Terms of Reference

For INSTALLATION OF LIQUEFIED

PETROLEUM GASES (LPG) IN PULAU
INDAH, PORT KLANG

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016

Document Control
Document Information

Document Id
Document Owner
Issue Date
Last Saved Date

Information
PNG-0032
LPG Sdn. Bhd
20 Jan 2016
30 April 2016
INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)
IN PULAU INDAH, PORT KLANG

File Name

Document Approvals
Role
Project Sponsor

Name

Signature

Date

Petroliam Nasional Berhad

(PETRONAS)

Project Review Group

LPG Sdn. Bhd
Project Manager

Quality Manager
(if applicable)
Procurement Manager
(if applicable)
Communications Manager
(if applicable)
Project Office Manager
(if applicable)
Safety Manager
(if applicable)

LPG Sdn. Bhd

MUHAMAD FARIS BIN

NOOR AZMAN
MOHAMAD FIRDAUS BIN
YAHYA
NORZAIFEE BIN
NIZAMUDIN
INUN HAZWANI BINTI
KHAIRUDDIN
MOHAMAD SYAHMIE BIN
SIH ARIB
MOHD SIDIQ BIN BASIR

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016

1 Executive Summary
This report present the Environment Impact Assessment (EIA) for the constuction of a
proposed LPG facility in Pulau Indah, Klang Selangor. The proposed project will consist
of stand-alone methanol plants. A two phase production plan will be used for the
implementation, with a design production capacity of 200 metric tonnes per day of LPG
for each phase.
Chapter 2 Brief description of EIA
Chapter 3 Project Requirement
Chapter 4 The objective of the project
Chapter 5 Scope of the project
Chapter 6 Project Proponent
Chapter 7 The description about project members
Chapter 8 Statement of needs
Chapter 9 Description of the proposed project
Chapter 10 Existing Environment
Chapter 11 Environment impact analysis
Chapter 12 Qualitative risk assessment
Chapter 13 Public meetings
Chapter 14 Environmental Management Plan (EMP)

2 Project Definition
LPG Sdn. Bhd was retained by Petronas Sdn.Bhd to conduct an Environmental impact
Assessment (EIA) for a proposed LPG facility at Pulau Indah, Klang Selangor.
The project company was registered in September 2016 and is currently a joint
venture with multinational joint venture partners. PETRONAS joint venture partners have
included The Dow Chemical Company, BASF Netherlands BV, BP Chemicals, Idemitsu
Petrochemical Co Ltd. Mitsubishi Corporation, and Sasol Polymers lntemational Investments
(Pty) Ltd.
The proposed plant (Petronas Sdn Bhd) will be located at Pulau Indah, Port Klang
which has be chosen as our project proponent. Its located near to West Port terminal of the
Port Klang. The proposed project involves the construction and operation of stand-alone
LPG plants. A two phase production plan will be used for the project implementation.

LPG Sdn. Bhd

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
The proposed project (Petronas Sdn Bhd) involves the Mutation and operation of
stand-alone LPG plants. A two phase production plan will be used for the project
implementation. Each of the two phases has an anticipated capacity of 200 metric tonnes
per days of LPG. Phase I is expected to start operation in 2016, and Phase II in 2017. This
ElA shall only focus on the details of Phases l and II. The feed gas will consist of natural gas
from Petronas Carigali Sdn. Bhd.

2.1 Objectives
1.

To examine and select the possible impact of construction and operational phase of
the plant.

2.

To identify and incorporate into the project plan appropriate abatement and mitigating
measures.

3.
4

To determine the significance of the residual environmental impacts predicted

To analyse the qualitative risk to the environment and the public when opening the
LPG plant

LPG Sdn. Bhd

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016

2.2 Scope
i.

The potential hazard to life on the general public due to the construction and
operation of the proposed refrigerated LPG storage tanks

ii.

The potential impacts of various types of wastes to be generated from the

construction and operation of refrigerated LPG storage

iii.

The potential air pollution impacts to sensitive receivers including Pulau Indah
Industrial Centre, Selangor Chemical Works, other sensitive receivers and potentially
affected population may identify during the EIA study for construction and operation
of the Project

iv.

The mitigating step for the construction and operational impact of the LPG plant

v.

Analyse the potential risk and mitigating step that might happen form inside or
outside of the LPG plant

3 Project Proponent
Proponent
LPG Sdn. Bhd

Petroliam Nasional Berhad (PETRONAS)

5

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
Adress

Lot 3288 & 3289, Off Jln Ayer Itam, Kawasan Institusi Bangi,
43000 Kajang, Selangor, Malaysia

Logo

Acronym
Phone
Fax
Principal Activity

PF(K)SB
03 8928 1000
03 8926 5925
Production of ammonia, granular urea, methanol, and

MD \ CEO
Business Activity
Date of Incorporation
Operational Country

formaldehyde.
Mohamad Johari Dasri
Petrochemicals
6/1/1983
Malaysia

4 List of consultant
Mohamad Syahmie bin Sih Arib
+6012-7627639
Syahmie92@gmail.com

Safety officer

Muhamad Faris bin Noor Azman

+ 6011-116966891
farisgenside92@gmail.com

Auditing members

LPG Sdn. Bhd

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
Inun Hazwani Binti Khairuddin
+ 6016-3802175
hazwaniey92@gmail.com

Engineer in environmental

Mohamad Firdaus Bin Yahya

+ 6013-3006967
firdausyahya@yahoo.com

Project planner

Norzaifee bin Nizamuddin

+ 6016 6526105
fiebasyirah27@gmail.com

Software developer

Muhd Sidiq Bin Basir

+ 6016 6526104

EIA Consultant

sidiqbasir1992@gmail.com

5 Statement of needs

Energy type
Primary
energy

Crude oil

definition
A natural product that is extracted from mineral
deposits and that consists essentially of many
different non-aromatic hydrocarbons.
A mixture of gaseous hydrocarbons

LPG Sdn. Bhd

(mainly

Natural gas

methane), which occur in either gas fields or in

Coal and coke

association with crude oil fields.

Coal in the energy balance is mainly bituminous with

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
some anthracite. Coke is obtained from coal by
Hydropower
Aviation
gasoline (AV)
Aviation turbine
fuel (ATF)

Diesel

Electricity

heating at high temperature.

The inferred primary energy available for electricity
Aviation fuel. A special blended grade of gasoline for
use in aircraft engine of the piston type. The
distillation range is 30 C to 250 C.
Aviation Fuel. Fuel for use in aviation gas turbines
mainly refined from kerosene. The distillation range
is between 150 and 250 C.
engines is more critical of fuel quality than diesel for
stationary and marine diesel engines. Marine oil
usually consists of a blend of diesel oil and some
residual (asphaltic) materials.
Electricity generated.
Heavy distillates, residues or blends of these, used
as fuel for production heat and power. Fuel oil
production at the refinery is essentially a matter of

Secondary

Fuel oil

selective blending of available components rather

than of special processing. Fuel oil viscosities vary

energy

widely depending on the blend of distillates and

residues.
A straight-run fraction from crude oil, with a boiling
Kerosene

range from 150 to 250 C. Its main uses are for

Liquefied natural

domestic lighting and cooking.

Natural gas that is liquefied for ocean transportation

gas (LNG)
Liquefied

and export.
A mixture of propane and butane gases that are held

petroleum

in the liquid state by pressure or refrigeration.

gas (LPG)
Motor gasoline
(Petrol)

Refinery gas

Petroleum distillate used as fuel in spark-ignition

internal combustion engines. The distillation range is
within 30 C and 250 C.
The gas released during the distillation of crude oil
and contains methane, ethane, propane and butane.
Most refinery gas is retained in the refinery and used

Non-energy

Non-energy

as fuel in plant operations.

Naphtha, bitumen and lubricants,

use

Products

obtained by the refinery process from petroleum but

which

are

used for non-energy purposes. Naphtha is a refined

or partly refined light distillate, which is further
LPG Sdn. Bhd

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
blended into motor gasoline or used as feedstock in
the chemical industry. Bitumen is a viscous liquid or
solid, non-volatile and possesses waterproofing and
adhesive properties. Lubricating oil is used for
lubricating purposes and has a distillation range
from 380 to 500 C.

6 Project Description
Petronas has planned to install a bottling plant in the vacant area in Pulau Indah, Port Klang
as an extension of the storage of petroleum products. This LPG bottling plant at Pulau Indah,
within the property line of North Port terminal is being established with the purpose of
supplying domestic, commercial and industrial LPG cylinder to the customers of Port Klang
and nearby districts like Shah Alam, Subang Jaya, Damansara and Kuala Lumpur Area. It
will facilitate timely delivery of domestic LPG refills to the customers in these districts. In line
with the Government of Malaysia vision 2015 to cover 75% population near Kuala Lumpur.
Petronas currently operate a bulking terminal in the North Port area of Port Klang.
This facilitiy currently has 18 hydrocarbon tanks (15 installed and three under construction).
These tanks contain a range of hydrocarbon liquids brought into the port by ship and
transferred to tanker trucks or redistribution to customers.
The proposed LPG Bulk Terminal will perform a similar function. LPG will be brought
to the North Port of Port Klang by coastal tanker. LPG will be unloaded at Port into pipelines
and then transferred to two spherical storage tanks on a site adjacent to Petronass existing
bulk terminal. The LPG Will then be repackaged into cylinders and LPG road tankers for
distribution to customers. Currently LPG is brought.by road from East Coast Malaysia. The
proposed plant will reduce the need to transport LPG from Terengganu overland to major
consumption centres near Kuala Lumpur, and thus reduce the associated hazards.
The operations of the existing bulking terminal and the proposed LPG bulking terminal
and bottling plant have been broken down into the following sections:

Jetty Area
Pipelines to Terminal
LPG Tankage Area
LPG Bottling Area

LPG Sdn. Bhd

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016

LPG TTLR area

7 Existing Environment
7.1

PHYSICAL ENVIRONMENT AND LAND USE

Topography

Soil and Geology

Within The Project Site

Land Use in the Surrounding Areas

7.2 LAND USE

7.3

7.4

CLIMATE

Rainfall

Temperature

Evaporation

Surface wind

HYDROLOGY AND COASTRAL PROCESS

Wave Condition

LPG Sdn. Bhd

Current Condition

10

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
7.5

BIOLOGICAL ENVIRONMENT
Flora

7.6

AIR QUALITY

7.7

NOISE LEVEL

7.8

SOCIAL ECONOMY

Fauna

8 Environmental Impact
8.1 IMPACT DURING PRE CONSTRUCTION PHASE
8.2 IMPACT DURING CONSTRUCTION PHASE

Noise
Water disposal
Air quality
Erosion

8.3 IMPACT DURING COMMISSIONING,

DECOMMISSIONING PHASE
8.3.1

Commissioning phase

8.3.2

Operational phase

OPERATION

AND

Transportation of raw material

Storage and handling of raw material and final product
Air quality
Water quality
Noise

8.3.3 Decommissioning phase

8.4 IMPACT MATRIX

LPG Sdn. Bhd

11

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016

9 Risk Assessment
9.1 PROCEDURE RISK ASSESSMENT
9.2 TYPES OF OUTCOME EVENT
9.3 IGNITION PROBABILITY
9.4 STABILITY CLASS

10 Project Milestone

ID
1

Task Name
INITIATION

Develop Business Case

Perform Feasibility Study

13

Establish Terms of Reference

18

Appoint Project Team

22

Set-up Project Office

26

Approval to Proceed

ary
5/01

12/01

19/01

26/01

February
2/02
9/02

16/02

23/02

March
1/03

8/03

15/03

April
22/03 29/03 5/04

20/01

27
28

PLANNING

29

Develop Project Plan

38

Develop Quality Plan

53

Fomulate Supplier Contracts

57

Approval to Proceed

2/02

58
59
60

EXECUTION
Build Deliverables

61

Build Project Deliverables

62

Test Project Deliverables

63

Implement Project Deliverables

64

Monitoring and Control

77

Approval to Proceed

6/02

78
79

CLOSURE

80

Register Assets in Financial System

81

Perform Customer Signoff

82

Release Documentation & Equipment

83
84

Release Project Resources

LPG Sdn.
Bhd
Perform
Supplier Contract Closure

85

Document Project Closure Report

86

Post Implementation Review

87

Project Closure

12

17/02

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016

11 Project Considerations
Impact
Dangerous During Construction

Erosion

creating risk to the road users during

transportation

Mitigating Actions

Limit cleared areas

Physical Barriers

Site traffic control

sediment control plan needs to be implemented to

mitigate environmental impacts due to the
construction activities on open lands

Proper mode of transport such as tanker

complete with safety gadgets attached for the
transportation of raw material.

Proper and well surfaced access route

leading to the plant to prevent accidents of
the tankers which may result in spillage

All raw material and final products will

be stored in the storage tanks at the
designated tank located area.

All raw material and final products will be stored in

the storage tanks at the designated tank located
area.

Air Polution

effective stack height will be designated thus the

possibility of non-compliance emissions as the
effective mixing height is achieved.

The anticipated effects on the water

quality are mainly centred upon
increased effluent generated from the
wastewater treatment plant flowing
into waterways.

Indirect cooling system is use in the process

wherever possible to minimize the water pollution.

LPG Sdn. Bhd

Reduced the impact forces by smoothing out

13

INSTALLATION OF LIQUEFIED PETROLEUM GASES (LPG)

Draft 1 2016
Noises that pose greatest threat to
human body are those which are the
highest pitched, loudest and poorest
in tone and long lasting

LPG Sdn. Bhd

acceleration of moving parts, cushion the

impact by inserting a layer of shock absorbing
material between the impacting surface.

14