Projects

Assessment of the maximum foreseeable loss as a result of environmental risk realization

Client: Confidential client
Location: Russia

Project: Assessment of the maximum foreseeable loss as a result of environmental risk realization at storage and transportation facilities of liquid hydrocarbons for the purposes of environmental insurance
Purpose: estimate in monetary terms the maximum possible damage (MFL) to environmental components as a result of environmental risk realization (tank destruction and pipeline rupture)
Approach:

ENSOR specialists performed the following tasks:

  • An analysis of two scenarios for the environmental risk realization with the worst consequences was carried out - quasi-instantaneous destruction of a reservoir and a rupture of a pipeline at a water crossing
  • The volumes of leaks for each scenario were estimated and the distribution of emergency leaks was calculated
  • For each scenario, the amount of damage to environmental components was assessed using applicable methodologies.

Result:

Based on the results of the assessment, for the two worst-case scenarios for the environmental risk realization, a calculation of the maximum foreseeable loss to environmental components was provided. This calculation was subsequently used by the Client to agree on the terms of environmental insurance].
5.Environmental risk assessment