PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT

FOR THE PROPOSED BULK FUEL TERMINAL AT KUANTAN PORT, PAHANG

Executive Summary

ES 1.0 Title of the Project

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This Preliminary Environmental Impact Assessment (PEIA) is prepared for the “Proposed 47,000 m
Bulk Fuel Terminal at Kuantan Port, Pahang for Boustead Petroleum Marketing Sdn. Bhd.”,
hereinafter referred to as “the Project” in this report.

ES 2.0 Project Proponent and EIA Consultant

The Project Proponent is Boustead Petroleum Marketing Sdn Bhd (BHP). Starting as BP in 1964, BHP
is currently a member of the Boustead Group of companies focusing in downstream petroleum
marketing business.

Address: Boustead Petroleum Marketing Sdn. Bhd

Level 15, Surian Tower,
No.1, Jalan PJU 7/3, Mutiara Damansara,
47810 Petaling Jaya,
Selangor Darul Ehsan, Malaysia
Telephone: +603 7841 6666
Fax: +603 7841 6677
Email: azahan.kadir@bhpetrol.com.my
Contact person: Tn Hj Mohamad Azahan bin Abd Kadir
Position: General Manager – Operations and HSSE

The EIA Consultants appointed to carry out this environmental impact assessment (EIA) is AECOM
Malaysia Sdn. Bhd. (AECOM).

Address: AECOM Malaysia Sdn. Bhd.

Level 2, Tower Block, Menara KLK,
No. 1, Jalan PJU 7/6, Mutiara Damansara,
47810 Petaling Jaya, Selangor.
Telephone: +603 7863 7800
Fax: +603 7863 7900
Email: giokhui.tan@aecom.com
Contact person: Tan Giok Hui
Position: Associate, Environment

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PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT
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ES 3.0 Project Location

The Project is located at part of Lot 1863, Mukim Sungai Karang, Daerah Kuantan, Pahang Darul
Makmur, Malaysia. The Project will be developed within the Kuantan Port boundary and is accessible
via Jalan Pelabuhan 3/3 and Jalan Pelabuhan 3/4. The Project site has a total acreage of 25,080 m2.

The Project location is depicted in Figure ES-1.

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ES 4.0 Project Background

Boustead Petroleum Marketing Sdn Bhd (hereinafter referred to as BHP) intends to build a new bulk fuel
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terminal on a site covering an area of 25,080 m within Kuantan Port, Pahang. The Project site was
previously occupied by a tenant that imported, exported, refurbished and stockpiled industrial pipes, but
is currently vacant.

The new terminal will be built for the storage of BHP’s main products (namely unleaded gasoline [ULG
95, ULG 97] and diesel), Palm Oil Methyl Esther (POME) and chemical additives. The total storage
capacity of the Project is about 47,000 m3, provided by a total of 8 bulk fuel storage tanks that will be
installed at the terminal. The main products will be delivered to the new terminal by ship and distributed
to BHPetrol stations and other commercial customers within the east coast region by trucks.

ES 5.0 Statutory Requirements

The Project is listed as a “Prescribed Activity” under “Schedule 12(v) Construction of product depots for
storage of petrol, gas or diesel (excluding service stations) which are located within 3 kilometres of any
commercial, industrial or residential areas which have a combined storage capability of 60,000 barrels
or more in the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order,
1987 and is therefore subject to Section 34A of the Environmental Quality Act, 1974, which requires the
submission of an EIA report for DOE approval prior to project commencement.

As required by the Department of Environment (DOE) Regulation Notice 7/2/2012, the Preliminary Site
Assessment for Development Project (AS PAT 1-12 Form) was submitted to the DOE Pahang by BHP
vide letter dated 12th January 2015 (Ref No: BHPETROL/KPI/DOE/Jan/15/01). The AS PAT 1-12 Form
was subsequently approved by the DOE Pahang on 23rd January 2015 [Ref No:
AS:C50/013/805/001(03)]

ES 6.0 Statement of Need

BHP currently does not have a bulk fuel storage facility in the East Coast region. Thus, in order to cater
to the steady growth of fuel demand in this region, BHP has decided to build a new bulk fuel terminal at
Kuantan Port.

Generally, the Project supports the aspirations of the 10MP and complies with the planning
requirements of various government departments. The Project site would satisfy the requirements of
siting and zoning of industries in the established industrial estate and also not classified as an
environmentally sensitive area in the NPP 2. The Project also is in line with the Rancangan Struktur
Negeri Pahang, Rancangan Tempatan Daerah Kuantan and Kuantan Port City Master Plan.

ES 7.0 Project Description

The development of the Project involves the installation and construction of storage tanks,
administrative buildings, loading gantry and addition pipe rack. The total storage capacity of the Project
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is about 47,000 m and the main products that will be handled by this new terminal are mainly gasoline
and diesel.

The operation of the bulk fuel terminal is broadly divided into loading operations and storage. There will
be no process activities other than minor fuel additive injection to gasoline and diesel and POME
injection to diesel.

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BHP’s main products will be delivered to the Kuantan Port by ship or marine vessel twice per month
from Singapore. From the jetty, the products will then be delivered to the respective storage tanks within
the new terminal’s tank farm via pipeline. Fuel additives and POME will be delivered to the terminal by
tanker trucks. Empty tanker trucks will arrive at the terminal to be filled with fuel products for distribution
to retail stations. Fuel products will be pumped out from the bulk storage tanks to the loading gantries
where loading pipes will fill the tanker trucks. Fuel additives and POME will be injected and mixed with
the fuels where necessary prior to loading into the tanker trucks. When the fuel loading process is
finished, the tanker trucks will exit the terminal and deliver the fuel products to the respective BHPetrol
retail stations and other commercial customers in the region. It is anticipated that 25 tankers trucks per
day will be filled at the terminal for subsequent distribution of fuel to retail stations.

The major components of the Project are:

 A tank farm for 8 units of storage tanks and additive storage yard.
 A double-storey administrative office, which consists of an office and general storehouse
 A single-storey utility building
 A loading gantry, consisting of five (5) gantry islands

ES 8.0 Project Options

The “With” Project option indicates a higher beneficial impact compared to the “No” Project option as it is
in line with the future plans to increase industrial developments in the Kuantan area based on the
Rancangan Tempatan Daerah Kuantan.

ES 9.0 Existing Environment

This section describes the existing environment which could potentially be impacted by the Project
which comprises of components of the physical, chemical, and biological environment, health as well as
socio-economic characteristics. The existing environment is summarized in the following table:

Component Description

Topography, The Project site is located within an existing developed industrial park that is flat. Based on the
th
Geology and Geological Map of Peninsular Malaysia. 8 edition (Geological Survey Department of
Soil Malaysia, 1985, the geology of the Project site consists of recent quaternary alluviums
comprising marine and continental deposits. The deposit is confined to the clay, silt, sand, peat
with minor gravel. According to the Reconnaissance Soil Map of Peninsular Malaysia, the soil
type at project site is categorised as Tanah Bandar soil.

Climate  Meteorological Station: Kuantan from 2005 – 2014

 Highest temperature was recorded at 32.3˚C in 2010 and 2014.
 Lowest temperature was recorded 23.4 ˚C in 2005 and 2012.
 Highest annual rainfall 3,766.0 mm in 2014
 Lowest annual rainfall received was 2,319.0 mm in 2010.
 Wind direction: Predominantly from northern direction.

Drainage and The Project site is within the Drain ‘C’ catchment, with a total catchment area of 451 ha. The
Hydrology Project site is surrounded by public stormwater drains that will catch surface runoff and
eventually drains into the South China Sea.
There are also no water intake points downstream of the Project site.

Landuse The Project site is located within a developed port area, i.e. Kuantan Port. The surrounding
immediate landuse of the Project site are mainly industries and the major landuse within the

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Component Description
ZOI are well-established industrial estate, namely Gebeng Industrial Park I, Gebeng Industrial
Park II and Gebeng Industrial Park III.

Water Quality Two (2) river water samples were collected from the downstream of the project site
(approximately 180 m southwest) in March 2015. The Water Quality Index (WQI) calculation
indicates that W1 was slightly polluted while W2 was polluted. The parameters that were
higher than Class III limit of NWQS include BOD5, Manganese (Mn) and Iron (Fe).

Air Quality Two (2) air quality sampling point has been established at the Project site and nearest
sensitive receptors, namely A1 and A2. Air quality monitoring which included total suspended
particulates (TSP), Particular Matter with size less than 10 micron (PM10), Sulphur Dioxide
(SO2), Nitrogen Dioxide (NO2), Carbon Monoxide (CO) and Volatile Organic Carbon (VOC)
were carried out at two (2) locations in March 2015. The results from both monitoring points
were well within the stipulated levels for PM10, SO2, NO2 and based on the New Malaysian
Ambient Air Quality Standards, 2013.

Noise Levels Boundary noise level monitoring was carried out at two (2) locations to establish the current
noise level for the Project site and nearest sensitive receptors, namely N1 and N2. The noise
level was measured on March 2015.
The noise levels recorded for both the measurement points were complied with the DOE
Planning Guidelines for Environmental Noise Limits and Control within a Designated Industrial
Zone (DOE, 2007).

Biological The Project is located within an existing port area. Therefore, neither vegetation nor any
Environment biological habitat of significance was found within the Project site.

Socio- The nearest villages located to the Project site are Rumah Pangsa KPC (1.5 km), Kg Selamat
economic (2.6km) and Kg Nyamuk (3.7 km). There was no reliable data available on the size of
population in Kg. Selamat and Kg. Nyamuk but a rough estimate of the population obtained
from the Penghulu Kg. Selamat quoted the population of Kg. Selamat as 300 persons and that
of Kg. Nyamuk as 180 persons

Infrastructure The major access points to Kuantan Port and the Project site are the Federal Route 3 (FR3)
and Utilities and Federal Route 2 (FR2). FR3 connects the Project site northwards up to Kelantan and
southwards to Johor. The Kuantan Bypass connects from the Gebeng Interchange towards
the FR3 at the Sg Ular Interchange. FR2 is the major trunk road connecting Kuantan Port to
Kuantan Town via Balok and Beserah.

Electricity to Kuantan Port is supplied by Tenaga Nasional Berhad (TNB) and water supply is
via Pihak Pengurusan Air Pahang (PAIP).

ES 10.0 Environmental Impacts and Mitigation

The potential environment impacts of the proposed project were identified by evaluating the interaction
of proposed project activities with specific components from the existing environment.

The assessment also provides a discussion of potential ‘residual’ impacts from the proposed project,
their significance and mitigation. Residual impacts refer to impacts that remain after implementation of
mitigation measures.

A summary of the impact assessment and proposed mitigation measures is provided in Table ES-1.

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Table ES-1: Potential Significant Environmental Impacts and Recommended Mitigation Measures

No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

Construction Phase

1 Surface Water  Surface runoff from the bared or disturbed land may cause  The following mitigation measures as recommended in the ESCP
Quality water logging and flooding at the downstream of the Project (Appendix A ) should be implemented:
site. o A silt trap is to be constructed before commencing of the clearing
 Potential of the surface water pollution caused by the of shrub and construction activities.
contaminated surface runoff from the spill or leak from the o Temporary earth drain should be installed along the perimeter of
heavy machinery, skid tanks and storage area. the Project site.
 Potential of the surface water pollution from the discharge o Wash trough needs to be installed at the Site ingress/egress
of sullage and wastewater from the Project site. point.
 Desilting the silt trap when it reaches 50% capacity to ensure their
efficiency.
 No onsite maintenance of construction machinery and vehicles will be
performed based on KPC's requirements and all maintenance programme
for all machinery and vehicles will be sent off-site.
 Diesel skid tanks and oil drums should be placed within a paved bunded
area with shelter and away from water bodies. Oil sumps and interceptors
should be installed at the drainage outlet of the bunded area. The bund
should be designed and constructed to contain 110% of the largest tank
capacity.
 Spill kits shall be provided at strategic locations to clean up any spills to
prevent leaks or spills from flowing into the earth drain or monsoon drain.
Spills should be cleaned up immediately to prevent further contamination
to receiving waterways.
 Surface runoff channelled to any water course or public drains will be
managed to meet the Standard B limit of 100 mg/l for suspended solids
under the Environmental Quality (Industrial Effluents) Regulations, 2009.
 There will be no temporary accommodation facilities set-up for the
construction workers within the Project site, and the sewage from
temporary toilets will be channelled to a temporary septic tank that will be
maintained by a licensed contractor.

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

 All scheduled wastes should be handled accordance with the
Environmental Quality (Scheduled Waste) Regulations, 2005.
 Maintain good housekeeping on-site.
 Monthly water quality monitoring at final discharge and outer drainage
system of the Project site.

2 Air Quality  Generation of fugitive dust by the heavy machinery due to  Project site should be hoarded or fenced off to reduce wind-blown dust
the demolition and construction activities. dispersion.
 Generation of fugitive dust and emissions such as carbon  Soil stockpiles will be covered where practical and vehicles transporting
monoxide, carbon dioxide, hydrocarbons and nitrogen construction materials shall also be properly covered with canvas sheets to
oxides by the vehicle movement in and out of the Project minimise the dust dispersion.
site.  Vehicles transporting the construction materials to and from the Project site
 Generation of fugitive dust and emissions such as carbon should be covered by tarpaulin sheets as stated in Sections 81 and 82 of
monoxide, carbon dioxide, hydrocarbons and nitrogen the Local Government Act 1976.
oxides due to the transportation of materials and wastes  Wash trough for cleaning of vehicle wheels at the exit of the Project site
within the Project site. will be allocated.
 Designated routes for movement of machinery and vehicles will be
established.
 Spilled soil and other materials on paved roads should be removed and
cleaned.
 Ambient air quality monitoring will be in line with current monitoring
practices.
 Regular inspection and maintenance programme for machinery and
vehicles will be implemented.
 All structures will be cleaned prior to removal.
 Open burning is strictly prohibited.
 Notify the DOE on the use of generator sets or other fuel burning
equipment as required by the Regulations 5 of the Environmental Quality
(Clean Air) Regulation, 2014.
 Watering using water bowsers or water spraying should be carried out
during the dry weather at the main access road.
 Regular monitoring of vehicle emissions to comply with limits/standards

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

stipulated in the following regulations:
o Environmental Quality (Control of Emission from Diesel Engines)
Regulations, 1996
o Environmental Quality (Control of Emission from Petrol Engines)
Regulations, 1996
3 Noise and  Generation of perceivable vibration and high noise level  Erect hoarding at the Project site.
Vibration during the piling activities.  Noisy construction activities such as piling shall be scheduled between 8
 Generation of noise during construction and vehicle a.m. to 6 p.m. only.
movements  Selection of haulage route, timing of delivery should be limited to daytime
and weekdays and proper maintenance of vehicles will be implemented.
 Workers who are involving with extensive noise emission activities shall be
equipped with hearing protective devices, e.g. ear-muffs.
 Regular monitoring and maintenance activities shall be conducted to
ensure the silencers of all machinery are in good condition.
 Suitable piling equipment that minimizes vibration will be used where
possible.
 Heavy vehicles should be adhere to traffic speed limit at the public road
and within construction site.
 Noise level measurement at the boundary of the Project site should be
carried out in line with current monitoring practices.

4 Soil and  Potential soil erosion due to the clearing and foundation  Landscaping or tufting has to be carried out immediately to reduce erosion
groundwater works. and dust emissions from exposed land surfaces.
 Potential soil erosion due to the demolition and construction  Temporary earth drains for surface runoff to be provided as per ESCP
activities. (Appendix A).
 Potential of soil and groundwater pollution due to the  A silt trap (16 m x 37 m x 0.7 m) is to be constructed before commencing
contaminated surface runoff from the spill or leak from the of the clearing of shrub and construction activities.
heavy machinery, skid tanks and storage area.  Temporary earth drain to be installed along the perimeter of the Project
site.
 Wash trough to be installed at the Site ingress/egress point.
 Regular site inspection of Best Management Practices (BMPs) installed at

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

the Project site.
 Deposited sediment and debris such as leaves and tree branches to be
removed and any damaged linings to be repaired.
 Desilting the silt trap when it reaches 50% capacity to ensure their
efficiency.

5 Waste  Generation of biomass wastes due to the clearing activities.  No open burning of waste shall be allowed on-site under any
Management  Generation of construction wastes and solid wastes from circumstances.
the Project site Water logging  Good housekeeping shall be practiced on-site.
 Ensure the implementation of the principle of "reduce, re-use and recycle",
where possible onsite during the construction phase.
 Solid waste from demolition of facilities will be disposed of at recycling
facilities or an approved landfill by the local authority.
 A designated location and container(s) will be provided for appropriate
separation and storage of the waste onsite prior to transport for offsite
disposal.
 Vehicles transporting wastes will be covered to prevent spillage/release.
 Scheduled waste will be disposed of by a DOE licensed contractor and
copies of scheduled waste inventories, consignment notes and notification
of waste generation maintained and submitted to DOE as necessary.
 Scheduled wastes shall not be stored on-site for more than 180 days or
have a volume exceeding 20 MT.
 A designated scheduled waste storage area shall be provided on-site and
the storage area should be paved with concrete and bunded with a
capacity to contain 110% of the largest tank volume. Compartments should
also be provided to segregate different types of incompatible wastes.
 Management of scheduled waste will be in accordance with the
Environmental Quality (Scheduled Waste) Regulations, 2005.
 In the event of soil contamination, samples of potentially impacted soil will
be taken and tested to ascertain the contaminants and their concentrations
in the soil. If the presence of contaminated soil is confirmed, it will be
excavated, labelled and stored as per the requirements of the

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Environmental Quality (Scheduled Waste) Regulations, 2005.
 Transportation and disposal of the contaminated soil will be by a licensed
DOE scheduled waste contractor.
6 Hazardous  Contamination to soil, groundwater, surface water bodies  Chemical and fuel storage/skid tanks will be located at a designated area
Materials as a result of leak or spill of wastes on unpaved ground; which is paved and provided with secondary containment capable of
Management  Contamination and deterioration of the surface water as a holding 110% of the volume of the largest tank, in line with standard
result of leak or spill of wastes entering the waterways and operating procedures.
run-off from uncontained and unpaved waste storage areas;  Spill kits shall be provided at strategic locations to clean up any spills to
 Concern on safety from the potential fire from ignition of prevent leaks or spills from flowing into perimeter drains.
flammable scheduled wastes.  A drip tray will be provided for fuel transfer and refuelling activities.
 Good housekeeping and best management practices shall be
implemented on site. Spills will be handled as per existing emergency
response procedures.

7 Traffic and  Congestion of the existing traffic  Speed limits for heavy equipment transport vehicles will be established
transportation  Increase in traffic volume. and communicated to the drivers.

 Safety to the other road users  Where possible, transportation of larger loads will be scheduled to avoid
rush hour traffic.
 Where practicable, transportation routes shall avoid passing through
sensitive receptors, such as residential settlements.
 Drivers will be required to possess valid driving licenses and all
construction and transport vehicles will be required to be certified by
Puspakom and undergo periodic inspection and maintenance.

8 Occupational  Accidents/injuries due to working at height, handling of  All migrant workers are required to undergo proper medical check-ups.
Health and Safety sharp tools and construction machinery.  Construction workers to be trained in occupational safety and health from
 Inhalation of dust and exhaust fumes from trucks and other the Construction Industry Development Board (CIDB) based on the National
construction vehicles on-site. Occupational Skill Standards (NOSS) for the construction industry.
 Exposed to scheduled waste or hazardous substances  A safety and health policy should be established by the EPCC contractor
and this policy should be displayed at the locations where it is easily
accessible by the workers.
 A competent safety officer shall be employed to oversee the occupational

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safety and health on-site.
 Only trained and competent workers with valid licenses or certificates as
required by the Factories and Machinery Act, 1967 and other occupational
safety and health laws are allowed to carry out jobs with specific hazards
such as scaffolding.
 Ensure all construction workers are provided with task appropriate personal
protective equipment (PPE) including but not limited to safety boots, cut
resistant gloves (for workers working with sharp tools), safety helmets,
safety goggles and dust masks, when required.
 Appropriate health and safety training focusing on PPE requirements and
high risk tasks such as working at height, handling of heavy machinery and
construction tools such as saws, grinding machines, etc. shall also be
provided to workers prior to commencement of construction works on-site.
 The sanitation facilities must have basic treatment systems.
 Provision of sufficient waste collection bin. Regular collection, removal and
regulated disposal of waste from the Project site.
 Open burning is strictly prohibited.

Operation Phase

1 Surface Water  The discharge of the effluents may lead to degradation of  Contaminated surface runoff, tank bottom water and contaminated water
Quality surface water quality. from truck/tanker washing activities shall be routed to and treated by
 Water pollution because of spillage and leakage from pipe oil/water interceptors to meet Standard B before being discharged from the
and tank farm area. Project site.

 Water pollution due to the waste water generated from the  Bulk storage tanks will be located on an impervious base and with
daily operation, which include the sewage/sullage from the secondary containment sufficient to contain 110% or more of the volume of
sanitation facilities. the largest tank placed in the containment. Control measures for
containment integrity shall be established and implemented.
 Spillage and leakage from pipelines shall be minimised by engineering
control, i.e. all piping will be joined by welding and the whole system will be
hydro-tested prior to commissioning of the Project.
 The Project Proponent should develop a proper Spill Control and
Response Plan in coordination with Kuantan Port and relevant local

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

authorities.
 Loading/unloading activities should be carried out by properly trained
workers according to BHP’s Standard Operation Procedure to prevent spill
events.
 The Project Proponent shall develop and implement an inspection and
maintenance programme for the bulk storage tanks which shall include
periodic tank integrity checks.
 The loading gantry area will be paved and contaminated or potentially
contaminated surface runoff will be captured in closed drainage systems
that will channel the runoff to the oil interceptor for treatment prior to
discharge.
 Written operating procedures and work instructions shall be provided for all
operating scenarios including loading and unloading of the fuel and these
procedures/instructions be communicated to all relevant personnel.
 A preventive maintenance programme shall be developed for the Project.
This preventive maintenance programme shall be performed at regular
intervals in order to prevent unscheduled shutdowns and failures of the
bulk fuel terminal processes.
 The septic tank will be maintained regularly by a licensed contractor.

2 Ambient Air  Fugitive VOCs emission from the vents of the storage tanks  Storage tanks for mogas/gasoline will be fitted with an internal floating
as a result of evaporation and breathing loses deck to minimise losses from evaporation. These tanks shall be designed
and construction to meet the requirements of API – Welded Steel Tanks
for Oil Storage.
 Paint shall be applied on all storage tanks and the exterior paint coatings
shall be maintained in good condition.
 Ambient air quality monitoring at the Project boundary and at nearby
sensitive receptors shall be continued on a yearly basis.
 Periodic maintenance and inspection programmes shall be implemented to
ensure that internal floating roof seals, pump seals, valves, flanges,
gaskets and joints are intact and functioning correctly, and that any
leakage or faults are identified at the onset.

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

3 Noise and  Short term exposure of employees to high noise levels  Truck drivers shall be required to turn off truck engines when queuing and
Vibration waiting. Idling of vehicles engines shall not be allowed.
 Pumps, compressors and other motorised equipment shall be maintained
in proper working condition in order to minimise noise emission. Where
necessary, high noise equipment shall be provided with noise cladding,
noise barriers, or contained inside a room.
 The facility shall provide appropriate hearing protection to employee
exposed to high noise areas.
 Appropriate warning signs on use of hearing protection shall be placed at
visible locations to ensure that employees entering these high noise areas
are aware of the type of hearing protection required.

4 Soil and  Potentially soil pollution due to spill or leak of fuel  A drip tray will be provided for fuel transfer and refuelling activities.
groundwater  Good housekeeping and best management practices will be implemented
on site. Spills will be handled as per emergency response procedures.
 In the event of soil contamination, samples of potentially impacted soil will
be taken and tested to ascertain the contaminants and their concentrations
in the soil. If the presence of contaminated soil is confirmed, it will be
excavated, labelled and stored as per the requirements of the
Environmental Quality (Scheduled Waste) Regulations, 2005.
Transportation and disposal of the contaminated soil will be by a licensed
DOE scheduled waste contractor.
 There are no underground storage tanks or pipelines containing
hydrocarbon products on-site.
 All aboveground storage tanks and pipelines containing hazardous
materials shall undergo periodic inspection on a five yearly basis as
recommended by API 653 – Above Ground Storage Tank Inspector
Program and API 570 – Piping Inspector Program.

5 Waste  Generation of scheduled wastes from the oily water  No open burning of waste shall be allowed on-site under any
Management interceptors. circumstances.
 Generation of sewage and solid wastes from the Project  Good housekeeping shall be practiced on-site.
site.  Ensure the implementation of the principle of “reduce, re-use and recycle”,

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where possible onsite during the construction phase.
 Solid waste from demolition of facilities will be disposed of at recycling
facilities or an approved landfill by the local authority.
 A designated location and container(s) will be provided for appropriate
separation and storage of the waste onsite prior to transport for offsite
disposal.
 Vehicles transporting wastes will be covered to prevent spillage/release.
 Scheduled waste will be disposed of by a DOE licensed contractor and
copies of scheduled waste inventories, consignment notes and notification
of waste generation maintained and submitted to DOE as necessary.
 Scheduled wastes shall not be stored on-site for more than 180 days or
have a volume exceeding 20 tonnes.
 A designated scheduled waste storage area shall be provided on-site and
the storage area should be paved with concrete and bunded with a
capacity to contain 110% of the largest tank volume. Compartments should
also be provided to segregate different types of incompatible wastes.
 Management of scheduled waste will be in accordance with the
Environmental Quality (Scheduled Waste) Regulations, 2005.

6 Hazardous  Potential impact to workers on-site due to exposure to  Prior to fuel loading and unloading, all related equipment will be checked to
Materials these main fuel products of BHP. confirm good operating condition. The loading gantry hoses for fuel
Management products will have valve fittings that enable spill-free connection and
disconnection. The hoses and couplings will be controlled and tested
periodically.
 Drip trays will be placed under loading couplings to contain any drips or
spills during truck loading.
 Chemicals will be transferred in durable and compatible containers with
labels indicating he hazards of the contents; labels will use internationally
recognized hazard symbols.
 Material Safety Data Sheets (MSDS) will be provided for all chemicals and
BHP’s main products.
 Chemicals will be segregated considering their hazard classification and

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

safe distances will be kept between incompatible chemicals.
 Fuel and additive storage areas will be designed to avoid leaks/spills to the
environment. Storage and transfer areas will have secondary
containment.
 A fuel and chemical inventory will be maintained.
 Appropriate PPE for chemical handling shall be provided to and worn
during handling of chemicals.
 Training on chemical handling shall be provided to the operators.

7 Traffic and  Congestion of the existing traffic  Speed limits of the delivery vehicles (tanker trucks) will be implemented
Transportation  Increase in traffic volume. within the terminal.

 Safety to the other road users  Road markings and signage at potential risk areas/locations.
 Transport trips will be scheduled to avoid peak hours.
 Where practicable, transportation routes shall avoid passing through
sensitive receptors, such as residential settlements.
 Drivers will be required to undergo safe and defensive driving training and
be trained on safety requirements such as the prohibition of the use of
hand phones while driving, mandatory use of seatbelts and prohibition on
alcohol consumption when they are on duty for transport and delivery.
 Drivers will be required to possess valid driving licenses.
 Vehicles will be required to be certified by Puspakom and undergo periodic
inspection and maintenance.
 All vehicles will be supplied with portable spill kits, fire extinguishers and
first aid kits.

8 Occupational  Potential impact to workers onsite due to exposure to  Tank farm and loading gantry shall be designated as a restricted area in
Health and Safety hydrocarbon products as part of routine plant operations order to prohibit unauthorized personnel from gaining access to these
areas. Subcontractors or visitors who are required to enter these restricted
areas shall be accompanied by facility personnel.
 All scheduled wastes and chemicals shall be stored in containers with
labels indicating the hazards of the contents. Labels will use internationally
recognized hazard symbols. Material Safety Data Sheets (MSDS) shall be
provided for all chemicals and displayed in a visible location at the point of

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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

use.
 Employees involved in the handling of fuel products shall be provided with
adequate training on safe methods of handling the fuel products that are
pertinent to the operations of the facility. The training shall include but is
not limited to the following:
o Understanding of properties of and hazards associated with the
substances that are handled on-site;
o Correct use of PPE, its care and maintenance;
o Location of first aid equipment, and first aid measures to be taken; and
o Actions to be taken in the event of an emergency event such as spills,
vapour escape, fire and explosions. Emergency response training shall
include simulated emergency response.
 The facility shall provide personal protective clothing and equipment to any
employee exposed to noise, heat or any explosive, flammable, poisonous
or corrosive substances or other injurious substances likely to cause bodily
harm. The facility shall conduct a PPE assessment onsite to ensure that
the right types of PPE are used by workers, suitable for their job function.
In the event additional PPE is required based on specific tasks, the facility
shall ensure that the necessary PPE be provided to relevant workers.
 A Department of Occupational, Safety and Health (DOSH) registered
chemical health risk assessor shall be engaged to perform a chemical
health risk assessment (CHRA) that covers all workplaces within the facility
where chemicals hazardous to health are being used as required under the
Occupational Safety and Health (Use and Standards of Exposure of
Chemicals Hazardous to Health) Regulations, 2000, Regulation 10.
Additionally, the facility shall ensure that all measures
proposed/recommended by the CHRA are developed and implemented
onsite within one month from date of assessment.
 Based on the recommendations from the CHRA, the facility may need to
establish an employee exposure monitoring programme. The exposure
monitoring shall be performed by a DOSH registered industrial hygiene
technician and performed at periodic intervals as determined by the
industrial hygiene technician.

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PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT
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No. Criteria Potentially Significant Environmental Impacts Proposed Mitigation Measures

 The facility shall ensure that enclosed areas/ rooms utilized for storage of
scheduled waste/ chemicals are provided with adequate ventilation, i.e.
ventilation that is sufficient to maintain ambient concentrations of any
vapours or dust in these enclosed areas as low as practicable. The
adequacy of the ventilation shall be further assessed by a DOSH
registered industrial hygiene technician.

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PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT
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ES 11.0 Quantitative Risk Assessment (QRA)

A Quantitative Risk Assessment (QRA) was conducted as part of the EIA Study. The main aim of the
QRA is to identify and quantify the probability and consequences of the possible incidents that may
escalate from the Project to the surrounding areas; to calculate the level of risk; and to suggest
measures to reduce the level of risk if higher than the allowable level in compliance with DOE risk
criteria stipulated in the Environmental Impact Assessment Guidelines for Risk Assessment,
December 2004, EG 1/04.

Based on the outcome of the QRA, the extent of all consequences assessed is limited within the
industrial developments surrounding the project, which is in compliance with DOE’s risk acceptance
criteria.


-5
The 1 x 10 per year IR contour of the proposed Project remains within the industrial
development, i.e. Kuantan Port only; and

-6
The 1 x 10 per year IR contour of the proposed Project does not encompass involuntary
recipients of industrial risks such as residential areas, schools, hospitals, and places of
continuous occupancy, etc.

ES 12.0 Residual Impacts

With the implementation of all mitigation and management measures, no significant residual impacts are
expected to arise from the construction and operation of the Project. A summary of the residual impacts
are provided below:

 There is no impact to water quality during the construction phase. However, anticipated impacts
to water quality during the operational phase include effluent and potentially contaminated
runoff discharges may cause localised degradation of water quality in the drainage system of
Kuantan Port.

 Impacts to air quality during the construction stage are mainly related to fugitive dust emissions
from construction works and material transport. There is no emission of noxious fumes from the
Project that could cause a decrease in the air quality during the operation phase.

 Noise impacts during construction from activities such as piling, excavation and hammering and
from transportation vehicles were rated minor. No significant residual impacts are anticipated
during the operational and maintenance phase of the Project

 Impacts associated with the generation of scheduled waste and solid wastes during the
construction and operational phases were rated minor and are not expected to result in any
residual impact if it is handled accordingly.

 Impacts on the socio-economic condition during the construction phase were rated minor.
However, a positive residual impact is expected from the Project as it will support the
Government’s drive to increase the growth of Kuantan Port by increasing the bulk fuel storage
capacity of the East Coast region when the Project is implemented.

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PRELIMINARY ENVIRONMENTAL IMPACT ASSESSMENT
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ES 13.0 Environmental Management Plan (EMP)

The objective of the EMP is to provide a framework for effectively managing the potential environmental
impacts during the construction and operation of the proposed Project to as low as reasonably
practicable (ALARP).

A complete Environmental Management Plan (EMP) (Including Endorsed Erosion Sediment Control
Plan, ESCP) for the Project is to be submitted concurrently with this PEIA as one EIA Approval
Application.

ES 14.0 Conclusion

The impact assessment for this Project did not identify any issue of major significance that could not be
mitigated such that the Project was not acceptable from an environmental and social perspective. All
potential negative impacts identified could be mitigated with the implementation of appropriate mitigation
measures, i.e. measures that will reduce the impact and risk level to ALARP through design, on site
management or operating procedures (including monitoring); and project planning responses (for
example contractor management).

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