WAPAs Switch to Propane for Power Generation

December 12, 2013

Vitol
Vitol is the worlds largest independent physical trader in the oil and oil products market
and a provider of procurement, storage, processing and transportation services of oil
related commodities. In 2012 we shipped nearly 260m tonnes of crude oil and product and
we had revenues of $303 bn.
Founded in 1966, the company has nearly 3,500 employees worldwide in trading,
upstream and terminals operations. Main offices are located in Geneva / Houston /
Singapore / London / Rotterdam .

Vitols LPG Business

Vitol is one of the worlds largest international LPG traders. Our refrigerated long-haul
business trades and moves in excess of 5 m tonnes of LPG per year covering each of the
major global LPG markets, including Middle East, Asia, Europe, Latin America and the
Caribbean.
In the Caribbean, Vitol is currently developing a conversion to propane project for the
Water and Power Authority in the US Virgin Islands. The project entails the supply of
propane in conjunction with the design, construction and operation of the required
infrastructure necessary to receive, store, vaporize, measure and deliver LPG in vaporized
form to the inlet of each power turbine on the Islands of St Thomas and St Croix. Vitol is
also managing the conversion of the turbines done by General Electric.

Project Overview
July 2013, WAPA signed a turnkey master agreement with Vitol
Virgin Islands Corp. (Vitol) for infrastructure construction, supply,
and delivery of propane at WAPAs power plants on St. Thomas
and St. Croix
Vitol is responsible for engineering, procurement, construction (EPC),
and commissioning of the projects
Total project cost is approximately $91 million
To date, Vitol has committed approximately 54% of the project budget
All upfront costs are paid by Vitol. WAPA repays Vitol over 7 year
amortization (option to repay in 5 years)

All-in cost will result in approximately 30% reduction in fuel costs

Will reduce NOx, SOx, and CO2 emissions

Target completion: 4th quarter of 2014

Health, Safety, and Security Considerations

Facilities carefully designed to ensure employees and the publics
health, safety, and protection
Best available safety and control technology

Employees will be fully trained on the operation and maintenance

of the converted units, including all safety and hazard awareness
required for the handling and use of propane
Coordination with local fire service and other first responders for
awareness and input
VITEMA, with U.S. Department of Homeland Security, will conduct
vulnerability assessment to ensure compliance with applicable
federal and local mandates
Advanced safety and security drills will be conducted with WAPA
and local emergency response organizations
VI Port Authority marine pilots have simulated navigation of feeder
vessels to ensure safety of marine operations

Fire Safety Measures

WAPA is evaluating and developing a
comprehensive approach to overall fire
protection at the plant sites.

Comprehensive Fire Risk Assessment and

Hazardous Area Classifications have been
conducted

Emergency Response Plans for each

facility; all existing applicable plans will be
updated

Fire safety features planned for WAPAs

propane project will have 100% redundancy

Firefighting systems for the facilities will be

National Fire Protection Association (NFPA)
compliant, including a water blanket that
will suppress a leak or flame. (see photos)

Facilities will be equipped with gas

monitoring and leak detection systems

Propane Storage Tanks

Storage tanks will be mounded - encased by layers of earth, sand, rock and
gravel to maximize safety.
The benefits of mounded tanks include:

Significant protective barrier from external damage and fire

Elimination of oxygen, preventing uncontrolled ignition

Additional earthquake and hurricane protection

Rendition of St. Croix onshore terminal

Mounded storage tanks in New Zealand

Public Awareness and Outreach Update

Ongoing contribution to support WAPAs public education initiatives on
the benefits of switching to propane

Master communications plan

Educational bill stuffers

Bi-lingual radio and internet public announcements

Project website: PoweringVI.vi

PoweringVI Facebook page

PoweringVI YouTube channel

Briefings and engagement with community stakeholders

Continuous engagement with local media

Engineering
Completed the Front End Engineering & Design (FEED) Phase
Determined acceptable by WAPA

Process Flow Diagrams (PFDs), Process & Instrumentation Diagrams

(P&IDs)

Hazard and Operability Study (HAZOP)

HAZOP: A systematic examination of a planned or existing process or
operation in order to identify and evaluate problems that may represent
risks to personnel or equipment, or prevent efficient operation

Simulated navigation of feeder vessels into ports to assess safety and

suitability

Identified all materials and equipment needed to complete project

Detailed engineering in progress

Engineering and design input for the various permit applications

Design survey for the routing of the gas lines within WAPA property

Advanced Operational Philosophy under further development

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Project Features
3-D

St. Thomas

St. Thomas

St. Thomas

St. Thomas

St. Thomas

St. Thomas

St. Thomas

St. Croix

St. Croix

St. Croix

St. Croix

St. Croix

St. Croix

St. Croix