Issue link: https://maltatoday.uberflip.com/i/643092
maltatoday, SUNDAY, 21 FEBRUARY 2016 33 LAST year ElectroGas Malta won the bid to build and for the next 18 years operate a power plant that uses Liquefied Natural Gas (LNG) to generate electricity. Catherine Halpin, of Irish nationality and an engineer by profession, was already living in Malta when the opportunity to manage one of the largest projects on the island came up. She knows how important the project is for the country and also the controversies that have surrounded it. "I wasn't surprised by the reactions," she told me. "It's a big project and big projects like these always and everywhere raise con- cerns about safety and the environment. This project, once it's finalised, is expected to provide 215 MW of power. Enemalta had said that this project would enhance Malta's efficiency in electricity generation to ap- proximately 53%, reducing emissions by 50% and particulate matter by 90%. The stakes are high for the Maltese people. Halpin said EGM is not shying away from a healthy discussion about the project - "we want to reassure people that the technology we are putting in is tried and tested technolo- gy and we are taking all possible precautions to have a safe operation. "We are not just here to build a plant. We are also here to operate this plant for the next 18 years, so it is important for us to ensure that everything is done to the highest stand- ards. In addition we need to realise that the consortium would not risk its reputation, so the success of the project becomes impera- tive for them as well." Originally, there were 19 consortiums of companies that had submitted bids to com- pete for this project after Enemalta issued its call. Of these, six made the first shortlist, and were asked to submit a final bid to enter into a Power Purchase Agreement and a Gas Supply Agreement with Enemalta. These were Daewoo Shipbuilding & Marine Engi- neering Company Limited; ElectroGas Malta Consortium; Edison S.p.A.; Endeavor En- ergy Holdings LLC &Exodus Crossing LLC; Soffimat – Gestamp; and Yildirim Tecnicas Power & Gas. Of these, only three submitted proposals for the project, that is ElectroGas Malta, Yildrim Tecnicas Power & Gas and Endeavor Energy, Exodus Crossing, BB Energy Consortium. Eventually the ElectroGas Malta Con- sortium won the bid. This consortium consists of three members - SOLAR, GEM and Siemens. Originally, at the bidding stages, the consortium had a fourth member, Gasol. Their equity share was divided in the following man- ner: Gasol (30% equity), SOLAR (20%), GEM (30%) and Siemens (20%). Gasol withdrew from the consortium follow- ing the winning of the bid and its equity shares were equally distributed among the remaining three members. Halpin insisted that EGM has commit- ted to provide safe, stable, reliable gas and electricity to EneMalta, and it will do so. Halpin said, "Think of it as a box (rep- resenting the parameters)," she told me, "with bidders competing on how they plan to manage what is inside the box." EGM would have submitted the best plan to win the Enemalta bid. When an- nouncing the winners Enemalta said that EGM obtained an overall score of 92.2 points, with 12.2 points being awarded for additional criteria and 80 points be- ing awarded for the financial offer. They also announced EGM had submitted a Final Blended Price of €95.99 per MWh. Asked about the safety and security of the plant, Halpin said the company is doing everything to ensure that things don't go wrong. "There are huge amounts of safety sys- tems being put in place. We are making efforts in integrity checking, and we are function testing everything. We have the right maintenance regimes that meet international standards and codes. The security of the site would be in line with international standards and equipment would be in place to deal with situations that may threathen security. "The Civil Protection Department is also involved, making sure they are prepared to deal with any such eventu- alities. We are making efforts to engage with people in the community to deal with their concerns. One must remem- ber that this plant is certainly an im- provement on what is currently there," she said. Probably the most controversial structure of the whole project was the floating storage unit (FSU) and Halpin wanted to allay peo- ple's fears about it. "That particular unit is reversible – it is floated in and can likewise be floated out," she said. Environment and health benefits "The project would reduce emissions by more than 50% and particulate pollution by 90%," Halpin told us. "This addresses the res- piratory problems that power stations creat- ed in the past and help Malta reach its targets as set in the Climate Change Treaty agreed to in Paris late last year." We asked Halpin about the project's pro- gress. She said the gas power plant is very much in an advanced stage. The gas turbines are onsite and the steam turbine and con- denser would be arriving soon and installed next month. These are manufactured in Ger- many and are tested there before they are shipped to ensure that when they arrive, they are ready to go. The open cycle plant is in advanced stages of assembly and the next step would be the preliminary testing. The jetty needs to be installed. The regassification equipment will also be installed in the next couple of months. This equipment turns the liquid LNG into gas, which in turn is burned to power the turbine. By March or April all key equipment should be in place. The actual operation of the plant and its connection to the network will depend on the success of the tests that are performed. These are stringent tests that need to be performed and verified by independent assessors. "The plant needs to achieve certification to ensure all standards are being met," she said. "All this should be finalised in the next 10 weeks but the testing would extend beyond." A depth of knowledge The consortium members' strength is their depth of knowledge. Each of them brings a strength to the project, whether it is cutting edge technology, human expertise or the ex- perience of working in Malta and the local knowledge required for the success of such a project. Siemens, for example, has wide experience and expertise, having established power plants in various parts the world and are very aware of the challenges. SOCAR, on the other hand, have a deep knowledge of the fuel being used, that is Liquefied Natural Gas. GEM is a local company composed of Tumas Group and Gasan and they are focussed on project delivery. "Being a local company, it knows the terrain extensively well and brings the indispensable local knowledge to the consortium. There's good communication within the consortium and the three hold frequent meetings - al- most on daily basis," she said. "The project is attracting a lot of interest from overseas," Halpin adds, "and people are looking at how it is being done here and see- ing it as a successful and modern model that could be replicated elsewhere." News Building a power station to the highest specifications Mark Borg Catherine Halpin: "Think of it as a box." The LNG power plant taking shape