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].