Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-1

ES1 INTRODUCTION Project Title The title of this Report is “Preliminary Environmental Impact Assessment for the Sabah Ammonia Urea (SAMUR) Plant” and throughout the report shall be referred to as the “Project” or “SAMUR Plant”. Project Proponent and EIA Consultant This EIA Study covers the proposed Sabah Ammonia Urea (SAMUR) Plant and the 8.3 km gas pipeline connecting the SAMUR Plant to the Sabah – Sarawak Gas Pipeline (SSGP) tie point and hence falls under the Prescribed activities Item 8 (a) and 8 (b) of the Environmental Quality (Environmental Impact Assessment) Order 1987 and subject to Section 34A of the Environmental Quality Act, 1974, which requires the submission of an Environmental Impact Assessment (EIA) Report for the approval of the Director General of Environmental Quality before the project may commence. The project Proponent is PETRONAS Chemicals Group Bhd (PCG). This EIA Study was carried out by Golden Ecosystem Sdn. Bhd. (GESB). Project Location The proposed site is located at Sipitang District, approximately 145 km south of Kota Kinabalu and 20 km to the south of the Sipitang town. Positioned at longitude E 115° 30’ 13” and latitude N 5° 00’ 47”, the Project site lies within a parcel of land with Gazettal Notification No. 68/88 19200072 Tanah Simpanan Kerajaan Negeri di Mengalong river. Total land area allocated for the SAMUR plant is 153 acre at an altitude of approximately 5.5 m above sea level.

Cadastral Map (Soumber IEC, 2011) ES - 2Figure 1

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-3

ES 2 PROJECT DESCRIPTION The SAMUR Plant is proposed to be located on a 153 acres plot of land within a proposed development area known as Sipitang Oil and Gas Industrial Park (SOGIP) (Figure 2). SOGIP development covers an area of 4,065 acres encompasses the state land and the Mengalong Forest Reserves. Currently, SOGDC is managing the land acquisition matters with the Land and Survey Department and conversion of the current landuse status from agriculture and forest reserve to industrial area with the Sabah Forestry Department. In parallel, SOGDC is also in the midst of resolving all issues related to the proposed SOGIP development and this include the relocation of the existing settlements on the state land and the existing police shooting range. Preparation of the SOGIP development masterplan is also ongoing comprises the industry plot plans, access road within the SOGIP, demarcation of the buffer zones for the development and the drainage system. Statement of Need The Asian petrochemical market is expected to remain vibrant as regional economy growth remains resilient with forecast growth for the next 5 years at approximately 4.9 percent. Following this, PCG, a subsidiary of Petroliam Nasional Bhd (PETRONAS) plans to set up a plant producing urea and ammonia in Sipitang, Sabah. The initiative shall enhance PCG’s profile as one of the key producer of ammonia and urea in the Southeast Asia region. SAMUR will trigger the further development in south west corridor of Sabah to be the oil and gas hub leveraging on the availability of the gas supply from offshore Sabah. SAMUR implementation shall be in parallel with the development of Kebabangan Field Development, the Sabah Sarawak Gas Pipeline (SSGP), Sabah Oil and Gas Terminal (SOGT) and the Kimanis Power Plant (KPP). The spin off industries is expected to create job and business opportunities for the Sipitang districts and be one of the main economic generators for the state. Project Components PETRONAS Chemicals Group Bhd (PCG), a subsidiary of downstream PETRONAS Group of companies intends to implement the Sabah Ammonia Urea (SAMUR) Plant in Sipitang, Sabah. The plant shall utilize the natural gas supplied via the Sabah Sarawak Gas Pipeline (SSGP) as the main feedstock. This plant is designed to cater an average of 2,100 MTPD anhydrous liquid ammonia for ammonia plant, Urea melt equivalent to 3,500 MTPD of granular urea at the Urea Synthesis Plant and 3,850 MTPD of granular at the Urea Granulation Plant. Layout of the SAMUR Plant is presented as in Figure 3. The development of the SAMUR Project consists of three (3) main components: i. Process Plant

Facilities - Consist of ammonia, urea and granulation plant, jetty facilities,

integrated utility units including cogeneration plant, process buildings, laboratory building and central control building.

ii. Non Process Plant Facilities and

- Consist of the administrative complex, maintenance workshop, warehouse and the Health, Safety and Environmental (HSE) Building.

iii. Gas Pipeline and Metering Facilities

- These components consist of the Gas Pipeline and its metering facilities for Natural Gas Feedstock from Sabah Sarawak Gas Pipeline (SSGP) to SAMUR Plant.

Figure 2 Location of the SAMUR within the SOGIP development ES-4

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-6

Process Description Raw Materials Raw materials for the proposed SAMUR Plant are the natural gas, raw water and urea formaldehyde. Product Specifications The final product from the process plant facilities will be the ammonia, carbon dioxide and urea granules. Detail composition and specifications is discussed in the following section. Process Description Process for SAMUR Plant will involve four (4) different units i.e. ammonia plant, urea Plant, urea granulation plant and urea formaldehyde plant. The overall process flow diagram is shown in Figure 4, while Figure 5, Figure 6 and Figure 7 presents the flow diagram designed for both Ammonia Plant, Urea Plant, Urea Granulation Plant and utility unit respectively. Summary of major processes involved in each plant is described below:

Ammonia Production Plant Urea Production Plant Urea Granulation Plant

Mercury Removal Unit (MRU) Desulphurization Unit Reforming Unit CO Conversion Unit CO2 Removal Unit Process Condensate Treatment Unit Methanation Unit Synthesis Gas (Syngas) Compression

Unit Ammonia Synthesis Loop/Unit Refrigeration Unit Purge Recovery Unit Hydrogen Recovery Unit

Urea Synthesis and high pressure recovery

Urea purification and low pressure recoveries

Urea concentration Process condensate

treatment section Auxiliary installations

Granulator Product cooler

Utility The following utility systems with sufficient capacity and design margin will be provided in SAMUR Plant in order to meet requirement of all production units. The simplified process flow diagram for utility unit is presented as in Figure 8:

Raw Water System Potable Water System Fire Water System Cooling Water System Demineralised Water System Boiler Feed Water System Steam Generation System Natural Gas Receiving and Distribution System Instrument Air / Plant air System Electric Power Generation System Emergency Diesel Generator (EDG) Nitrogen Generation Unit Effluent Treatment Plant (ETP) and Sludge Handling Chemical Storage and Handling System Diesel Oil Storage and Distribution System

Figure 2-2 Page 2-6Process Flow Diagram

UTILITY PLANT

AMMONIA PLANT

UREA PLANT

UREA GRANULATION PLANT

BULK UREA STORAGE

JETTY

Natural Gas (as feed & fuel)80 MMSCFD

Raw Water From Jabatan Air Negeri

Sabah21,000 m3/day

Electricity(COGEN UNIT)

20 MW

NH3CO2

LIQUID AMMONIA

STORAGE at -33ºC

Urea Formaldehyde

Urea Solution

Urea Granules

Bulk Urea for ship loading

Ammonia Loading

Urea Formaldehyde Unloading

COOLING WATER SYSTEMOpen Evaporative

EFFLUENT TREATMENT PLANT

Raw WaterFrom Jabatan Air Negeri

Sabah26,400 m3/day

Natural Gas (as feed & fuel)

90 MMSCFD

Electricity (COGEN UNIT)

30.8 MW

Ammonia Plant Process Flow DiagramFigure 5 Page ES-9

Urea Plant Process Flow DiagramFigure 6 Page ES-10

Urea Granulation Plant Flow DiagramFigure 7 Page ES-11

Utility Process Flow DiagramFigure 8 ES-12

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-12

Jetty Jetty is part of the SAMUR Plant process facilities. Conceptually, the jetty operational design is based on four (4) ships/vessels shall be able to berth and operate simultaneously at any one time. The jetty terminal is designed to allocate three (3) different terminals i.e. Urea Terminal, Ammonia Terminal and Urea Formaldehyde Terminal. The layout of the jetty is presented as in Figure 9. Gas Metering Station and Pipeline The gas pipe line will be tie-in to the SSGP pipeline and connect to the proposed SAMUR Plant. This pipeline will be approximately 8.3 km in length and will acquire land with total area of 12.1 km and is foreseen to have three (3) road crossings (i.e Jalan Sindumin – Sipitang and two (2) small village road) and one (1) crossing at the Mengalong River (Figure 10).

Figure 9 Page ES-14Proposed Jetty Layout

Mengalong River

Paddy Field

Watermelon Farm

ITC Quarters

Kg. Pantai

SFI Residential Area

Kg. Kuala Mengalong– Jalan Pantai Luagan

Tar Road

Unpaved road to access to the Project Site

LEGEND

Pipeline Crossing

Sipitang – SinduminRoad

Figure 10 ES-15Pipeline locations and its crossing

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-15

ES3 EXISTING ENVIRONMENT Topography and Geology The topography of SAMUR area is low lying area with elevation ranged from 8 m above mean sea level to 24.6 m above mean sea level. Only the area to the southeast of the proposed Project site is consist of rolling area as the elevation is 19.7 m above mean sea level. Regional geology of the proposed project site is underlain by hard dark Clay with Shale (Sand Stone) fragments. The granite bedrock is predominantly megacrystic consisting of alkaline feldspar megacryst set in an allotriomorphoic to hydiomorphic groundmass probably aged Late Triassic. Based on Geological Memoir 17 “The Geology and Mineral Resources of the Labuan and Paths Valley Area, Sabah, Malaysia” by Geological Survey Borneo Region, Malaysia. The general geological setting of the site consists of Meligan Formation, Liang Formation and Recent Alluvium deposits Drainage System Surface runoff from the project site flows into the existing unnamed streams which were not gazetted as river by the Department of Drainage and Irrigation (DID) and known as Stream 1 and Stream 2. These streams flow from the Southeast to the Southwest of project boundary. On the Northwest of project boundary, there was Sg. Senulop which flows from the Southwest and subsequently flows into the South China Sea (Figure 11). The existing streams within the project boundary consist of two (2) types which is Sg. Senulop maintains a constant flow, Stream 1 and Stream 2 are only ephemeral due to small catchment area, and high infiltration into the sandy soils below. Landuse The areas surrounding the proposed SAMUR Plant is dominated by scrub forest. The proposed Project site is bounded by the Brunei Bay and South China Sea on the north, Mengalong Forest Reserve on the east and shooting range on the west. The proposed new pipeline route is bounded by the Mengalong Forest Reserve and the South China Sea on the north, Mengalong River, secondary forest, residential and industrial area on the east, Mengalong River, paddy field and residential area on the west and secondary forest on the south (Figure 12). Meteorology Based on meteorological data, the Project area has a tropical climate with high relative humidity and uniform temperature ranging from 27.3˚C to 28.5˚C . The main wind direction is from the South (15.3%), Southwest (14.3%), West (13.9%) and North (13.7%). The percentage of calm wind is 8.1%. The climate is strongly influenced by the Southwest and Northeast Monsoons.

Figure 11 ES-17

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-18

Soil Quality Baseline soil quality was measured at three (3) sampling stations within the Project site. Parameters measured were Total Petroleum Hydrocarbon, heavy metals (e.g. Arsenic, Beryllium, Cadmium, Chromium, Cobalt, Copper, Lead, Mercury, Molybdenum, Nickel, Tin, Zinc, Zinc, Iron, Manganese, Vanadium and Barium) and Oil & Grease. The results of analyses show the values are below the Optimum Standard of the New Dutch List (DIV) at each sampling station site. River Water Quality Baseline river water quality was measured at seven (7) sampling stations within the Project site. 35 parameters measured were pH, temperature, Biochemical Oxygen Demand (BOD), Chemical Oxygen Demand (COD), Total suspended Solids (TSS), Heavy Metals, Fluoride, Phenol, Free Chlorine, Sulphide, Oil & Grease, Ammoniacal Nitrogen, Formaldehyde, Colour, Faecal Coliform and Total Coliform. The results of analysis show the values are within the Interim National Water Quality Standard (INWQS). Ambient Air Quality Baseline ambient air quality was measured at eight (8) sampling stations within the Project site. Six (6) parameters measured were Total Suspended Particulates (TSP), Particulate Matter 10 µm (PM10), Sulphur Dioxide (SO2), Nitrogen Dioxide (NO2), Carbon Monoxide (CO), Ammonia (NH3) and Volatile Organic Compound (VOC) and the results of analyses show the values are below the Malaysian Recommended Air Quality Guidelines (MRAQG) at each sampling station site. Noise Levels Noise levels were measured at seven (7) different locations within the Project site during day time and nighttime. Four (4) stations located within the proposed SAMUR Plant site and another three (3) stations located within the proposed SAMUR pipeline site. Noise level within the SAMUR Plant recorded during day and nighttime were within the permissible level of 70dBA and 60dBA respectively as stipulated in the DOE Guidelines - The Planning Guidelines for Environmental Noise Limit and Control. Noise sources observed during day and nighttime were mainly from the vehicles movement in and out of the Project site and the community activities within the area. Noise level within the SAMUR Pipeline recorded during day and nighttime were slightly higher than the permissible level of 50dBA and 40dBA respectively as stipulated in the DOE Guidelines - The Planning Guidelines for Environmental Noise Limit and Control. Noise sources observed during day and nighttime were mainly from the paddy farmers’ activity and intermittent pubic vehicular movement. Flora and Fauna The flora of proposed Project site is typical of disturbed secondary Kerangas Forest dominated by Acasia mangium. The Acasia mangium and Baeckea frutescens also dominated the nearby area of the Mengalong Forest Reserve. The surrounding areas are prone to forest fire based on field observation. Most of the trees are seedling or juvenile The results of the observation on wildlife indicated that the habitat is a simple and very much altered environment. The majority of the species that have been observed are birds that have adapted to small bush, orchards, reeds and grass, and coastal mudflats. Otherwise, none of the observed species are listed in any of the endangered list either under the Sabah Wildlife Enactment or under the International Union for Conservation of Nature (IUCN) initiatives.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-19

Land Traffic Land traffic was carried out at two (2) locations; LT1 at T-Junction at the main road of Kota Kinabalu – Lawas and LT2 at T-Junction at Kg. Kuala Mengalong – Jln Pantai Luagan from 7.00 a.m. to 7.00 p.m. Analyses indicates that more vehicles were heading from Lawas to Kota Kinabalu (202 vehicles per hour) than from Kota Kinabalu to Lawas (174 vehicles per hour). Rate of vehicles from Lawas entering the Kg. Kuala Mengalong – Pantai Luagan road per hour are 14 vehicles per hour while vehicles entering the road from Kota Kinabalu is 17 vehicles per hour. Marine Water Quality Marine water sampling was carried out at seven (7) locations within 750 m from shoreline up to the control station located 3,600 m from shoreline. The parameters analyzed for marine water were in-situ readings (e.g. temperature , salinity, pH, dissolved oxygen (DO), conductivity, turbidity), Total Suspended Solids (TSS), Chlorophyll-a, Total Petroleum Hydrocarbon (TPH), Total Organic Carbon (TOC), Oil & Grease (O&G), Heavy Metals, Phenol, Nitrate and Sulphide. Generally all the parameter levels were within the CLASS 2 of Marine Water Quality Criteria and Standards for Malaysia (MWQCS). Seabed Sediment Quality Sediment samples were collected from seven (7) sampling stations at the same locations for the marine water samples. The key parameters analyzed for sediment quality are Heavy Metals, Total Hydrocarbon, Total Petroleum Hydrocarbons (TPH), Oil & Grease and Particle Size Distribution (PSD). The results of analysis were within The New Dutch List (DIV) Standard. Marine Traffic Total annual number of vessels within 20 nm of the proposed Project at Sipitang, Sabah is estimated to be 5,240 vessels, where the main type vessels contributor are identified as Ferry (97.5%) followed by Container (1.3%), Merchant (1.1%) and Supply (0.1%) vessels. There are a few major ports operating in the in the vicinity of the proposed Project site and Sipitang port such as Labuan Port at (Sabah), Muara Port (Brunei Darusalam), Tanjong Salirong Port (Brunei Darusalam), Lawas Port (Sarawak) and Menumbok Jetty (Sabah). Sipitang port which is located approximately 5 nm away from the proposed Project site is considered as an area with less marine traffic as it has only one shipping route. Fisheries Fisheries survey was carried within the Project area. Based on the fishing survey it is found out to be that the area has a comparatively low Catch Effort. Interview with the fishermen revealed that most of the fishermen do not fish within the Project area as they know that catches are low and unreliable and most of their catches are for self-consumption. Findings from the fish market survey indicate that almost 100% of the fishes sold in the market are imported from other districts.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-20

Marine Biology In this study, Chlorophyll-a recorded at all sampling stations were less than 5 mg/L and comparable to chlorophyll-a recorded at control station. Total species of phytoplankton identified at the marine water sampling stations varies between 29 to 35. The average phytoplankton density is about 1.49 X 106 cells/m3 which indicated that phytoplankton community in the area is high in diversity. The five (5) most dominant diatoms species found in the study area were Chaetoceros diversus, Coscinodiscus sp, Thalassionema nitzschioides, Chaetoceros coarctatus and Chaetoceros pseudocurvisetus . The Shannon-Wiener Diversity Index (H’) ranged from a value of 3.3028 to 3.5074 with an average of 3.3864 which indicate that the water in the surrounding area is considered healthy and free from pollution Average density of zooplankton recorded at all sampling stations is 230 ind/m3 with total no.of species recorded at all stations ranged from 16 species to 28 species. The zooplankton community were represented by six (6) different groups and mostly dominated by the copepods (84.5%). The Shannon-Wiener Diversity Index (H’) ranged from a value of 2.2883 to 2.7666 and indicate that the water in the surrounding area is considered healthy and free from pollution. Average density of macrobenthos recorded at all sampling stations is 236 ind/m2 with total no. of species recorded at all stations ranged from 14 species to 27 species. The zooplankton community were represented by six (6) different groups and mostly dominated by the Annelida (61.1%). The Shannon-Wiener Diversity Index (H’) ranged from a value of 2.3807 to 3.5236 and indicates that the water in the surrounding area is considered healthy and free from pollution thus concludes that the macrobenthos species in this area are diverse. ES4 SOCIO-ECONOMY Based on the findings from the socio economic study, it can be concluded that the population of Sipitang is responding positively towards the proposed SAMUR Project as they foresee the project as potential for upgrading their standards of living. SAMUR development is seen as their potential source of income from the non lucrative and non dependable income in the agriculture and fisheries sector. Based on the past similar development by PETRONAS in other part of Malaysia, the implementation of a downstream oil and gas industries will also requires the existing infrastructure to be upgraded and this includes a good land, marine and air transportation systems, supporting retail businesses and adequate housing and accommodations to support the potential influx of workers. At the same time, ample job opportunities will also be created for the locals and there will be demands for both skilled and non skilled workers. The development will results in the transformation of a small township into a busy oil and gas hub with self sustaining facilities. In summary, the implementation of SAMUR project will generate beneficial economic advantages that will ripples beyond the Sipitang District to Sabah State. Sabah will have the advantages of exploiting the State’s resources from the offshore and expand its income from the oil and gas sector. ES5 POTENTIAL IMPACTS AND MITIGATION MEASURES The Project generates both beneficial and potential impacts on the environment in terms of physical and social aspects. The environmental impact assessment takes into consideration the activities carry out during the pre-construction, construction of SAMUR Plant, construction of SAMUR Jetty, installation of gas pipeline from SSGP tie-in point to SAMUR Plant and operation of the Project. During land clearing, earthworks, construction and operation, the impacts are air, noise and marine pollution; solid wastes and Scheduled Wastes disposal; traffic and socio-economic. The assessment of the potential environmental impacts has been found to be mainly localized, short-term and insignificant. Appropriate mitigation measures are recommended to minimize the potential impacts to within acceptable levels as summarized in Table 1.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-21

Table 1: Summary of potential impacts and proposed mitigation measures

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

A. Pre-Construction Phase 1) Geotechnical survey 2) Site Topography Survey 3) Soil Investigation 4) Environmental Baseline

Survey

Activities carried out during the pre-construction phase are localized and are not expected to result in significant and long term impacts.

No Mitigation Measures Recommended

Not Applicable

B. Construction Phase (SAMUR Plant)

1) Vegetation removal and clearance

2) Site Preparation works which include import and export of soil and leveling of the platform level

3) Construction of : - Temporary and

permanent infrastructures - Non Process Buildings - Installation of process

equipment

Soil Erosion and Sedimentation Gully and rill erosion on slopes Clogging and obstruction of the site drainage

system. Increased sediment load in the rivers,

leading to clogging of streams and local flooding.

Increase in sediment discharge may lead to moderate siltation if no erosion controls are adopted.

Project Construction Teams and Contractor to prepare

and implement an Erosion and Sediment Control Plan (ESCP) which include provision of sediment basin at appropriate locations prior to the Plant boundary

Stabilize disturbed areas as soon as possible to minimize erosion and this can be done by compacting the soil to reduce from being washed off

Earthworks to be carried out preferably in dry weather to reduce the impact from surface water runoff on barren land.

Site clearing shall be limited to the areas of the boundary of the project site. Vegetation cover should not be cleared until earthworks are ready to begin to reduce potential of siltation and soil erosion

Existing vegetation at areas not utilised for construction to be retained as to reduce impact from surface runoff.

Ensure that

sediment basin are maintained and de-silted regularly

Monitoring of the discharge quality from the sediment basin to ensure Suspended Solids (SS) content is maintained at level not exceeding 100 mg/l.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

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May 2011 ES-22

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Water Quality Siltation due to surface runoff causing

increase in the TSS and turbidity levels of the receiving water bodies.

Spillage and/or leakage of fuel, oils and lubricants from the construction sites results in oil or grease contamination of the nearby water bodies.

Solid waste and construction debris washed by surface runoff can cause clogging of the receiving water bodies flow.

A total of three (3) sediment basin locations are recommended to retain the sediment carry over by surface runoff to ensure discharge into the nearby water causes is non polluting. The design of the sediment basin shall be based on the Urban Storm Water Management Manual for Malaysia.

All sediment basin must be maintained regularly to achieve maximum efficiency and TSS level nor exceeding 100mg/l.

Inspection of the sediment basin and earth drain and other mitigation measures should be carried out after every storm event.

Before the commencement of earthworks, temporary perimeter earth drains shall be constructed to channel surface runoff for control of sediment discharge.

Portable toilets shall be provided to prevent direct discharge of sewage into the water bodies.

Good housekeeping practices with regard to rubbish and other dwelling wastes and regular waste collection are to be adopted.

Water quality monitoring at sediment basin discharge and marine water.

The water discharged from the sediment basin should not contain TSS load exceeding 100 mg/l.

Air Quality Emission of fugitive dust which may

generated from: - Site clearing and earthworks activities

e.g. filling, levelling, compaction etc.); - Movements of construction vehicles into

and out of the Project site. The transportation of earth, waste and construction material will contribute to increased particulate levels in the air.

- Heavy construction vehicles may also collect mud on their tyres, which will be dislodged when they travel on tarred road;

Burning of waste shall not be allowed under any circumstances.

Site-spraying with water shall be carried out to minimize fugitive dust emission in and around the earthwork areas and access routes.

Vehicles transporting construction materials or debris should be properly covered with canvas sheet and secured properly to minimize dust and particulate dispersion to the surrounding atmosphere.

All vehicles or machinery used for the construction activities should be checked and maintained regularly to ensure they are in good working condition so that no excessive gaseous pollutants or dark smoke are

Periodical air monitoring should be carried out to monitor the possible degradation of the existing air pollution.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

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May 2011 ES-23

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

- Materials handling (delivery, unloading

and use of construction aggregates and structural fill); and

- Material/soil tracked out of the site and deposited on local roads.

emitted from the exhausts; Driving speeds of vehicles within the construction site

shall not exceed 30km/hr; The wheels of construction vehicles shall be cleaned at

the wash trough to remove soil and earth materials prior to entering public roads.

All completed slopes shall be turfed as soon as works are completed to reduce dust dispersion. If turfing is not possible, the slopes should be covered with plastic sheets.

Noise During the construction stage, the main

sources of noise pollution are expected from heavy vehicles, machinery operating, piling and general construction activities within the Project site

Heavy vehicles movements will be via the identified access road that avoid disturbance to the existing populations

Movement of heavy vehicles will be restricted to day time periods, which is from 7 a.m. to 7 p.m. and to be driven at low speeds not exceeding 70 km/hr.

Construction activities should be avoided to be carried out during weekends especially near to residential and public areas.

Driving speeds of vehicles within the construction site and areas near passing through kampongs should be limited to 30 km/hr.

All construction equipment must be properly maintained so that they do not produce higher noise level.

All construction workers, who are involved with extensive noise emission activities, should be equipped with hearing protective devices.

Noise monitoring shall be conducted regularly during the construction period.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

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ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Terrestrial Ecology The removal of flora at the proposed project

site will not affect the biodiversity of plant species.

No significant fauna were observed during the site visit and they are not expected to be inhabited at the project site as there is no food and shelter.

Vegetation should be collected at the identified

biomass disposal area for composting prior to removal of the remaining to designated waste disposal site

Landscaping/turfing/paving should commence as soon as possible.

Not applicable

Biomass The removal of the secondary forest

comprising mainly of the acacia trees will generate approximately 180.95 tonnes of biomass to be managed at site

No open burning allowed within the proposed Project

site without approval from the Department of Environment.

The biomass shall be chipped to smaller size and disposed at the designated area for further decomposition.

Not Applicable

Traffic The increase in traffic from the construction

activities mainly involves the transport of workers, materials and wastes in and out of the project site.

The traffic volume at the current access roads to the site is low and increase of traffic volume shall be insignificant

Vehicles speed limit will be low at the access roads to the site to reduce probabilities of accidents, localized dust and spillage;

Transportation routes will be judiciously chosen to avoid congested traffic routes and populated zones;

Temporary crossings/access routes should be provided to local residents when their normal routes are affected.

Where necessary, traffic signs or workers directing traffic will be used to control traffic.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-25

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Solid Waste Solid waste generated from the

construction stage includes construction debris as well as domestic waste from site office.

May cause environmental degradation in terms of water contamination, aesthetic problems and health issues.

May lead to pest transmitted disease as well as pollution to the water bodies.

All solid wastes generated from the operational plant

shall be collected at a designated collection area prior to disposal at approved Municipal Solid Waste Disposal location. As there is no licensed landfill in Sipitang or nearby the proposed SAMUR Plant at the moment, proper arrangement needs to be made with the local council.

Wastes segregation shall be carried out. Implementation of a proper and adequate waste

collection system shall be in place. All collected solid waste shall only be disposed at an approved/licensed landfill. As there is no licensed landfill nearby the proposed SAMUR Plant at the moment, proper arrangement needs to be made with the local council.

A comprehensive Solid Waste or Scheduled Waste Management Plan shall be developed to outline the appropriate procedure in managing the generated waste.

Solid waste must be temporarily stored inside proper containers and disposed at the approved disposal site.

Used containers shall be reuse where possible or else sent back to the suppliers.

Not Applicable

Scheduled Wastes Scheduled wastes will be made of waste

oil, lubricants, paints and other chemicals used during the construction phase.

May cause environmental degradation in terms of water contamination, aesthetic problems and health issues.

May lead to pest transmitted disease as well as pollution to the water bodies.

All scheduled wastes must be properly stored and labeled as per DOE requirements of the Environmental Quality (Scheduled Waste) Regulations 2005. These include disposal of scheduled waste to be carried out by DOE approved licensed contractor and at the approved sites only.

All chemical spillage to be cleaned up immediately. Ample supply of absorbent material must be kept on site in case of accidental spillage.

No waste chemicals, oil and grease or lubricants is permitted to be discharged into the drainage system or any water body.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-26

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

An accurate and up-to-date inventory of scheduled waste generated, treated and disposed shall be maintained at site. It shall contain the categories and quantities of hazardous waste being generated, treated and disposed as well as materials or products recovered from the waste.

Assessment and identification of a designated scheduled waste storage area within SAMUR complex according to the waste/ hazard classification shall be included during the design stage.

The transporting of waste shall conform to the consignment note system whereby the movement of waste is monitored until it reaches the approved destination.

A comprehensive Scheduled Waste Management Plan shall be developed to outline the appropriate procedure in managing the generated waste.

Socio economic

The proposed SAMUR Project will be

located within the SOGIP development area. Land acquisition matters are still being resolved by SOGDC.

A minor impact from the disruption of aesthetic from construction taking place at the Project site which may cause nuisance to the public.

Improper housekeeping and waste management at the work areas provides breeding ground for mosquitoes, flies and rats

Proposed development will create business opportunities for local people

SOGDC is in the midst of resolving all issues related to

the proposed SOGIP development and this include the relocation of the existing settlements on the state land and the existing police shooting range.

Landscaping and/or turfing should commence as soon as possible

During the construction stage, clear signboards and night-light indicating and highlighting danger areas should also be put up.

Construction activities will be closely controlled and monitored by the responsible party at the Construction site and and complaints by the public shall be attended immediately.

Work areas should be kept clean at all time.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-27

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

C. Construction Phase (SAMUR Jetty)

1) Earthwork 2) Pilling works and

Construction of SAMUR Jetty

Hydrodynamic Conditions Changes in wave flow across the jetty line

are seen to be small and the overall hydrodynamic conditions are considered to be insignificant.

No Mitigation Measure is required.

Not Applicable

Coastal and Coastal Structure The construction of a piled jetty will not

cause any blockage of littoral transport and it will not cause increased sedimentation near the site. Hence, only localised impacts with minimum scour and deposition around the piles are expected.

Preservation of the mangrove vegetation is important to

maintain the stability of the coastal profile.

Not Applicable

Sediment Plume Dispersion The sediment plumes generated by the piling

works for the construction of the jetty will have a limited extend mainly deposit within the work area. and sediments is brought into suspension is due to weak currents

Sediment concentrations above the normal visible limit will occur for shorter periods only at the shallow areas where the background concentration is high.

Sediment concentrations and sedimentation critical to marine habitats is not to be expected outside the work area.

Appropriate control of drainage from surface runoff from the site is necessary to minimize sedimentation.

Effective siltation basins shall be in place prior to discharge to the sea. Silt basins must be monitored and maintained regularly to ensure its effectiveness

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-28

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Water Quality The pipeline installation will involve

crossing of the Mengalong River with a top width of 30 m. Clearing of vegetation, land grading, excavation, and storage of topsoil in the Project area may result in increased soil erosion and sediment load carried by surface runoff from the disturbed areas.

Mobilization and operation of equipment, fuel and materials storage and transfer operations, equipment maintenance activities, operating accidents and waste disposal may contaminate the surface water bodies.

The location of the river crossing point shall take into consideration on the river morphology. This is because crossing at the straight sections of the river are less likely to erode laterally then on curved sections;

Disturbance to the riverbank vegetation must be minimized to the absolute minimum for access and construction. In the event of removal of the riverbank vegetation to be carried out, replantation and restoration of the vegetation need to be done;

No temporary site camp or accommodation to be located within 50 m from the riverbank;

The pipeline to be buried at least 2 m below the riverbank and 1 m below the riverbed;

The corner points of the pipe (bottom of bank) must be placed on strong, piled foundations to be self supporting in case of riverbank movement or bank collapse;

Domestic wastewater generated at workers cabin or other areas with large number of workers must be treated prior to disposal; and

Sanitary waste facilities constructed for the project will be dismantled and removed following project construction. Solid waste management practices will include at a minimum containment of solid waste and debris at recepticals located at appropriate intervals. Proper handling of solid waste will prevent water quality impacts to surface and ground waters.

Mangrove Ecosystem Piling activity from the jetty constructions may

generate noise disturbance at 70 – 90 dB(A) which is minimal and temporary impact to the mangrove ecosystem at Brunei Bay.

No Mitigation Measures

Not Applicable

Marine Biology Disturbance to the seabed condition may

cause an increase in turbidity and will lead to smothering resulting in decrease in the benthic community.

No mitigation measure is required as it is seen that

most sediment are deposited almost immediately after it is brought into suspension.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-29

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Navigation Safety Impact to the local boat traffic is expected to

be minimal as nearest port (Sipitang Port) is considered as an area with low marine traffic.

Ship owners/charters and ferry operators operating “regular runners” on the main routes passing the location should be identified and contacted prior to any activity taking place to allow them to pre-plan avoidance action in advance of embarking on their voyage.

The operators of the SAMUR plant should inform of the proposed activity well in advance to ensure details of the proposed jetty is circulated via Notices to Mariners, NAVTEX and NAVAREA warnings. Typically this should be done 6 months prior to any offshore activity (construction period).

Not Applicable

D. Construction Phase (Installation of SAMUR Gas Pipeline)

Vegetation clearance and the site preparatory works

Construction and installation of SAMUR Pipeline

Soil Erosion Vegetation removal and site preparatory

works where soils are physically disturbed by excavation and backfilling may increase potential of soil erosion.

Site clearing and earthwork activities should be carefully planned to be carried out in phases to minimize ground exposure to erosion

Close turfing shall be carried out as soon as the slope construction completed to prevent erosion.

Exposed grounds should be compacted and protected against erosion.

Filling areas should be properly compacted to achieve the required density to minimize settlement after construction works.

Ensure that sediment basin are de-silted regularly and the suspended solids (SS) content is maintained at level not exceeding 100 mg/l.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-30

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Water Quality Site clearance and works within the ROW of

the pipeline may increase the soil erosion and lead to sedimentation in the nearby water bodies

Domestic wastewater generated at workers cabin or

other areas with large number of workers must be treated prior to disposal.

Proper handling of solid waste will prevent water quality impacts to surface and ground waters.

Water quality

monitoring at sediment basin discharge and marine water.

The water discharged from the sediment basin should not contain TSS load exceeding 100 mg/l.

Air Quality The emission of fugitive dust generated from

construction activities and emissions from vehicles and machineries.

The use of water spray on areas of exposed soils to

dampened the soil Final grading and turfing of the exposed areas to be

carried out as soon as backfilling works and pipeline installation are completed. Volatile chemicals containers must be tightly closed

and stored in a room/covered shed. All engines and machinery used must be well

maintained. Open burning is not allowed and all construction waste

must be collected and disposed at an approved site. Trucks bringing soil in and out of the working site

should not be overloaded and must be properly covered.

To prevent mud from being carried to the public roads, water trough should be installed at the exit point of the pipeline ROW site.

Periodical air

monitoring should be carried out to monitor the possible degradation of the existing air pollution.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-31

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Noise The installation of new pipeline would

cause temporary increase in the ambient sound environment in the immediate vicinity of the construction site from the machines such as dozers, backhoe, crane and pile drivers

The noise impact can be minimized by restricting the construction works to day time e.g. 7.00 a.m. – 7.00 p.m.

All equipment and machinery shall be properly maintained to minimise the amount of noise generated.

The worker’s direct exposure to equipment with high noise level can me minimised with the use of appropriate Personal Protective Equipment (PPE).

Appropriate signage must be posted at the high noise generating area.

Noise monitoring shall be conducted regularly during the construction period.

Socio economic The proposed SAMUR Project will be

located within the SOGIP development area. Land acquisition matters is still being resolved by SOGDC.

A minor impact from the disruption of aesthetic from construction taking place at the ROW which may cause nuisance to the public.

Improper housekeeping and waste management at the work areas provides breeding ground for mosquitoes, flies and rats

Proposed development will create business opportunities for local people

SOGDC is in the midst of resolving all issues related to

the proposed SOGIP development and this include the relocation of the existing settlements on the state land and the existing police shooting range.

Landscaping and/or turfing should commence as soon as possible

During the construction stage, clear signboards and night-light indicating and highlighting danger areas should also be put up.

Construction activities will be closely controlled and monitored by the responsible party at the Construction site and and complaints by the public shall be attended immediately.

Work areas should be kept clean at all time.

Not Applicable

E. Testing, Commissioning and Operation Phase Management of Chemicals

Effluent dischargeand spillage is expected to

occur especially during loading and unloading operations at the jetty.

No mitigation measure is as the chemical

concentration discharged is very minimal.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-32

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Discharge of effluent

Water Quality Potential impact on water quality during

operation may be from the non compliance of effluent discharge into the water body.

The design of the proposed ETP shall meet the discharge quality as stipulated in the Malaysian Environmental Quality Act 1974 (Industrial Effluent) Regulations 2009, Standard B of 5th Schedule and Regulations 12 (d) of 7th Schedule;

Reduce, Reuse and Recycle (3R) concept shall be implemented when and where necessary as this will ensure efficient use of water in the process and minimize risks and eventually contribute to the long term sustainability of the SAMUR plant development and operations; and

Effluent generated shall be segregated based on the characteristic of the effluent streams. Pre-treatment at the source by installing oil baffle or oil trap at the source collection pit shall be incorporated wherever possible before transfer to the ETP.

The entire plant complex is managed continuously by competent staff to avoid mistakes that may lead to accidental discharge of effluent to the water bodies.

Written OP shall be made available during design stage. The instructions and operating procedures shall provide a clear guidance to operators for all plant operations scenarios which include normal, startup, shutdown as well as abnormal plant conditions.

Selection of the technology for the SAMUR ETP is based on the well proven technologies and Best Available Technologies (BAT).

Design of the WWTP

to incorporate the IETS requirements for self monitoring of the effluent treatment performance to ensure compliance to the required discharge standards. The monitoring result is also to be submitted to DOE on a routine basis.

Flaring and venting

Air Quality The simulated and predicted urea dust

(PM10), nitrogen dioxide and sulphur dioxide using the US EPA ISCST3 Model are below the standard levels and thus meet the Malaysian Recommended Ambient Air Quality Guideline and ammonia comply with the Arizona Ambient Air Quality Guideline.

It is recommended that the Project Proponent to install Continuous Emission Monitoring System (CEMS) which is linked to the process control system at the urea plant;

In the event that gas emission/particulates are unavoidable, a scrubber system and flare shall be utilized in ensuring that the gas release meeting statutory requirement and hence, eliminate the impact to people, environment and asset.

Flare system shall be designed to handle the largest gas release from ammonia plant.

All emission data from SAMUR Plant shall be monitored routinely and compliance result will be sent to DOE on a routine basis or upon request by DOE.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-33

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Scenario of modeled PM10 during the failure of the control measures, indicated that the readings is above the guideline limit .

Scenario of modeled ammonia during the failure of the control measures, indicated that the readings is within the guideline limit.

Sulphur dioxide was also assessed and the results showed that the impact is negligible as the emissions are insignificant

Periodical stack sampling to be conducted at the stack of urea plant;

Periodical ambient air quality monitoring is to be carried out at the nearest sensitive receptors to ensure continuous compliance with ambient air requirement for parameters dust and ammonia level;

Workers within the plant boundary are not to be exposed beyond the allowable limit as per DOSH’s requirement;

The entire plant complex is managed continuously by competent staff to avoid or reduce accidental incidents which may lead to unnecessary gas release incidents.

Implementations of Reduce, Reuse, Recycle (3R) concept in SAMUR Plant such as CO2 produced in Ammonia Plant will be used as a feed to Urea Synthesis to produce Urea.

Written operating procedure shall be made available during design stage to provide a clear guidance to operators for all plant operations scenarios which include normal, startup, shutdown as well as abnormal plant conditions.

Control & Instrumentation will provide the first layer of protection from any deviations of operating variables from normal operating conditions.

Alarm Management system will alert operators to intervene in case of deviations from normal operating parameters to prevent any overlooked situation which could hamper plant safety and normal operations.

In order to detect flammable and toxic releases from our plant process, Fire and Gas Detection System and appropriate flammable and toxic gas detectors shall be installed in critical areas to give early warning

Equipment engines such as cranes’ engines, compressors and pumps shall be regularly inspected and serviced to minimize green house gas emissions.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-34

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Management of Noise Level

Noise Generator set, engines, pumps, control

valves within the SAMUR Plant may generate high noise levels.

Post “Wear Hearing Protection” signs at the entrance for all personnel working/entering the areas with noise levels above 85dBA.

Design basis of the Plant shall comply to noise level requirement for worker exposure and noise level at plant boundary as required by DOSH and DOE

Noise level will be routinely monitored by Plant HSE team to ensure compliance to regulated limit

Solid Waste Solid waste generated from the

construction stage includes construction debris as well as domestic waste from site office.

May cause environmental degradation in terms of water contamination, aesthetic problems and health issues.

May lead to pest transmitted disease as well as pollution to the water bodies.

All solid wastes generated from the operational plant

shall be collected at a designated collection area prior to disposal at approved Municipal Solid Waste Disposal location. As there is no licensed landfill in Sipitang or nearby the proposed SAMUR Plant at the moment, proper arrangement needs to be made with the local council.

Wastes segregation shall be carried out. Implementation of a proper and adequate waste

collection system shall be in place. All collected solid waste shall only be disposed at an approved/licensed landfill. As there is no licensed landfill nearby the proposed SAMUR Plant at the moment, proper arrangement needs to be made with the local council.

A comprehensive Solid Waste or Scheduled Waste Management Plan shall be developed to outline the appropriate procedure in managing the generated waste.

Solid waste must be temporarily stored inside proper containers and disposed at the approved disposal site.

Used containers shall be reuse where possible or else sent back to the suppliers.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-35

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

Scheduled Wastes Scheduled wastes will be made of waste

oil, lubricants, paints and other chemicals used during the construction phase.

May cause environmental degradation in terms of water contamination, aesthetic problems and health issues.

May lead to pest transmitted disease as well as pollution to the water bodies.

All scheduled wastes must be properly stored and labeled as per DOE requirements of the Environmental Quality (Scheduled Waste) Regulations 2005. These include disposal of scheduled waste to be carried out by DOE approved licensed contractor and at the approved sites only.

All chemical spillage to be cleaned up immediately. Ample supply of absorbent material must be kept on site in case of accidental spillage.

No waste chemicals, oil and grease or lubricants is permitted to be discharged into the drainage system or any water body.

An accurate and up-to-date inventory of scheduled waste generated, treated and disposed shall be maintained at site. It shall contain the categories and quantities of hazardous waste being generated, treated and disposed as well as materials or products recovered from the waste.

Assessment and identification of a designated scheduled waste storage area within SAMUR complex according to the waste/ hazard classification shall be included during the design stage.

The transporting of waste shall conform to the consignment note system whereby the movement of waste is monitored until it reaches the approved destination.

A comprehensive Scheduled Waste Management Plan shall be developed to outline the appropriate procedure in managing the generated waste.

Traffic movement into and out of the Plant

Traffic Slight increase of traffic at the existing Kg.

Kuala Mengalong- Jalan Pantai Luagan and the main road (Kota Kinabalu – Lawas road)

No mitigation measure is required.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-36

ACTIVITIES ENVIRONMENTAL IMPACT PROPOSAL FOR MITIGATING MEASURES MONITORING PROGRAMMES

F. Project Abandonment

Soil erosion at the cut and fill area Sedimentation and water pollution of the

existing stream (i.e. Stream 1, Stream 2 and Sg. Senulop) downstream from the Project site due to the increased TSS and turbidity; and this will be carried over o the coast

Unsightly view of the Project site.

Construction Team and Project proponent must

prepare a Project Abandonment Plan and vacate the Project site in an environmentally responsible manner where all ongoing works are to be made good.

Not Applicable

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-37

ES6 RESIDUAL IMPACT In regards to the assessment carried out for the potential impact that may be generated due to the project implementation, it is predicted that there will be some residual impacts; impacts that may remain even after mitigation measures have been adopted and implemented. These impacts are odour to the surrounding areas, noise due to the plant’s operation and in case of abnormal activities (e.g. shut down, turn around, etc.) and impact to marine water and marine ecology due to the effluent discharge from the waste water treatment plant or chemical spillage during the loading and unloading activity at the jetty. ES7 QUANTITATIVE RISK ASSESSMENT A QRA study for Sabah Ammonia and Urea (SAMUR) Plants was conducted based on consideration of releases that may occur as a result of loss of containment from the onsite hazards and external hazards. The calculated levels of risk concluded that The 1 x 10-6, 1 x 10-5 and 1 x 10-4 fatalities per year risk contours are mostly within the plant boundary, whereby no residential and industrial facilities are affected with a risk greater than 1 x 10-6, 1 x 10-5 and 1 x 10-4 fatalities per year respectively. The risk levels of 1 x 10-6, 1 x 10-5 and 1 x 10-4 fatalities per year for the underground natural gas pipeline from the SSGP pipeline tap in point towards SAMUR is non-existent. It is to be noted that the ammonia transfer pipelines and jetties are also part of the SAMUR facilities whereby the risk due to the operations of the pipeline are inherently present for the facilities based on its industrial activities. Risk from the operations are within the accepted DOE risk criteria, whereby the risk levels of 1 x 10-6, 1 x 10-5 and 1 x 10-4 fatalities per year do not impact any residential areas or neighboring existing or proposed industrial activities. The above results are in line with the risk acceptance criteria as no industrial facility and residential areas are exposed to a risk level greater than 1 x 10-6, 1 x 10-5 and 1 x 10-4 fatalities per year due to operation of the proposed SAMUR facilities. Some of STEL and IDLH hazard zones for the worst case scenario (WCS) do extend into residential areas situated 2.6 km away from the proposed SAMUR plant. However, there are no high-rise developments within the hazard zone. Therefore in the event of such non-credible events taking place a proper notification for evacuation and offsite contingency plan should be made available during operation of the proposed plan. This is in anticipation that SAMUR will be the only facility within the proposed project area. It is assumed that implementation of an effective Emergency Response Plan (ERP) for the SAMUR facilities will provide for rapid intervention during a spill incident, thereby militating against escalation of events. ES 8 ENVIRONMENTAL MANAGEMENT PLAN An Environmental Management Plan (EMP) and a monitoring program will be prepared to guide the Project Proponent/Contractors in managing the environmental impacts during the Project implementation. This is to ensure that all the EIA Approval Conditions are complied with and all the mitigation measures recommended are systematically implemented whilst observing all the related Regulations in environmental management.

Preliminary Environmental Impact Assessment Report for the Proposed Sabah Ammonia Urea (SAMUR) Plant

EXECUTIVE SUMMARY

May 2011 ES-38

ES9 EMERGENCY RESPONSE PLAN A general emergency response plan (ERP) for the proposed SAMUR Plant is established to provide a basic guideline on handling any emergency incidents or accidents that may occur during the construction and operational of the SAMUR Plant. ES10 CONCLUSION Base on the baseline survey and EIA Study, there is no major environmental concern with regards to the location of the SAMUR Plant and the proposed pipeline for the Project. Minor impacts to the environment is expected, however this impact is temporary in nature and can be reasonably minimized with appropriate mitigation measures as proposed in this EIA Report. This project will bring additional economic gain to Sabah State and the country. Furthermore, it will contribute to the socio economic growth to the people of Sabah in particular and Malaysia in general. This EIA shows that, with the incorporation of appropriate design, operation and mitigation measures the proposed SAMUR Plant project by PCG can be implemented in an environmentally sound manner. The numerous positive contributions of the proposed project development to the nation outweigh its minimal environmental impacts. At the same time, its business objectives can be achieved for the benefit of PCG and the nation as a whole.