutting System
- Specification for telecom systems (video, radio…)
- Specification for access control and protection against intrusion

Documents and Drawings:

General:

- Design criteria for instrument installation

- Instruments specification
- Package equipment instrumentation specification
- Mainline valves specification
- Motorized valves specification
- Control valves specification
- Automation philosophy
- Typical process installation diagrams
- Typical electrical installation diagrams
- Typical pneumatic installation diagrams

Automation Contractor:

- SCADA system specification

- ESD emergency system specification
- Fire & gas system specification
- Scada system specification
- RTU panel specification
- Leak detection system specification
- Main automation contractor requisition and evaluation to support cost estimated
- Scada architecture drawing
- Control system architecture drawing

Pipeline:

- Instrument list
- I/o list
- Main valves data sheets
- Material take off
- Cause & effect matrix
- Main valves requisition and evaluation to support cost estimated
- Typical MLV route drawing
- Typical pump station route drawing

Programs to be used by Automation & Control Discipline:

- AutoCAD V.2018
- FE-Sizer
- Microsoft Word y Microsoft Excel
- Acrobat Professional.

4.8 Piping

Activities:

- Support to MLV location Study

- Support to Pumping Station location study

Documents:

- Pipeline List of Crossings

- Line pipe specification
- Pipe wall thickness
- Pipeline BILL OF MATERIALS
- Pipeline BILL OF QUANTITIES
- Pipeline design basis memorandum
- Pipeline Material Requisition
- Pipeline Large Diameter Valves Material Requisition
- General Layout
- Pumps Station 1 - Area Location Plan
- Intermediate Pumps Station 1 - Area Location Plan (107Km)
- Intermediate Pumps Station 2 - Area Location Plan (129 km)
- Pressure regulation station - Area location plan(Hidalgo)
- Receiving station - Area location plan(Hidalgo)
- Piping Material specification
- Material selection and corrosion control report
- Piping Class summary
- Painting specifications
- Coating specifications
- Specification for stress analysis
- Specification for piping special items
- Specification for radiography/ultrasonic inspection services
- Specification for hydrostatic test of piping
- Specification for pneumatic test of piping
- Welding specifications
- Data sheet for manual sectioning valves
- Data sheet for check valves
- Data Sheet for Insulating Joints
- Data sheet for strainers
- Data sheet for flame arrestors

Drawings:

- Pumping Station Large diameter piping 3D model (30% completion)

- Intermediate Pumping Station Equipment 3D Model (30% completion)
- Pipeline Route Map & Profile
- Pipeline Typical Crossings
- Pipeline Contractor staging areas
- Pipeline Vicinity map
- Pipeline MLV typical layout
- Pipeline Pumping Station typical layout
- Piping routing drawings in pump stations
- Piping routing drawing in pig areas
- Piping routing fire water pump station
- Preliminary Pipe Stress Analysis
- Piping General Arrangement drawings for utilities - preliminary
- Piping MTO (preliminary, from P&ID for item count and Plot Plan/Piping routing)
- Typical Piping support
- Tie in list

Prior to start the FEED engineering activities, the Conceptual engineering shall be reviewed
(especially plot plan) and any required modification shall be notified to the client for approval.

4.8 Class II Cost estimate

Budgetary Quotations - Pipeline

Budgetary Quotations – Pumping and Equipment

Budgetary Quotations – Packages

A Class 2 Estimate is a project cost estimate work process similarly defined by the AACE Class 2
Estimate, or Control, or Bid/Tender Estimate. The Control Budget Estimate methodology is (i)
the detailed unit cost with bulk material take‐offs (ii) budgetary or committed cost information
from potential bidders and construction subcontractors for equipment and construction direct
cost (iii) the detailed and accurately developed project resources mobilization plan.

The expected accuracy of Class 2 Estimate is Low: ‐5% to ‐15% High: +5% to +20%.

4.9 Design Reviews

Usually we conduct five major design reviews during the FEED study. However, we may consider
including an Engineering Design Model Review if needed and requested by our customers.

Below is a description of each in chronological order:

PIPELINE LAYOUT Review: Plant layout will be reviewed for operation, maintenance,
construction, safety, emergency, insurance, and regulatory purposes. Placement of heavy
systems must be optimized depending on soil survey results in order to avoid excessive cost in
piling.

PFD Review: Engineers will describe the PFDs including the major streams and the functionality
of each piece of equipment in the design. The PFDs also show the control philosophy for the
plant operation.

HAZID: A HAZID is the high-level safety assessment done very early in design development. Our
engineers will participate in a HAZID study led by the customer with the assistance of a
moderator experienced in the HAZID technique. The HAZID team shall consider each area of the
plant against a checklist of general hazards. As a result, the team will identify potential hazards.
For each identified hazard, the team will consider the risk presented by the hazard and all
possible means of either eliminating the hazard or mitigating the risk.

P&ID Review: The team of engineers will review the P&IDs with CUSTOMER's project team. In
the review, engineers will describe each process and utility line. These descriptions include
defining the valve types, equipment connections, line sizes, piping connectivity, and various
operating scenarios.
HAZOP: The scope of a HAZOP includes the identification of potential hazards in a system and
operability problems likely to lead to nonconforming products. The HAZOP method assumes
that deviations from the intended design or operating conditions cause the occurrence of risk
events. The customer will be responsible for organizing the HAZOP review and may hire a
HAZOP moderator. The HAZOP moderator facilitates identification of such deviations as a
systematic list of deviation perspectives. For the Project, the HAZOP team of engineers will use
P&IDs as a starting point. Each system will be pre-divided into nodes. The team will individually
discuss the nodes. The review will rsult in a list of recommended modifications to the P&IDs or
items that required further study.

4. PROGRESSION/SCHEDULE
The proposed FEED study will follow a typical development sequence. The sequence includes
the phases listed below, with key deliverables associated with each phase.

- Phase 1: Basic Engineering (Design Basis, Process Flow Diagrams (PFDs), Heat and Materia
Balances (HMBs), Class V cost estimate;
- Phase 2: Pipeline and Pumping Stations Layout & Model (Plot Plan);
- Phase 3: Equipment Definition (equipment data sheets, specifications);
- Phase 4: Material Quantification (MTOs, Physical Drawings);
- Phase 5: Equipment Pricing (bid lists, bid packages, bid tabs);
- Phase 6: EPC Execution Planning (EPC Schedule, Contract Plan);
- Phase 7: Class II Cost Estimating (Capital Expenditure) based on proposal from vendor or
our own procurement database;

However, the content of each phase will be adapted to customer needs for the project planning,
such as information and documentation required for permitting and authorisations.

5 CONDITIONS OF THIS TECHNICAL PROPOSAL

This section presents the generally agreed conditions for an efficient execution of the FEED
study contract.

5.1 Exclusion
Only Site Survey will be performed in this FEED Study. However, LITWIN can perform all other
studies such as Soil Study, Topographical Study, Hydrology Study as well as Permitting for
Pipeline and Pump stations in an additional cost and time delivery to be attached to the current
proposal.

5.2 Pre-requisite
The following list of receivables is expected to be delivered by CUSTOMER at the beginning of
the FEED study:

Complete Conceptual Design / Feasibility study

Detail documentation on hydraulic study

Hydrology study if available. If not, LITWIN can perform this study and will attach to this
proposal an additional cost and time delivery for such study.

Topographical study if available. If not, LITWIN can perform this study and will attach to this
proposal an additional cost and time delivery for such study.

Documentation on Route study

Environmental Impact Assessment

Site conditions including site data and detail soil investigation if available. If not, LITWIN can
perform Soil Study and will attach to this proposal an additional cost and time delivery for such
study.

Land plot plan including coordinates (preferably GPS or UTM)

Meteorological conditions

Seismic conditions

Permitting requirements at Federal, State and Municipal levels. However, LITWIN can perform
permitting work and will attach to this proposal an additional cost and time delivery for
Permitting.

5.3 Execution time

3 months from the day of Kick-Off Meeting and receipt of the information listed in § 5.5

5.4 Dates
Effective date: Date of the signature of the contract

Commencement date: Date of receipt of the first payment term to our bank account

Litwin SA will start the execution of the contract at effective date and will deliver the
documentation which is required for the assembly of the dossier for permitting. The definition
of the documentation package shall be agreed on as well as the price to be paid for this
documentation package in a detailed contract agreement.

Once this first phase will be completed, Litwin SA will start the execution of the remaining works
(FEED for Tuxpan to Hidalgo Pipeline and pumping Stations) at receipt of the first down
payment as agreed in the detailed contract agreement.

5.5 Review by CUSTOMER

Litwin SA will submit to CUSTOMER all necessary documents / reports / drawings regarding
FEED as agreed in a detail contract agreement.

In accordance with the provisions of the contract or when CUSTOMER deems necessary,
CUSTOMER will return to Litwin SA the drawings and data with comments, instruction for
modification and/or approval to proceed within seven (7) calendar days after receipt of such
documents. Litwin SA shall incorporate all comments and modifications in accordance with
technical definition and agreed standards as instructed by CUSTOMER into the documents and
shall again furnish such document.
Litwin SA shall review and comment/approve any other document that CUSTOMER sends for
Litwin SA’s review/approval within seven (7) calendar days.

Litwin SA will be ready for Kick-off Meeting (KOM) in our office within one weeks after contract
effective date.

KOM and review meeting can be held either in Mexico or in Switzerland as required by the
customer.

5.6 Scheduling and Progress Report

Litwin SA will initially provide a monthly progress report schedule after effective date, to enable
CUSTOMER to determine status and progress of the project. The content frame of such monthly
report will be agreed during KOM. The schedule will be of sufficient details to show major
milestones with time span duration. Milestones are defined as those activities, which have a
major impact on delivery and quality.

Litwin SA will provide CUSTOMER with a production schedule.

Litwin SA will furnish on monthly basis a progress report that updates schedule according to
milestones.

5.7 Performance of work

Litwin SA hereby confirms that we are familiar with the requirements of the work and all
matters, which can in any way affect its execution. With such understanding, Litwin SA
undertakes to perform the work after Litwin SA has all the necessary information to proceed
with the work.

Litwin SA will carry out the services in a professional manner in accordance with the best
engineering practice and standards of workmanship in the field of engineering, procurement,
construction management, and in compliance with federal, provincial and local applicable laws.

Litwin SA or its subcontractors shall not be liable for consequential damages under the Contract
such as but not limited to loss of use, loss of actual or anticipated profits, revenues or product,
business interruption or other special, consequential, indirect, incidental or punitive loss or
damages.

The warrantee period shall be 12 months from issue of certificate by the CUSTOMER of
successful delivery of FEED documentation as defined in the detail contract agreement.

In any case, the overall aggregate liability under this contract is limited to 10% of the total
contract price.

5.8 Confidentiality
Litwin SA undertakes not to use nor disclose to any third party, any technical information or
data furnished by CUSTOMER in connection with services provided that such information or
data is not in the public domain and vice versa.

All produced documents shall be the sole property of CUSTOMER and of Litwin SA and shall not
be shared with any other parties without prior consent of the other party.
5.9 Language
The language for the works shall be Spanish and the language should be English for the
commercial aspects.

6 ADDITIONAL SCOPE
In addition to the current proposal, LITWIN is committed to perform within a framework of
additional cost and time frame the following studies:

6.1 Soil Study

The objective of soil investigation study is to obtain visual engineering classification of soil and
geotechnical properties of soil for design & engineering of various facilities required along the
pipeline route. The soil study includes boring, collection of disturbed samples from bare holes
and visual engineering classification of soil along the pipeline route, carrying out Standard
Penetration Test (SPT) at specified locations and getting the soil sample collected, from such
bore holes, tested at laboratory for specified engineering properties and submission of detailed
report to customer.

Visual classification of soil shall be in accordance with IS-1498; "IS Classification and
Identification of Soils for General Engineering Purposes". Geotechnical investigation of soil shall
be carried out as per relevant clauses of IS 1892 and other applicable IS standards.

Results of soil investigation survey and laboratory test carried out shall be submitted in the form
of report covering as a minimum the following:

a. Visual engineering classification of soils encountered along the pipeline route in bore log
form. Depth of Ground Water Table (GWT) below NGL shall also be mentioned if
encountered.
b. Soil profiles along the pipeline route shall also be prepared and attached with the report.
c. Regions along the pipeline route where hard rock is present and special excavation
techniques like blasting, etc. needs to be adopted for excavation of pipeline trench shall
be clearly indicated in the report.
d. Summary of results obtained from various laboratory tests and their interpretation to
evaluate various soil parameters.

6.2 Topographical and Hydrology Studies

The objective of the Topographycal Study is to obtain detailed informationon pipeline route and
crossing, aimed to cover:
a. Railway crossings
b. Primry and secondary road crossings
c. River crossings
d. Canal / Drainage / Steam ? Nala ? Dutch crossings
e. Utility Crossings
f. Built-up areas
g. Monuments and Properties
h. Parallel alignment
i. Parallel encroavhment
j. Accuracies and Measurement
k. Chainage
l. Coordinates and Grid
m. Levels and contours