Pipelines-On-Rail

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Pipelines on Rails The Pipeline Alternative


Why Pipelines on Rails? Utilizing tank cars on existing railways or even building a new railway can often be quicker, cheaper and a more flexible way to move large volumes of petroleum and petro-products than building a new pipeline.

Why WorleyParsons Pipelines on Rails? WorleyParsons is the number one provider of engineering and project services to the global Hydrocarbons industry. We use our industry domain knowledge together with our diverse transport capability and understanding of complex rail requirements, to deliver integrated transport solutions incorporating rail, product handling and storage requirements, for our Hydrocarbons customers. WorleyParsons provides robust solutions for our clients by assessing engineering, economics, financing, operations and risk, and we incorporate these into our Pipelines on Rails project solutions that are efficient, both to deliver and operate.

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The Challenge Is there an alternate, more viable option to a pipeline to transport your product? A thorough understanding of all viable options and comparative analysis of the relative feasibility, costs and in particular the operational continuity risks spanning the full asset lifecycle, is imperative to making the right investment decision.

Challenges throughout project life-cycle Cost/Benefit of rail vs pipeline Risk of supply disruption Planning a logistics network

Regulatory constraints Physical constraints of terminal

Securing local construction resources

Cost of ownership of tank cars Operation and maintenance of a tank car fleet Negotiating access tariffs

Our Response WorleyParsons analyzes logistics options, prepares bankable feasibility studies, and delivers integrated Pipelines on Rails systems comprising terminals, tank cars, operating plans, and associated infrastructure. All of this informs our approach to devising optimal solutions to our customer’s challenges.

Progressive risk mitigation

Options analysis (DELTΔ Tool) Logistics chain optimization modelling Route selection

Approvals management Flexible terminal designs supporting both rail and pipe

Execution planning Construction logistics Local contractor relationships Ownership/outsource analysis Railway costing models Chinese procurement Sustaining capital projects Project portfolio management

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A phased approach Our phased approach to project development and delivery is a global discipline proven to progressively mitigate risk and provide delivery assurance.

WORLEYPARSONS’ EXPERIENCE COVERS ALL FIVE PHASES OF THE ASSET LIFECYCLE 1 IDENTIFY

2 EVALUATE

3 DEFINE

4 EXECUTE

5 OPERATE

Our Services

•D etailed engineering

•B rownfield projects

• Bankable feasibility study

• Procurement

•P ortfollio management

• HSE and IR strategies

• EPCM

• Project execution plan

• Project controls

• Options/scoping studies

• Prefered Option selection

• FEED

• Business case

• Master Planning

• Procurement strategies

• Site Selection and permitting

• Risk assessment

• Pre-feasibility study

• Stakeholder engagement

• Simulation modelling • Execution strategy

• Cost estimate

• EIS/EA • Approvals management

• Water Solutions

• Mobilisation

•A sset management

• PMC • HVE/HVPD •E nvironmental Management

•R eliability and integrity •B usiness improvement

• Commissioning

•O perations and maintenance

• Completeions

•S upport •L iability management • Restoration

Pipelines on Rails Service Offering Analyzing Markets Analyzing Markets and creating reliable railbased transport solutions across international borders, that enable multiple paths, using competing transport carriers, to multiple destinations.

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Transport Options Robust Assessment of Transport Options including engineering, economics, financing, operations, risk analysis, and flexibility to serve multiple and changing markets.

Practical Experience Practical Experience of the WorleyParsons team in designing and delivering liquid bulk terminals, railway corridors, and tank car rolling stock.


TCO Crude Export Project Customer Tengiz Chevroil (Chevron)

Location Kazakhstan

Key Achievements • Developed feasibility studies and resource calculations for loading facilities, storage and transhipment terminals, rail facilities and trunk routes • Coordinated design activities on interlinked private and state managed railway systems, state and private terminals and sea ports in several countries • Optimized infrastructure and resource requirements for state railways making significant savings for the customer • Devised stage payment regime for contractors on the state railway (first of its kind in Kazakhstan) • Construction monitoring and payment verification

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Global experience

1. TCO Crude Export Project

2. Diesel and Jet Fuel Trans-shipment Facilities

3. Condensate Trans-shipment Facility

Detailed Design, Procurement, Commissioning/Start-up

EPCM, Detailed Engineering, Preliminary Design

Fast track delivery on congested brownfields terminal

Fast track project in harsh marine environment was completed without interruption to existing methanol export facilities

4. API West Pilbara Iron Ore Project

5. Oakajee Port and Rail – Fuel Infrastructure

6. Ethiopia-Djibouti Railway Assessment

Conceptual Design and Definitive Feasibility Study

Feasibility Study

• Fuel infrastructure and fuel procurement strategy to support 126ML pa 6 iron ore mines at 60 MTPA, 400km railway and port facility

•F uel infrastructure and fuel procurement strategy to support 186ML pa 3 iron ore mines at 45 MTPA, 530km railway and port facility

• 6 x 96kL Rail tank cars

• 12 x 96kL Rail tank cars

• Developed fuel supply chain cost matrix

•F uel rail train and road train loading and unloading gantries at port and mines

Tengiz Chevroil Kazakhstan

Feasibility Studies, Design Coordination, Construction Supervision Optimized infrastructure and resource requirements for state railways making significant savings for the customer

API Management Pty Ltd Pilbara, Western Australia

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Kinder Morgan Bulk Terminals North Vancouver, Canada

Oakajee Port and Rail Pty Ltd Mid-West Region, Western Australia

EnCana Oil and Gas Partnership Kitimat, Canada

Citadel Capital Ethiopia

Feasibility Study, Operations Plan Developed detailed business case, operations plans, and market penetration strategy to support our customer in negotiations with the government owners, including a comprehensive plan to import petroleum products to three distribution terminals as Ethiopia has no pipeline infrastructure


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7. T onkolili Iron Ore Project - Fuel Infrastructure

African Minerals Limited Sierra Leone, West Africa

Definitive Engineering Study • Fuel infrastructure design to support magnetite mine at 25 MTPA, 125km railway and port facility • 18 x 96kL Rail tank cars • Fuel rail train and road train loading and unloading gantries at port and mines

8. Feasibility Study for Liquid Sulphur Handling Facilities for Shah Gas Development Abu Dhabi Gas Industries Ltd Abu Dhabi, United Arab Emirates

Pre-FEED, Feasibility Study, Conceptual Engineering, Cost Estimating Delivery Rail alignment through challenging terrain of shifting sand dunes

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9. La Guajira Thermal Coal Project

CCX Colombia La Guajira, Colombia

Conceptual Design, Environmental Permits 180 Km railway

10. MTBE Trans-Shipment Terminal

Hancock/GVK WorleyParsons Ausenco JV Kitimat, Canada

Preliminary Engineering, Procurement, Detailed Design, Commissioning/Start-up Management • $12 million expansion • New methanol handling facilities • New 30,000 tonne storage tank

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Our differentiators Differentiator 4

Differentiator 1

Outstanding operational and corporate performance

Committed, empowered and technically capable people

Differentiator 5 Focus on long term contracts and asset-based services Differentiator 2 Industry leadership in health, safety and environmental performance

Differentiator 6 Success in project delivery - large and small

Differentiator 3 Economics™ – delivering profitable sustainability

Differentiator 7 Comprehensive geographic presence

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Corporate overview WorleyParsons is a leading global provider of professional services to the resources and energy sectors, and the complex process industries. We cover the full asset spectrum, both in size and lifecycle, from the creation of new assets, to services that sustain and improve operating assets Our business has been built by working closely with our customers through long-term relationships, anticipating their needs, and delivering inventive solutions through streamlined, proprietary project delivery systems. Strong growth continues to characterise our performance both through organic development and through strategic acquisition as we strive to provide tailored services wherever our customers need us.

HYDROCARBONS POWER

Zero Harm is our corporate vision for health, safety and the environment (HSE). We are committed to our vision and apply it to all operations, at all times, in all locations, and at all levels of responsibility. We will actively work to align our expectations and behaviors to achieve Zero Harm in our dedication to continuous improvement. These expectations are reflected in our integrity management framework, OneWay™, and linked to our global systems and procedures.

MINERALS, METALS & CHEMICALS INFRASTRUCTURE & ENVIRONMENT

EcoNomics™ provides our customers with the systems, technologies and expertise to optimize and balance financial, social, and environmental outcomes, improving sustainability performance while enhancing profit and long-term viability. WorleyParsons’ vision is to be a leader in sustainability by helping our customers capture new markets and business opportunities created by the new energy economy. Pipelines on Rails The Pipeline Alternative

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Pipelines on Rails The Pipeline Alternative

www.worleyparsons.com


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