The Katanga Bay NGL Project – Project Management Assignment

Internal Code: MAS3929

Project Management Assignment:

Katanga Bay is a small undeveloped port on the south coast of an African country and has been selected for the site of a new process plant for Natural Gas Liquids (NGL) which will be supplied by offshore production platforms. After the gas is separated from oil on the platforms offshore, the gas will be pumped ashore in a pipeline close to a new marine terminal at Katanga Bay. From there it will be piped two kilometres to the new NGL Plant where firstly the methane will be separated from the rest of the gas product. The methane will then be sent to a neighbouring national grid plant, leaving the remaining NGL to be processed further. The ethane will then be piped to an adjacent ethylene cracker plant for further processing and cracking. The propane and butane will be chilled, liquefied and stored on site within double integrity tanks. The gasoline will also be stored on site within floating roof tanks. All these liquids will then be piped back to the new marine terminal for loading onto ships for export. The national Government, represented by the Minister of Energy and other officials were extremely keen on the NGL project. Part of this was due to the fact that the project was estimated to generate more than 400 local jobs plus the creation of at least the same number indirectly in local support services and supplies. They were also anticipating considerable tax revenues once the NGL plant was in production.

Questions:

1) Using only the information provided in the sections headed: “Project background” and “The project business case” analyse the financial information which justifies NPI investing in the project. Show your workings in $m over a six-year period (one year for construction followed
by five years in production). Assume this analysis was carried out well before any work started on the project. Comment on the commercial implications of the results presented.

2) Use the template provided to create a risk register, identifying a maximum of ten risks that NPI are facing with a project of this nature.

3) Prepare a Gantt chart for the project to a professional standard, with a bar for each of the seven stages. Ignore the possibility of any public holidays. The plan should start on Monday 8/1/18.

4) Develop a week by week resource histogram to show the Commissioning Engineers required during the Commissioning stage only. Identify the maximum number required during the stage.

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