Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

Mott MacDonald CNG Capability Statement

August 2006

Mott MacDonald Oil & Gas St Anne House Wellesley Road Croydon United Kingdom CR9 2UL Azfar Shaukat Azfar.Shaukat@mottmac.com Tel +44 (0)20 87742586 Fax +44 (0)20 8681 5706 www.mottmac.com

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

List of Contents
Sections and Appendices 1 2 3 4 Our Company Services We Offer Our Experience Our People 1 2 3 6

Figure 1: CNG New Technology - Shipping Vessels.............................................................................. 3 Figure 2: CNG Dispenser & Compressor Shed in Ukraine..................................................................... 4 Figure 3: CNG Station Flow Diagram & General Arrangement Drawing.............................................. 4

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Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

Our Company

Mott MacDonald is one of the worlds largest independent engineering and technical consultancies with annual revenues of around 500 million. We are a global name in the market for energy and infrastructure provision, with a reputation built upon nearly a century of flagship projects across the world. Our expertise incorporates the full range of engineering disciplines as well as expertise in oil and gas, power generation, power systems and maritime services. Although UK based, we have a global network of more than 100 offices employing over 8300 staff and are well founded throughout Europe, Asia, the Pacific, the Middle East, Africa and the Americas, reflecting our strong international capability. Our oil and gas engineering heritage dates back to the 1960s where we pioneered much of the industrys core technology, ranging from the UKs oil refineries for Shell, ESSO and BP, to North Sea production, pipelines, storage and export terminals. Since then, we have continued expanding our skills and service and now cover most aspects of the oil and gas sector, in particular the gas industry comprising pipeline gas, compressed natural gas (CNG), LNG and LPG. Leading management consultancies, lending agencies and equipment suppliers to industries have taken advantage of our independence and impartiality, and have turned to Mott MacDonald for technical and strategic advice, marketing surveys, due diligence and project management. Moreover, the drive towards privatisation and deregulation in the gas, power and utilities sectors, in the UK and internationally, has led to our developing a comprehensive understanding of the legal and regulatory issues involved. Our company is unique in its ability to combine these issues with the technical aspects of a project. We employ specialists from many areas of engineering technology, economics and finance. This allows us to advise our clients on policy, strategy, economic, regulatory and environmental issues, while having the resources to implement study findings in the form of technical advice, engineering design and construction management. Mott MacDonald has extensive experience in the planning, design and construction supervision of a wide variety of CNG facilities and has a unique capability to provide all the process, mechanical, electrical, geotechnical and maritime engineering within one company. We can therefore address all the design aspects of CNG including jetties, transportation & shipping, handling and storage.

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

Services We Offer

Mott MacDonald is unique in its ability to understand and combine the range of CNG issues, adding value by helping our clients understand the drivers, consequences and benefits of each development option. We undertake engineering services, feasibility studies, master planning, due diligence studies, power systems studies, act as lenders/owners engineer or simply provide ad-hoc technical advice as required. Mott MacDonald can offer clients a wealth of experience and multi-disciplinary capability covering aspects such as: strategy and market development economic feasibility technical assistance and engineering concept generation and site selection legal and regulatory requirements environmental and risk assessments power station transient response modelling procurement

We are often called upon to combine these elements to generate technical options, conduct detailed evaluation exercises, develop preliminary project economics and identify all issues of significance, considered holistically. Our summary of services is provided as follows;

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

Our Experience

At Mott MacDonald we have extensive experience with projects involving oil, gas and CNG. Past customers have been national and local governments, public and private utilities, industry and commercial companies, developers, banks and funding agencies. Our quality of work is measured by the number of our clients returning for additional support or advice on subsequent projects. Selected experience includes; Technical & Economic Comparison of CNG and LNG as a means of supplying gas to Mediterranean Mott MacDonald completed the technical & economic comparison of CNG as an alternative to gas supply in the Mediterranean. The study included a review of the following; Analysis of the recent improvements in Compressed Natural Gas (CNG) transportation technology Assess and compare the shipping technologies for transporting CNG Determine the extent to which the CNG technologies are viable and proven Estimate the landed cost of gas for both LNG and CNG in the Mediterranean

Determine the availability of gas supply, the availability of LNG and the likelihood of CNG ships being operational by 2009 In addition, we developed economic models to evaluate the netback of CNG and LNG for gas deliveries to the Mediterranean to form the basis for the comparison of these two alternatives. We utilised benchmarking data in conjunction with proven technologies to facilitate the cost evaluation of each netback. Based on the netbacks, we initiated a standardised basis for comparing the landed cost of CNG and LNG, as well as the different CNG shipping technologies. Figure 1: CNG New Technology - Shipping Vessels

CNG Ukraine Project Inogate IFI Technical Assistance Support Fund for Facilitating Investments in Oil and Gas Projects Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine - An independent supplier is considering the supplies of Compressed Natural Gas (CNG) to the Ukrainian transportation sector. The CNG would potentially fuel both commercial and private natural gas vehicles (NGVs), by either converting existing filling stations or building new stations. There is already CNG use in the transportation sector at limited levels. This project considers identification of the CNG market opportunities and determining critical technical, competitive or regulatory issues related to growing the market. This project aims were to evaluate identifies opportunities to develop and grow the CNG market in Ukraines transportation sector. Mott 3

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

MacDonald as technical consultant, provided an initial pre-feasibility study which concentrate on the following areas: Current Status of Ukraines gas Sector, Technical Analysis of the current CNG stations and technological developments, Regulatory/Legal Framework and an economic analysis of the current CNG market in Ukraine. Figure 2: CNG Dispenser & Compressor Shed in Ukraine

Macau CNG station concept design and Assessment Government of Macau - It is envisaged that the Compressed Natural Gas (CNG) stations to be developed in Macau S.A.R will fuel natural gas vehicles (NGVs), and be introduced for both Fleet users (such as for buses and trucks at depots) and General users (such as for private cars, taxis, vans etc). Existing filling stations will be adapted to dispense CNG, and these modified filling stations will initially be fed by CNG tankers until a piped gas distribution network is constructed. Mott MacDonald completed the Design Basis Memorandum and further developed a conceptual design for a standard CNG station in Macau to fill approximately 90 NGVs per day. In addition, Mott MacDonald completed an initial HAZID review and identified existing fuelling stations which could be modified to include CNG for fuelling. Figure 3: CNG Station Flow Diagram & General Arrangement Drawing

Gujarat Gas Marketing Strategy, India - The project involves identifying important factors inducing switch over to CNG in 4-wheeler segments. The role involves performing case studies of other markets where CNG has been successfully used in 4-wheeler segments, in order to analyse the different strategies used, developing multi-pronged strategies to address the different factors identifies in the case studies, evaluating the various possible strategies in view of their financial implications and

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

the impact on inducing conversion and creating a framework for implementing the recommended marketing strategies. CNG Market Study, Surat, India - The project involves investigating the total market potential for CNG to include the expected growth rate over a period of ten years for business (including private and Government) and HCV, LCV AND MUL use within the Surat Urban Development Agency (SUDA) area. The role involves identifying key factors governing the conversion, performing a sensitivity analysis of the key factors, estimating the CNG contestable demand and putting demand potential in previously identified zones. Natural Gas Distribution Network and CNG Refuelling Station: Feasibility Study, Gujarat - The project involved setting up a pipeline network for supply and distribution of natural gas and CNG in Gandhinagar urban area and surrounding villages within a 5 km radius. The focus of the study was to forecast demand for natural gas in commercial and institutional establishments, industries, CNG off take in vehicles and assess financial feasibility of the project.

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

Our People

As an independent technical consultancy, we offer our clients impartial and balanced advice. Our success is driven by our people who share our commitment for excellence in all areas of our work. Incorporating a diverse work force we cover the full range of engineering disciplines and technical expertise. Our people bring a wealth of knowledge and widespread skills in a productive environment that delivers professional solutions on time to our clients. In advising financiers, developers and utilities in the private sector we strongly focus on providing timely, clear and commercially aware advice, and proactively seek creative means to resolve issues and mitigate risks, thus expediting the process of achieving financial close. Our global presence makes us easily accessible throughout the world, and gives us a firm grasp and respect for ethics and culture of our clients. With quality assured engineering and design offices in the UK, Middle East and the Indian sub-continent, partner firms in the USA and Australia, we can offer CNG capability to an international market at a local level. With a core team of leading experts with over 35 years of experience in the CNG industry our capability is exceptional. Together we have worked with and for many of the worlds largest companies on some of the most dynamic projects. We are able to call on a pool of consultants, many of whom are world authorities in their fields, and who often utilise their knowledge and experience to provide training workshops and lectures for both educational and professional bodies. Our skills base covers the full spectrum of disciplines including: project management and planning resources and systems chemical and process engineers mechanical engineers including pressure vessels, rotating machinery and piping specialists civil and structural engineers control, instrumentation and electrical engineers maritime engineers and specialists risk and safety engineers environmental engineers economists and financial analysts regulatory specialists

All our prominent staff are accredited to professional institutions including, but not limited to: The Institute of Mechanical Engineers (IMechE) The Institute of Gas Engineers and Managers (IGEM) 6

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

The Institute of Chemical Engineers (IChemE) The Institution of Electrical Engineers (IEE) The Institute of Measurement and Control (InstMC)

It is our belief that the competencies our clients rely on must be built around a compact, highly qualified and experienced group of individuals. Such a team drawn from a sole company offers a single point of contact, streamlined communications, efficiency and savings to the clients. The following provides a brief introduction to our key consultants with CNG and project management capability. Azfar M Shaukat Azfar is Director of Oil & Gas Studies with 20 years global oil and gas experience on major projects with British Petroleum and leading engineering consultancies. Furthermore, has been lead advisor to lending agencies such as World Bank, Asian Development Bank, and European Investment Bank on issues including CNG. Expertise in design and operation of downstream hydrocarbon facilities, including oil and gas pipelines, storage terminals, booster facilities, CNG and LNG. Financial appraisal of refinery and other large-scale projects. De-regulation and restructuring expertise. Conceptual, feasibility and strategic studies at government and board level. Project management through to commissioning. John Bowers John is a Professional Engineer with over 35 years international gas engineering experience with Mott MacDonald, Irish Gas and British Gas. He has expertise in planning, design, construction, operation and maintenance of Gas Systems throughout the world, allied with Project management, supervision and commissioning skills, cost control and contract management. In recent years, John has specialised in carrying out techno-economic studies, feasibility studies, asset valuations and regulatory advice in both state-owned and privatised gas industries worldwide including a review of Ukraine CNG market for EBRD. Furthermore, he has experience providing advice to investors and governments.

Mott MacDonald CNG Capability Statement

Mott MacDonald Limited

Dr. Guy Doyle Chief economist of Energy Unit and Divisional Director of the Power ink team. Responsible for energy market analysis, models and advising on market design, restructuring and forecasting studies including gas, CNG and LPG. An economist who has worked in the energy industry since 1980 forecasting UK and European electricity and fuel markets. Has developed and carried out detailed modelling of trans-European electricity trading for numerous commercial banks, traders and energy companies. Director of over 50 Power ink workshops presenting expert briefings and providing training on all aspects of liberalised power markets and fuel and environmental issues.

Brandon Courban An oil and gas consultant with a background in mechanical engineering and experience of sector infrastructure development across the value chain, including piped gas networks (and associated infrastructure), CNG, LNG, LPG and petroleum products. Project experience, an MBA and continuing professional development augment this technical foundation, offering clients added value through the application of complementary skills in management, awareness of commercial and organisational issues as well as strategy formulation. Conversant with industry developments, the sector value chain and specialising in feasibility, pre-FEED, front-end and due diligence activities, ability to clearly articulate the commercial implications of technical issues complements a familiarity with the requirements of investors. Has undertaken assignments on behalf of international organisations such as the World Bank and Asian Development Bank, Regulatory Bodies such as the UKs Competition Commission and OFGEM as well as blue chip clients such as Shell, Deloitte and Transco. Recently, Brandon was Project Manager for a CNG Conceptual Design project in Macau. His principal regions of interest and familiarity include West Africa, the former Soviet Union and Caspian, Western Europe, Middle East, South East Asia and China. Douglas Woods Douglas is a Mechanical engineer with a Masters degree from the University of Strathclyde. He has over three years experience completing market and engineering projects for a variety of clients including the European Commission, DFID, EBRD, the Government of Macau and the Government of Zambia. He has specific LPG experience and undertook a project for the UK Competition Commission to provide expert advice into Domestic Bulk LPG in the UK. In addition, he has completed several market studies including analysis of the CNG markets in Ukraine and Macau. Additionally, Douglas has prepared feasibility studies, worked on conceptual and front-end engineering design projects of Oil & Gas pipelines, Gas compressors, LPG, CNG and CNG facilities. He recently completed the Conceptual Design for a CNG station in Macau..