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Draft Scoping Report: Application for EA, AEL and WUL for the Proposed Lanele Oil Terminal 1 (Lot 1) Project at Ambrose Park, In

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Draft Scoping Report: Application for EA, AEL and WUL for the Proposed Lanele Oil Terminal 1 (Lot 1) Project at Ambrose Park, In REPORT Draft Scoping Report: Application for EA, AEL and WUL for the proposed Lanele Oil Terminal 1 (Lot 1) Project at Ambrose Park, in Bayhead, Durban Lanele Group (Pty) Ltd Submitted to: KwaZulu-Natal EDTEA 270 Jabu Ndlovu Street Pietermaritzburg 3201 Submitted by: Golder Associates Africa (Pty) Ltd. Building 1, Maxwell Office Park, Magwa Crescent West, Waterfall City, Midrand, 1685, South Africa P.O. Box 6001, Halfway House, 1685 +27 11 254 4800 1791874-325631-10 10 April 2019 10 April 2019 1791874-325631-10 Distribution List 1 x Electronic and Hard Copy to KZN EDTEA 1 x Electronic Copy to Lanele 1 x Electronic Copy to Thyssenkrupp 1 x Electronic Copy to Golder Project Folder 1 x Electronic Copy Golder inMagic i 10 April 2019 1791874-325631-10 Purpose of this Document Lanele Group (Pty) Ltd (Lanele), a privately owned South African company, is proposing to develop and operate a liquid fuel blending and storage terminal at Ambrose Park, in Bayhead, Durban to be known as the “Lanele Oil Terminal 1 (Lot 1)” project (hereafter the Project). The land for the proposed operation (approximately 7 hectares) has been leased from Transnet Properties for 20 years with an option to renew for an additional 10 years. The first phase of the proposed project is to be funded by the Development Bank of Southern Africa (DBSA). The facility is intended for the receipt, storage, blending and issuing of refined products. It will import petrol, diesel and blending components via the port of Durban. The distribution of product will take place mainly via the multi products pipeline (MPP) to Gauteng, export via the port, and dispatch of product by road and rail. Golder Associates Africa (Pty) Ltd (Golder), an independent environmental consulting company, was appointed to undertake the required environmental authorisation processes for the proposed project. The proposed operations will require an Environmental Authorisation (EA), Atmospheric Emission Licence (AEL) and Water Use Licence (WUL), in terms of the Environmental Impact Assessment (EIA) Regulations, 2014 as amended (RSA, 2014e). The first phase of the EIA is the Scoping Phase, during which interested and affected parties (I&APs) are given the opportunity to comment on the proposed activities and the proposed scope of the EIA specialist studies. This Scoping Report is being presented to I&APs and stakeholders to provide them with the opportunity to comment on the proposed project. The due date for comment on this Scoping Report is Tuesday, 14 May 2019. Comments received during the public review period will be acknowledged and recorded in the draft EIA Report, which will be presented for public comment at a date to be advised. Summary of what the Scoping Report contains This report contains: A description of the proposed activities; An overview of the EIA process, including public participation; A description of the existing environment in the proposed project site; The anticipated environmental issues and impacts which have been identified; and The proposed scope of specialist studies planned for the EIA phase. Scoping Phase Impact Assessment Environmental Decision-making Phase Impact Report Phase To identify issues, to Detailed studies of Consolidate Proponent and focus the EIA potential impacts, findings of impact authorities use EIA positive and negative assessment findings to decide if studies project goes ahead The figure above shows the various phases of an EIA. This EIA is in the Scoping Phase, during which interested and affected parties comment on the proposed project. ii 10 April 2019 1791874-325631-10 PUBLIC REVIEW OF THE SCOPING REPORT This Scoping Report is available for comment for a period of 30 days from 10 April 2019 until 14 May 2019 at the public places near the project site listed in the table below and upon request from the Public Participation Office of Golder Associates. Umbilo Library Deena Nair (031) 205 3875 Montlands Library Estelle Gerricke (031) 462 8265 Golder Associates Africa, Midrand Ms Antoinette Pietersen (011) 254 4994 The Golder Associates Africa website www.golder.com/public OPPORTUNITIES FOR PUBLIC REVIEW Stakeholders who wish to comment on the Scoping Report may do so in any of the following ways: Completing the comment sheet enclosed with this report or on-line via the Golder website (www.golder.com/public); Additional written submissions; and Comment by e-mail or telephone. DUE DATE FOR COMMENT ON THIS SCOPING REPORT IS 14 May 2019 Please submit comments to the Public Participation Office: Antoinette Pietersen or Molatela Ledwaba Golder Associates P O Box 6001 HALFWAY HOUSE, 1685 Tel: (011) 254 4805 / 4937 Fax: 086 582 1561 Email: [email protected] iii 10 April 2019 1791874-325631-10 Executive Summary Introduction Lanele Group (Pty) Ltd (Lanele) is a privately-owned South African company with a track record in the downstream oil, gas and energy sector. Lanele was founded in 2005 to focus on the energy and commodities sector. Using in-house expertise in the oil refining, gas, and coal to the petrochemical industry, as well as the biofuels sector, the company has made inroads into the downstream segment of the energy production value chain. Lanele is proposing to develop (in phases) and operate a 225 000 m3 liquid fuel blending and storage terminal at Ambrose Park, in Bayhead, Durban to be known as the “Lanele Oil Terminal 1 (Lot 1)” project. The portion of land is approximately 7 hectares (ha) and has been leased from Transnet Properties for 20 years with an option to renew for an additional 10 years. The first phase of the proposed project is to be funded by the Development Bank of Southern Africa (DBSA). The proposed Project is intended for the receipt, storage, blending and issuing of refined products to meet the growing South African demand for specific products. It will import petrol, diesel and blending components via the port of Durban. The distribution of product will take place mainly via the multi products pipeline (MPP) to Gauteng, export via the port, and dispatch of product by road and rail. Authorisation Process The proposed project requires an Environmental Authorisation to be undertaken through an Environmental Impact Assessment (EIA) process in terms of EIA Regulations of 2014, as amended (RSA, 2014e), under the National Environmental Management Act 107 of 1998 (NEMA), as amended (RSA, 1998a). Golder Associates Africa (Pty) Ltd (Golder), an independent Environmental Assessment Practitioner, is conducting the EIA process and is compiling the Environmental Management Programme (EMPr). This Scoping Report focuses on identifying the key issues, related to the proposed operations and associated infrastructure, that will be addressed in the impact assessment phase to follow. Concurrently with the EA application and supported by this EIA process, the proposed project development must acquire an Atmospheric Emission Licence (AEL) and a Water Use Licence (WUL) from the eThekwini Municipality: Environmental Health Department and KwaZulu-Natal Department of Water and Sanitation (KZN DWS) respectively. Project Description The proposed project will be developed in phases over the first few years to reach a total liquid fuels storage capacity of 225 000 m3. The proposed development will have various sizes of tanks for the storage and blending of Marine Gas Oil, Jet A1 fuel, Ultra-Low Sulphur Diesel, special diesel blend stock, Unleaded Petrol 95RON, and high octane fuel. The project site will also have loading and off-loading areas, pumps, a slops tank, a fire water tank, sumps, spill basins, a vapour recovery unit and associated pipework and infrastructure, as well as an administrative building, security office, workshop, warehouse, laboratory, substation, equipment room and generator. iv 10 April 2019 1791874-325631-10 Baseline Environmental Conditions This Scoping Report provides details about the current condition of the biophysical and socio-economic environment that may be affected by the proposed development. More detailed studies, focusing on significant environmental and social impacts and aspects of the proposed development, will be provided in the EIA Report. Geology The local geology of the project site is predominantly characterised by quaternary deposits in the form of beach sand and dune deposits, underlain by estuarine deposits. Drilling on the project site showed Carboniferous Karoo Supergroup lithology: dark grey, fine to coarse grained, Diamictite rock at an average depth of depth of about 29 m. Topography The surface topography is mainly the result of dredging and land reclamation completed many years ago and to a lesser extent concrete lined drainage channels on the north-eastern areas of the project site. The thickness of dredged/imported material varies across the project site and accounts for the topography on site. The project site is defined by gentle undulating gradients, with the ground sloping at an average rate of 5%. The land at the project site has an elevation of about 40 m at its highest point above sea level. Climate South Africa is situated in the subtropical high-pressure belt. The mean circulation of the atmosphere over the subcontinent is anticyclonic. The typical Durban climate is classed humid subtropical, and generally has warm and humid summers with summer rainfall, and milder, drier winters. The winds over the project site are expected to originate most commonly from the south-westerly (in winter mainly due to cold fronts) and north-easterly (in summer) sectors. Winds tend to shift from the south-south-west/ north-east in the daytime to the south-west/ north-north-east at night. Wind speeds are moderate, averaging 4.5 m/s with a low percentage (2.5%) of calm conditions (<1 m/s) Air Quality Existing air pollution sources within the region of the project site include domestic fuel burning for space heating and cooking, vehicle emissions, fuel storage tanks in the Durban harbour and oil refineries.
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