Pengerang Energy Complex Sdn Bhd Environmental Impact Assessment Pengerang Energy Complex 6 EXISTING ENVIRONMENT 6.1 Site Setting The PEC’s 250 acre or 101.2 ha site is broadly rectangular, oriented west to east, where it tapers to a triangular section at its eastern end. The site ranges in length from a maximum of ~1,800 m measured along the northern boundary to a minimum of ~1,390 m along the southern boundary. In breadth, it measures a maximum of 660 m measured along the western boundary, reducing to 600 m just before it tapers to a minimum breadth of 115m at its eastern end. The PEC’s southern boundary is between 280m to 330m north of the PIC/ RAPID project border and, at minimum, 500m from the PIPC boundary to public areas to the west and north of the PEC. An analysis of land use within 5 km of the PEC site is provided in the sections below. The PEC site/ PIP is located within the JPDC sponsored, Pengerang Integrated Petroleum Complex (PIPC), a wider, 80 km2 (> 20,000 acre) area zoned for integrated downstream oil and gas industries. Ongoing projects in the PIPC (Phase 1) are the 6,277 acre, Pengerang Integrated Complex (PIC), which includes the Petronas RAPID Project, and the Pengerang Deepwater Terminal (PDT), the PIPC’s 1,355 acre Centralised Tank Farm area including Dialog’s bulk storage terminal and jetty operated by Pengerang International Terminals (PIT). 6.1.1 Site Access Current road access to the PEC project site from Kuala Lumpur or Johor Bahru is across the Johor River on the Senai-Desaru highway (Route E22), followed by a 25 km drive south along Jalan Kota Tinggi – Sg. Rengit (Route 92), before taking the new JPDC sponsored PIPC Ring Road (Jalan Kota Tinggi – Pengerang) a few kilometres to the temporary PIC Access Road (unnamed) to the PEC site, journeys of 415 km/ 4.5 hrs or 95 km/ 1.5 hrs respectively. From downtown Singapore, the site can be accessed by car ferry from the Tanah Merah Ferry Terminal (TM) south of Changi Airport to the Tg. Pengelih (TP) Ferry Terminal in Pengerang followed by a 12km drive along the PIPC Ring Road to the site, a total length of 60km / 2 hrs. Ferry services also operate from TP to Changi Point Ferry Terminal, north of Changi Airport, Tg Belunkor to Tanah Merah and Batam and from Sebana Cover Resort on Sg. Sebina to Tanah Merah, Changi Point, and/or Harbourfront in Singapore. 6.1.2 Administrative Setting The project site is situated in Pengerang Sub-district (Mukim), Kota Tinggi District (Daerah), Johor State (Figure 1.1): • Johor State, the most southerly state in Peninsula Malaysia, bordering Singapore, is some 19,000 km2 and has a population of 3.65 million Johoreans’ at a density of ~175/km2. The State Government is centred in the capital, Johor Bahru. The state is administratively divided into ten districts, with 103 Sub-districts (or mukim); • Kota Tinggi District, in the southeast of the state, is ~3,500 km2 in area, with a population reportedly around 200,000, with official census population (2010) ~175,000 at a density of 51 /km2, and 10 sub- districts (mukim). Administratively, the district is governed by two local authorities; • Kota Tinggi District Council (Majlis Daerah Kota Tinggi (MDKT), which governs northern part of the district; • Pengerang Local Authority (LA), or Pihak Berkuasa Tempatan (PBT) Pengerang, which, since its launch in January 2017, governs the southern part of the district, covering the five sub-districts and an area of 1,288 km2. The three southernmost sub-districts were reported to have a population (2010, pre-RAPID) of ~48,600. JCorp, the developer of the PIP, administers the Pengerang LA a role similar to the one it performs at Pasir Gudang Industrial Estate; and • Pengerang Sub-District (Mukim), is reported to be 184 km2 in area. April 2019 6-1 J18-780-MY-PA PEC EIA Rev 00 Pengerang Energy Complex Sdn Bhd Environmental Impact Assessment Pengerang Energy Complex The Johor State Investment Centre (JSIC) is the Johor Government body set up to assist new investors in the state, and they are assisted by JPDC at federal level. JCorp together with ‘Invest Pengerang’ are expected to assist at local government level. 6.2 Site and Surrounding Land Use The PEC site terrain is undulating, varying in elevation by over 40m, from less than 20 meter above mean sea level (m. amsl) at is western end to over 60 m. amsl at the top of a small hill in the eastern triangular section. (Figure 6.4) Table 6.1 below provides an estimated breakdown of the areas of each of four types of land use observed at the site. The area estimates are derived from ESC’s site survey and the most recent, clear Google Earth imagery (from 2016). Figure 6.1 shows the area estimates on a land use plan within the site boundaries. It is noted that, other than as specified, no other sensitive land use was observed within the site boundaries. Other sensitive receptors such as hospitals/clinics, schools, day-care facilities, elderly housing and convalescent facilities were not found within a 500 m to 1 km of the project boundary. The nearest village, Kg. Lepau, is about 2 km to the northwest of the site. The larger part of the proposed 250-acre PEC site was covered with secondary vegetation, with only about 22% (by area). Active orchid plantations and fish aquaculture were noted in the south western part of the site in July 2018, the time of first site visit. The aquaculture farm was estimated to rear 15,000 snakehead fish (ikan toman). According to a worker on site, the farm had been operating for the last 8-10 years and there were 3 workers staying at the farm. There was evidence of recent forest fires at the northern section of the PEC site. An abandoned papaya orchard was also noted within the site. According to JCorp, all tenants of the site had moved out by end of November 2018. Another site visit was conducted in December 2018 and it was confirmed that all tenants had vacated the site. Also noted was the construction of a detention pond at the Southwest corner of PIP and the construction of the new road by the Public Works Department (JKR) running along the southern boundary of PIP between PIC and RAPID site. Based on site observations, available maps and satellite imagery, neighbouring land use is summarised as follows: • North: Secondary vegetation and the works yard of PERI Formwork Malaysia Sdn Bhd; • South: A chicken farm and the PIC, with its ongoing construction sites for the Pengerang Cogeneration Plant (PCP) and the Petronas RAPID Project; • East: Plantation and secondary vegetation; and • West: Secondary vegetation. Existing land use on areas surrounding the proposed PEC site and that are to be part of the PIP was observed to be similar to that observed at the PEC site, comprising predominantly remnant vegetation on disturbed land, Axianergy (an industrial site), two chicken farms, plantation land and disused ponds. There are no settlements within areas earmarked for the PIP. Photos 1 to 36 show the land use within the site and surrounding receptors. Table 6.1: Land Use on the 250 Acre PEC Site Land Use Designation Area (±) No. Land cover (From Rancangan (acres) (%) Tempatan Dearah) 1 Secondary vegetation & disturbed land Agricultural 175.4 70.2 2 Plantation (vegetable farms) Agricultural 55.5 22.2 3 Disused ponds Agricultural 14.3 5.7 4 Road Agricultural 4.7 1.9 Total 250.0 100.0 April 2019 6-2 J18-780-MY-PA PEC EIA Rev 00 Pengerang Energy Complex Sdn Bhd Environmental Impact Assessment Proposed Pengerang Energy Complex Figure 6.1 – Existing Land Use within the PEC Site Source: Site visit 20th - 22nd February 2018 and Google Earth Image, 2016 April 2019 J18-780-MY-PA PEC EIA Rev 00 6-3 Pengerang Energy Complex Sdn Bhd Environmental Impact Assessment Pengerang Energy Complex 6.2.1 Industrial Land Use in PIPC Phase 1 (Ongoing) Phase 1 of the PIPC comprises the ongoing 6,277 acre, Pengerang Integrated Complex, a key project under Malaysia’s Economic Transformation Programme (ETP) to meet future domestic energy requirements, and the Pengerang Deepwater Terminal, designed to meet the growing need for storage capacity of crude oil and petroleum products in South East Asia (SEA) and the wider Asia region. Figure 6.3 shows a schematic layout of the PIPC facilities. From before 2015, soon after the first PIPC facility, the Dialog Terminal at the PDT, commenced operation, JPDC and the Johor Government have been improving infrastructure and public amenities in the area in line with the PIPC masterplan including: • New roads and upgrades – Upgrading of 27 km of FT92 from Sg. Rengit, construction of 15 km of new PIPC ring road (NRR) as well as the tendering 24 km of internal PIPC roads and 20 km of drainage works with all to be complete in 2019. • New fire stations have been constructed in Pungai, Sebana and Sg. Rengit, as well as a new police station, schools and medical facilities upgrades. The land use and activities of the constituent parts of each of the two principal PIPC Phase 1 projects are outlined below, focussing on where the PEC has potential to significantly add to the PIC project’s cumulative loadings to the environment: • Pengerang Deepwater Terminal (PDT): The multi-phase, PDT project is being led by Dialog, in a joint venture with Royal Vopak and the Johor Government.