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04 AUG 2015
DEPT. OF ENVIRONMENT FOOD AND AGRICULTURE
The aim of this project is to replace the two ageing tanks with two new smaller tanks with a combined capacity of 3000 tonnes that meets the running requirements of Peel power station, enables scheduled maintenance and provides a significant, but smaller contribution to the strategic stock holding of fuel for MUA purposes.
This capacity enables secure generation supplies for 1 month with the interconnector cable out of service. Also this time period is sufficient to procure additional supplies of fuel oil for extended running of diesels beyond 1 month.
In the 1950's two large tanks were constructed at Peel to supply fuel to Peel power station. These tanks were extended to their current capacity of 4500 tonnes each during the 1970's. Both of these are well beyond design life and the tanks do not meet current design requirements and have a number of defects that put them at a higher risk of leakage or catastrophic failure. Part of the fuel held at Peel Power station was in support of IOMG strategic stocks of fuel.
Changes in Peel power station running regime (ie the interconnector and CCGT) and the removal of the requirement for MUA to hold strategic stocks of gas oil, on behalf of IOMG, have led to this reduced storage capacity requirement at Peel.
Diesel is an expensive fuel for electricity generation and yields significantly higher energy costs than gas fired generation or typical interconnector electricity imports. Because of this, diesel generation typically accounts for less than 2% of MUAs annual energy procurement. Nevertheless, the MUA's diesel generation capacity in Peel and Pulrose, remains strategically important for security of the Island's electricity supply during periods of CCGT or interconnector unavailability.
The project will need to be scheduled so that existing fuel stocks can be transferred from old tanks to new and so that the fuel supply to Peel Power station is maintained. This requirement along with the constraints of the weather will mean that the work will extend over an 18 – 24 month period.
Phase 1 will involve the demolition of Peel Tank B and the construction of its replacement. The Peel bulk fuel stock should then be transferred from the existing tank A into this new tank. Phase 2 can then commence which would involve the demolition of Peel Tank A and the construction of its replacement.
Within each phase are the following key stages:
In preparation for the project there will also be some enabling works related to the bund, the fuel pipe work, fire detection and fire suppression and fuel valve arrangements. Additionally the agreement of Ellan Vannin Fuels would need to be sought and arrangements made for the lease of Tank A to Ellan Vannin Fuels be terminated.
It is envisaged that the tender process will take four months, two months for the contractors to mobilise and then 8 – 12 months to complete the work. Enabling works will be done in house with assistance of local contractors.
The demolition of the tanks will be included in the tender but a requirement to use local contractors will be specified.
The design, tank supply, base civil work, tank construction and painting will be tendered.
As the new tanks will be considerably smaller than the existing tanks, this will give the bund a greater factor of safety and the overspill connection to the fire water bund will no longer be required. Additionally a number of intermediate walls will be constructed within the bund to improve the oil leakage and fire water management of the site.
Local site work will be completed under the CDM regulations. It is anticipated that diesel engine operation will be unaffected as a result of this work.
Technical and Operational Risks
The replacement components are to be designed in accordance with BS EN 14015, the tank will be built by the OEM for the tank and the site works would be designed and run under CDM. This new tank should give a 25+ years' operating life, provided that it is maintained in accordance with API 653 recommendations.
Throughout the project, fuel stocks will be managed to maintain operational capacity for Peel B power station.
Contracts will only be awarded to companies with relevant experience therefore risks are considered low to medium.
Work at Peel Power Station would be complex, but will be managed by experienced staff and contractors under Contractor Safety Management Procedures, CDM regulations and interfacing with MUA Safety Rules and Permit to Work Systems. Work at the manufacturer's premises will be managed under the manufacturer's safety systems.
There is a possibility that contaminated ground may be encountered during the civil works, as the ground conditions under the tanks are unknown. This would have to be evaluated and dealt with in accordance with Isle of Man environmental law. If this eventuality occurs programme and costs could be adversely affected. A mechanism will be included in the tender to deal with this eventuality.
Risks are considered low to medium.
Commercial risks will be mitigated mainly through formal contractual arrangements. Appropriate insurance cover for the work will be put in place Risks are considered low to medium.
The work programme is dependent upon the tank manufacturer having manufacturing space and spares available when MUA require the work to be carried out. This can only be confirmed through the issue of a purchase order number. A full tender process will be conducted to ensure that the MUA gets the best value for money with this project.
Risks are considered low.
MUA's project officers would carry out capability and performance checks on the tendering companies as part of the tender process.
The proposed project milestones are shown below, subject to planning approval and successful contract placement.
| Item | Task | By |
|---|---|---|
| 1 | Planning Approval | Sept 15 |
| 3 | Tender the works | Oct 15 |
| 3 | Place Orders | Nov 15 |
| 4 | Phase 1 demolition of Tank B | Jan 16 |
| 6 | Phase 1 Civil works for Tank B | Apr 16 |
| 7 | Phase 1 Tank construction | July 16 |
| 8 | Transfer fuel to new Tank B | Aug 16 |
| 5 | Phase 2 demolition of Tank A | Oct 16 |
| 6 | Phase 2 Civil works for Tank A | Apr 17 |
| 7 | Phase 2 Tank construction | July 17 |
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