petronas rapid project summary

DETAILED ENVIRONMENTAL IMPACT ASSESSMENT REPORT FOR THE PROPOSED REFINERY AND PETROCHEMICAL INTEGRATED

DEVELOPMENT (RAPID) IN PENGERANG, JOHOR

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1. Introduction

RAPID project is one of the major downstream oil and gas development in the

country by PETRONAS since its debut thirty eight years ago. The project, with an

estimated investment cost of RM60 billion was announced by the Malaysian Premier

as part of the Economic Transformation Programme (ETP) to be one of the major

vehicle to attract Foreign Direct Investments (FDIs) into Malaysia and expand the

country's access to world-class technologies. RAPID is envisaged to position

PETRONAS in the world map to become one of the leading competitive global oil and

gas majors.

RAPID major production components are the proposed refinery with refining capacity

of 300,000 barrels-per-day and petrochemical complexes with an annual combined

production of approximately 3,000,000 tonnes of ethylene, propylene, C4 and C5

olefins. On top of the main production plant, there will also be other facilities to

support RAPID operational requirements. These facilities are the Pengerang

Cogeneration Plant (PCP), the LNG Regassification Facility (RGT-2 Terminal) and

the centralised facility such as wastewater treatment, utility water supply,

instrumentation air and centralized flaring.

The key milestones to reach the RAPID first production target will be the Design

Feasibility Study stage (DFS), Front End Engineering Design stage (FEED), site

clearing and preparation and plant construction and testing and commissioning.

When this DEIA study is prepared, RAPID is at the pre-FEED stage and therefore

most of the information and data used in this report is based on early design data.

Where data is not available, information based on other similar operating plants will

be referred to.

2. Project Proponent and DEIA Consultants

The project will be developed by Petroliam Nasional Berhad and any inquiries relating

to RAPID should be directed to:

Petroliam Nasional Berhad

(Project RAPID-PETRONAS Downstream Business)

Level 62, Vista Tower

182, Jalan Tun Razak

50400 Kuala Lumpur



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Contact Person : En. Wan Yusoff Wan Hamat

Designation : Executive Project Director, RAPID

Telephone : (+603) 2858 2101

Facsimile : (+603) 2858 2111

E-mail : [email protected]

Website : www.petronas.com.my

Integrated Envirotech Sdn Bhd (IESB) has been appointed as the Environmental

Consultant to carry out the study and preparation of the DEIA report for this project.

Any inquiries relating to this DEIA report should be directed to:

Integrated Envirotech Sdn Bhd (650387-K)

No. 32-2, Jalan Setiawangsa 11A, Taman Setiawangsa

54200 Kuala Lumpur

Malaysia.

Contact Person : Dr. Mohd Zaki Bin Dato’ Mohd Said

Telephone : (+603) 4256 6623

Facsimile : (+603) 4251 9623

Email : [email protected]

Website : www.envirotech.com.my

3. Project Location

RAPID will be located on a 6,424 acres of land in West Pengerang, District of Kota

Tinggi, south-east of Johor. RAPID is bounded by the Strait of Singapore and Road

J52 to the south (connecting Sg Rengit to Tg Pengelih), Road 92 to the east (from Sg

Rengit to Kota Tinggi) and Sebana Cove Resort to the north. Significant landmarks

will be the Deepwater Terminal (PDWT) on the south and the Naval Base in Tanjung

Pengelih to the west. The proposed site currently consist of a mix of private

plantation, individual residential lots and state land which is leased for agriculture

related activities (Refer to Figure ES-1).

http://www.envirotech.com.my/



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4. Statement of Needs

In brief, Statement of Needs looks into the justification for RAPID to be implemented

in Pengerang, Johor. RAPID is one of the major investments to be made by

PETRONAS in developing domestic downstream oil and gas industry. This chapter

focuses on the importance of RAPID to PETRONAS sustainability and how RAPID

project fits into the followings:

a) Economic Transformation Programme (ETP) under business opportunities

identified in the National Key Economic Areas (NKEA);

b) Southern Johor Integrated Development Plan where Johor State are planning to

balance development from concentrating within the Johor Baharu district.

c) The Johor State Government aspiration to develop Pengerang as the new oil and

gas hub in Malaysia

Implementation of RAPID project is further supported by the availability of the

feedstock to be sourced out from other PETRONAS investment in other countries.

RAPID is also part of PETRONAS continuous effort to diversify its business and to

sustain its growth to be one of the global key oil and gas players. The decision to

implement RAPID was made after thorough market analysis which include studies on

the trend for the cycle of the crude oil and petrochemical product prices to determine

the appropriate timing to invest into new development project and looking into the

production of various petroleum and petrochemical products including specialty

chemicals to meet both domestic and regional demands.

Project RAPID is listed as one of the Entry Point Projects (EPP) under business

opportunities identified in the National Key Economic Areas (NKEA) that will

contribute to Growth National Income (GNI). Project RAPID will contribute in

sustaining oil production and enhancing downstream activities whilst positioning

Malaysia as the leading oil services hub in Asia.

RAPID is expected to be the major impetus transforming Southern Johor into the new

oil, gas and petrochemicals hub in Malaysia. Johor has the advantage of having the

infrastructure strategic and conducive for the required logistics for product and

feedstock movement. Further to this, Johor is seen as politically stable with attractive

governance support that has the potential to attract significant FDIs from world-class

companies who will not only invest in a profitable venture, but will also contribute to

technology and expertise to further develop our local in-house talent and capabilities



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The expected multiplier effect from RAPID will also be significant and vital for the

State of Johor where an estimated 40,000 (at peak) and 4,000 job opportunities will

be created during the RAPID four (4) years of construction phase and upon

operation, respectively. It is also expected that further 4,600 job opportunities to be

created from the FDI in the area of Pengerang. The spill over effect to other industries

to support the development in Pengerang will create an additional 10,000 job

opportunities.

5. Project Description

Project description in this DEIA report provides an overview of the RAPID project

which covers both Construction Phase and Operational Phase. The description for

the Construction Phase looks into the construction approach and strategy while the

description for the Operational Phase covers the description of each of the RAPID

project components. Overview provided in this chapter will be used as cross

reference in the assessment of the potential impacts and mitigating measures

discussed in Chapter 8 of this report.

RAPID is to be located on a 6,424 acres (2,600 ha) of land comprising agriculture and

residential land use. As the site areas is huge and involves resettlement of the

population and demolition of the existing structures, the construction implementation

philosophy is developed in such as way that it takes into account the phasing and

scheduling that matches the overall RAPID master implementation plan, committed

product delivery target dates and the State of Johor salient dates i.e. population

relocation, relocation of the cemeteries and availability of the utilities and amenities to

support the progress of the construction in the next four (4) years. Figure ES-2

shows the phases and the implementation schedule for the RAPID construction

phase.

The estimated RM60 billion investments will realised a world scale integrated plant

incorporated with state of the art technologies including the Best Available

Technology (BAT) to ensure consistent compliance to the regulatory requirements.

Design philosophy will include the green production concept with lower carbon

footprint and energy savings to ensure environmentally friendly production. RAPID

main components are the refinery and petrochemical plants. PCP will be supplying for

RAPID requirements with the excess energy and power generation to be supplied for

distribution to the national grid and Singapore. Gas from the RGT-2 Terminal will be

supplied to the PCP and excess to the PGU system.



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The locations of the main RAPID components are as indicated in Figure ES-3 of the

proposed plot plan layout for RAPID. In brief, RAPID main process units are as

describe below:

a) Refinery

This facility will include a 300,000 barrel-per-day refinery that produces naphtha,

gasoline, jet fuel, diesel and fuel oil. Main feedstock for the Refinery will be the

light crude from the Middle East (Basrah, Iraq) or equivalent. The crude oil is

brought to RAPID via crude vessel and delivery will be via the Pengerang

Deepwater Terminal (PDWT) and crude is pumped into storage tanks at the jetty

to allow it to separate the water from the crude oil. The crude oil is transported via

pipelines to the storage in the refinery prior being refined.

The refinery is designed to have a crude refining capacity of 300,000 BPSD into

the following products:

(i) Mogas : 65.7 kbd

(ii) Diesel : 92.7 kbd

(iii) Jet Fuel : 20.4 kbd

(iv) Fuel Oil : 27.3 kbd

(v) Sulphur : 460 ktpa

(vi) Naphtha : 103 kbd (feedstock for the Naphtha Steam Cracker)

The crude feedstock will also be the feedstock to the petrochemicals and polymer

complex including a three (3) million tonne-per-year (tpy) naphtha cracker and

petrochemical derivatives facilities focusing on synthetic rubber to meet the

increasing demand. The overall process flow block diagram which indicates the

feedstock, products and the main units for the Refinery is as in Figure ES-4.

Oil refinery will blend various feedstock, mix appropriate additives, provide short

term storage, and prepare for bulk loading to trucks, barges and product

shipments via the PDWT facility.



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b) Petrochemical Complex

The petrochemical complex is an integrated complex with the following main

process units are:

(i) Steam Cracker Unit;

(ii) C2 Derivatives Unit;

(iii) C3 Derivatives Unit;

(iv) C4 Derivatives Unit; and

(v) C5/C6 Derivatives Unit.

The associated products and production capacity in tons per annum (TPA) based

on 8,000 hours of operation for each of the main process units are as

summarised below:

Unit Name Unit Capacity (TPA)

a) STEAM CRACKER UNIT

: 1,100,000

b) C2 DERIVATIVES UNIT

- Linear Low Density PolyEthylene (LLDPE) : 350,000

- Low Density PolyEthylene (LDPE) : 150,000

- Ethylene Oxide Ethylene Glycol Unit (EOEG) : 540,000

- Glycol Ethers Unit

: 130,000

c) C3 DERIVATIVES UNIT

- Random PP Unit : 400,000

- Block PP Copolymers Unit : 200,000

- Propylene Oxide Unit : 260,000

- PolyPropylene Glycol Unit : 50,000

d) C4 DERIVATIVES UNIT

- Butadiene Extraction Unit : 170,000

- Polybutadiene Rubber Unit (PBR) : 100,000

- Acrylonitrile Butadiene Rubber Unit (NBR) : 100,000

- IsoButylene Extraction Unit : 300,000



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Unit Name Unit Capacity (TPA)

- MethylMethAcrylate Unit (MMA) : 150,000

- PolyMethylMethAcrylate Unit (PMMA) : 150,000

e) C5/C6 DERIVATIVES UNIT

Pyrolysis Gasoline Unit (Pygas) : 748,000

C5 Dienes Extraction Unit : 60,000

Benzene Extraction Unit : 170,000

Cumene Unit : 270,000

Phenol Unit : 200,000

Bis-Phénol A Unit (BPA) : 200,000

The overall process flow block diagram which indicate the feedstock, products

and the main units for the Petrochemical Plant is as in Figure ES-5.

c) Central Utility Facilities (CUF)

The facilities encompass the followings:

Power/ Cogeneration (COGEN) plant aka Pengerang Cogen Plant (PCP);

LNG Regasification Facility (RGT-2 Terminal); and

Other Utilities Facility

Offsite Storage and Facility

(i) Pengerang Cogeneration Plant (PCP)

Power/ Cogeneration (COGEN) plant is known as Pengerang Cogen Plant

(PCP) with a designed total power and steam generation system capacity of

approximately 2,000 MW in electricity and 2,131 t/h of steam. The main fuel

for the plant is natural gas to be supplied from the LNG Regasification Plant

(RGT2). In brief, PCP comprises :

Six (6) of Gas Turbines Generators (GTGs) and six (6) nos of Heat

Recovery Steam Generators (HRSGs);

Three (3) Steam Turbine Generators (STG) on 3 blocks;



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The excess power generation will partly be sold to the national grid and partly

supplied to the neighbouring country. The main process units for PCP are as in

Figure ES-6.

(ii) Liquefied Natural Gas (LNG) Regasification Facility (RGT-2 Terminal)

RGT-2 Terminal receives and stores LNG from LNG carriers, vaporizes the

LNG and delivers natural gas to components in the RAPID complex. The

natural gas (NG) system will convey gas from the LNG Regasification Plant

(RGT-2 Terminal) to the PCP gas turbines. The regasification process in

RGT-2 Terminal involves conversion of liquefied natural gas (LNG) back to

natural gas to be used as feedstock for the power plant (PCP) to supply for

energy. The regasification capacity of the RGT-2 Terminal plant is 10

MTPA (1400 mmscfd). The gas will be delivered to PCP for conversion into

energy and steam to be supplied for RAPID consumption. The excess gas

is sent out to the national gas network which is the Peninsular Gas

Utilisation Grid (PGU) system, located approximately 75 km away from

RAPID.

The main process units for RGT-2 Terminal are as in Figure ES-7.

(iii) Centralized Facility (CUF)

The facility includes the facilities which are centralized to cater and support

for the operational needs of RAPID complex. The utilities are designed to

meet the requirements of various plants operating modes including start-

ups, shutdowns, turn down operations, peak load etc without affecting the

product quality, equipment performance and reliability. CUF consists of the

following major components:

Fuel Gas System;

Water systems (i.e. potable water, fire water, service water, demineralized water);

Cooling Water System

Steam Systems (i.e. boiler feed water, steam and condensate system)

Air Separation;

Effluent Treatment Plant;

Gaseous Emission Control including the centralised flaring units;

Waste Management;

Chemical Storage;



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(iv) Offsite Storage and Facility

The offsites and tankage area are located at two (2) different places i.e.

Crude Storage, Petrochemical Feedstock and Final Product within Tanks

Marine and Jetty facilities located outside RAPID and which will be built

and operated by third party and within the RAPID offsites and tankages

which include intermediate tanks, day tanks, slop tanks and blending

facilities.

6. Project Option

This chapter discusses on options that were evaluated prior to decision to proceed

with the project design and implementation. The evaluation on the project options

justifies the project implementation decision and the followings are taken into

account:

a) Options based on Cost Benefit Analysis

b) Options for the technology selection of the project

c) Options for the locations of the projects

The initial step for a decision to initiate a project is to look into the Cost Benefit

Analysis where extensive studies were conducted to look into the trending in the past

couple of decades for the global market demand for the oil and gas related products.

Projection in the future demand and current market supply was studied to ensure the

extent of the supply gaps which PETRONAS can leverage onto. The economics and

cost benefit analysis provides the base decision for PETRONAS on deciding for

options of the types of plants and products to focus on i.e. products from refinery and

petrochemical plants and the volume of the production based on the projected

demand.

The types of specific target product and its quantity provide the base information on

the capacity of the proposed RAPID development. From here, concept of RAPID

together with options of the available technology for the plant to produce the intended

production capacity and types of products were studied under the Design Feasibility

Study (DFS). DFS provides options for the concept of the technology selection and

recommends the best options to be adopted. Evaluation for each of the options is

based on factors such as available technology to produce the products, schedule to



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implement the project to meet the projected global demand and right feedstock price

and economic evaluation of investment and the associated return period.

Finally, upon the decision of the options of the technology and components of RAPID

development is made, the suitable site location options were evaluated. In general,

the site location options usually takes into account the availability of land area to suit

the land requirements of the proposed development, policy of the State on supporting

the development i.e. infrastructure, tax structure, land ownership and acquisition

process and availability or close proximity to the source of feedstock for production

and feedstock for the utility requirements;

The discussion on this chapter is narrow down to the options of the site made

available Johor State and shall not be centred on the options for the design concept

of the plant for RAPID. The design concept of RAPID (capacity, types of production

and development components) is basically already at the advance stage. However,

as the engineering design is still at an early stage, the confirmed technology selection

based on BATs and best practices has not been finalised. As RAPID is one of the

major development in the country and will be facing a high expectation to adopt the

state of the art technology that consider the production cost, economy of scale and

global demand for the environmentally friendly operation.

7. Scope and Methodology

This chapter discusses the scope and the methodology utilized for assessing the

baseline conditions of the RAPID project area and approach taken in conducting the

specialized study.

The environmental baseline study (EBS) was carried out to establish environmental

conditions on the existing environment of the RAPID study area. EBS covers the site

and the areas 5 km surrounding the site. Baseline data are derived from two sources

i.e. primary data from specific field surveys executed, and secondary data from

existing available databases, literature, remote sensing, etc.

The EBS encompasses various environmental components which include the

physical, chemical, biological and human environments. The baseline environmental

data will be used as a yardstick to measure the extent of impact to the surrounding

environment and nearby receptors during the phases of the project development. It



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will also be used in the future to gauge the effectiveness of the control/mitigating

measures adopted during the construction and operational phases of this project.

The EBS studies included in this DEIA are:

Environmental sampling and analysis for the ambient air, surface water,

marine water, noise, soil and ground water quality, seabed sediment quality;

Fish Catch Analysis and fish landing information;

Socio economic survey for 355 respondent from the villages in the study area;

The specialized studies are carried out by the certified subject matter experts and

include:

Flora and fauna mapping;

Traffic Analysis Study;

Qualitative Risk Assessment

Air Dispersion Study;

Health Assessment Study;

Erosion and Sediment Control Plan

Coastal and River Hydraulic Modeling

The specialized study in this chapter outlines the objective of the study, methodology

or study approach and key results or findings expected from the study and how it is

used in the impact assessment and proposal of mitigating measures.

8. Description of the Existing Environment

The chapter on the description of existing environment looks into the description of

the physical, chemical, biological and human environment. The study on the existing

environment covers an area of 5 km radius from the RAPID site boundary and shall

be used as base conditions for comparison in the future so that the RAPID activities

sustains the same environmental quality.

Physical environment presents data on the current physical condition of the study

area. This includes the topography, drainage pattern, soil strata and geological

formation, meteorological information, bathymetry and marine data and land use

pattern of the study area.



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In general, it can be concluded that due to the size of the study area, the topography

of the site is a variation of high elevation to low lying areas towards the coast in the

south and Sg Santi catchment in the north. Similar finding for the geological condition

where the soil investigation findings indicated the study area is a mixture of various

soil types ranging from soft soil to hard rock. No major gazette river is identified to

flow through the project site. The land use pattern is a mixture of agriculture and

residential.

The chemical environment involves conducting the sampling and analysis of the

ambient air, noise, surface and marine water quality, soil and groundwater quality and

seabed sediment quality. The numbers of the monitoring points are as summarized

below :

(i) Air quality station : 28 points

(ii) Noise level station : 28 points

(iii) Surface water quality station : 10 points

(iv) Marine water quality station : 8 points

(v) Seabed sediment quality station : 8 points

(vi) Soil quality station : 30 points

(vii) Groundwater quality station : 30 points

Generally, analysis result indicated that the ambient air, marine water and seabed

sediment quality are good with most of the parameter are lower than the reference

limits/standards. Some of the river monitoring points shows high level of arsenic,

cadmium, iron, lead and manganese presence exceeding the reference

limit/standards. The existing ambient noise level generally can be considered as high

and most of the monitored locations showed readings exceeding the reference limit.

The soil and ground water quality majority indicated level of parameters which are

lower than the reference limit/standards with results of some of the monitoring points

indicated level of arsenic and iron exceeding the reference limit/standard.

The biological environment includes the inventory of the flora and fauna, marine

aquatic life and marine fishery resources. From the flora and fauna mapping and

survey, the study area does not have any significant sighting or record of endangered

flora or fauna species that are protected or categorized as endangered. However, Sg

Santi mangrove area is not covered in the study as it is more than 5 km away from

the study area.

The study on the marine aquatic life indicated that the marine species present in the

coastal areas is of low diversity where there is no recorded presence of corals which

are the main sanctuary for marine life. As Johor is also known to be one of the



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Dugong stranding areas and identified locations for the seagrass, inventory of the

Dugong sighting and stranding areas are also included in the study. The marine

fishery resource inventory is also included in the study as there will be a few numbers

of landing jetties and lobsters breeding areas.

This study on the existing human environment includes the socio-economic

assessment, health assessment; and traffic count survey. The socio economic

studies focused at the existing economic conditions as well as the predicted impacts

of the RAPID project towards the population in the surrounding communities. The

findings on public perception on the projects and what are the environmental losses

that they anticipated were derived from the survey conducted on 355 respondents

that represent the impacted population group/villages in the study area. The villages

where the surveys are conducted are as indicated in Figure ES-8.

The survey also gauged the health profile and hygiene conditions of the communities

residing within and in the surrounding areas of the RAPID site (up to 5 km radius from

RAPID site boundary). Of concern will be the findings on the waste disposal practice

which are not systematic due to poor collection system. Majority of the waste are

burnt instead of disposed to the approved locations. Data was also gathered from the

local health clinics and hospitals to record the cases of disease that is predicted to be

on the rise due to RAPID implementation i.e. air pollution related disease, skin

diseases, water borne diseases and sexually transmitted diseases.

The traffic survey reviews the existing land and marine traffic activities to ascertain

current traffic conditions.

9. Potential Impact and Mitigating Measures

This section identifies the potential impacts that may arise as a result of the RAPID

project implementation activities and evaluates the significance of the impacts. The

potential impacts will be assessed for the two (2) project implementation phases i.e.

construction and testing, commissioning and operational phase. The key project

activities assessed at each of the phases are:

a) Construction Phase

Access to site



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Drainage facilities

Site clearing

Earthworks

Temporary construction facilities and base camp

Facility construction and equipment installation

b) Operational Phase

Access to site

Drainage systems

Air emission

Discharge into the surface water

Effluent discharge into the marine water

Waste management

Noise level

The key environmental components that will likely to be impacted include:

a) Physico-chemical environment

Air Quality;

Surface water quality;

Marine water quality;

Noise level;

Odour level;

b) Biological Environment

Marine life and ecology

River ecosystem

Flora and fauna

c) Human Environment

Human health and safety

Economic activities

Social well being



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As summary, the construction activities that will create significant impacts will be from

the site clearing and ground leveling works as it involves huge construction areas,

high volume of the materials to be disposed and movement of a big numbers of

construction vehicles. The main environmental components that may be significantly

affected are the water quality of the receiving water bodies, dust generation and

safety issues to the nearby communities. Various mitigating measures are proposed

to be adopted among which are the provision of sediment basin to cater for the

increased of the surface runoff and carryover of the sediment into the water bodies,

efficient traffic management plan and an effective environmental management plan.

The influx of the semi skilled and unskilled construction workers and business related

to construction activities is expected to boom in the next four (4) years. This may

generate business potentials and is a positive impact to the local communities.

However, this also may pose a negative social, cultural and religious conflict and

sensitivity to the local populations.

Upon RAPID operation, the main activities of concern will be the emission into the air

due to the various types of plant processes and emission sources, high volume of the

discharges into the marine water, water management due to the various types of

waste generated and high volume to be handled daily, economic activities required to

support for the plants operation and impact to the social and living status of the

locals.

For plant related processes, various engineering protective measures were to be

incorporated in the plant design to ensure plant is operated efficiently, safely and

environmentally friendly especially in the event of emergency and shutdown. RAPID

is expected to generated spillover effect to Pengerang which may attract FDIs to fulfill

the Johor state aspiration for the growth of a new oil and gas hub in Johor. This is

seen to be positive to the local economic growth and the living status of the

communities. However, as Pengerang is a quite area with slow pace development,

the sudden changes with influx of outsiders and foreigners may have negative impact

to the livelihood of the communities.

The impact registers and the proposal for the mitigating measures are as summarized

in the followings Table ES-3 and ES-4 while Figure ES-9 shows the impact matrix for

the RAPID project.



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10. Residual Impact

This chapter discusses the residual impacts which are environmental impacts that

may still persist, although mitigation measures to minimise the impacts are fully

implemented and complied during the RAPID project activities, both in construction

and operation phases.

Residual impact has not been identified resulting from the construction activities as

the impacts are mainly localized and short term. However, the operation stage may

results in residual impacts particularly in the air quality, marine biological life, flora

and fauna ecosystem and the socio economic of the locals.

The residual impact from the emission to the air from RAPID is expected to be

minimal and insignificant for the normal operation but is expected to be significant

during emergency scenario. However, various mitigating and protective measures to

safeguard the environment has been incorporated in the plant design. The dispersion

study and the ground level concentrations are meeting the Recommended Malaysia

Ambient Air Quality Guidelines (RMAAQG) and will not have any health effect of

concern due to exposure to the pollutants.

The residual impact is expected to be to the flora and fauna and the marine

ecosystem. Residual impact to the marine life is expected to be minimal and localised

as dispersion condition in the outfall areas is good and the exchange capacity of the

marine water is high. Residual impact to the flora and fauna and the ecology system

in the vicinity of the study area results from the clearing and ground leveling of the

site that will destroy the natural habitats. However this is not expected to be

significant as the area is low in diversity and there are ample habitat areas nearby for

the flora and fauna to migrate and developed and new ecological chain.

The major and significant residual impact to the study area and the surrounding

communities will be on the socio and economic well being of the areas. Economic

wise, the residual impact is positive and beneficial for the local community, Johor

State and the nation. However, with the influx of outsiders and immigrant workers of

various skills, there may be changes in the lifestyles of the locals which may results in

negative cultural, religious and social conflict.



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11. Economic Evaluation

The economic valuation exercise monetizes the significant physical impacts in term of

environmental costs and benefits. Valuation was undertaken upon the economic

costs occurring from the project that includes the followings:

a) Expenditure on mitigation measures for pollution control measures i.e. scrubbers

units, CEMS installation and the wastewater treatment facility;

b) Residual GHG emissions from the burning of fuel that include pollutants such as

carbon dioxides (CO2), sulphur oxides (SOx) and nitrogen oxides (NOx) that may

have the long term effect to the environment;

c) Decline in economic value from the closure and destruction of various agricultural

and fishery investments by the local community.

The economic valuation in this report has been confined to the RAPID site and the 5

km radius from the site boundary. Main constraint of extending the exercise outside of

the study area and evaluating the impact to the environment and community is due to

lack of concrete cause and effect evidence between the project development and the

potential impacts that may take place. The numbers generated under this study is

basically an estimation to monetize the losses to various stakeholders including the

Project Proponent and should not be used as basis for claiming any compensation.

Cumulating the negative impacts together over a period of ten years and discounting

the cash flows using interest rates of 3%, 5% and 7%, provided an estimated range of

-RM5.4 billion to - RM4.8 billion in potential losses to various stakeholders. Out of the

Total Economic Value (TEV) estimates of RM5,210 million (discount rate of 5%), the

project proponent would incur a total economic cost of more than RM631.2 million or

12.11% for investment in safeguarding the environment while the rest of the losses

goes to the society.

12. Quantitative Risk Assessment

This chapter covers the Quantitative Risk Assessment (QRA) study conducted for the

process units in the RAPID project. The objectives of the QRA study are to identify

and quantify the probability and consequences of the potential accidents at the

proposed plants that may impact the surrounding offsite areas, to calculate the level



EXECUTIVE SUMMARY

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ES18 of 52

of risk, and to suggest measures to reduce the level of risk if higher than the

allowable level in compliance with DOE risk criteria.

Findings from the QRA study indicated that the extent of all consequences assessed

are limited within the industrial development surrounding the proposed RAPID

facilities, which is in compliance with DOE’s risk acceptance criteria as followings :

That the following hazard zones/ Individual Risk contour for credible

scenarios are within the site boundary

- 37.5kW/m2 heat radiation hazard zone;

- The 5psi overpressure contour (credible scenarios only); and

- The 1x10-5

per year IR contour.

IR Contours:

- The 1 x 10-5

per year IR contour remains within the site boundary, i.e.

RAPID development facility only; and

- The 1 x 10-6

per year IR contour remains within the established

industrial development, i.e. RAPID site boundary.

The above results are in compliance of the requirements stipulated by the DOE risk

criteria as shown below :

IR Contours Max Distance to

Contour (m)

Confirmation

1 × 10-5

per year 402 Contours confined within each unit process

boundary.

1 × 10-6

per year 2,370

The contour extends offsite from each unit

process at north, south and west. Contours

confined within RAPID site boundary.

In conclusion, the QRA study has assessed that RAPID satisfies the individual risk

criteria as set out by the DOE and illustrated in Figure ES-10. However, it is deemed

that worst case scenarios may pose an impact to the surrounding areas of the

proposed project.



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13. Environmental Management Plan (EMP)

This chapter outlines the environmental management requirements for RAPID

construction and operation stage. The main objectives of the EMP are to comply to

the DOE requirements and the tools for check and balance of the project activities

that that place, indicator that trigger the early action to remediate the environmental

non conformance and tracking the effectiveness of the mitigating measures adopted.

EMP includes the incorporation of the recommended measures for the control of

erosion and sedimentation (described in the ESCP Study), the monitoring of the

environmental performance at critical locations and the environmental audit exercise.

In brief the main EMP program are as summarized below :

a) Monitoring Program

The proposed monitoring program is as below but will be later refined to suit DOE

requirements and to include the DEIA Conditions of Approval. The sampling

points are selected to monitor the environmental performance and impacts to the

sensitive receptors located outside of the RAPID boundary, control points for

comparison and points within the site to capture the effectiveness of the

mitigating measures installed.

Table ES-1 : Proposed Monitoring Program During Construction Stage

No Stations No of

Stations

Monitoring

Frequency

Submission of

Report to DOE

1 Air Quality 22 Monthly Quarterly

2 Noise Level 22 Monthly Quarterly

3 Sediment Basins 17 Monthly Quarterly

4 Sewage discharge point 2 Monthly Quarterly

5 Surface Water Quality 7 Monthly Quarterly

6 Marine Water Quality 3 Monthly Quarterly

7 Seabed Sediment Quality 3 Quarterly Biannual

8 Soil Quality 14 Monthly Quarterly

9. Groundwater Quality 14 Monthly Quarterly

Environmental Audit during construction to be conducted : Annually



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Table ES-2 : Proposed Monitoring Program During Operation Stage

No Stations No of

Stations

Monitoring

Frequency

Submission of

Report to DOE

1 Air Quality 17 Quarterly Biannual

2 Noise Level 17 Quarterly Biannual

3. Cooling/Effluent Discharge outfall 1 Quarterly Biannual

4 Surface Water Quality and Retention

Basins

13 Quarterly Biannual

5 Sewage discharge point 1 Quarterly Biannual

6 Marine Water Quality 3 Quarterly Biannual

7 Seabed Sediment Quality 3 Quarterly Biannual

8 Soil Quality 14 Quarterly Biannual

9. Groundwater Quality 14 Monthly Quarterly

Environmental Audit is to be conducted internally by the individual plant operators

once in every 2 years.

14. Emergency Response Plan (ERP)

This chapter outlines the general framework of the Emergency Response Plan (ERP)

to provide standard guidelines on handling any emergency incidents that may

potentially occur during the RAPID project construction and operation stage. This

chapter also outlines procedures in emergency response in coordination with the

relevant government agencies and nearby communities. Main objective of having an

ERP is to guide the project in a safe, timely, and effective response to incidents that

threaten the plant area and public health, safety, or welfare. It is also intended to

promote coordination among project owner, local, private public and state responders

and determine the training of involved personnel in improving the level of emergency

preparedness. The ERP under this Chapter also outlines the roles and responsibility

of the personnel at site and in plant organization during the emergency scenario.



EXECUTIVE SUMMARY

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15. Conclusion

The proposed study area in Pengerang is in general an area with slow pace

development where the main economic activities revolve in the agriculture and fishery

sector. The baseline data indicated the current environment quality is generally good.

Upon the implementation of RAPID, the study area will experience major changes

which may have impact to the surrounding environment, local communities and

current economic scenario.

During construction stage, identified major impacts may be from the site clearing and

earthwork activities mainly due to the size of the site to be developed. The impacts

may be significant however only for short duration. The influx of big numbers of

workers to this area will inadvertently generate positive impact to the local economic

activities but may impose negative social impacts to the local communities.

Upon RAPID operation, main concern will be on the emission to the air causing

nuisance and health effect to the nearby receptors and the management of the

various types of waste generated by various plant processes in RAPID. However,

with adoption of the effective Environmental Management Plan, state of the art

technologies, appropriate mitigating measures that meet compliance, BATs, best

practices and lesson learnt from other PETRONAS Operating Units, the potential

impacts to the environment and nearby receptors can be reduce.

Upon operation, RAPID will permanently transform Pengerang and enhance the

community living status. The ripples of the economic spill will be cascaded to benefit

not just Johor State but also the nation as well.

It should be noted that this DEIA report was prepared at an early RAPID development

phase when the project is at a very preliminary design stage. Most of the information

and data used in this report is subjected to changes when RAPID is at the later

design stage which may include the final plot plan layout, selection of the

technologies, final capacity of the plants and list of RAPID components. There will be

submissions of additional data either as addendum or supplementary reports to

update DOE progressively when information is available or when design are finalized.

DETAILED ENVIRONMENTAL IMPACT ASSESSMENT REPORT FOR THE PROPOSED REFINERY AND PETROCHEMICAL INTEGRATED DEVELOPMENT (RAPID) IN PENGERANG, JOHOR

EXECUTIVE SUMMARY

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Table ES-3 : Summary of Potential Impacts and Mitigation Measures for the RAPID Project During Construction Phase

NO PROJECT ACTIVITIES POTENTIAL IMPACT IMPACT

SIGNIFICANCE DURATION RECOMMENDED MITIGATING MEASURES REMARK/COMMENTS

1. Access to Site a) Movement of

construction

related vehicles

from the site into

J52 and Road

90

Generation of the fugitive dust

and increased in noise level

along the access road may

affect residence in Kg Lepau

Dust from construction activities

may also trigger respiratory

diseases like asthma, rhinitis

and respiratory infections

Safety of other road users at

J52 and Road 90 and

residences along the access

route to the site ingress and

egress

Damage to the existing laterite

road which may not be able to

take the additional load from the

heavy construction vehicles

MODERATE

a) Air Quality

b) Noise Level

c) Safety

d) Amenities

SHORT

TERM

Enforcement of speed restrictions to reduce

dust generation and dispersion (~15 km/h);

Exposed soil areas, excavated materials,

stockpiles and on-site haul roads should be

dampened with water during dry season

Vehicle wheel-wash facilities are to be

provided at the exit(s) of the RAPID

construction site and to be fully manned;

Lorry loads should be provided with

adequate sizes of secure load covers;

Ensure proper housekeeping and cleanliness

of the entire construction site especially at

the exit and entrance to the site;

Construction of a network of temporary

internal roads with proper traffic movement

plan to avoid the potential collision of the

construction vehicles;

Upgrade the existing identified access route

to take the additional construction vehicle

load

Structured traffic management plan to

prevent safety issues with the existing road


EXECUTIVE SUMMARY

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ES23 of 52




users.

b) Closure of part

of the existing

road from J52 to

Kg Lepau

Disruption to the user of the J52

road to access from Tg

Pengelih to Kg Lepau and Kg

Rengit and vice versa.

MINOR

a) Amenities

SHORT

TERM

Provision of an alternative road to access

from J52 to Kg Lepau and Road 90 while

waiting for the new road proposed by the

State

2.

Drainage

Facilities

a) Realignment of

the Existing

Drainage

System and

Construction of

the Temporary

Drainage

Flooding of the downstream

receiving water bodies affecting

nearby residences

Deterioration of the water

quality of the receiving water

bodies

Disturb and smothered

sedentary organisms that

results in loss of benthic and

bottom feeding organisms

Water ponding/ water log of the

areas within the site will be

potential breeding ground for

mosquitoes

MAJOR

Surface Water

Quality

Marine Water

Quality

Health

SHORT

TERM

Provision of the sediment basin to retain the

additional surface water runoff and to ensure

water quality of downstream water bodies

are not affected;

Implement soil stabilization techniques in

accordance to ESCP.

Stockpiling of topsoil away from

watercourse.

Effluent discharge monitoring program at

sediment/retention basins prior to release to

external water bodies;

To conduct regular check on the water

ponds/ water logs area to ensure mosquitoes

breeding are under control

Ensure proper housekeeping and

cleanliness of the entire construction site.

3. Site Clearing a) Trees Cutting Carryover of the suspended Implement Erosion Sediment Control Plan


EXECUTIVE SUMMARY

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ES24 of 52




and Removal

from site to

disposal area

solids and organic content in

the surface run-off could result

in potential flooding of the

downstream receiving water

bodies and deceased in the

water quality and disturb and

smothered sedentary

organisms.

Lorries movement transporting

the waste material to disposal

site will cause increased in

traffic volume, increase in noise

level and concern on safety to

public;

Fugitive dust generation from

vehicle and equipment engine

exhaust and wind erosion of

unpaved works area during

construction activities may

trigger respiratory diseases like

asthma, rhinitis and respiratory

infections

Biomass and unsuitable

materials not removed from site

will cause water logging and

breeding ground for

MAJOR

Surface water

quality

Marine water

quality

Air quality

Traffic

Noise Level

Health

Flora

Fauna

SHORT

TERM

(ESCP) as recommended in the ESCP

study (Sediment and retention basins)

Construction of temporary drainage and

sediment ponds prior to tree cutting and site

clearing

The proposed design of the platform level

will be optimised through a balance cut and

fill to minimise the import or export of the

materials




construction vehicles



construction site and manned at all times

and the tyres of all vehicles exiting the site

must be cleaned;

Vehicle on-site speed restrictions should be

imposed to reduce dust generation and

dispersion (~15 km/h);

During the transport of potentially dusty

materials to/from the site, lorry loads should


EXECUTIVE SUMMARY

May2012

ES25 of 52




mosquitoes;

Heavy machinery such as

bulldozers, excavators, lorries

and 4WD vehicles involved in

the site clearing and earthwork

activities may cause spillage

incidents affecting the soil and

groundwater quality

Tree cutting for land clearing is

likely to damage or destroy key

habitats such as nesting sites,

including old hollow trees,

feeding and breeding grounds

for wildlife.

The tress cutting and site

levelling may displace fauna

away from their current habitat

to the nearby villagers causing

nuisance, disturbance and

issues of safety for the nearby

residents.

The sudden appearance of

cleared ground along their

usual pathway could cause

disorientation to the natural

be provided with adequate secure load

covers;

Effective environmental management plan to

ensure proper housekeeping and cleanliness

of the entire construction site

Minimize the volume of waste to be disposed

by selling the reusable materials such as the

cut rubber tress and structures demolished

which can be done via segregation of waste;

Designated temporary dumping on site prior

to removal of the biomass to the designated

disposal site;

Identification of the disposal site to be

closest to RAPID site;

Disposal site that has the capacity to accept

the waste volume has been identified and

approved by the relevant authorities;

Exposed soil areas, excavated materials,

stockpiles and on-site haul roads should be

dampened with water during dry ambient

conditions.

Construct security posts at the critical


EXECUTIVE SUMMARY

May2012

ES26 of 52




migratory instinct of some

avifauna and animals.

locations along the RAPID site Boundary to

ensure the safety of the nearby publics and

to prevent trespassers

No unnecessary logging is done in areas

outside the development area e.g. the buffer

zones, mangrove forests.

Boundaries must be clearly marked on the

ground demarcating land clearing blocks.

Chemicals, metals and other hazardous

substances which are brought into the site

must be carefully-handled and stored to

prevent spillage from contaminating the soil,

ground water and nearby water bodies;

Any fauna encountered during the

construction, particularly snakes and lizards

should be carefully removed and released

into the adjacent forest.

Solid waste from the construction site,

especially plastic material that may be

picked up and consumed by fauna species

and other wildlife, needs to be discarded

safely and properly managed


EXECUTIVE SUMMARY

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b) Demolition of the

existing

structures and

services

relocation

(Phase 2)


the demolition material to

disposal site will cause

increased in traffic volume,

increase in noise level and

concern on safety to public;

The presence of the workmen

and the noise of equipment like

chainsaw and tractors could

create disturbance on nearby

villagers.

Demolition and services

relocation waste not removed

from site will cause water

logging and breeding ground for

mosquitoes;








infections

Demolition of the existing utility

MODERATE

Surface water

quality

Marine water

quality

Soil and

groundwater

Quality

Air quality

Traffic

Noise Level

SHORT

TERM

Segregation and salvaging the waste

material which can be sold and reuse to

reduce disposal volume;

Identification of the disposal site closest to

RAPID site with adequate capacity to cater

for the waste generated;

Designated temporary dumping on site prior

to removal of the waste material to the

designated disposal site;





must be cleaned;







covers

Efficient HSE management plan that ensure

effective housekeeping and cleanliness of


EXECUTIVE SUMMARY

May2012

ES28 of 52




services may disrupt the

downstream end users causing

nuisance to the public livelihood

the entire construction site.

Route selection from Road 90 to avoid close

to existing villages and causing nuisance to

the existing residences






Provision of the sediment basin to retain the

additional surface water runoff and to ensure

water quality of downstream water bodies

are not affected;

All fuel oil, chemical and hazardous waste

storage to be bunded with concrete flooring

or HDPE liners.


storage and refueling shall be away from

watercourses at specified designated

locations.

Spill clean-up kit to be made available where

appropriate and spills incidents to be


EXECUTIVE SUMMARY

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reported to the HSE focal immediately;

Contaminated soil removed as hazardous

waste

4. Earthworks a) Transportation

of the topsoil

and unsuitable

material for

disposal


the demolition material to

disposal site will cause

increased in traffic volume,

increase in noise level and

concern on safety to public;








infections

Waste of topsoil and unsuitable

materials not removed from

site will cause water logging

and breeding ground;

Increased in surface water

runoff which result in potential

flooding of the downstream

receiving water bodies and

MAJOR

Surface water

quality

Marine water

quality

Air quality

Traffic

Noise Level

Flora and

Fauna

Public Safety

SHORT

TERM





must be cleaned;







covers;

Efficient HSE management Plan to ensure

proper housekeeping and cleanliness of the

entire construction site.

Design of the platform level to ensure

balanced cut and fill volume that will

minimise the export of material from the site;

Identification of the disposal site to be

closest to RAPID site;


EXECUTIVE SUMMARY

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deceased in the water quality;



and 4WD vehicles will be

involved in the site clearing and

earthwork activities may have

negative spillage impacts on the

surrounding flora

Provision of retention/sediment ponds to

cater for the increased in surface runoff and

ensure the water quality are discharged as

per authority requirements;






to existing kampungs and causing nuisance

to the existing residences







load



or HDPE liners.



EXECUTIVE SUMMARY

May2012

ES31 of 52





watercourses (>50m).

Spills to be reported and immediately to the

site HSE focal and contained. The

contaminated soil is to be removed as

hazardous waste

b) Soil Erosion Potential erosion due to

massive areas of site clearing

and levelling may cause

deterioration of water quality

and instability of the finished

platform;

MODERATE

Surface water

quality

Marine water

quality

River and

marine ecology

Public Safety

SHORT

TERM

Immediate turfing or engineering

protection measures to prevent/minimise

erosion

Provision of retention/sediment ponds to

cater for the increased in surface runoff

and ensure the water quality are

discharged as per authority requirements.

The sediment basins need to be

maintained to ensure efficiency and

discharge is meeting the requirements;

Efficient HSE management to ensure

proper housekeeping and cleanliness of

the entire construction site.

c) Rock Blasting Increase the noise level and

fugitive dusts

Safety of the surrounding public

from the blasted rocks.

MINOR

Noise Level

Air Quality

Public Safety

SHORT

TERM

To obtain permit from the relevant authorities

and public to be informed on the schedule

for the blasting;

Blasting to be carried out by

professionals/experts which are licensed by


EXECUTIVE SUMMARY

May2012

ES32 of 52




Fugitive dust generation may



infections

the relevant authorities;

Blasting to be carried out in the shortest

schedule possible to minimise the duration of

the impact to the public and surroundings;





Vibration and noise monitoring during blasting





must be cleaned;






be provided with secure load covers; load

covers should extend at least 30 cm over the

tail and side boards


EXECUTIVE SUMMARY

May2012

ES33 of 52




Ensure proper housekeeping and

cleanliness of the entire construction site.

5. Temporary

Construction

Facilities and

Base Camps

a) Sanitation

facilities

Hygiene and health condition of

the areas surrounding the base

camp

Breeding ground for vermin and

spreading of water borne

diseases such as dengue and

cholera due to poor waste

management and uncollected

garbage;

Deterioration of the water

quality due to discharge of

untreated or partially treated

sewage;

MODERATE

Surface water

quality

Marine water

quality

River and

marine ecology

Public health

Aesthetics

SHORT

TERM

Garbage to be collected frequently and

disposed at the approved domestic waste

disposal site;

Provision of package plants for the sewage

treatment that meet the regulated standards

prior to discharge into the water bodies;





Efficient HSE management Plan to ensure

proper housekeeping and cleanliness of the

entire base camp.


EXECUTIVE SUMMARY

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ES34 of 52




b) Influx of Foreign

Workers

Social related issues

Foreign workers who are not

properly screen for infectious

diseases may transmit them to

the local population

Increased in demand for

housing facilities and other

amenities

Increased in the local economic

activities i.e. small food stalls,

grocery shops etc. to cater for

the influx of the workers at the

RAPID site

MODERATE

Amenities

Social Issues

Economic

Activities

Public health

Aesthetics

SHORT

TERM

To impose ground rules within the base

camp and enforce by the officers appointed

by the management

Foreign workers must be screened and

undergo health check for infectious diseases

Base camp is part of the mitigating

measures to contain the foreign workers

within the project site to prevent social

related issues with the local communities;

Base camp is a measure to overcome the

shortages of the existing housing facilities in

Pengerang and nearby towns

Increased in the local economic activities i.e.

small food stalls, grocery shops etc. to cater

for the influx of the workers at the RAPID site


EXECUTIVE SUMMARY

May2012

ES35 of 52




6 Plant

Construction

and

Equipment

Installation

a) Transportation

of Materials to

Site


the equipments to the site as

well as piling and piping

activities will increase noise

level and concern on safety to

public;


wind erosion of unpaved works

area during construction

activities may trigger respiratory



Emissions of black smoke from

diesel engine construction

vehicles and equipment may

affect the ambient air quality



and 4WD vehicles will be

involved in the site clearing and

earthwork activities may have

negative spillage impacts on the

surrounding flora

Spillage of fuel, oil and

lubricants from temporary site

MODERATE

Air Quality

Soil and

groundwater

Quality

Traffic

Public Safety

SHORT

TERM






to existing kampungs and causing nuisance

to the existing residences





must be cleaned;







covers;






EXECUTIVE SUMMARY

May2012

ES36 of 52




storage and construction

vehicles/equipment may

affecting surface, groundwater

or soil quality if they enter

surrounding water bodies or

permeate into the ground

Spillage of fine sediments due

the trenching works in Tg.

Setapa, where the intake and

outfall will be located will

potentially generate a sediment

plume that may have an impact

to the marine water quality,

marine life and ecology

particularly the organisms such

as fish, shrimp and the

immobile bottom dwellers.

Vehicle traffic and their

movements during the

construction phase are will

potentially cause traffic

congestion at the approach to

the site, most likely at the

junction of Road 92 / 90 / J52;,

traffic accident due to increased

volume of traffic traveling along

the roads and potential damage



load

Housekeeping and management of waste at

site to ensure that any solid materials litter or

wastes are not disposed of into drainage

channels or any surrounding water bodies;

The change-out of lubrication oils from

construction equipment and vehicles on the

site should be controlled;

Construction of silt curtain around the

trenching areas.

Ensure construction vehicles and equipment

must comply with the emission limits

specified under the Environmental Quality

(Control of Emissions from Diesel Engines)

Regulations 1996.

Provision of the 500 m buffer zone to reduce

the noise by the time it reaches the receptors

Monitoring of the noise level during

construction and installation stage as in the

Environmental Management Plan


EXECUTIVE SUMMARY

May2012

ES37 of 52




to the public roads; Approval for normal and extra working hours

shall be obtained from local authorities, if

required.

Machines and vehicles that may be in

intermittent use should be shut down

between work periods or should be throttled

down to a minimum;

Equipment known to emit noise strongly in

one direction, should, where possible, be

orientated so that the noise is directed away

from potentially sensitive receivers;



or HDPE liners.



watercourses (>50m).

Spill clean-up kit to be made available where

appropriate and spills to be reported to HSE

focal and immediately contained.


EXECUTIVE SUMMARY

May2012

ES38 of 52




7 Utilities and

Amenities

Requirements

With thousands of workers

being housed here, the current

utilities and amenities i.e.

clinics, power supply, water

supply, schools, etc., are not

enough to meet the demand for

project’s worker and local

population

Disruption to the user of the J52

road to access from Tg

Pengelih to Kg Lepau and Kg

Rengit and vice versa.

Damage to the existing

pavement road pavement due

to heavy vehicle movement

during construction

Some of the existing bridge

crossing along road 90, 92 and

J52 cannot accommodate the

heavy vehicles carrying heavy

and oversize equipment during

construction

MODERATE

Amenities and

Utilities

Traffic

Public Safety

Public

Nuisance

SHORT

TERM

The need for the amenities to cater demand

at this project stage has to be communicated

to the UPENJ/State Government and RKK

(road upgrade, new road, waste disposal

facilities, required water supply etc)

Provision of an alternative road to access

from J52 to Kg Lepau and Road 90. Route

selection from road 90 to avoid close to

existing kampungs and causing nuisance to

the existing residences







load

Properly schedule the transportation by

moving during less peak hour (night time)

and identify the community related program

i.e. pasar malam, pasar tani, pasar minggu

etc and avoid transporting of equipment

during this peak hour.


EXECUTIVE SUMMARY

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ES39 of 52




8 Socio and

Economic

Activities

a) Relocation Plan Disturbance of worship

places and cemeteries. MAJOR

Social Issues

and cultural

conflicts

Economic

Activities

Public Safety

SHORT

TERM

Relocate affected villagers to the new

relocation area identified to be in Kg Dato’

Abdul Ghani Othman situated about 20km

from the RAPID project site (refer to Figure

8.13);

Provide a better and organized facilities i.e.

schools, hospitals, clinics, markets,

multipurpose halls, etc.;

Engage with local religious leaders on the

best way to relocate cemeteries.

b) The Influx of

Workers Coming

to the RAPID

Site

Improved economic standing

due to increase of demand for

general needs and amenities

such as food, lodging, clothing,

etc.;

Improved public amenities such

as provision of landfill, water

supply, etc.;

Increase of job opportunities

from unskilled to skilled workers

and increased in the living

status and income percapita ;

To impose ground rules within the base

camp and enforce by the officers appointed

by management

Local culture training and awareness to

foreign workers, majority of workers to stay

in camp site,

Frequent community engagement, contribute

to local liveability and CSR programs, and

establish grievance procedure for complaint.

Provide health and medical facilities within

the base camp for minor health issues and

liaise with local health providers on health


EXECUTIVE SUMMARY

May2012

ES40 of 52




Expansion of the hospitality

related industries to cater for

the business needs that will be

taking place during the

construction stage.

Demand for local products by

foreign workers at the project

site such as fruits, vegetables

and livestock help generate

additional income to the local

residents.

Possible increase in crime rates

and disorder

Nuisance due to noise

Conflict due to cultural

misunderstanding among

workers and between local

residents

Real or perceived fear on issue

of safety and security where

possible increase of outsiders

trespassing local’s private

places during construction

phase

service requirement, monitor the satisfaction

of community on health services.

Liaise with local education agency on

schools, vocational training

To provide a worship places facilities within

the relocation area that can accommodate

local residents

Identify, demarcate and limit workforce

access to places of worship and cemeteries


EXECUTIVE SUMMARY

May2012

ES41 of 52




Stress on existing infrastructure

especially health facilities and

education

9 Abandonment

– Post

Construction

a) The mobilization

of construction

material outside

of the site


the waste of the construction

material to disposal site will

cause increased in traffic

volume, increase in noise level

and concern on safety to

public;


wind erosion of unpaved works

area during construction

activities may trigger respiratory



Litter and unmanaged garbage

disposal is the potential

breeding grounds for

mosquitoes and vermins;

Abandoned base camp

NEGLIGIBLE

Traffic

Air Quality

Water Quality

Social Issues

and cultural

conflicts;

Public Safety

Public Health

SHORT

TERM

Access roads and temporary tracks to be re-vegetated and make good where pot holes are to be repaired;

Decommissioned water retention ponds will be fill up and re-vegetated;

Housekeeping and management of waste at

site to ensure that any solid materials litter or

wastes are transported out to the approved

disposal site


EXECUTIVE SUMMARY

May2012

ES42 of 52

Table ES-4 : Summary of Potential Significant Impacts and Mitigation Measures for the RAPID Project During Operation Phase


SIGNIFICANCE DURATION

RECOMMENDED MITIGATING MEASURES

REMARKS/COMMENTS

1. DISCHARGED EFFLUENT

a) Effluent Treatment Plant and Cooling Water Discharge via Marine Outfall;

b) Sewage Treatment Facility;

c) Surface water

runoff

Discharge via the marine outfall of the followings that may disrupt the marine ecology and marine life : - Ambient sea water

temperature - Concentration of free

chlorine in the discharge.

Discharge from the sewage treatment may disrupt the marine and river water quality and the ecology systems. :

Discharge from the retention basin may cause flooding downstream of the receiving water bodies;

Spillage of toxic and hazardous chemicals which may find its way into the marine and water bodies through surface runoff

.

MODERATE

Water Quality

Marine and

River

biological Life

Fishery

Industry

LONG TERM

a) Surface Water Runoff

Design of the Plant that separates stormwater drainage and the accidentally oil contaminated (AOC) and continuously oil contaminated (COC) drainage system.

In the event of heavy rain and overflow of the AOC and COC Flow will be directed to the storm water collection pond to contain the flow from finding its way into the surface water drainage and water bodies outside of RAPID premise.

b) Discharge via Marine outfall

The effluent treatment plant will also be designed to meet DOE’s requirement for IETS which requires the incorporation of the continuous online monitoring, BAT and best practices

Routine monitoring by the regulatory agencies on the treatment performance and compliance to the discharged standards.

Johor State is in planning to develop an integrated fishery complex in Sg Musoh, Pengerang that will be a


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REMARKS/COMMENTS

one stop center for the fishery industries in Pengerang;

c) Incorporation of various preventive

and control measures in the RAPID design and operation among which are :

Design Stage :

Effluent treatment plant will be designed to meet DOE’s requirement for IETS, PETRONAS Technical Code and Standards and applicable internal standards and guidelines, BAT and best practices considered in the design

Conduct of ENVID, HAZID and HAZOP at every critical progress of the design stage;

Carryout the effluent dispersion and simulations using acceptable simulation models to help in designing the appropriate outfall locations, discharged temperature that verify no significant environmental impacts during when the plant is in operation;

Plant Operation :

Routine monitoring by the regulatory agencies on the treatment performance;


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REMARKS/COMMENTS

Environmental Management Plan that monitor compliance and treatment performance

Competent staff assigned for the operation and continuous training program for the staff;

All manuals and Standards Operating Procedures (SOP) updated and readily available.

Routine maintenance of the treatment system via turnaround exercise


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REMARKS/COMMENTS

2. AIR EMISSION a) Normal Operations and Abnormal Operations

Air Quality

Health of the Surrounding Communities

MODERATE

Air Quality

Public Health

LONG TERM

a) Provision of adequate buffer zones for the Project site and the design of the plot plan to locate each units of plant processes will ensure minimal impact to the surrounding public and receptors;

b) The impact in the emission into the air will further be reduced if the surrounding areas are to be developed as heavy industries as in the RKK;

c) Routine monitoring by the regulatory

agencies on the emission level and the ground level concentration at critical locations to be decided later upon operation. Design of the plant is to include incorporation of self monitoring mechanism for each of the emission sources;

d) Incorporation of various preventive and

control measures will be incorporated during the project design stage as well as operational procedures to prevent emission to the air from impacting people, environment and asset;

Design Stage

The regulatory requirements for compliance, PETRONAS Technical Code and Standards and applicable internal standards and guidelines;

b) Emergency Scenario

Air Quality

Affecting the health of the Surrounding Communities

MAJOR SHORT TERM


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REMARKS/COMMENTS

Lesson learnt and adoption of the best practices based on other PETRONAS Operating Units or other similar plants globally;

Conduct of ENVID, HAZID and HAZOP at every critical progress of the design stage;

Carryout the dispersion and simulations using acceptable simulation models to help in designing the plants and to verify no significant environmental impacts during when the plant is in operation;

Operation Stage

Documented Operating Procedures to be adhered by the plants operators

Process Safety Management, Risk based inspection and asset life study

Structured maintenance program i.e. scheduled turnaround

Structures training program and competent operator to run the plants

3 WASTE MANAGEMENT

a) Storage of Waste on site;

b) Transportation of Waste to

Waste cannot be stored on site and has to be sent to the licensed schedule waste premise immediately.

MAJOR

Water Quality

Soil and

LONG TERM

Spent catalyst sent to the catalyst vendor or the recyclers will for recovery;

Location of the schedule waste areas need to be designed to include adequate


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REMARKS/COMMENTS

disposal Site;

c) Disposal Locations and capacity of the waste operators to accept the waste

Capacity and availability of the disposal area/waste operators to handle the volume of waste generated

Inadequate capacity of the current scheduled waste disposal facility will cause stocking of scheduled waste within RAPID premise;

Spillage of the spilled scheduled waste will be impacting the ground water quality and soil quality;

Domestic waste disposal at illegal dumping sites that may result in odour generation, issues on aesthetic and breeding ground of mosquitoes and vermin;

ground water

quality

Marine and

River

biological Life

Fishery

Industry

Public Health

and sanitation

Amenities

bunding, collection of the spilled waste that are routed to the wastewater treatment plant collection chamber;

Within RAPID site, solid and liquid waste is expected to be transported using trucks or forklifts. Waste will be properly contained in drums, intermediate bulk containers, cylinders and poly bags.

To manage the waste movement and storage efficiently and safely, several temporary storages will be located within the complex areas. For unit processes which frequently generate waste, dedicated transit areas will be provided.

A proper loading and unloading bay will be part of the transit areas and temporary storage areas. From the collection system, the waste will be sent to the waste pre-treatment and treatment facilities.

Due to the complexity and extensive size of RAPID project, many types of waste are expected to be generated.. Therefore, the central waste treatment facility will comprise of several facilities utilizing Best Available Techniques to manage the waste.

Waste management within RAPID also incorporates the 3R concept to reduce


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REMARKS/COMMENTS

the final waste to be removed from RAPID. This indirectly contributes to natural resources conservation and environmental protection.

4. NOISE LEVEL a) Noise Level generated by Plant Equipment and Processes;

b) Noise level generated by the increased in traffic volume for road leading to RAPID access points;

Increase in the background noise level at the sensitive receptors

Public nuisance and disruption to daily life

MODERATE

Noise Level

Public Health

Nuisance to

Public

LONG TERM

Noise emission from RAPID is hardly felt by the adjacent receptors as the baseline noise at the sensitive receptors is currently high;

Provision of 500m buffer zones all around the site boundary and undeveloped areas to the west with landscaping will further attenuate the noise;

The impact of the noise level will be further reduce if the surrounding areas are gazette as heavy industry under RKK;

5. TRAFFIC a) Traffic volume

b) Capacity of Existing Road

Increase in the traffic volume at the existing road (Road 90 and J52) will cause nuisance to the road users and increased in the risk of hazards and accidents

Inadequate capacity of the existing road to take the increase in traffic volume may cause congestion and nuisance

MODERATE

Air Quality

Noise Level

Nuisance to

Public

Public Safety

Public

Amentities

SHORT TERM

Improve the traffic performance of the existing road systems and the facilities along the traffic influence area as there will be heavy traffic i.e. upgrading the road capacity, introduce traffic lights etc;

For a better traffic diversion from Road 90, and as an alternative for access to users of J52, the State is currently undertaking a study on the location of an alternative road


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REMARKS/COMMENTS

to road users;

Increased in the noise level affecting the residences near to the roads

Generation of dust and pollutants from exhaust emissions due the increased in vehicles / road users affecting the residences near to the roads

connecting the population in Tanjung Pengelih to access Road 90 on the north of the RAPID site;

Multiple access to the RAPID Plants to divert the traffic from concentrating at a single entry points

6. HEALTH IMPACT

a) Air Emission

Air emission during emergency scenario may have health impact to the workers and nearby residences if exposed for a long term;

During the emergency conditions, TSP and nitrogen dioxide concentrations may have an impact on receptors to the east of RAPID site;

MODERATE

Public Health

Amenities and

Services

LONG TERM

The emergency conditions normally takes place for a short time and the situation will be attended to immediately to bring the operation back to normal conditions;

Instances whereby workers may be exposed to excessive levels of particulates. Therefore, whenever necessary, exposed workers must be provided with respiratory protection in the form of N95 respiratory masks.

An effective Emergency Response Plan (ERP) that specifies the immediate actions during emergency scenario will be adhered to;

Monitoring of ambient air pollutant levels at the proposed project site and at Taman Rengit Jaya, Kg. Lepau and Kg.


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REMARKS/COMMENTS

Pengerang should be conducted and reported regularly once the project commences operation.

The continuous monitoring systems (CEM) is recommended to be installed to track and irregularities in the emission trend so that necessary operational measures can be taken to reduce the emission limit at source;

The health impact will be further reduced if the area surrounding RAPID is to be developed as heavy industries under the RKK and population are relocated;

Provision for a sanitary landfill and efficient waste management to cater for the sudden population and industry growth;

Workers’ screening through mandatory medical check up;

7. ODOUR a) Emission of high VOCs and H2S concentration above the odour threshold limit

Nuisance and uncomfortable to the public due to dour detection and may raise complaint of RAPID operation;

MAJOR

Public Complaint

SHORT TERM

Monitoring of ambient air pollutant levels at the proposed project site and at the potentially affected receptor locations once odour is detected;

Immediately attending to operational malfunctions upon detection of odour;

The continuous emission monitoring

systems (CEMS) is recommended to


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REMARKS/COMMENTS

be installed to track and irregularities in the emission trend so that necessary operational measures can be taken to reduce the emission limit at source.

8. SOCIAL AND ECONOMIC

a) Employment Opportunities

b) Economic Growth

c) Social Related Issues

Ample direct and indirect employment opportunities will be created within the next two decades.

Create a multiplier effect to the country’s and Johor State economy

Opportunity to raise its revenue from RAPID via various taxes and incentives where the potential total revenue generated for the Government

The living standards of the villages are expected to be improved due to availability of better facilities such as schools, medical facilities, amenities and better roads system available to the community.

Influx of semi-skilled and skilled workers which requires provision of world

BENEFICIAL

Social Living

Standards

Economic

Growth

Social Issues

LONG TERM

Public engagement sessions conducted by the State of Johor and other responsible agencies to ensure the followings :

- the success of the oil and gas hub development in Pengerang;

- To prepare the local communities of the anticipated sudden changes in the current livelihood;

- To facilitate the acceptance towards

the potential of influx of big numbers of non locals and foreigners to Pengerang;

- To explain on the benefits of the

spillovers from RAPID implementation to the locals and transparency on the compensation schemes formulated by the State of Johor;

Ensuring locals are given the priority to grab the opportunities from RAPID development

Programs to train the local Pengerang


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REMARKS/COMMENTS

class services, amenities and utility facilities

Influx of non locals, expatriates or immigrants to Pengerang whose presence may cause social related issues, increased in crime and vice rate, and create cultural and religious sensitivities.

A new township would be established for the population involved in the resettlement that provide a more conducive living environment to the people.

entrepreneurs to prepare the locals to grab the business opportunities created

Training for the locals in the skilled and semiskilled resources required by RAPID upon operation;

Relocate affected villagers to the new relocation area identified to be in Kg Dato’ Abdul Ghani Othman situated about 20km from the RAPID project site;

petronas rapid project summary

Documents

rapid telephone

introduction rapid project

project location rapid

rapid operational requirements

project proponent

deia report

executive project director

deia study