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Executive Summary EXECUTIVE SUMMARY OPTIMISTIC ORGANIC Sdn. Bhd. (OOSB) is currently operating a 30 000 tn/yr Maleic Anhydride (MA) production facility in the Teluk Kalong Industrial Estate (TKIE) in Kemaman, Terengganu. The following EIA and QRA reports related to OOSB MA complex have been done and submitted to DOE: I. Environmental Impact Assessment (EIA) for the Proposed TLC Industries (M) Sdn. Bhd. Maleic Anhydride Plant in Kemaman, Terengganu, Malaysia,1995. II. Preliminary Risk Assessment for the Proposed TLC Industries (M) Sdn. Bhd. Maleic Anhydride Plant in Kemaman, Terengganu, Malaysia,1995. III. Supplementary EIA Report for Incinerator for the Proposed TLC Industries (M) Sdn. Bhd. Maleic Anhydride Plant in Kemaman, Terengganu, Malaysia,1995. Over the years of operation, demand for these products is more than it was originally foreseen. In order to meet this demand, OOSB are planning to upgrade the plant capacity of existing plant at additional 33% to 40 000 tn/yr. This will involve installation of additional equipment and revamping of existing equipment. .All new equipment will be constructed within the current plant boundary. PROJECT TITLE The title of this report is Environmental Impact Assessment (EIA) for the Proposed Maleic Anhydride Plant Expansion in KawasanPerindustrianTeluk Kalong, Kemaman, Terengganu. STATEMENT OF NEED The proposed facility expansion is toincrease the production of Maleic Anhydride (MA) to meet the increasing worldwide demand for this important petrochemical product which is used in coatings, adhesives, resins, paints, plasticisers, insecticides and food chemical worldwide. Page Exe - 1 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary PROJECT INITIATOR AND CONSULTANTS The project initiator for the proposed project is Optimistic Organic Sdn. Bhd. with its corresponding address is as follows: Optimistic Organic Sdn. Bhd. Lot 3351, Teluk Kalong Industrial Estate 24007 Kemaman, Terengganu Tel: 09-863 3029 Fax: 09-863 3085 Contact Person:Mr Parekh NareshkumarKhimchand (President) : Tn. Hj. Ali b. Hj. Ayub (Manager) : S. Rajmohan (Head QA & System Administration) The Project Initiator has appointed HSE Management Sdn. Bhd. to conduct the Environmental Impact Assessment (EIA) for the proposed project. The correspondence address of HSE Management Sdn. Bhd. is as follows: HSE Management Sdn. Bhd. 1-5, E2, PJU1/42A, Dataran Prima Petaling Jaya, 47301 Petaling Jaya Tel: 03-7880 2981 Fax: 03-7880 7981 Contact Person: Mrs. Santa Naidu (Manager) PROJECT LOCATION The proposed project located in Teluk Kalong Industrial Estate (TKIE), Kemaman, Terengganu. The proposed plant expansion shall be established on the existing facility on a 12.5 ha parcel land located at the north end of industrial estate. The TKIE is located less than 1 km from Kemaman Port, which has adequate facilities to handle the raw materials if required. The TKIE is approximately 8 km north of the Chukai Town. Kuantan is located 68 km while Kuala Terengganu is located 140 km to north. The location for the proposed project location is shown in Figure ES-1. Page Exe - 2 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary Proposed Project Location, Teluk Kalong Industrial Estate Figure ES-1: Location of the Proposed Plant Page Exe - 3 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary PROCESS DESCRIPTION The operation of the existing plant is to produce pure Maleic Anhydride with the capacity of 30 000 Tonne per annum (TPA). The MA facility is built to operate using n-butane as feed stock. Figure ES-4andFigure ES-5show the n-butane plant and the existing and future mass balancefor the Proposed Maleic Anhydride Plant Expansion. The process involves the gas phase oxidation of raw butane in the presence of air with a fixed bed catalyst to form crude MA (CMA). Five per cent of CMA is condensed and separated The remaining CMA remains in gas phase with the other reaction gas products and inert gases. This CMA is recovered by washing the vapour with water to form maleic acid solution. This solution is dehydrated using orthoxylene to form CMA and fumaric acid. The CMA produced from the dehydration is recombined with the condensed CMA and purified using distillation process. The fumaric acid is separated as a by-product after the dehydration process. The main raw materials for the plant are mixed butane. At past the plant was operated with benzene as a feed stock and now the raw material changed from benzene to n-butane. For this process the raw butane (mixed butane) is sourced from PETRONAS. Mixed butane supplied through pipeline passing by the side of the plant. The raw butane separation and subsequent conversion technology has been supplied by UOP. Table ES-1: List of Raw Materials and Finished Products A. RAW MATERIALS QUANTITY Before Expansion After Expansion Mixed Butane 40000 Ton / Year 50000 Ton / Year B. PRODUCT Maleic Anhydride 30000 Ton / Year 40000 Ton / Year C. BY-PRODUCT Fumaric Acid 550 Ton / Year 730 Ton / Year Incinerator All the waste gas, liquid and solid residual from the production processesare fed to an existing incinerator where the gases are incinerated in a natural gas flame.Figure ES-2 shows the mass balance of incineration process before and after the proposed expansion. Page Exe - 4 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary The combustion products from the burner are injected with steam to minimise smoke generation. The hot gases then pass through a series of 8 heat exchangers before they are vented to the atmosphere through a stack. The heat removed from the vented gases is used to preheat air used in the incinerator and generate steam. There will be no expansion in the existing thermal Incinerator, as the existing design is sufficient to cater for an additional feed rate.The plant will be taken shut-down automatically when the incinerator fails (as per Process Control System and Procedure) as to run Oxidation (Reactors) Plant, it is mandatory to have the thermal Incinerator running. BEFORE EXPANSION (EXISTING): WATER STEAM IN (8 TPH) OUT (8 TPH) (a) FEED GAS (126500Kg/h) FLUE GAS (b) SUPPORT FUEL GAS(150 Kg/h) (NATURAL GAS) 126776 Kg/h (c) RESIDUE (126 Kg/h) (LIQUID) AFTER EXPANSION: WATER STEAM IN (25 TPH) OUT (25 TPH) (a) FEED GAS (190000 Kg/h) FLUE GAS (b) SUPPORT FUEL GAS(450 Kg/h) (NATURAL GAS) 190620 Kg/h (c) RESIDUE (170 Kg/h) (LIQUID) Figure ES-2Feed to the Incineration Process before and After The Proposed Expansion. Page Exe - 5 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary Effluent Treatment The Effluent Treatment Plant Systems is shown in Figure ES-6.There will be additional wastewater volume that will be sent to the treatment plant. The new loading however is still much below than the design capacity of the existing treatment plant. Figure ES-3shows the water balance and volume that will be sent to the treatment plant before and after expansion. Page Exe - 6 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary Water Balance All figures are M3/Month Present figures are estimated for 30000 MT production/month Evaporation & drift loss Future figures are estimated for 40000 MT production/month 23045 30727 Estimated rain water as all drying beds and plant are open to atmosphere 25606 2561 90 Cooling tower 34141 3414 Raw water 31384 4158 416 3504 3894 DM plant ETP 41845 5544 554 4673 5163 1320 Domestic and 528 300 general use 1760 704 Mainly wash 400 water in Chemicals preparation at Mainly toilet operation area ETP water Septic tank 792 1056 Figure ES-3 Overall Water Balance Before and After Expansion (numbers in brackets are values after expansion) Page Exe - 7 EIA for the Proposed Maleic Anhydride Plant Expansion in Teluk Kalong Industrial Estate, Kemaman,Terengganu Executive Summary Hydrogen Title: N-Butane Plant Diagram. Trailer Hydrogen Trailer Lights Gas Mixed Boiler Dryers Butane Petronas Metering Dryers De- Station isobutanizer Dryers Iso-Butane PCE Hydrogen MA Plant n-Butane Heavier Gas Butamer Storage Bullet to Reactor Boiler Mix-Butane Stabilizer Regent Vaporizer Lights Gas to Boiler ETP Scrubber Superheater Caustic Lye Condenser All Dryers Figure ES-4: n-Butane Plant Diagram Page Exe - 8 EIA for the Proposed Maleic Anhydride Plant Expansion in KawasanPerindustrian Telok Kalong, Kemaman, Terengganu Executive Summary MA plant capacity increse from 30000tpy to 40000tpy Mixed Existing Future Eu Butane 37600 50000 TPY OFF Existing Future Eu BUTANE PLANT TO BOILER GAS 3088 4107 TPY (yield at 92%) Existing Future EU H2 80 107 TPY N-Buatne MA plant S.No Description Units EXISTING FUTURE Existing Future Eu MA Finished product Existing Future Eu 1 Capacities TPY 30000 40000 30000 40000 TPY N Butane MA reactors Operating 34592 46000 TPY 2 % 1.7 1.5 FAC 550 730 TPY By product Mole ratio 3 MA reactor yield % 90 90 Reactor to distillation Existing Future Eu 4 % 96.5 96.5 Existing Future Eu Air yield Raw gas 1000000 1515450 TPY 5 Running hrs 8000 8000 1003502 1520000 tpy TO INCINERATOR Process 6 Plant Reliability % 95 98 540 720 TPY residue Figure ES-5: Overall Mass Balance for the Proposed Maleic Anhydride Plant Expansion Page Exe - 9 EIA for the Proposed Maleic Anhydride Plant Expansion in KawasanPerindustrian Telok Kalong, Kemaman, Terengganu Executive Summary EXISTING ENVIRONMENT CLIMATE The climate of the Proposed Project site can generally be characterized as humid warm weather conditions throughout the year, with uniform temperatures, high humidity and rainfall. Humidity and temperature show very little variations over the year and it is difficult to divide the year into distinct wet and dry seasons.
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