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Detailed Environmental Impact Assessment PROPOSED LOTTE CHEMICAL TITAN TE-3 PROJECT AT PASIR GUDANG INDUSTRIAL ESTATE, PASIR GUDANG, JOHOR DARUL TAKZIM Detailed Environmental Impact Assessment October 2015 EXECUTIVE SUMMARY Proposed TE3 Lotte Chemical Titan Project at Pasir Gudang Industrial Estate, Pasir Gudang, Johor Darul Takzim Detailed Environmental Impact Assessment EXECUTIVE SUMMARY PROPOSED LOTTE CHEMICAL TITAN TE-3 PROJECT AT PASIR GUDANG INDUSTRIAL ESTATE, PASIR GUDANG, JOHOR DARUL TAKZIM INTRODUCTION 1. This report presents the salient findings of the Detailed Environmental Impact Assessment (Detailed EIA) study carried out to assess the potential environmental impacts that may arise from the construction and operation of a new olefins production unit and a revamp of some existing facilities (hereinafter referred as “the Project” or “TE-3 Project”), which are located at Pasir Gudang, State of Johor. 2. The Project involves the installation of a new catalytic olefins convertor process unit, the KBR Catalytic Olefins Converter (hereinafter known as “K-COT”), a revamp of the existing Cracker Plant No. 2 and Benzene-Toluene-Xylene or BTX Plant, and the development of new storage faciltiies for the storage of products and by-products. 3. The Detailed EIA is a requirement under Section 34A of the Environmental Quality Act 1974 as the proposed Project is a prescribed activity [Item 6(d): Petrochemicals (Production Capacity of each product or combined product of 50 tonnes per day)] under the Second Schedule of Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015. 4. The Project Proponent is Lotte Chemical Titan (M) Sdn. Bhd., which is wholly owned by Lotte Chemical of the Republic of Korea, one of Asia’s top chemical production companies. The Project Proponent’s contact detail is as follows: LOTTE CHEMICAL TITAN (M) SDN. BHD. Lot PLO 312, Jalan Tembaga 4 Pasir Gudang Industrial Estate 81700 Pasir Gudang, Johor Tel : 07 – 253 8888 Fax : 07 – 251 7881 Email : [email protected] / [email protected] / [email protected] Contact persons: Mr. Lee Kyoung Seog – Director / TE3 Project Ms. Wong Pei Wen – Project Engineer, Process / TE3 Project Ms. Mylene Casiguran – Environmental Engineer ERE Consulting Group Sdn Bhd ES-1 Issue 1.0/October 2015 Proposed TE3 Lotte Chemical Titan Project at Pasir Gudang Industrial Estate, Pasir Gudang, Johor Darul Takzim Detailed Environmental Impact Assessment EXECUTIVE SUMMARY 5. The study was undertaken by ERE Consulting Group Sdn. Bhd and the Consultant’s contact details are as follows: ERE Consulting Group Sdn. Bhd. 9, Jalan USJ 21/6 47630 Subang Jaya Selangor Darul Ehsan Tel : 03 - 8024 2287 Fax : 03 - 8024 2320 Email : [email protected] / [email protected] Contact persons: Peter Ho Yueh Chuen – Project Advisor Tan Yen Chen – Technical Coordinator 6. The Project will be carried out within the land area currently occupied by LCTSB’s main petrochemical complex in the Pasir Gudang Industrial Estate (PGIE) and its bulk storage areas within the Johor Port. The Project is to be located on Lot PLO 257, PLO 425 and Titan Terminal 2 of Johor Port (total area 49.99 hectares). The area in which the main process facilities of the Project are to be located is identified by the following coordinates: Boundary Latitude Longitude K-COT 1 N 1° 27' 0.94" E 103° 53' 23.80" K-COT 2 N 1° 26' 55.50" E 103° 53' 20.17" K-COT 3 N 1° 26' 54.49” E 103° 53' 23.12" K-COT 4 N 1° 26' 56.94” E 103° 53' 28.75" 7. The Project site is accessible via the Pasir Gudang Highway (Route 17) and the JB East Coast Highway (Route 35) which connects Tampoi in the west to Pasir Gudang, the Johor Port and Tanjung Langsat in the east. It is also accessible from Senai via the Senai-Desaru Highway (E22) to Tanjung Langsat. 8. The nearest residential area (Perjiranan 10 in Taman Air Biru) is about 1.6 km away northeast from Project site. Traditional villages are found beyond 2-3 km radius to the east and west of the site. The major urban centres of Masai, Kampung Pasir Puteh, Taman Mawar, Taman Rinting, Taman Sierra Perdana, Taman Bukit Dahlia, Taman Pasir Putih and Bandar Seri Alam are located close to or within the vicinity of 5km radius from the Project (Figure ES-1). STATEMENT OF NEED 9. Lotte Chemical Titan (M) Sdn Bhd, being the first and largest integrated producer of olefins and polyfins in the country, has set an objective to increase production to meet future demand for the products. In order to meet this objective there is need to improve the efficiency of operations and enhance production through the adoption of more efficient technologies. The Project is aimed to achieve this objective. ERE Consulting Group Sdn Bhd ES-2 Issue 1.0/October 2015 Proposed TE3 Lotte Chemical Titan Project at Pasir Gudang Industrial Estate, Pasir Gudang, Johor Darul Takzim Detailed Environmental Impact Assessment EXECUTIVE SUMMARY 10. The Project is also consistent with national economic targets set for the petroleum and petrochemical sector under the Oil, Gas and Energy National Key Economic Areas (NKEA) of the Third Industrial Master Plan (IMP3) for the country. The Project within the PGIE is also ideal as the industrial area is one of the three petrochemical zones identified for the establishment of such industries. PROJECT DESCRIPTION 11. Currently, LCTSB has eleven (11) plants producing hydrocarbon products such as Polypropylene (PP) and Polyethylene (PE) under the registered trademark name of Titanpro® and Titanex®. The facilities include 2 Cracker Plants (PC -1 and PC-2 for production of ethylene and propolyene); a BTX Plant (for production of Benzene and Toluene); 2 Polypropylene Production Plants (PP); 2 Polyethylene Production Plants (PE); a TBA Plant (for production of Tertiary Butyl Alcohol); a BD or Butadiene Production Unit (for production of 1,3- Butadiene); and an Olefin Conversion Unit (OCU) for production of propylene. 12. The Project involves the installation of a new side cracker (K-COT) for the production of propylene and ethylene. The revamp of one of the existing Cracker Plant (PC-2) and the BTX Plant is to take account of the changes in production of the additional production unit. The K-COT Process Unit is combined with the existing PC 2 plant to allow the process gas stream after cracking in the K-COT Unit to be tied-in with the cold section of the existing PC 2 plant. 13. The K-COT process has been selected due to its versatility to use various feedstocks for conversion to high value primary products such as propylene and ethylene. The process is based on a patented technology using the fluid bed catalytic cracking reactor system. This is a more efficient alternative to the steam cracking process of the existing Cracker Plants and achieves better yield of products. 14. The key to the process is the conversion of recycled C4s, C5s organic compounds, C6-C7 non-aromatic organic compounds, LCO (light cycle oil) and external naphtha feedstock to high value products such as ethylene, propylene and BTX in the fluid bed catalytic cracking reactor. The process gas is cooled, compressed, treated for oxygenates, oxygen, acetylene and acid gas removal, dried and sent forward for product separation. The main products are proplylene and ethylene which are base materials for production of polypropylene and polyethylene in the respective production plants. 15. The combined C6+ fraction is processed in the BTX plant to recover aromatics, while the C6-C7 non-aromatics fraction is recycled to the K-COT Process Unit as feed. The revamp of the BTX plant is to increase the unit capacity from 34.8 Tons/hour to 52 Tons/hour of C6 – C8 (Pygas) feed. 16. The mixed C4s stream produced from both PC 1 and PC 2 Cracker plants is processed in the existing Butadiene extraction unit, TBA, and OCU units. Remaining C4s are recycled back to the K-COT Process Unit as feed. C5 streams recovered from both PC 1 and PC 2 Cracker plants are also recycled back to the K-COT reactor as feed. ERE Consulting Group Sdn Bhd ES-3 Issue 1.0/October 2015 Proposed TE3 Lotte Chemical Titan Project at Pasir Gudang Industrial Estate, Pasir Gudang, Johor Darul Takzim Detailed Environmental Impact Assessment EXECUTIVE SUMMARY 17. The overall production processes for the Project is summarised in Figure ES-2. The expected production outcome before and after implementation of the Project is summarised in the table below. Estimated Quantity (kilotonne/annum) Products Existing After Implementation Increment Approx. % Ethylene 658 755 97 15 Propylene 352 477 125 36 Butadiene 85 80 -5 -6 Tertiary-Butyl Alcohol 73 117 44 60 Aromatics (BT) 148 300 152 103 Others (Fuel, H2,etc) 350 396 46 13 18. Additional storage installations of two (2) new storage tanks namely one for the mixed C4 at the existing TBA plant, and one for HPG at the BTX plant are proposed. An existing Ethylene sphere storage tank with an existing capacity of 900 m3 within the existing petrochemical complex will be converted for storage of mixed C4 and C5 (see table below). Type of Type Shape Location Capacity (MT) Chemical Mixed C4 (C4 New Sphere TBA Plant 250 Raffinate) 1 HPG New Tank ISBL area 530 Mixed C4 Converted Sphere ISBL area 550 Raffinate- 2 + from Ethylene /Petrochemical C5 storage tank complex 19. Air emissions from the Project are mainly due to gas emissions from the K-COT Regenerator during its operation (see table below). Other intermittent gas emissions are expected from the Air Heater Furnace and Thermal Oxidizer. Intermittent emission from Decoking pot will only occur twice a year. These are beside those due to operation of the flare system for flaring off waste gases.
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