presentation to portfolio committee on environmental affairs and tourism processes and mechanisms to...
TRANSCRIPT
Presentation to Portfolio Committee on Environmental Affairs and Tourism
Processes and mechanisms to ensure clean air
23rd August 2005
Wayne Hartmann – General ManagerLynne Hanekom – HSE ManagerAlan Munn – Sustainable Business
ManagerSibongiseni Khathi – Environmental Services
Manager
The Engen Refinery team
Why we think we are here:
Current media attention / legal action Perception of poor environmental performance
as a result of Escalating Expectations
To provide you with actual performance information To present our plans for the future To answer any questions
Presentation contents:
Background to Engen and the refinery Discussion of community issues / concerns Discussion of actual environmental
performance and comparison to standards / expectations (SO2 / flares / VOC’s)
Stakeholder relationships summary The way forward
Background to Engen Origins of the company date back to around 1900 Engen created when Mobil disinvested from South
Africa 80% owned by Petronas – the Malaysian state oil
company; and 20% by Worldwide Investment Holdings, a BEE company
Operates throughout Sub Saharan Africa Consists of one refinery and large Marketing operation Joint venture with Sasol liquid fuels in progress
Background to Engen Refinery Initial construction began in 1952
Site chosen-barren land South of Durban Started as the Standard Vacuum Oil Company, became
Mobil, Genref and finally Engen refinery Initially a 15 thousand barrels per day (tbd) refinery Has undergone numerous expansions / upgrades to
current capacity of around 150 tbd Is now a modern, highly complex refinery utilizing much
state of the art technology. Very little of the original refinery left
The Refinery site in 1950
The refinery in 1952
Aerial View of Refinery - 2004
History: Apartheid Era
Group Areas Act moved people of colour into buffer zones around industry
National Keypoints Act meant industry was seen as part of security establishment Secrecy Walls, fences, cameras, armed guards
As a result refineries were seen to be part of oppressive regime
Rocket attack and crude line explosion during 1980’s
General Environmental Issues Engen refinery: its location makes it the most visible Industry in the area One of about 140 industries in South Durban Responsible for about 10 - 20% of the emissions in South Durban (from MPP cost allocation database) Local Environmental NGO will not engage constructively (e.g. objections to projects that reduce emissions) Reality - Our side of the story never gets told
Current Perception is:
Excessive health risk to local community Sulphur dioxide / flares / VOC’s
(especially benzene) are a concern Poor standards and Outdated technology Poor performance / getting worse Don’t care / Lack of commitment
Actual performance / standards
To correct these incorrect perceptions we need to work with the scientific facts:
Strong support for the Multi Point plan Accept that Engen is in a unique situation that requires
better than normal solutions Understand each problem and apply the correct
technical solution on a prioritised basis Work with all constructive stakeholders and understand
each others issues / concerns
Lots of progress to date..
..but not enough (although close to WHO guidelines)
No easy answers!!!
Sulphur Dioxide
Sulphur Dioxide (1) - where we are Already achieved : 60% Reduction in SO2 emissions “Superclaus” technology installed in 1993 (BAT) Switched from high sulphur fuel oil to fuel gas (BAT) FCCU DeSOx technology (BAT) In World terms our emissions are not excessive New ambient SO2 standards / guidelines are tough – presents
challenges Stacks are too low (airport proximity) Very tight operational controls in place All the easy solutions (low hanging fruits) are already complete Major Capital Expenditure required for the next step change in
emissions
SO2 emissions (tons/day)
Sulphur Dioxide (2)
0
10
20
30
40
50
60
70
80
Ave
199
8
Ave
199
9
Ave
200
0
Ave
200
1
Ave
200
2
Ave
200
3
Ave
200
4
Ave
200
5 yt
d
SO
x e
mis
sio
ns
(to
ns/
da
y)
Total SO2 emissions Permit Limit
Sulphur Dioxide (3) : Best Available Technology (BAT)
Utilize Bubble concept, minimize emissions in most cost affective way to achieve emission requirements
Use mix of Hi sulphur fuel oil / Lo sulphur fuel gas as necessary to achieve emission requirements Fuel Gas only
FCCU (Catalytic Cracker) technology:
One of: DeSOx catalyst additive / Feed desulphurization / Regen Flue gas desulphurization
DeSOx
Sulphur Recovery unit (SRU) technology:
One of: SCOTT / SuperClaus / EuroClaus / Claus-pol / Sulfreen / Hydro-sulfreen / CBA/Amoco cold real absorption
SuperClaus
Source: IPPC Reference doc on Best Available Techniques
for Mineral Oil and Gas Refineries. 2001
Data includes both simple and complex refineries and those operating on high and low sulphur crudes.
Engen is a highly complex refinery designed to run on high sulphur crude.
Engen is far better than the worst, but clearly has room to improve.
Sulphur Dioxide (4): How we compare to EU / US refineries
Source: Equal Protection for All Populations? Evaluating the Links between Corporate Social Responsibility and Environmental Justice in the Oil and Gas Sector. Dr Andy Gouldson. Centre for Environmental Policy and Governance. London School of Economics and Political Science
Sulphur Dioxide (5)
Total SO2 emissions (t/day) from South Africa - showing refining industries portion.
Sulphur Dioxide (6)
The new ambient SO2 standards / guidelines are very tight.
About twice as tough as the previous set Based on health risk to susceptible populations We are committed to achieving them and do not
quite make these all the time (yet). Transition issues.
Sulphur Dioxide (7)
Sulphur Dioxide (8)Groundlevel SO2 Exceedences (10 min - 191ppb)
5862
9789
73
64
41
17
410
41
2
24
1 0 1
20
39
0 07
30
20
20
40
60
80
100
120
140
Au
g-0
4
Sep
-04
Oct
-04
No
v-04
Dec
-04
Jan
-05
Feb
-05
Mar
-05
Ap
r-05
May
-05
Jun
-05
Jul-
05
nu
mb
er
Total Exceedence Engen Related
Sulphur Dioxide (9) – Stack height limitations
Short / Medium term options: Sulphur Recovery Units
Tight operational Controls Efficiency / Reliability improvements Sulphur plant specialist visit
FCCU: DeSOx Catalyst additive
Long term (High Capex) options: Sulphur Recovery Units
Improve Recovery Efficiency Tail Gas Scrubbing
FCCU Clean Fuels Synergies:
- Pre Treat and Post Treating options- FCCU flue gas Scrubbing (Cross media issues)
Sulphur Dioxide (10) – Way forward
Highly emotive issue
Generally not a health issue
Hidden agendas / Misinformation
Refinery safety at risk
Flares
The safety valve of a refinery Seen as a nuisance / concern – good lever to drum up
emotion International focus on reducing flaring from oil / gas
production fields Can be misused (economic flaring) Our flares meet BAT criteria Very tight operational controls in place
Flares (1)
Flares (2)
Flares are there for safety reasons Accepted as the environmentally acceptable way of
disposing of excess gas If operated correctly there should be no health impact Excessive controls on flaring could adversely affect
safety
Flares (3)
Flares (4) : Best Available Technology (BAT)
Use flaring as a safety system (start-up, shutdown and emergencies)
Ensure smokeless and reliable operation
Minimise flaring by a suitable combination of:
Balancing the refinery fuel gas system
Installing a gas recovery system
Using high integrity relief valves
Applying advanced process control
note
Reducing relief gas to flare by management/good housekeeping practices
Source: IPPC Reference doc on Best Available Techniques
for Mineral Oil and Gas Refineries. 2001
Note: Flare gas recovery system decommissioned
– not enough gas for viable operation
What is economic flaring? And why is it a problem?
Tight Operational Controls Focus on control of incidents causing the flare As the other refinery sources of emissions
reduced the relative size of flare emissions becomes more significant
Flares (5)
Flares (6)
Benzene is linked to one type of Leukaemia
Highest risk to public from traffic
Refinery emissions very low (but can and will be reduced further)
VOC’s and Benzene
Major reduction in VOC emissions from the refinery MPP data show fenceline benzene levels lower than
traffic emissions Concern about Settlers school levels (measured levels
higher than at Engen fenceline)
VOC’s and Benzene (1) – Where we are
VOC emission reductions
VOC’s and Benzene (2)
VOC Emissions
8981
7231
3397
0
1000
20003000
4000
5000
6000
70008000
9000
10000
1999 Survey Sep 2001 Jun 2003
Kg
/da
y
Photos of VRU at Wentworth Road loading
VOC’s and Benzene (3)
Covers on Effluent treatment plant and Vapour Recovery unit (example of BAT)
VOC’s and Benzene (4)
Ambient monitoring data:
VOC’s and Benzene (5)
Southern fence line
Rec Club
Admin GateMain Gate
Mosque
Southern Works
Passive Sampling Locations
VOC’s and Benzene (6)
Settlers School
Stakeholder Relationships / Escalating Expectations
Government Local Community Employees Shareholders
National Government / DEAT Aiming for very tight standards Not enough engagement Concern about standards implementation
process / transitional arrangements Recent indications of confrontational approach
vs constructive approach Technical capacity limitations Support for MPP (Which they initiated)
EIA process limitations Outstanding Appeals
Provincial Government / DAEA
Local Government (City Health Dept.)
Strong technical capacity via MPP Concerns about implementation of new
permit process Strong working relationships
Local Community
Many Good leaders Liaison forum Lack of constructive engagement from
some NGO’s : Misinformation / hidden agendas
Employees
Majority from local community – under unfair pressure
They don’t come to work to cause environmental / health problems
They feel hurt when unfounded accusations are made
Shareholders
Have always supported our improvement plans Fact based decisions (not emotive) Prioritized Limited resources Credibility loss as a result of leading edge
technology failure
How can Government help?
Science and Facts; not emotions Work with us Assist us to make best use of limited resources Give us adequate time Level playing field Understand the issues In Summary; You can help, we need your help !
Summary – The way foward
We are committed to working with the facts and getting off the “radar screen”
Prioritised road map for the future
Thank You