pre-feasibility report -...

PPrree--FFeeaassiibbiilliittyy RReeppoorrtt FFoorr

TThhee pprrooppoosseedd iinnssttaallllaattiioonn ooff 33xx110000 MMTT MMoouunnddeedd LLPPGG//PPrrooppaannee TTaannkkss iinn tthhee EExxiissttiinngg ffaacciilliittiieess

Project Proponent

COROMANDEL INTERNATIONAL LIMITED

Beach Road, Kakinada, East Godaveri District-533 003 Andhra Pradesh

December 2014

Prepared By

Cholamandalam MS Risk Services Limited Accredited EIA Consultant Organization

Certificate No: NABET/EIA/1011/011 Parry House, 4th Floor,

No: 2, N.S.C Bose Road, Chennai - 600 001

Pre-feasibility Report for proposed installation of 3x100MT LPG Mounded Tanks

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TABLE OF CONTENTS

CHAPTER # TITLE PAGE #

1. Introduction ......................................................................................................2

2. Proposed Mounded LPG Tanks .......................................................................8

2.1 Introduction ...............................................................................................................8 2.2 Project Proposals .......................................................................................................8 2.3 Need for Fuel change ............................................................................................... 10 2.4 LPG as an Alternate Fuel.......................................................................................... 10 2.5 Design Details of the LPG System ............................................................................ 12 2.6 LPG Storage and Handling ....................................................................................... 12

3. Environmental and safety Aspects .................................................................16

4. Project Cost and Implementation Period ........................................................17

Annexure #

1. Existing Environmental Clearance and APPCB Consent Order 2. Plot plan showing Natural Gas and LPG/Propane Gas Pipelines Routing 3. Layout showing the proposed location of LPG bullets


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1. INTRODUCTION

1.1 Coromandel International Limited (Project Proponent)-CIL

Coromandel International Limited, India’s second largest Phosphatic fertilizer player, is in the business segments of Fertilizers, Specialty Nutrients, Crop Protection and Retail. The Company manufactures a wide range of fertilizers and markets around 3.2 million tons making it a leader in its addressable markets.

In its endeavor to be a complete plant nutrition solutions Company, Coromandel has also introduced a range of Specialty Nutrient products including Organic Fertilizers. The Crop Protection business produces insecticides, fungicides and herbicides and markets these products in India and across the globe. Coromandel has also ventured into the retail business setting up more than 700 rural retail centers in the States of Andhra Pradesh and Karnataka.

Coromandel has multi-location production facilities and manufactures & markets a wide range of Phosphatic Fertilisers, Crop Protection Products, Speciality Nutrients like Sulphur Pastelles, Water Soluble Fertilisers, Micro Nutrients and Organic Fertilisers. The Company exports its Crop Protection products to countries across the globe. Coromandel also provides agri input solutions to the farmers and offers life-style products through its rural retail centers. The Company is managed by competent and committed professionals and is known for fostering a climate of high performance and continuous improvement.

1.2 Various awards and accolades of the facility

Over the years, Coromandel has received a number of awards and recognitions including the British Council 'Five Star' rating for Safety Management Systems and being adjudged one of the 'Ten Greenest Companies in India' by a joint survey of TERI and Business Today magazine. Some of the recent awards and recognitions received by Coromandel include:

Coromandel was awarded "Significant Achievement in HR Excellence" by the Confederation of Indian Industries (CII).

CII EXIM-BANK Business Excellence Award for 'Strong Commitment to Excel' for Vizag & Kakinada Plants.

CNBC Award for Most Engaged Workforce.

FAI Best Production Performance Award for the Phosphoric Acid Plant at Vizag received for the 9th time

FAI Best Production Performance Award for Complex (P2O2) Fertilizers for Kakinada Plant.

National Energy Conservation Award from Ministry of Power, New Delhi, for Kakinada Plant.

Ranked among the Top 20 Best Employers to work for by Business


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1.3 Overview of Existing Facilities

CIL produces Di ammonium Phosphate, NPK, water soluble fertilizer and Sulphate of Potash fertilizer with the production capacity of 19.25 LMTPA in existing facilities at Kakinada plant, Godavari district, Andhra Pradesh.

The existing facility was accorded Environmental Clearance (MoEF Ref: J-11011/381/2006-IA-II [I] dated 11.05.2007 enclosed as Annexure 1) for the Expansion of NPK grade fertilizer from 1.85 lak MTA to 6.10 lakh MTA by installation of Train C at existing plant in Village Valasapakala, Kakinada Rural Mandal, East Godavari District in Andhra Pradesh.

Again the facility was accorded Environmental Clearance on 11th June 2008 (J-11011/1303/2007-IA-II [I] dated 11.05.2008 enclosed as Annexure 1) for the Enhancement of Complex fertile plant capacity from 3200 MTPD to 4500 MTPD by expansion of the Train A & B in the existing facility at Kakinada.

CIL is regularly submitting the Environmental compliance report to the Regional Office, Bangalore of MoEF and has complied with all conditions of the Environmental Clearance issued by MOEF for expanding capacity.

The industry has obtained Consent to Operate vide No. APPCB/VSP/RJY/285/HO/CFO 2013-902 dated, 20.05.2013 under Air (Prevention and Control of Pollution) Act, 1981 and under Water (Prevention and Control of Pollution) Act, 1974 for discharge of effluents from the outlets and the quantity of emission per hour from the chimneys. The copies of the consent renewal are enclosed as Annexure 1.

The existing facility is located in an area of 442.01 acres, with vacant spaces well covered with greenery. The typical land use break-up of the existing plant is given in Table 1.1.

Table 1.1 Land use Break-up of the Existing facilities

S.No Description Area in Acres 1 Plants and Building 66.24 2 Sewage Treatment Plant 0.05 3 Storage Yards 0.95

4 Road and Railway 59.33 (13.2+46.13)

5 Greenbelt and Plantation and Pond =295.87 (270.87+25)

6 Open Space 19.57 7 Total area 442.01 1.4 Details of the Existing Facilities

The existing facilities of CIL are located at Kakinada Rural Mandal, East Godavari District in Andhra Pradesh.The existing plant is located at the intersection of latitude 16°59'19.18"N and longitude 82°16'8.64"E. Samalkot-Kakinada Bypass is located at about


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4.5 km. The details of environmental setting around the proposed expansion site are given in the following table

Table 1.2: Environmental Setting of the Site

S.No. Particulars Details

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Location: Village Valasapakala Taluk (Mandal) Kakinada Rural District East Godavari State Andhra Pradesh

2 Latitude 16°59'19.18"N 3 Longitude 82°16'8.64"E

4 Elevation above mean sea level (MSL) 13 ft 6 Present land use at the proposed site Industrial

7 Nearest Highway/Road Samalkot-Kakinada Bypass-0.82 Km, East GFCL road-0.42Km, North

8 Defense Installations Nil

9 Nearest railway station Kakinada Town Railway Station- 4.4Km, South west

10 Nearest airport/air strip Rajamundry Airport-49.7Km west Visakhapatnam Airport -128 km North East

11 Nearest Port Kakinada Port-2 Km, North east

12 Nearest village Gudari Gunta- 2 Km, South Ramanayapeta- 2.23, West

13 Nearest town Kakinada 14 Nearest canal Godaveri Canal-5 Km West 15 Hills/valleys Nil 16 Archaeologically important places Nil

17 Nearest place of Tourist/Religious importance Nil

18 Ecologically sensitive areas (National Parks/Wildlife sanctuaries/bio-sphere reserves)

Coringa Wildlife Santuary-6.2 Km, South

19 Reserved/Protected forests within 10 km radius Nil within 10 Km

20 List of Industries Nargarjuna fertilizer-1.5 Km, South The existing facility has been implementing various environmental management programs and is complying with all environmental regulations and standards. A dedicated Health and environmental cell headed by a senior manager-EHS is monitoring and implementing various environmental programs in the existing facility. Six monthly compliance reports for the EC conditions has been regularly submitted to MOEF, Regional office.

The emissions from the stacks are regularly monitored and the concentrations of stipulated pollutants are being maintained well within the standards. There are three number of stacks connected to process units and heaters in the existing facility. Natural gas is being used in boiler, dryers in the main process units.


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The existing facility consumes about 1365 m3/day of water that was supplied by Kakinada Municipal Corporation. Necessary water cess has been paid to pollution control Board. The domestic sewage generated from the plant is treated in a dedicated sewage treatment plant (STP) and the treated sewage is used for horticulture applications within the plant.

Due to presence of higher content of nutrients such as Nitrates and Phosphates, the entire wastewater generated from the facility is reused in the scrubbers and process units, thereby achieving Zero Process Wastewater Discharge operations.

A massive greenbelt was developed since the inception of the facility by Godavarai Fertilizers and the same was further enhanced to an ultimate green cover area of 295.87 Acres during the recent areas. Photographs of the existing greenbelt/ green cover area is shown in Figure 1.4

Figure 1.1 Index Map


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Figure 1.2 Vicinity Map of the Coromandel Facility

Project Site

Project Site


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Figure 1.3 Google Map Showing Coromandel Facility

Figure 1.4 View of Green cover in the Existing Facility

Existing Coromandel site


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2. Proposed Mounded LPG Tanks 2.1 Introduction

Coromadel International Limited is proposed to install the three number of 100 MT mounded LPG tanks in the existing facility. Currently the CIL is using Natural Gas (NG) as fuel in the existing facilities, which is being supplied by GAIL through a 4’’ pipeline. NG is used in as fuel in the DAP Plant, Boiler House and flare stack. About 35000 Sm3/day of NG is being consumed in the existing facility when the plant is operated at full capacity.

2.2 Project Proposals

Keeping in view of the interrupted NG supply by GAIL in the recent past, Coromandel intends to utilize LPG as stand-by and alternative fuel in the existing facility. Since the overall gross calorific value of NG and LPG is almost identical, the overall fuel consumption in the facility will remain unchanged from the current scenario. In this context, CIL intends to install the following additional supporting facilities for which an amendment of the earlier Environmental Clearance (MoEF Ref: J-11011/1303/2007-IA II (I) dated 11th June 2008) is sought. The following LPG facilities will be installed at the existing facility:

Installation of 3x100 MT LPG Mounded tanks with necessary passive and active safety systems as per OISD 144 and 150 standards. Mounded LPG tanks are intrinsically safe when compared with above ground tank, therefore the risks due to domino affects will be totally eliminated.

LPG Truck Unloading Bay – vacuum type LPG unloading facility will be installed to avoid any spills and leakage of the LPG during the unloading operations. Necessary excess flow check valves, Non-return valves and gas detectors will be installed on the LPG tanks to avoid any hazards during loading and transfer operations.

LPG at 17 bar pressure will be expanded in the gasification module attached to the LPG tanks. The rarified gas 6 bar pressure will be supplied to the existing NG line through a 4 inch pipeline.

3 inch LPG supply line will be connected to the existing NG supply line with an isolation valve

The proposed location for Installation of 3x100 MT Mounded LPG Tanks is given below in Figure 2.1 and the plot plan showing natural gas and LPG/Propane gas pipelines routing is given below in Annexure 2


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Figure 2.1 Proposed Location for Installation of 3x100 MT Mounded LPG Tanks


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Figure 2.2 Google Map Showing the Existing NG Line and Proposed 3x100MT Mounded LPG Tanks

2.3 Need for Fuel change

Due to the Disruption and unavailability of GAIL (India)'s natural gas supplies and discrepancy by government, industries in that region are exploring the alternate source of fuel for their industries. Coromandel approach Bharat Gas Limited, Super Gas Limited, Indian Oil Corporation for the supply for the LPG through road tankers. In view of this the CIL proposed to adopt duel fuel (NG and LPG) in the existing facility depending up on the availability of respective gas. Expression of interest from Super Gas/IOCL and Bharat Gas has been obtained for the supply of required LPG at Kakinada plant.

In this context, Coromandel intends to install LPG receiving station, 3x100MT LPG storage tanks and LPG vaporization unit and LPG line to supply the fuel to existing facilities, For which necessary amendment in the Environmental Clearance (MoEF Ref: J J-11011/1303/2007-IA II (I) dated 11th June 2008) is sought from Ministry of Environment and Forests & Climate Change, New Delhi.

2.4 LPG as an Alternate Fuel

Three number of 100MT mounded LPG tanks at about 17 bar pressure will be installed. Average daily envisaged LPG demand in the facility will be about 25 Tons. At any point of time only two tanks will be in working condition and the third LPG tank will be kept empty


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as standby mode only. LPG will be transported by road tankers with a standard capacity. One tanker of capacity 25 T will be received every day. Since calorific value of the both fuels (NG and LPG) will be same, fuel consumption in both the scenario will remain the same. The existing NG pipeline will be used for the supply of the LPG to the end user such as production units -Trains (A, B & C), Boiler House and DAP flare Stack. The total consumption of the LPG by various plants is given below in Table 2.1

Table 2.1 LPG Requirement

LPG Consumption

(Sm3/day) Train A, Sm3/day

Train B, Sm3/day

Train C, Sm3/day

Boiler (12T/hr), Sm3/day

DAP Flare Stack, Sm3/day

35,000 8000 8000 10000 8000 1000

LPG is a mixture of commercial butane and commercial propane having both saturated and unsaturated hydrocarbons. LPG marketed in India shall be governed by Indian Standard Code IS-4576. The envisaged specification of the LPG used is given below in Table 2.2.

Table 2.2 Typical Specification of LPG

S.No. Particulars LPG 1. Chemical Formulae 60%Butane,

40%Propane Mix 2. Max. Vapour Pressure Saturated in Kg/Cm2 At 65

deg C 16.87

3. Gross calorific value in Kcal/kg. 11840 4. Specific gravity (liquid) at 15 deg C Water =1 0.543 5. Specific gravity (vapour) at 15 deg C air=1 1.75 6. Ideal combustion Ratio (Air to Gas) 28 to 1 7. Flammability limits (Upper) 9.1% 8. Flammability limits (Lower) 1.90% 9. Ignition Temperature (oC) 488-502 10. Volume of gas produced per unit volume of liquid 250 11. Volume of air required to burn unit volume of gas 26 12. Volume of oxygen required to burn unit volume of gas 5.5 13. Max. flame temperature (oC) 1985 14 Volatility: evaporation temp. in 0C for 95(oC) by vol. at

760 mm Hg pressure max. 2

15. Boiling Points (oC) -22 16. Percent Gas in air for Maximum Flame Temperature 3.9 17 Limits of Flammability Lower) (% Gas in Gas /Air

Mixture) ( Upper) 1.95, 9.75

2.4.1 Sources of LPG

The LPG will be sourced from either any or multiple suppliers such as Super Gas Limited, Chennai, IOCL and Bharat Gas based on the economic feasibility and transportation viability. Similar to the practiced adopted by other industries in the region, LPG will be received through tankers and necessary Memorandum of Understanding (MOU) shall be executed with the suppliers shortly.


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2.5 Design Details of the LPG System The storage tanks will be designed in accordance Oil Industry Safety Directorate (OISD) standards. Appropriate Fire & Safety measures will be taken. Site selection for the storage tanks in the existing facility and other appropriate Fire & Safety measures will be as per the guidelines of Oil Industry Safety Directorate (OISD). Layout showing the proposed location of LPG bullets is presented in Annexure 3. The design details of the LPG tanks is given below in Table 2.3

Table 2.3 Typical Design Details of the Mounded LPG Tanks

S.No. Parameter Designed Value 1 Type of storage Mounded Bullets 2 System design OISD Std. 150 and 144 3 Nos. of storage bullets Three 4 Volume of the each storage tank 100 MT 5 Typical peak design LPG flow rate 2.5MT/Hr 6 Dimensions of the tank 3.5m 7 Design Temperature ambient 8 Design Pressure 17 bar 9 Working Pressure 14.5 bar 10 Working Temperature Ambient 11 Pressure inside the bullet 12 Maximum filling rate from road tanker --- m3/hr 13 Typical peak pump out rate --- m3/hr 14 Material of construction ASTM A516 Gr. 60, (IT)

Internal bottom surface upto 900 shall be provided with a coating suitable for caustic water, and H2S dissolved in LPG.

Table 2.3 Typical Design Details of the LPG Pumps

S.No. Parameter Designed Value 1 Type: Vertical Centrifugal Barrel type

(Barrel in underground). 2 Rated Capacity ---m3/hr 3 Rated Differential Head: ----m 4 Material in contact with fluid SS 316 (CF8M) 5 Number of pumps 1 for supply to line

1 for recirculation 1 for common standard

2.6 LPG Storage and Handling

The facility will receive LPG by tankers through road and it will be transferred to two LPG mounded bullets of capacity 100 MT each and Two tanks will be in operation and one tank will be under stand-by mode, the third tank will be always empty (without inventory).

After receiving the LPG through tankers before unloading normally all the vapour lines of tanks will be kept open. Inlet of the tanks will be opened and liquid line from tanker is lined up to Inlet Header. During unloading the compressor shall take vapor from vapor line and compress and route the LPG to tankers and the tanker liquid is displaced with LPG vapor. Liquid is routed to tanks through recirculation line, after complete unloading of liquid LPG,


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compressor will be used to draw residual vapor from tanker and route the LPG vapor to tanker through vapor line.

The bottom connections include liquid discharge line to vaporizer and drain line with two isolation valves and with its end outside the shadow of the tank. Each tank is provided with multiple pressure relief valves with discharge capacities enough to avoid under pressure rise under fire in the vicinity of the tank. Each tank will be also fitted with roto-gauge (a device to check the level of liquefied gas), pressure gauge and temperature gauge. From vaporizer LPG will be supplied to the respective plant through pipeline. The figure 4.4 below shows the basis design of the mounded tanks.

Unless LPG is being transferred, product control valves are normally in the closed position. It is more appropriate to install automatic shut off feature when either a fire (or heat) is sensed or when other abnormal conditions occur.

2.7 Safety Systems

The following LPG safety systems can be considered while designing the storage facility:

1. Back flow check valve: This valve allows flow in one direction only and is used to allow a container to be filled while preventing product from flowing out of the container.

2. Positive shut off valve: A manually operated shutoff valve used to control the flow of the flammable gas

3. Excess flow valve: A valve designed to close when the liquid or vapor passing through it exceeds a prescribed flow rate.

4. Internal valve - A container primary shutoff valve whose seat and seat disc remain inside the container so that damage to parts exterior to the container or mating flange does not prevent effective sealing of the valve and which has the following features: (1) provision for the addition of a means of remote closure; and (2) automatic shutoff when the flow through the valve exceeds its rated maximum flow capacity or when pump actuation differential pressure drops to a predetermined point.

5. Emergency shut off valve - A shutoff valve incorporating thermal and manual means of closing the valve and that also provides for a remote means of closing to be attached.

6. Hydrostatic pressure relief valve: A type of relief valve that is set to open and relieve pressure in a liquid hose or pipe segment between two shutoff valves when the pressure exceeds the setting of the valve.

7. Container pressure relief valve: A type of pressure relief device designed to open and then close to prevent excess internal fluid pressure in a container without


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releasing the entire contents of the container. The valve is located in the vapor space of the container.

8. Fire Safe ROV will be provided on first flange on liquid line (s), vapour outlet and re-circulation lines from the vessel either from bottom or. No other flanges will be provided up to ROVs,

9. All vents and drains will be routed to an emergency flare system,

10. Minimum two different types of level indicators and one independent high level switch will be provided

11. One transmitter will be of servo type and other Radar type,

12. One pressure and temperature measuring instrument will be provided,

13. Two isolation valves and an excess flow check valve will be provided,

14. Fire detectors based on heat detection through thermal fuses/quartz bulbs/ EP detectors will be provided,

15. At least four gas detectors will be installed and which will set for the 0.5*LEL (0.8%),

16. In the event of gas detection all ROVs on the affected vessel and LPG Pumps will trip,

17. Fire detector on each exposed portion of vessel will be installed, water sprinklers and deluge system will be automatically operated upon fire detection.

18. Water sprinklers/deluge system shall be provided for the LPG tank to avoid over heating of the content in case of small external jet fires.

19. At least one approved portable B:C rating dry chemical fire extinguisher may be installed near the tank

20. A warning sign or notice of minimum size of 800mm x 600mm shall be permanently and legibly displayed at the front of the installation

21. Restricted zone and fence shall be created around the dyke,

By adopting the above measures, the overall risk due to storage and handling of LPG at the designated location will be minimized. However, a risk assessment study was undertaken to finalize the specific engineering systems.


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Figure 2.3 Typical Rendering of Mounded LPG Storage


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3. Environmental and safety Aspects

Since the calorific value of NG and LPG are similar, there will not be any change in the fuel consumption from the current baseline scenario of 35000 Sm3/day. The sulphur content in both LPG and NG will be identical and hence no additional SO2 emissions are envisaged due to firing of LPG in the facility. Since the fuel consumption will remain the same, NOX emissions from boiler also will not change from current levels.

No additional fresh water is required for the proposed installation so there will water and waste water remains unchanged. The plant is designed based on the Zero liquid discharge concept. No additional power demand is required for the proposed installation.

The proposed LPG tank area is not falling under CRZ area as per the CRZ Notification, 1991 and further amendment in 2011. The proposed for the LPG tanks is not falling with flood plain area and also no natural drains and canals were found to be located at the proposed site within the CIL land.

Mounded Storage of LPG has proved to be safer compared to above ground storage and also eliminates the possibility of fire engulfment and radiation from a fire in close proximity. Intrinsically passive and safe environment eliminates possibility of Boiling Liquid Expanding vapour cloud explosion (BLEVE). No “Domino Effect”. By adopting various safety measures stated in section 2.7 of this report, the overall human exposure risks will be well within the acceptable levels stated by Central Pollution Control Board and International risk mitigation standards.


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4. Project Cost and Implementation Period

The proposed LPG systems will be implemented at a cost of Rs. 910 Lacs and the typical project cost break-up is provided hereunder:

Item Rs. Lakhs Constriction of mounded tanks 360 Civil works 450 Pipelines and supporting facilities 20 Safety systems including gas detectors and control systems 65 Consulting fees, regulatory fees and other staff cost 15

Total 910

Annexure 1 Existing Environmental Clearance and APPCB

Consent Order

Annexure 2 Plot plan showing Natural Gas and LPG/Propane

Gas Pipelines Routing

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GFK-100-A-349

~

PROPOSED SHOWN THUS

LEGEND

P L O T P L A Nmurugappa

Coromandel

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100mm dia NATURAL GAS PIPE LINEEXISTING

EXISTING N.G. PIPE LINE

PROPOSED LPG PIPE LINE

80mm dia LPG PIPE LINEPROPOSED

Annexure 3 Layout showing the proposed location of LPG

bullets

Coromandel

murugappa

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