(Kendal) Environmental Impact Assessment Final Scoping ... - MCLI

Petroline Liquid Fuel Storage Depot
(Kendal)
Environmental Impact Assessment
Final Scoping Report
Report Prepared for
Petroline Holdings (Pty) Limited
DEAT reference No. 12/12/20/1075
Report No 369369/8
April 2008

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Kendal depot final scoping report Page i
Petroline Liquid Fuel Storage Depot (Kendal)
Environmental Impact Assessment
Final Scoping Report
Petroline Holdings (Pty) Limited
PO Box 5756
Westgate
1734
DEAT Reference Number 12/12/20/1075
SRK Project Number 369396/8
SRK Consulting
265 Oxford Road
Illovo
2196
South Africa
P O Box 55291
Northlands
2116
South Africa
Tel: (011) 441-1111
Fax: (011) 880-8086
Lyn Brown: lbrown@srk.co.za
www.srk.co.za
Compiled by: Reviewed by:
Lyn Brown Andy Smithen
Darryll Kilian
Dalit Marom
Ashleigh Maritz
Project Consultants Partner
April 2008
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Executive Summary
Petroline Holdings (Pty) Ltd (Petroline) wishes to build a petroleum fuels storage tank farm in the Kendal
area. This activity forms part of the final component of the overall project to develop a petroleum pipeline
from the Matola Harbour (Maputo) in Mozambique to Kendal (Mpumalanga, South Africa) via Nelspruit.
Nature and Business Alliance (Pty) Ltd (NatBus) will be coordinating the environmental, land acquisition
and public consultation aspects of the project on behalf of Petroline. SRK Consulting (Pty) Ltd (SRK), an
independent team of consultants, has been appointed by Petroline RSA (Pty) Ltd as the Environmental
Assessment Practitioner (EAP). SRK will complete the Environmental Impact Assessment (EIA) and the
Environmental Management Plan (EMP) for the necessary environmental authorizations in terms of the
National Environmental Management Act (NEMA) (No 107 of 1998). The public participation process
(PPP) component of the EIA will be compiled by Matrix Public Relations and Communications (Matrix).
The proposed development falls under the listed activities (1(c and j) and 3) in terms of the NEMA EIA
Regulations of 2006. Activities 1(c), 1(j) and 3 of Schedule 3 are relevant to the Petroline depot project as
they refer to the construction of facilities or infrastructure relating to storage of dangerous goods such as
petroleum. In November 2007 an application for undertaking a full EIA was submitted to the authorities. The
Department of Environmental Affairs and Tourism (DEAT) acknowledged receipt of the application as the
lead authority responsible for environmental authorisation of this project. The reference number for the
Kendal Depot project is 12/12/20/1075.
The EIA is being undertaken in two phases: scoping phase (the subject of this report) and a detailed
assessment phase. The purpose of this scoping phase is to identify key project issues and alternatives through
consultation with the authorities and other Interested and Affected Parties (IAPs). This final scoping report
serves to document the results of the scoping phase and is being made available for IAP review over a 30day
period and submission to DEAT for their approval.
Proposed development
The Matola-Kendal liquid petroleum pipeline, with off-take points at the Nelspruit Depot and the end of
pipeline at Kendal (the focus of this report), aims to increase the availability of fuel to South Africa’s inland
regions. The enactment of the Petroleum Pipelines Act (Act 60 of 2003), which is aimed at promoting
competition in the construction and operation of petroleum pipelines, has enabled Petroline to pursue the
proposed development. The National Energy Regulator of South Africa (NERSA) has issued a licence to
Petroline to construct the proposed pipeline and two storage depot subject to inter alia compliance with
environmental regulatory requirements.
The high level of economic growth experienced in recent years and projections of continued growth point
towards capacity of the transport system being outstripped by demand by mid 2009. Use of Matola harbour
as an import point could relieve pressure on congested port facilities in South Africa. The pipeline is planned
so that flow can be reversed to enable export of petroleum products via Matola harbour if a potential new
coal to liquid fuels plant manufactures more fuel than required by the local market. In addition to the
proposed petroleum pipeline, Petroline plans to establish an off-take liquid fuel storage depot in the Nelspruit
area and a second depot at Kendal (the focus of this report), which will be linked to the pipeline and road
distribution network feeding Gauteng.
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The demand for petroleum is increasing in inland areas making it feasible to establish a liquid fuel storage
depot in the Kendal area. Fuel that is not diverted into the Nelspruit Depot will continue in the pipeline until
it reaches Kendal where it will be pumped into the existing pipeline network.
The key technical characteristics of the proposed liquid fuel storage depot in the Kendal area include:
• The type of petrol and diesel handled in the facility will comply with the specifications as stipulated in
Regulation Gazette No. 8493, 23 June 2006 No. 28958 Clause 3 Subsections (1) to (4) and Regulation
Gazette No. 8493, 23 June 2006 No. 28958 Clause 3 Subsections (1) to (4) respectively.
• The storage facility will consist of petrol storage tanks, diesel storage tanks, interface handling,
infrastructure and utilities and a road and potentially rail offloading facility.
• The storage tanks will have a minimum storage capacity of 125 000 m 3 for petrol and diesel combined.
This volume includes a safety factor of 10%. Petrol and diesel will be stored in separate storage tanks in
order to prevent cross contamination. It is proposed that 10 storage tanks will be required. Dimensions of
the storage tanks will be determined once the depot location has been finalised. The maximum height of
the tanks will be limited to 18 m in order for fire-fighting systems to access the tanks. The diameter of
each storage tank will vary according to the storage requirement per product but it is expected to range
between 15m and 42m.
• The Kendal storage tank farm will receive its fuel by way of the proposed pipeline from Matola and this
tank farm will form the end-point of the proposed pipeline system.
• An interface facility will be set up to direct the batches of petrol and diesel via pipeline to the respective
tanks.
• The tank farm will be equipped with the latest electronic leak detection and prevention technology. For
further details about these measures refer to Section 4.2.3 in the main report.
• The depot will have strict security measures in place, including: security fences and security entrance
control; a high voltage electric fence, where it is deemed necessary; manned security and CCTV; and
anti-theft systems built into the leak detection system.
• Given that the petroleum pipeline may be routed close to or through the depot site, an integrated control
and shutdown system will be installed and three permanently staffed terminal control rooms will be set
up within the depot site and linked via a fibre optic cable network with back up and mutual coverage.
• The design and equipment standards for the depot will comply with international standards and best
practices.
• All metering required for the operation and maintenance of the depot will be installed as per the finalised
design and in accordance with SANS 10089 and NFPA codes. The final design will be undertaken as
part of a Level 3 Design conducted by the Engineering, Procurement and Construction (EPC) contractor.
• The product will be taken out of the proposed storage facility in the following phases:
o Phase 1: Pumping into the existing Petronet pipeline network.
o Phase 2: Transhipment via road an potentially rail off-loading gantries.
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• The storage tanks and associated infrastructure will be able to handle and process the fuel at
approximately 400 m 3 to 600 m 3 per minute.
• A health and safety risk assessment will be conducted on the proposed depot in accordance with the
Major Hazard Installation Regulations R.692 of 30 July 2001 under the OHS Act (Act 85 of 1993)
culminating in the compilation of an emergency management plan for the depot.
• It is envisaged that the depot will be operational for a minimum of 30 years, and it is likely that this
period will be extended. Requirements are laid out in the NERSA application in terms of the Petroleum
Pipelines Act (Act 60 of 2003). NERSA require that funds are set aside for the rehabilitation of the
pipeline and associated structure, including liquid fuel storage depots.
• It is estimated that the Kendal depot will cost between R315 and R350 million to construct.
Screening process
Site identification and selection for the proposed depot was based on the following phased screening process:
• Site identification: potential sites were identified through a number of channels, including local
authorities, estate agents and stakeholders. A total of two (2) depot sites were identified in the Kendal
area. Figures 1-1 and 3-1 indicate the locations of these sites.
• Screening and site selection: Site selection was based on a screening process of two alternative sites
which had been identified by the proponent and their design and engineering team. These are:
o Vlakfontein 569JR portion 20/Klipfontein 568 JR portion 23 (proposed site)
o Heuvelfontein 215IR portion 39 (alternative site)
A qualitative screening process was conducted during a site visit by SRK using a range of environmental and
feasibility criteria. No environmental fatal flaws or obvious environmental constraints were identified and
both of the sites recommended for further investigation. Based of feasibility criteria, the Vlakfontein/
Klipfontein site has been determined to be the proposed site. For more information pertaining to the study
area refer to Section 5 of the main report.
Description of the proposed and alternative sites
Vlakfontein/Klipfontein site (S26.05765 E29.95497)
This proposed site comprises two portions of land (569JR Vlakfontein, portion 20 and 568JR Klipfontein,
portion 23) which are over 21ha and 20ha respectively (See Figure 3-1), and zoned for agricultural use (See
Figure 3-1). There are several buildings on the site, a number being used for residential purposes. The site is
accessed from the R545, some 500m north of the Kendal/Balmoral offramp from the N12 highway between
Johannesburg and Witbank. The R545 (linking the N12 and N4) forms the site’s western boundary and the
N12, the southern boundary. The east and north the site adjoin farmland mainly used for the cultivation of
maize. The Petronet pump station is located on a low rise beyond the bordering eastern farmland. There is
extensive coal mining in the area, with the closest coal mine located to the north of the site. Located in a
gently undulating landscape, the site slopes from northeast to the southwest and overlooks the Kendal power
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station – situated approximately 7km to the south. There is a drainage line that runs from the southern part of
the site to a copse of trees in the road reserve adjacent to the Kendal/Balmoral offramp to the N12.
Figure 1-1 shows the geographic context of the proposed project site, with the GPS coordinates.
Heuvelfontein site (S26.05765 E29.95497)
Huevelfontain, portion 39, is situated south of the Delmas-Ogies provincial road (R555), west of the R545
(See Figure 3-1). Comprising over 4ha, this rectangular-shaped land is oriented from east to west. The site is
bounded to the south by the Johannesburg-Witbank railway line and the R545 to the north. On the opposite
side of the railway line (to the south east) are a number of maize silos (See Figure 3-3). The Kendal power
station is located about 1.5km beyond the silos. A small settlement of approximately 15-20 households is
located to the east beyond a number of derelict buildings, some of which are occupied. The Kendal station is
located approximately 150-200 m to the west of the site. The site is relatively flat, slopes gently from the east
to the west and is low-lying. There are no apparent drainage lines on the site although the site may have been
part of a wetland. The Kendal Station is situated immediately adjacent to the proposed Heuvelfontein
alternative site to the south of the R555.
Figure 1-1 shows the geographic context of the Vlakfontein/Klipfontein and Heuvelfontein sites.
Findings of the scoping process
A comprehensive public involvement programme has been implemented during scoping and it is assumed
that all critical issues have been identified through the scoping process. The EIA process is, however,
iterative and therefore additional issues/impacts may be identified during the detailed assessment phase.
Modifications to the scope of work will take place accordingly should this transpire.
Of key concern, from a public perspective, are the risks that the proposed development poses for health and
safety due to the flammable and explosive nature of the petroleum. A further issue is the need for job
creation and skills development in the area. Potential effects on water quality (both surface and ground
water) was of great concern to IAPs, including the authorities.
The issues which have been raised by IAPs are detailed in Appendix F. A synopsis of major concerns and
potential benefits which have been highlighted in the scoping process are presented below.
• Economic issues
o Request to provide housing/accommodation.
o The need to assess the economic costs and benefits of the project
o Potential inflow of income
o Use of the area for coal mining
• Biophysical environment
o Surface water management
o Stormwater management
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Figure 1-1: Geographic context of the proposed Kendal Depot
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o Protection of water sources such as springs
o Groundwater contamination
o Air quality
• Social impacts
• Process
o Safety and health hazards, including fire
o Water supply and sewerage requirements
o Disruption of communities
o Noise
o Pressure on existing infrastructure
o Traffic
o Disruption of existing telecommunications infrastructure
o Need for effective communication with stakeholders
o Alternative depot sites
Environmental assessment
These and other issues will be investigated further during the environmental assessment phase. The
assessment of project alternatives indicates that:
• Current and future demand for fuel in inland areas, including Gauteng, makes the establishment of an
off-take depot at Kendal feasible in the area.
• The project schedule for the pipeline and depot is being driven by the growth in demand for fuel in the
inland regions of South Africa, and Petroline’s objective to meet this demand as soon as possible.
• Based on the characteristics of the different sites, the site at Vlakfontein/Klipfontein was identified as the
preferred site at this stage. The alternative site at Heuvelfontein will also be assessed.
• Not constructing the depot would mean that benefits, including improved inland fuel availability and the
associated regional economic benefits, would not transpire. At the same time, the negative impacts
associated with the project would not materialize.
The following environmental considerations will be used to assess the proposed sites, based on the following
specialist inputs:
• Surface water assessment
• Geohydrological assessment
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• Soil study to assess agricultural potential
• Ecological assessment
• Heritage study
• Visual assessment
• Socioeconomic assessment
• Traffic assessment
• Environmental risk assessment.
The findings of these specialist investigations will be included in the Draft EIA report and its associated
Environmental Management Plan (EMP). Recommendations will be made in the EMP to avoid and/or
mitigate negative impacts and enhance benefits.
Way forward
This final report will be made available for IAP review for a period of 30 days, from 30 April to 30 May
2008. The document can also be accessed on www.petroline.co.za. The report is being submitted to
DEAT for their review and approval. Amendments to the final scoping report DEAT will be addressed
and any comment submitted by IAPs will be incoprtaed into the draft EIA report.
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