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Executive Summary PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED BULK FUEL TERMINAL AT KUANTAN PORT, PAHANG Executive Summary ES 1.0 Title of the Project This Preliminary Environmental Impact Assessment (PEIA) is prepared for the “Proposed 47,000 m3 Bulk Fuel Terminal at Kuantan Port, Pahang for Boustead Petroleum Marketing Sdn. Bhd.”, hereinafter referred to as “the Project” in this report. ES 2.0 Project Proponent and EIA Consultant The Project Proponent is Boustead Petroleum Marketing Sdn Bhd (BHP). Starting as BP in 1964, BHP is currently a member of the Boustead Group of companies focusing in downstream petroleum marketing business. Address: Boustead Petroleum Marketing Sdn. Bhd Level 15, Surian Tower, No.1, Jalan PJU 7/3, Mutiara Damansara, 47810 Petaling Jaya, Selangor Darul Ehsan, Malaysia Telephone: +603 7841 6666 Fax: +603 7841 6677 Email: [email protected] Contact person: Tn Hj Mohamad Azahan bin Abd Kadir Position: General Manager – Operations and HSSE The EIA Consultants appointed to carry out this environmental impact assessment (EIA) is AECOM Malaysia Sdn. Bhd. (AECOM). Address: AECOM Malaysia Sdn. Bhd. Level 2, Tower Block, Menara KLK, No. 1, Jalan PJU 7/6, Mutiara Damansara, 47810 Petaling Jaya, Selangor. Telephone: +603 7863 7800 Fax: +603 7863 7900 Email: [email protected] Contact person: Tan Giok Hui Position: Associate, Environment KULD15070 EXECUTIVE SUMMARY Page | ES-1 PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED BULK FUEL TERMINAL AT KUANTAN PORT, PAHANG ES 3.0 Project Location The Project is located at part of Lot 1863, Mukim Sungai Karang, Daerah Kuantan, Pahang Darul Makmur, Malaysia. The Project will be developed within the Kuantan Port boundary and is accessible via Jalan Pelabuhan 3/3 and Jalan Pelabuhan 3/4. The Project site has a total acreage of 25,080 m2. The Project location is depicted in Figure ES-1. KULD15070 EXECUTIVE SUMMARY Page | ES-2 PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED BULK FUEL TERMINAL AT KUANTAN PORT, PAHANG ES 4.0 Project Background Boustead Petroleum Marketing Sdn Bhd (hereinafter referred to as BHP) intends to build a new bulk fuel terminal on a site covering an area of 25,080 m2 within Kuantan Port, Pahang. The Project site was previously occupied by a tenant that imported, exported, refurbished and stockpiled industrial pipes, but is currently vacant. The new terminal will be built for the storage of BHP’s main products (namely unleaded gasoline [ULG 95, ULG 97] and diesel), Palm Oil Methyl Esther (POME) and chemical additives. The total storage capacity of the Project is about 47,000 m3, provided by a total of 8 bulk fuel storage tanks that will be installed at the terminal. The main products will be delivered to the new terminal by ship and distributed to BHPetrol stations and other commercial customers within the east coast region by trucks. ES 5.0 Statutory Requirements The Project is listed as a “Prescribed Activity” under “Schedule 12(v) Construction of product depots for storage of petrol, gas or diesel (excluding service stations) which are located within 3 kilometres of any commercial, industrial or residential areas which have a combined storage capability of 60,000 barrels or more in the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order, 1987 and is therefore subject to Section 34A of the Environmental Quality Act, 1974, which requires the submission of an EIA report for DOE approval prior to project commencement. As required by the Department of Environment (DOE) Regulation Notice 7/2/2012, the Preliminary Site Assessment for Development Project (AS PAT 1-12 Form) was submitted to the DOE Pahang by BHP vide letter dated 12th January 2015 (Ref No: BHPETROL/KPI/DOE/Jan/15/01). The AS PAT 1-12 Form was subsequently approved by the DOE Pahang on 23rd January 2015 [Ref No: AS:C50/013/805/001(03)] ES 6.0 Statement of Need BHP currently does not have a bulk fuel storage facility in the East Coast region. Thus, in order to cater to the steady growth of fuel demand in this region, BHP has decided to build a new bulk fuel terminal at Kuantan Port. Generally, the Project supports the aspirations of the 10MP and complies with the planning requirements of various government departments. The Project site would satisfy the requirements of siting and zoning of industries in the established industrial estate and also not classified as an environmentally sensitive area in the NPP 2. The Project also is in line with the Rancangan Struktur Negeri Pahang, Rancangan Tempatan Daerah Kuantan and Kuantan Port City Master Plan. ES 7.0 Project Description The development of the Project involves the installation and construction of storage tanks, administrative buildings, loading gantry and addition pipe rack. The total storage capacity of the Project is about 47,000 m3 and the main products that will be handled by this new terminal are mainly gasoline and diesel. The operation of the bulk fuel terminal is broadly divided into loading operations and storage. There will be no process activities other than minor fuel additive injection to gasoline and diesel and POME injection to diesel. KULD15070 EXECUTIVE SUMMARY Page | ES-4 PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED BULK FUEL TERMINAL AT KUANTAN PORT, PAHANG BHP’s main products will be delivered to the Kuantan Port by ship or marine vessel twice per month from Singapore. From the jetty, the products will then be delivered to the respective storage tanks within the new terminal’s tank farm via pipeline. Fuel additives and POME will be delivered to the terminal by tanker trucks. Empty tanker trucks will arrive at the terminal to be filled with fuel products for distribution to retail stations. Fuel products will be pumped out from the bulk storage tanks to the loading gantries where loading pipes will fill the tanker trucks. Fuel additives and POME will be injected and mixed with the fuels where necessary prior to loading into the tanker trucks. When the fuel loading process is finished, the tanker trucks will exit the terminal and deliver the fuel products to the respective BHPetrol retail stations and other commercial customers in the region. It is anticipated that 25 tankers trucks per day will be filled at the terminal for subsequent distribution of fuel to retail stations. The major components of the Project are: A tank farm for 8 units of storage tanks and additive storage yard. A double-storey administrative office, which consists of an office and general storehouse A single-storey utility building A loading gantry, consisting of five (5) gantry islands ES 8.0 Project Options The “With” Project option indicates a higher beneficial impact compared to the “No” Project option as it is in line with the future plans to increase industrial developments in the Kuantan area based on the Rancangan Tempatan Daerah Kuantan. ES 9.0 Existing Environment This section describes the existing environment which could potentially be impacted by the Project which comprises of components of the physical, chemical, and biological environment, health as well as socio-economic characteristics. The existing environment is summarized in the following table: Component Description Topography, The Project site is located within an existing developed industrial park that is flat. Based on the Geology and Geological Map of Peninsular Malaysia. 8th edition (Geological Survey Department of Soil Malaysia, 1985, the geology of the Project site consists of recent quaternary alluviums comprising marine and continental deposits. The deposit is confined to the clay, silt, sand, peat with minor gravel. According to the Reconnaissance Soil Map of Peninsular Malaysia, the soil type at project site is categorised as Tanah Bandar soil. Climate Meteorological Station: Kuantan from 2005 – 2014 Highest temperature was recorded at 32.3˚C in 2010 and 2014. Lowest temperature was recorded 23.4 ˚C in 2005 and 2012. Highest annual rainfall 3,766.0 mm in 2014 Lowest annual rainfall received was 2,319.0 mm in 2010. Wind direction: Predominantly from northern direction. Drainage and The Project site is within the Drain ‘C’ catchment, with a total catchment area of 451 ha. The Hydrology Project site is surrounded by public stormwater drains that will catch surface runoff and eventually drains into the South China Sea. There are also no water intake points downstream of the Project site. Landuse The Project site is located within a developed port area, i.e. Kuantan Port. The surrounding immediate landuse of the Project site are mainly industries and the major landuse within the KULD15070 EXECUTIVE SUMMARY Page | ES-5 PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT FOR THE PROPOSED BULK FUEL TERMINAL AT KUANTAN PORT, PAHANG Component Description ZOI are well-established industrial estate, namely Gebeng Industrial Park I, Gebeng Industrial Park II and Gebeng Industrial Park III. Water Quality Two (2) river water samples were collected from the downstream of the project site (approximately 180 m southwest) in March 2015. The Water Quality Index (WQI) calculation indicates that W1 was slightly polluted while W2 was polluted. The parameters that were higher than Class III limit of NWQS include BOD5, Manganese (Mn) and Iron (Fe). Air Quality Two (2) air quality sampling point has been established at the Project site and nearest sensitive receptors, namely A1 and A2. Air quality monitoring which included total suspended particulates (TSP), Particular Matter with size less than 10 micron (PM10), Sulphur Dioxide (SO2), Nitrogen Dioxide (NO2), Carbon Monoxide (CO) and Volatile Organic Carbon (VOC) were carried out at two (2) locations in March 2015. The results from both monitoring points were well within the stipulated levels for PM10, SO2, NO2 and based on the New Malaysian Ambient Air Quality Standards, 2013. Noise Levels Boundary noise level monitoring was carried out at two (2) locations to establish the current noise level for the Project site and nearest sensitive receptors, namely N1 and N2.
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