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Presentation to Portfolio Committee on Environmental Affairs and Tourism

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Presentation to Portfolio Committee on Environmental ... fences, cameras, armed ... Rec Club. Admin Gate. Main Gate. Mosque. Southern Works. Passive ... – PowerPoint PPT presentation

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Title: Presentation to Portfolio Committee on Environmental Affairs and Tourism


1
  • Presentation to Portfolio Committee on
    Environmental Affairs and Tourism
  • Processes and mechanisms to ensure clean air
  • 23rd August 2005

2
The Engen Refinery team
  • Wayne Hartmann General Manager
  • Lynne Hanekom HSE Manager
  • Alan Munn Sustainable Business Manager
  • Sibongiseni Khathi Environmental Services
    Manager

3
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

4
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 / VOCs)
  • Stakeholder relationships summary
  • The way forward

5
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

6
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

7
The Refinery site in 1950
8
The refinery in 1952
9
Aerial View of Refinery - 2004
10
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
    1980s

11
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

12
Current Perception is
  • Excessive health risk to local community
  • Sulphur dioxide / flares / VOCs (especially
    benzene) are a concern
  • Poor standards and Outdated technology
  • Poor performance / getting worse
  • Dont care / Lack of commitment

13
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

14
Sulphur Dioxide
  • Lots of progress to date..
  • ..but not enough (although close to WHO
    guidelines)
  • No easy answers!!!

15
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

16
Sulphur Dioxide (2)
  • SO2 emissions (tons/day)

17
Sulphur Dioxide (3) Best Available Technology
(BAT)
Source IPPC Reference doc on Best Available
Techniques for Mineral Oil and Gas Refineries.
2001
18
Sulphur Dioxide (4) How we compare to EU / US
refineries
  • 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.

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
19
Sulphur Dioxide (5)
20
Sulphur Dioxide (6)
  • Total SO2 emissions (t/day) from South Africa -
    showing refining industries portion.

21
Sulphur Dioxide (7)
  • 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.

22
Sulphur Dioxide (8)
Groundlevel SO2 Exceedences (10 min - 191ppb)
23
Sulphur Dioxide (9) Stack height limitations
24
Sulphur Dioxide (10) Way forward
  • 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)

25
Flares
  • Highly emotive issue
  • Generally not a health issue
  • Hidden agendas / Misinformation
  • Refinery safety at risk

26
Flares (1)
  • 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

27
Flares (2)
28
Flares (3)
  • 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

29
Flares (4) Best Available Technology (BAT)
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
30
Flares (5)
  • 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

31
Flares (6)
32
VOCs and Benzene
  • 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)

33
VOCs and Benzene (1) Where we are
  • 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)

34
VOCs and Benzene (2)
  • VOC emission reductions

35
VOCs and Benzene (3)
  • Photos of VRU at Wentworth Road loading

36
VOCs and Benzene (4)
  • Covers on Effluent treatment plant and Vapour
    Recovery unit (example of BAT)

37
VOCs and Benzene (5)
  • Ambient monitoring data

38
Passive Sampling Locations
VOCs and Benzene (6)
Admin Gate
Main Gate
Southern Works
Rec Club
Southern fence line
Settlers School
Mosque
39
Stakeholder Relationships / Escalating
Expectations
  • Government
  • Local Community
  • Employees
  • Shareholders

40
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)

41
Provincial Government / DAEA
  • EIA process limitations
  • Outstanding Appeals

42
Local Government (City Health Dept.)
  • Strong technical capacity via MPP
  • Concerns about implementation of new permit
    process
  • Strong working relationships

43
Local Community
  • Many Good leaders
  • Liaison forum
  • Lack of constructive engagement from some NGOs
    Misinformation / hidden agendas

44
Employees
  • Majority from local community under unfair
    pressure
  • They dont come to work to cause environmental /
    health problems
  • They feel hurt when unfounded accusations are
    made

45
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

46
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 !

47
Summary The way foward
  • We are committed to working with the facts and
    getting off the radar screen
  • Prioritised road map for the future

48
Thank You
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