A gas terminal and re-gasification plant in Delimara, practically identical to the one proposed by the Labour Party, “would take a minimum of four years to build,” according to a 2008 international study.

The study conducted by global firm Lahmeyer Inter­national in 2008, published by the Malta Resources Authority, challenges the two-year time frame given by Labour to build a degasification plant, along with a 200 MW gas-fired power station.

However, it otherwise follows the same rationale of the Labour Party proposal.

The Lahmeyer study goes into the minute details of the need to build an LNG facility at Delimara based on two storage tanks of 30,000 cubic metres each and re-gasification facilities.

“The largest cost item for an LNG terminal is the LNG storage tank; therefore the exact size of the storage tank is very important,” the study states.

The biggest factor in determining the onshore storage requirements is the size of the vessel that supplies the LNG.

According to Lahmayer, although a storage tank of 60,000 cubic metres would be ideal for Malta’s requirements, two 30,000 cubic metre tanks – the same proposed by Labour – would be better “due to the difficult soil condition” of the reclaimed area.

The study also confirms the need for further studies to determine whether the site is appropriate through the assessment of geological conditions by “very extensive and costly sample drilling”.

Following this exercise, which takes a long time to be conducted, piling – with an estimated cost running into millions – will probably be needed to stabilise the base of the tanks before being erected.

The 2008 report puts a price tag of €102 million on the building of an LNG terminal and re-gasification plant, which the report states may be understated as it does not include the costs of geological and maritime studies, piling, dredging and possible jetty modifications. But Labour’s proposals, which are more recent, estimate this project to cost €142 million including all the necessary additions.

Lahmeyer identifies LNG-related hazards

With regards to the supply of LNG, which with an onshore terminal can only be done through specialised LNG vessels, the Lahmeyer report states that the existing berthing facilities at Delimara are adequate if the appropriate vessels are used.

However, dredging on the berthing side would be required.

“The area around the existing berth at the Delimara power station needs to be dredged to a water depth of 10.5 metres,” the report states.

Apart from the dredging on the berthing side, which might destabilise the existing jetty requiring extra work, no further dredging will be required to the entrance channel to the berth for the vessels, which will need to call at Delimara every 9.6 days, as “this has a water depth of 16.5 metres which would be sufficient to any world class LNG vessel.”

On the availability to the specialised small ships needed – which has been a bone of contention – Lahmeyer says there may be a few ships of the small size needed by Malta available, although “these may be available on long-term charter arrangements” boosting further the costs of such operations.

“The partial unloading of LNG... is usually not allowed. LNG cargo vessels that are only partially filled are subject to the so-called sloshing effect that make a vessel instable during bad weather and also lead to higher BOG (boil-off gas) rates during the journey.”

In its study, Lahmeyer International identified a number of hazards associated with the LNG terminal but did not carry out a risk assessment to determine whether the terminal can be sited in the recommended location.

The company said these studies will have to be commissioned if and when a decision is taken to build an LNG facility.

Potential hazards of an LNG terminal seen by Lahmeyer:

• LNG spills
• Vapour dispersion
• Thermal radiation
• Environmental impacts
• Ship grounding and LNG release
• Terrorism or sabotage
• Acts of nature
• External fire
• LNG release due to a system failure