M/S Petronet MHB Limited 1

Pre-Feasibility Report

For

Proposed Installation of HSD and MS Transmix

Reclamation Unit (TRU) and Underground Storage Tank with Capacity 3 x 150 KL at Devangonthi Terminal, Bangalore

Project Proponent

M/s Petronet MHB Limited 1. EXECUTIVE SUMMARY

Petronet MHB Limited (PMHBL) is a Joint Venture promoted by M/s Hindustan Petroleum Corporation Limited & Oil & Natural Gas Corporation Limited operating a Petroleum Product pipeline from Mangalore to Bangalore via Hassan in the State of Karnataka. PMHBL was incorporated on 31.07.1998 on common carrier principle to provide petroleum product transportation facility from Mangalore Refinery at Mangalore to the Oil Marketing Company Terminals at Hassan & Devangonthi (Bangalore). PMHBL is proposing to set up a Transmix Reclamation Unit at Devangonthi Terminal, Bangalore. Three storage tank of 150 KLD each, shall be provided to store the processed HSD/MS product.

The TRU is proposed to be constructed within an existing operational terminal of PMHBL in an area of 19 acres.

The brief details of the project are as provided in Table 1.1.

Table 1.1: Project Description

Sr. No Reference to Proposed Site Description 1 Project Proponent Petronet MHB Limited 2 Area 19 acres 3 Nature of Proposed Project Proposed installation of HSD and MS Transmix Reclamation

Unit (TRU) and underground storage Tank with capacity 3 x 150 KL at Devangonthi Terminal, Bangalore 4 Material Transportation Petroleum products will be received through Mangalore-

Facilities Bangalore pipeline and will be dispatched through tankers 5 Settled areas nearby with Devangonthi village- 1 km South

distance Hoskote town- 10.28 km North Bangalore city- 27.2 km West 6 Overall Project Cost ~ INR 80 Crore 7 Manpower Construction phase: 25

Operation Phase: 5 8 Project completion time Estimated 24 months upon approval of Statutory Clearances (Note: Measurement of distances is as per aerial distance) 2. INTRODUCTION

2.1 Project Proponent

2.2 Nature of Project

In multi-product pipeline transportation, as different products move together, an interface is generated between two abutting products and this interface is absorbed in the base product as per Industrial Quality Control Manual Guidelines. The quantity of interface which cannot be absorbed is required to be re-transported to the refinery for reprocessing of the same.

As a step towards optimization of the existing transportation model with efficient interface management and to reduce the energy consumption involved in the re-transportation of the interface generated, Petronet MHB Limited intends to install a Transmix reclamation unit at Devangonthi terminal.

The project activities fall under item no. 6 (a): “Oil & gas transportation pipe line (crude and refinery/ petrochemical products), passing through national parks /sanctuaries/coral reefs /ecologically sensitive zone including LNG Terminal.” under category “A” as per the EIA Notification 2006 and its amendments. 3. SITE INFORMATION

3.1 Site introduction

PMHBL has proposed to set up a HSD and MS Transmix Reclamation Unit (TRU) and underground storage Tank with capacity 3 x 150 KL at Devangonthi, Bangalore. The project location is well connected with Devangonthi Railway Junction within a distance of 1.13 km (W). The total plot area for the terminal is approximately 19 acres.

3.2 Site Alternates

The proposed Transmix Reclamation Unit will be installed in existing operational terminal hence no alternate site was considered.

3.3 Environmental Setting

The Environmental Setting in 10 km radius of project site is presented in Table 3.1.

Table 3.1: Environmental Setting

Sr. No. Particulars Details 1 Plant location Survey no 23,42,43,44 & 45, Tarabahalli village,

Hoskote, Bangalore rural, Karnataka 2 Site Coordinates (To be provided by PMHBL) Proposed Project Site Coordinates S.No Latitude Longitude A 12.988419 77.842334(Tank) B 12.988196 77.842321(tank) C 12.988144 77.842314( tank) D 12.988302 77.842018( TRU) Climatic conditions at Bangalore (Source: IMD) 3 Maximum temperature 34 4 Minimum temperature 16 5 Relative humidity 66 6 Annual rainfall (total) 831mm 7 Plant site elevation above MSL 908 m

8 Plant site topography Flat terrain 9 Present land use at the site PMHBL Devangunthi Receipt Terminal 10 Nearest highway National Highway 207- 3 km West 11 Nearest railway station Devangonthi Railway Station-1.13 km West

Malur Railway Station- 10.4 km East Whitefield Railway Station- 9.3 km West 12 Nearest Airport Kempegowda International Airport Bengaluru-

27.89 km North 13 Nearest major water bodies Hosahalli lake- 2.27 km South-West

Devangonthi lake- 1.70 km South Obalapura lake- 3.00 km South 14 Nearest town/City Hoskote town- 10.28 km North

Bangalore city- 27.2 km West 15 Archaeologically important Nil

places 16 Protected areas as per Wildlife Nil

Protection Act, 1972 (Tiger reserve, Elephant reserve, Biospheres, National parks, Wildlife sanctuaries, community reserves and conservation reserves) 17 Reserved / Protected Forests Tindlu (RF)- Abutting project site

Jadigenhalli (RF)- 7.3 Km North Ramachanndrapura (RF)- 7.1 km North East Tattanur (RF)- 6.86 km South 18 Defense Installations Hindustan aeronautics- 21 kms West

Military area Banaswadi-20 kms West 19 List of major Industries in 10 BPCL Terminal- abutting to project site

km radius IOCL Terminal – 0.75 km West

HPCL Terminal- 0.75 km South

BSC Whitefield Bangalore- 8.5 km towards West 20 Seismicity Seismic Zone-II as per IS 1893 (Part I): 2002 (Note: Measurement of distances is as per aerial distance)

Figure 3.1: Project Location

Figure 3.2: Google Image of the Project Site

Water Requirement

Water requirement during construction and operations of the Terminal is estimated to be as below:

a) During Construction stage: 20 KLD b) During Operations (Post Commissioning): 0.500 KLD for domestic purpose c) The fire water requirement (one time): 1800 KL

Water will be sourced from outside agencies through water tankers. Power Requirement

The electrical up gradation shall require land space of 80 m x 60 m for 66 KV system and 30 m x 40 m for 6.6 KV with LT system and road access on two sides. The above system has to be in safe area. DG sets of capacity 250 KVA will be provided. The DG sets will be provided with Acoustic enclosures for noise reduction.

Manpower Requirement

Manpower requirement for the construction phase is approximately 25 nos. Local labourers shall be preferred. Total Manpower Requirement of the project during operation phase will be around 5 nos. including company staff, contract labors and security personnel etc. 4. PROJECT DESCRIPTION

There is no manufacturing process involved in the terminal. The Process Flow Chart and description of the main operations of the Terminal are as below:

Figure 4.1: Process Flow chart (To be provided by PMHBL)

4.1 The operations at the Terminal can be divided as follows:

Receipt: The interface products are received in the terminal through a Mangalore-Bangalore pipeline. Currently, the various interfaces i.e MS/SKO, SKO/MS, HSD/SKO & SKO/HSD which are getting generated in the pipeline are absorbed into the parent products i.e HSD or MS as per the norms stipulated in the IQCM. The incoming product and the interface product are stored in the Interface tank. At project site, there are total 2 tanks with different capacities are present on a ground. After receiving the product through pipeline, the product is stored in storage tanks. Total 3 tanks will be installed with the capacity of 150 KLD for the storage of processed product.

The details of existing storage Tanks are as shown in Table 4.1.

Table 4.1: Storage Tanks of existing plant

Tank Product Type Ht (m) Dia.(m) Capacity (m3)/day

41-TT-FR-101 HSD-SKO FRVT 9 17.5 1610 41-TT-FR-102 MS-SKO FRVT 9 17.5 1600

Transmix Reclamation Unit: In this first the product from the interface storage tank will be taken into a batch tank (cap 250 KL) from the batch tank, the interface will then be taken into the TRU through feeder lines. Capacity of TRU will be 50 KL/Hr. at any time; TRU will hold only 5 KL for reprocessing/ recirculation. TRU uses a simple two component distillation technology. Owing to the difference in physical properties, the interface gets separated into its components. For e.g.: HSD/MS interface will get separated into MS and HSD during the distillation Process/ Recirculation.

Heavier distillates get collected at the bottom, cooled thru chilling unit and collected in a 150 KL underground storage tank. Three U/G tanks are proposed (each of 150 KL) one each for HSD, MS and the third tank will be utilized as spare in which any off spec product from the TRU will be parked and sent back to TRU for Reprocessing/ Recirculation.

Storage: The finished product from this intermediate storage tank will be sent to an above ground storage tank where the quality parameters will be checked. Upon compliance to quality parameters, the product from this tank will be pumped to the main storage tank for loading in trucks and tankers.

4.2 Plant and Non Plant Buildings and Other Civil Works

The list of major Plant and Non – Plant Buildings proposed is given in Table 4.2. Table 4.2: Plant and Non-Plant Buildings (To be provided by PMHBL)

Sl. No. Description Built up Area, m2 (Estimated) 1 Pipeline control building 468 2 Pipeline office & stores 184 3 LT DG area 70 4 Fire water pump house 127.5 5 Interface Pump house 127.5 6 Metering & filtering facilities 910.8 7 Manifold 324 8 Scrapper area 18.0 9 Air compressor room 20

4.3 Detailed Project layout is attached as Annexure I.

4.4 Tank Fabrication Work

The proposed tanks as specified above will be designed, fabricated and constructed as follows:

• Three U/G tanks are proposed (each of 150 KL) one each for HSD, MS and the third tank will be utilized as spare in which any off spec product from the TRU will be parked and sent back to TRU for Reprocessing/ Recirculation. • The FW pump installed are having capacity of 450 m3/hr ( 2 pumps of 225m3/hr capacity

of each and one standby) and storage capacity is 2400 m3. These installed FW pumps & storage are adequate for new required FW demand.

4.5 Pipeline Work

1 Pipeline Thruput 5.60 MMTPA (Designed Thruput)

Thruput achieved during 2017-18 – 3.500 MMT 2 Design codes ASME – B – 31.4 & OISD - 141 Guidelines 3 Pipeline design life 35 Years 4 Pipeline length 362.373 Kms.

5 Basis for hydraulic Pipeline Hydraulics was carried out based on HSD @

calculation 25 °C . Pumps are suitable for all other products 6 Pipeline diameter 20 Inch & 24 Inch 7 Pipeline roughness 45 Microns 8 MOC for pipeline Carbon Steel 9 Pipeline corrosion allowance 0.5 mm 2 10 Design pressure Mangalore to Neriya (0-79.50 Km) - 68.0 Kg/cm

2 Neriya to Hassan (79.50 -165.50 Km) - 99.8 Kg/cm

Hassan to Devangonthi (165.50 – 362.37 Km) - 70.6 2 Kg/cm 11 Design temperature Ambient (15 – 50 °C) 12 Pipeline protection system 3 LPE External Coating & impressed current

cathodic protection system 13 Source of product Mangalore Refinery & Petrochemicals Limited 14 Instrumentation SCADA for Remote monitoring & Control & PLC

system 15 Metering arrangement Turbine Flow meters (as of now).

Replacement to Mass flow meter work in progress. 5. ENVIRONMENT CONTROL MEASURES

• During the construction phase, there will be fugitive emissions due to movement of equipment at site, dust from leveling, grading, earthwork, foundation work and other construction related activities. These impacts will however, be marginal and temporary in nature. • Sewage generation is envisaged during the operation phase. Toilets will be connected to septic tank and followed by soak pits. Period emptying of septic tanks will be done through authorized agent. • Storm water drains will be provided at the Terminal. These drains will drain storm water from Tank dykes and other areas within the Terminal premises to prevent flooding during rains. • The DG sets shall be acoustically insulated for reduction of noise as per limits prescribed by State Pollution Control Board. The exhaust pipe from DG sets shall be taken above the building as per State Pollution Control norms. • No manufacturing is involved in the Terminal Operations, and there is no hazardous waste generated from the operations. The waste oil generated from the DG sets and fire water pump diesel engines will be collected in barrels and stored in a closed shed until its safe disposal. Spent oil, Oily sludge, empty drums of mercaptan and used lead batteries shall be sent to authorized vendors for disposal. • All conditions & pre-requisites of water and air consents together with certificate to handle hazardous products issued by State Pollution Control Board shall be strictly complied with. 6. FIRE AND SAFETY MEASURES

6.1 Fire Protection Facilities

Fire protection facilities conforming to applicable OISD guidelines and latest SMPV Rules are to be provided as follows:

• Full-fledged auto-pressurized Fire Hydrant System to cover all facilities in the Terminal

• Fire Fighting Pumps with diesel engines including stand by units.

• Fire Hydrant network system with monitors & hydrants, hoses and branch pipe.

• Jockey Pumps.

• Medium Velocity Water Spray (MVWS) systems for storage tanks, tank truck bay, pump house, compressor house. All the water spray systems will be controlled with deluge valves for automatic and remote operation. • Above ground fire water tanks and pumping facilities.

• Portable firefighting equipment

6.2 Electrical Systems

The electrical up gradation shall require land space of 80 m x 60 m for 66 KV system and 30 m x 40 m for 6.6 KV with LT system and road access on two sides The above system has to be in safe area. 100% emergency backup power shall be provided by DG sets (100KVA, 125 KVA, 250KVA) to allow for un-interrupted Terminal operations. The DG sets will be provided with Acoustic enclosures for noise reduction

Electrical work includes providing all facilities required as per codes, standards and IE rules, OISD guidelines and SMPV rules, which include the following:

• Transformed yard.

• Transformer

• HT panels

• Cabling

• PCC, MCC and LT panels

• DG sets for power and lighting (100% stand by capacity)

• VFD for all MS/HSD pump motors • Building and yard lighting area wise as per industry standards

• Earthing, Bonding and Lightning protection systems

• UPS system of adequate capacity for critical safety trip and shut-down systems

• Air-conditioning system

• Emergency shut-off systems

• All electrical systems shall be provided as per Zone Classification for electrical equipment at hydrocarbon facilities • Earthing at all the facilities and structures including tanks as per IS 3043 and complying to statutory norms • All Power and control cables shall be laid either underground or over GI cable trays with proper segregation between Power and control/instrumentation cables. Cable route markers and identification tags to be provided.

6.3 Safety Systems

The Terminal will be designed to meet safety requirements of a HAZOP study and as per PESO and OISD guidelines including:

• All requisite clearances shall be obtained from PESO and other statutory authorities.

• Meet the provisions as per Manufacture, Storage and Import of Hazardous Chemicals Rules 1989, as amended in 2000 and the Public Liability Insurance Act for handling of hazardous chemicals. • The terminal will be provided with gas leak detection and flame detection systems. These systems will be interlocked with the safety and fire fighting systems of the terminal. • All the hazardous waste shall be properly treated and disposed of in accordance with the Hazardous Waste Rules 2008 and its subsequent amendments 2016. • Provision shall be made for maximizing landscaping with plants and green cover inside the terminal • Offsite disaster management plan shall be prepared in accordance with PNGRB guidelines. • Occupational health surveillance of workers shall be conducted and records maintained as per the Factory Act. • A traffic management system shall be developed for the smooth and safe flow of trucks within the terminal. • Consent to establish and Consent to Operate shall be obtained prior to construction and operations of the terminal.

6.4 Automation and Instrumentation System (To be provided by PMHBL)

Control system for process monitoring and control, instruments for measuring the parameters will be provided to critical terminal operating equipment’s.

6.5 Pollution Control Facilities

• Pollution Control facilities as per latest MoEF norms and meeting State Pollution Control Board rules and stipulated as per consent letters/EC conditions. • Effluent shall meet pollution control norms and oil contents not to exceed stipulated level as per guide lines/statutory norms. • Exhaust pipes of DG sets and diesel engines as per air pollution control norms.

• Noise level of DG sets and diesel engines shall not exceed laid down norms by the state pollution control board by provision of acoustic enclosures as required

6.6 Security

• Security features including CCTV, Access Control System

• Compound Wall Covering entire plot will be provided as per statutory requirements and safety norms. • 1.8 m high Chain Link fencing for operational area demarcation based on Electrical Zone Classification. • Truck Entry & Exit gate will be provided as per statutory requirements and safety norms.

• Watch Towers of suitable heights will be provided, depending upon security requirement for effective coverage of entire Terminal.

6.7 Communication System

Telephone lines connected to an intercom by P&T or an equivalent service provider will be provided. A CC TV system shall be installed to monitor critical terminal operating areas. 7. PROJECT SCHEDULE AND COST ESTIMATES

7.1 Project Schedule

The commercial operation date is envisaged in 24 months reckoned from the date of obtaining the Consent to Establish (CTE).

7.2 Project Cost Estimates

The total project CAPEX is the sum of Process Equipment, Equipment Installation and labor, Painting and Insulation, piping material and labor, Instrumentation material and labor, Electrical material and labor, Electric System up gradation, Civil/ Structure material and labor, Technology fee, Home Office expenses, Field Expenses, Commissioning / Start up, Contingency, Packaging, forwarding and transportation.

The total Project CAPEX is approx. Rs. 80 Crore.