Environment & Water Resources 50, El-Hegaz St., Mohandeseen, Giza, Egypt Telephone: +20 (0)2 344 0094 Facsimile: +20 (0)2 344 0097 Email: [email protected] www.worleyparsons.com ENVIRONMENTAL IMPACT ASSESSMENT (EIA) FOR A PROPOSED METHANOL FACILITY IN DAMIETTA PORT (Draft Report) Prepared for: Egyptian Methanex Methanol Company S.A.E. Prepared by: WorleyParsons Komex KE 60029 August, 2006 EMethanex Methanol Plant EIA – Damietta Port TABLE OF CONTENTS EXECUTIVE SUMMARY ..................................................................................................X 1 INTRODUCTION....................................................................................................... 1 1.1 PROJECT BACKGROUND ...................................................................................................1 1.2 PURPOSE OF THE ENVIRONMENTAL IMPACT ASSESSMENT .................................................1 2 LEGISLATIVE AND REGULATORY FRAMEWORK .............................................. 3 2.1 EGYPTIAN ENVIRONMENTAL REGULATIONS .......................................................................3 2.1.1 Conditions in the Workplace....................................................................................................4 2.1.2 Use of Dangerous Materials and Management of Wastes ......................................................5 2.1.3 Air/Odour Emissions................................................................................................................5 2.1.4 Noise Emissions ......................................................................................................................6 2.1.5 Disposal of Liquid Wastes .......................................................................................................7 2.1.6 Protection of the River Nile and its waterways ........................................................................7 2.1.7 Specific Relevant Laws for Marine Effluent .............................................................................8 2.1.8 EEAA Environmental Impact Assessment Guidelines...........................................................11 2.1.9 Additional Relevant National Laws ........................................................................................12 2.2 INTERNATIONAL STANDARDS ..........................................................................................12 2.2.1 European Investment Bank (EIB) Environmental Guidelines ................................................13 2.2.2 Equator Principles (July, 2006)..............................................................................................15 2.2.3 IFC Performance Standards on Social and Environmental Sustainability (Exhibit III of EP, July 2006)............................................................................................................................................19 2.2.4 Industry-Specific Environmental, Health and Safety (EHS) Guidelines (Exhibit IV of EP) ....20 2.2.4.1 Petrochemicals Manufacturing Guidelines, PPAH, World Bank Group (July, 1998) ....20 2.2.4.2 IFC Environmental, Health and Safety Guidelines .......................................................26 2.3 EU LEGISLATION ............................................................................................................28 2.3.1 Community Involvement and Environmental Management Standards..................................29 2.3.2 Processing.............................................................................................................................31 2.3.3 Discharges.............................................................................................................................32 2.3.3.1 Waste ...........................................................................................................................32 2.3.3.2 Water effluent ...............................................................................................................33 2.3.3.3 Air emissions ................................................................................................................36 2.3.3.4 Noise ............................................................................................................................38 2.3.3.5 Biodiversity ...................................................................................................................39 2.3.3.6 Other.............................................................................................................................39 2.4 SUMMARY OF EMISSION STANDARDS ..............................................................................41 2.5 METHANEX REQUIREMENTS/COMMITMENTS.....................................................................44 2.5.1 Methanex as Responsible Care Company ............................................................................44 2.5.2 Methanex Environmental Policy ............................................................................................45 2.5.3 Methanex Environmental Standard for New Facility..............................................................46 2.6 EGYPTIAN PETROCHEMICALS HOLDING COMPANY (ECHEM) HSE MANAGEMENT SYSTEM 46 3 DESCRIPTION OF THE PROPOSED PROJECT .................................................. 48 3.1 SCHEDULE......................................................................................................................48 3.2 CONSTRUCTION MATERIALS, EQUIPMENT, AND ACTIVITIES ..............................................48 3.3 OPERATIONAL ACTIVITIES ...............................................................................................49 3.4 DECOMMISSIONING ACTIVITIES........................................................................................49 3.5 PROCESS DESCRIPTION ..................................................................................................49 3.5.1 Process Chemistry.................................................................................................................49 3.5.2 Process Outline .....................................................................................................................50 3.5.2.1 Natural Gas Preparation...............................................................................................51 3.5.2.2 Natural Gas Reforming.................................................................................................52 DRAFT EIA Report (KE-60029) Page i EMethanex Methanol Plant EIA – Damietta Port 3.5.2.3 Methanol Synthesis ......................................................................................................53 3.5.2.4 Methanol Distillation .....................................................................................................53 3.5.3 Natural Gas and Methanol Product Specifications ................................................................54 3.6 UTILITIES ........................................................................................................................56 3.6.1 Methanol Storage and Loading .............................................................................................57 3.6.1.1 Crude/Off-specification Methanol Tank ........................................................................57 3.6.1.2 Methanol Shift Tanks....................................................................................................57 3.6.1.3 Methanol Product Tanks...............................................................................................57 3.6.1.4 Methanol Ship Loading.................................................................................................57 3.6.1.5 Methanol Truck Loading ...............................................................................................58 3.6.2 Chemical Storage ..................................................................................................................58 3.6.2.1 Caustic Storage ............................................................................................................58 3.6.2.2 Sulphuric Acid Storage .................................................................................................58 3.6.2.3 Diesel Storage ..............................................................................................................59 3.6.3 Cooling Water........................................................................................................................59 3.6.3.1 Cooling Water Tower....................................................................................................59 3.6.3.2 Cooling Water Pumps...................................................................................................59 3.6.4 Raw Water Intake and Treatment..........................................................................................60 3.6.4.1 Raw Water Intake .........................................................................................................60 3.6.4.2 Raw Water Treatment ..................................................................................................60 3.6.4.3 Filtered Water ...............................................................................................................60 3.6.4.4 Potable Water...............................................................................................................61 3.6.4.5 Fire Water.....................................................................................................................61