NNGGHHII SSOONN RREEFFIINNEERRYY AANNDD PPEETTRROOCCHHEEMMIICCAALL LLIIMMIITTEEDD LLIIAABBIILLIITTYY CCOOMMPPAANNYY RREEPPOORRTT EENNVVIIRROONNMMEENNTTAALL IIMMPPAACCTT AASSSSEESSSSMMEENNTT FFOORR NNGGHHII SSOONN RREEFFIINNEERRYY AANNDD PPEETTRROOCCHHEEMMIICCAALL CCOOMMPPLLEEXX PPRROOJJEECCTT ((TThhiiss rreeppoorrtt iiss rreevviisseedd aanndd ssuupppplleemmeenntteedd aass MMOONNRREE’’ss aapppprraaiissaall ccoommmmiitttteeee oonn MMaayy 2277tthh 22001100)) Ho Chi Minh City June 2010 NNGGHHII SSOONN RREEFFIINNEERRYY AANNDD PPEETTRROOCCHHEEMMIICCAALL LLIIMMIITTEEDD LLIIAABBIILLIITTYY CCOOMMPPAANNYY RREEPPOORRTT EENNVVIIRROONNMMEENNTTAALL IIMMPPAACCTT AASSSSEESSSSMMEENNTT FFOORR NNGGHHII SSOONN RREEFFIINNEERRYY AANNDD PPEETTRROOCCHHEEMMIICCAALL CCOOMMPPLLEEXX PPRROOJJEECCTT ((TThhiiss rreeppoorrtt iiss rreevviisseedd aanndd ssuupppplleemmeenntteedd aass MMOONNRREE’’ss aapppprraaiissaall ccoommmmiitttteeee oonn MMaayy 2277tthh 22001100)) Project owner: Consultant organization: NGHI SON REFINERY AND PETROCHEMICAL BRANCH OF VIETNAM PETROLEUM INSTITUTE (HANOI CITY) LIMITED LIABILITY COMPANY (NSRP-LLC) RESEACH AND DEVELOPMENT CENTER FOR PETROLEUM SAFETY AND ENVIRONMENT Ho Chi Minh City June 2010 CONTENTS Page 0. INTRODUCTION 0-1 0.1 PROJECT BACKGROUND 0-1 0.2 LEGAL AND TECHNICAL BASIS OF EIA PREPARATION 0-4 0.2.1 Scope of the EIA report 0-4 0.2.2 International Regulations 0-5 0.2.3 Vietnamese Laws and Standards 0-6 0.2.3.1 Vietnamese Law and Legislation 0-6 0.2.3.2 Environmental Standards 0-10 0.2.3.3 Project Standards 0-12 0.2.3 Technical basis and related documents 0-22 0.3 METHODOLOGY FOR EIA IMPLEMENTATION 0-23 0.4 EIA IMPLEMENTATION ORGANIZATION 0-24 1. PROJECT DESCRIPTION 1-1 1.1 PROJECT NAME 1-1 1.2 PROJECT OWNER 1-1 1.3 GEOGRAPHICAL LOCATION 1-1 1.3.1 Plant location 1-4 1.3.2 Onshore Pipeline System 1-4 1.3.3 Harbour Location 1-5 1.3.4 SPM Location 1-6 1.3.5 Crude Oil Pipeline Location 1-6 1.4 MAIN CONTENTS OF NSRP PROJECT 1-6 1.4.1 Refinery and petrochemical capacity 1-9 1.4.1.1 Material Balance 1-9 1.4.1.2 Designed Capacities for Process Units 1-10 1.4.2 Feedstock and products 1-13 1.4.2.1 Feedstock 1-13 1.4.2.2 Project Products 1-14 1.4.3 Technology process 1-15 1.4.3.1 Refinery Process Units 1-15 1.4.3.1.1 Crude Distillation Unit (CDU) 1-15 1.4.3.1.2 LPG Recovery Unit (LRU) 1-17 1.4.3.1.3 Saturated LPG Treater Unit (LTU) 1-17 1.4.3.1.4 Kerosene Hydrodesulphuriser Unit (KHDS) 1-17 1.4.3.1.5 Gas Oil Hydrodesulphuriser (GOHDS) 1-18 1.4.3.1.6 Residue Hydrodesulphuriser Unit (RHDS) 1-18 1.4.3.1.7 Residue Fluid Catalytic Cracker Unit (RFCC) 1-18 1.4.3.1.8 RFCC LPG Treater 1-19 1.4.3.1.9 RFCC light Naphtha Treater 1-19 1.4.3.1.10 Propylene Recovery Unit (PRU) 1-19 1.4.3.1.11 Indirect Alkylation Units (InAlk) 1-20 1.4.3.1.12 Hydrogen Manufacturing Unit (HMU) 1-20 1.4.3.1.13 Hydrogen Compression and Distribution system (HCDS) 1-20 1.4.3.1.14 Sour Water Stripper unit (SWS) 1-21 1.4.3.1.15 Amine Regeneration Unit (ARU) 1-22 1.4.3.1.16 Sulphur Recovery Unit (SRU) and Tail Gas Treating Unit (TGTU) 1-23 i 1.4.3.2 Petrochemical Process Units 1-25 1.4.3.2.1 Naphtha and Aromatics Complex (NAC) 1-25 1.4.3.2.2 Polypropylene Unit 1-26 1.4.4 Plant utilities 1-26 1.4.4.1 Crude Oil Storage Tanks 1-26 1.4.4.2 Product Tankage Farm 1-27 1.4.4.2.1 Product storage tank 1-27 1.4.4.2.2 Product blending component storage tanks 1-27 1.4.4.2.3 Intermediate Storage tanks 1-28 1.4.4.3 Other Receiving and Storage 1-28 1.4.4.3.1 Catalyst and chemical storage 1-28 1.4.4.3.2 Slop storage tanks 1-28 1.4.4.3.3 Sulphur forming and storage unit (SFSU) 1-29 1.4.4.4 Gas Recovery System 1-29 1.4.4.5 Fuel System 1-29 1.4.4.6 Flushing Oil System 1-31 1.4.4.7 Waste oil recovery, storage and pump systems 1-31 1.4.4.8 Power and Steam Generation System 1-31 1.4.4.9 Nitrogen Supply System 1-32 1.4.4.10 Water Supply System 1-33 1.4.4.11 Intake system 1-33 1.4.4.11.1 Structure 1-33 1.4.4.11.2 Cooling Water 1-34 1.4.4.12 Chemicals, Catalysts, and Packing 1-35 1.4.4.13 Flare System 1-36 1.4.4.14 Fire and Gas Detection and Protection System 1-39 1.4.4.15 Waste treatment system 1-39 1.4.4.15.1 Off gas treatment system 1-39 1.4.4.15.2 Effluent Treatment Plant 1-39 1.4.4.15.3 Incinerator 1-41 1.4.4.15.4 Waste storage area 1-41 1.4.4.16 List of main equipments of the Refinery 1-41 1.4.5 Offsite facilities 1-41 1.4.5.1 Marine Facilities 1-41 1.4.5.1.1 Access channel 1-43 1.4.5.1.2 Turning basin 1-43 1.4.5.1.3 North breakwater 1-44 1.4.5.1.4 Harbour revetments 1-44 1.4.5.1.5 Berth pockets 1-44 1.4.5.2 Single Point Mooring (SPM) 1-45 1.4.5.3 Crude oil pipeline 1-46 1.4.5.4 Product Pipeline 1-46 1.4.5.5 Ship Loading System 1-47 1.4.5.6 Product Truck Loading System 1-47 1.4.6 Refinery layout 1-48 1.4.7 Project construction 1-50 1.4.7.1 Onshore Constructions 1-50 1.4.7.2 Offshore Construction 1-52 1.4.7.3 Supply source of constructional materials 1-54 1.4.7.4 Accommodation Facilities for Construction and Operation Workers 1-54 1.4.8 Construction schedule 1-55 1.4.9 Total capital and estimated cost for environmental treatment and monitoring facilities 1-55 ii 2. NATURAL ENVIRONMENT AND SOCIO-ECONOMIC CONDITION 2-1 2.1 NATURAL ENVIRONMENT CONDITION 2-1 2.1.1 Offshore 2-1 2.1.1.1 Marine Topography and Geology 2-1 2.1.1.2 Bathymetric condition 2-3 2.1.1.3 Extreme climatic conditions 2-8 2.1.1.4 Existing Natural Environment 2-11 2.1.1.5 Marine Resources 2-29 2.1.2 Onshore environmental baseline 2-36 2.1.2.1 Topographic, geological and seismic conditions 2-36 2.1.2.2 Meteorological conditions 2-42 2.1.2.3 Water Resources 2-48 2.1.2.4 River system and flooding situation in project area 2-50 2.1.2.5 Existing Environmental Conditions of Onshore and Coastal Area 2-50 2.1.2.5.1 Air quality 2-50 2.1.2.5.2 Water quality 2-55 2.1.2.5.3 Groundwater quality 2-60 2.1.2.5.4 Sediment Quality 2-63 2.1.2.4.5 Soil quality 2-68 2.1.2.5.6 Biological Ecosystem 2-69 2.1.3 Preliminary assessment on environmental loading capacity 2-94 2.1.3.1 Assessment on Environmental Sensitivity of the Project Area 2-94 2.1.3.2 Preliminary Assessment on Environmental Loading Capacity 2-96 2.2 EXISTING SOCIAL CONDITIONS 2-97 2.2.1 Economic Condition 2-97 2.2.1.1 Agriculture 2-97 2.2.1.2 Industry 2-97 2.2.1.3 Forestry 2-99 2.2.1.4 Aquaculture and Fisheries 2-101 2.2.1.5 Salt industry 2-102 2.2.1.6 Tourist 2-102 2.2.2 Social Condition 2-102 2.2.2.1 Population 2-102 2.2.2.2 Transportation and Infrastructure 2-103 2.2.2.3 Power system 2-106 2.2.2.4 Telecommunications 2-106 2.2.2.5 Land use status in NSEZ 2-107 2.2.2.6 Affected area 2-109 2.2.2.7 Affected graves 2-109 2.2.2.8 Existing Potable Water Drainage and System 2-109 2.2.2.9 Drainage system and waste water treatment plant in NSEZ 2-112 2.2.2.10 Solid waste collection and treatment system in NSEZ 2-114 2.2.2.11 Culture, Health and Education 2-114 2.2.2.12 Cultural Resources and Archaeology 2-115 3. ENVIRONMENTAL IMPACT ASSESSMENT 3-1 3.1 SOURCE OF IMPACT TO THE ENVIRONMENT 3-2 3.1.1 Impact Source Relating to Wastes 3-2 3.1.1.1 In construction phase 3-2 3.1.1.2 Source of impact in operation phase 3-6 iii 3.1.1.2.1 Emission gas 3-6 3.1.1.2.2 Wastewater 3-9 3.1.1.2.3 Solid waste 3-10 3.1.1.2.4 Accidental impact sources 3-11 3.1.2 Impact source not related to wastes 3-11 3.2 IMPACTED OBJECTS 3-13 3.2.1 Construction, installation and commissioning phase 3-13 3.2.1.1 Environmental impacts for construction of onshore facilities (refinery and supported facilities) 3-13 3.2.1.1.1 Air quality 3-14 3.2.1.1.2 Surface water 3-17 3.2.1.1.3 Groundwater 3-18 3.2.1.1.4 Soil environment 3-19 3.2.1.1.5 Biological environment 3-20 3.2.1.2 Offshore Construction (Harbor, Breakwater, Pipeline and SPM) 3-21 3.2.1.2.1 Air environment 3-21 3.2.1.2.2 Surface water 3-25 3.2.1.2.3 Land and Terrestrial Ecology 3-35 3.2.1.2.4 Marine ecosystem 3-36 3.2.2 Operation phase 3-37 3.2.2.1 Operation of Onshore Facilities (the Plant and support facilities) 3-37 3.2.2.1.1 Air environment 3-37 3.2.2.1.2 Water Quality 3-49 3.2.2.1.3 Groundwater environment 3-60 3.2.2.1.4 Soil environment 3-61 3.2.2.1.5 Marine ecosystem 3-62 3.2.2.2 Operation of the offsite facilities (harbor, breakwater, crude pipeline and SPM) 3-64 3.2.2.2.1 Air environment 3-64 3.2.2.2.2 Water environment 3-65 3.2.2.2.3 Soil and groundwater environment 3-75 3.2.2.2.4 Marine Environment 3-75 3.2.3 Cumulative impact during operation phase of onshore and offshore constructions on other projects in the local area 3-76 3.2.4 Socio-economic impact assessment 3-78 3.2.4.1 Impacts caused by land acquisition 3-78 3.2.4.2 Impact caused by graves relocation 3-79 3.2.4.3 Impact caused by compensation and resettlement 3-80 3.2.4.4 Impact on training and recruitment plan of NSEZ 3-87 3.2.4.5 Land and natural resources 3-90 3.2.4.6 Loss of agricultural lands to other uses 3-91 3.2.4.7 Loss of forestry land 3-92 3.2.4.8 Loss of residential land 3-92 3.2.4.9 Livelihood activities 3-93 3.2.4.10 Education 3-93 3.2.4.11 Disruption/Damage to Infrastructure and Services 3-94 3.2.4.12 Gender 3-94 3.2.4.13 Indirect employment and local procurement opportunities 3-95 3.2.4.14 Fisheries 3-96 3.2.4.15 Access restrictions and diversions 3-97 3.2.4.16 Impact on health 3-98 3.2.4.17 Impact on poverty 3-99 3.2.4.18 Economic activities 3-99 3.2.4.19 Infrastructure and Service 3-100 3.2.5 Potential environmental accidents caused by project implementation 3-101 iv 3.2.5.1 Fire and Explosion 3-101 3.2.5.2 Toxic gas leakage 3-103 3.2.5.3 Hydrocarbon Spills 3-104 3.2.5.4 Ship Collision 3-107 3.2.5.5 Pipeline Rupture or Leakage 3-107 3.2.5.6 Radioactivity 3-108 3.3 EVALUATION OF DETAILED AND CONFIDENCE LEVEL OF THE ASSESSMENT 3-108 3.3.1 Determination of impact significance 3-108 3.3.2 Assessment method 3-109 4. MITIGATION MEASURES FOR NEGATIVE IMPACTS, PREVENTION & RESPONSE ENVIRONMENTAL INCIDENTS 4-1 4.1 MITIGATION MEASURES IN FEED DESIGN PHASE 4-1 4.2 MITIGATION MEASURES FOR ONSHORE FACILITIES (REFINERY AND PETROCHEMICAL COMPLEX AND SUPPORTED FACILITIES) 4-2 4.2.1 Construction Phase 4-2 4.2.1.1 Air Quality 4-2 4.2.1.2 Noise and vibration 4-3 4.2.1.3 Soil quality 4-4 4.2.1.4 Surface water 4-10 4.2.1.5 Groundwater 4-11 4.2.1.6 Ecosystem 4-11 4.2.1.7 Safety for the workers 4-13 4.2.1.8 Water way and road traffic 4-14 4.2.1.9 Mitigation measures for natural calamity 4-14 4.2.2 Operation Phase 4-15 4.2.2.1 Air Quality 4-15 4.2.2.2 Noise control 4-20 4.2.2.3 Water quality 4-20 4.2.2.4 Groundwater 4-26 4.2.2.5 Soil quality 4-26 4.2.2.6 Marine ecosystem 4-33 4.2.2.7 Road traffic 4-33 4.3 MITIGATION MEASURES FOR OFFSITE FACILITIES (HARBOUR, BREAKWATER, CRUDE PIPELINE AND SPM) 4-34 4.3.1 Construction Phase 4-34 4.3.1.1 Air Quality 4-34 4.3.1.2 Noise and Vibration 4-34 4.3.1.3 Soil Environment 4-35 4.3.1.4 Water environment 4-35 4.3.1.5 Biological environment 4-36 4.3.2 Operation Phase 4-37 4.3.2.1 Air quality 4-37 4.3.2.2 Noise and Vibration 4-38 4.3.2.3 Soil environment 4-38 4.3.2.4 Water Resources 4-38 4.3.2.5 Onshore biological environment 4-42 4.3.2.6 Ecosystem 4-42 4.4 MITIGATION MEASURES FOR ACCIDENTS AND ABNORMAL EVENTS 4-43 4.4.1 Fire and Explosions 4-43 v 4.4.2 Toxic Gas Release 4-43 4.4.3 Shipping collision 4-44 4.4.4 Emergency Response Planning for oil spills 4-44 4.5 MITIGATION MEASURES FOR SOCIAL COMMUNITY IMPACTS 4-46 4.5.1 Pre-construction phase 4-46 4.5.2 Construction Phase 4-48 4.5.3 Operation Phase 4-48 5. ENVIRONMENTAL MANAGEMENT AND MONITORING PROGRAM 5-1 5.1 OBJECTIVES 5-1 5.2 ENVIRONMENTAL MANAGEMENT PROGRAM 5-2 5.2.1 Construction Phase 5-3 5.2.1.1 Air Quality Management Plan (Onshore and Offshore Facilities) 5-3 5.2.1.2 Noise Management Plan (Onshore and Offshore Facilities) 5-4 5.2.1.3 Soil Contamination Management Plan 5-4 5.2.1.4 Surface Water Management Plan (Onshore Facilities) 5-5 5.2.1.5 Surface Water Management Plan (Offshore Facilities) 5-7 5.2.1.6 Groundwater Management Plan 5-8 5.2.1.7 Terrestrial Flora Management Plan 5-8 5.2.1.8 Waste Management Plan 5-9 5.2.1.9 Employment and Training Management Plan 5-10 5.2.1.10 Health and Safety Management Plan 5-11 5.2.1.11 Social Impact Management Plan 5-12 5.2.1.12 Capital expenditure for constructing main treatment and monitoring works 5-14 5.2.2 Operation Phase 5-15 5.2.2.1 Air Quality Management Plan 5-15 5.2.2.2 Noise Management Plan 5-16 5.2.2.3 Soil Contamination Management Plan 5-16 5.2.2.4 Surface Water Management Plan (Onshore Facilities) 5-18 5.2.2.5 Surface Water Management Plan (Offshore Facilities) 5-19 5.2.2.6 Groundwater Management Plan 5-21 5.2.2.7 Marine Habitat Management Plan 5-21 5.2.2.8 Waste Management Plan 5-22 5.2.2.9 Social and Community Management Plan 5-24 5.2.2.10 Employment and Training Management Plan 5-24 5.2.2.11 Health and Safety Management Plan 5-25 5.2.2.12 Emergency response plan 5-25 5.3 PROJECT ENVIRONMENTAL MONITORING PLAN 5-26 5.3.1 Monitoring Program for the Discharge Sources 5-27 5.3.2 Monitoring Program for the Surrounding Environment 5-30 5.3.2.1 Pre-construction phase 5-30 5.3.2.2 Construction phase 5-34 5.3.2.3 Operation phase 5-35 5.3.3 Additional Environmental Monitoring Surveys 5-39 5.3.4 Proposed budget for environmental monitoring program 5-39 6. PUBLIC CONSULTATION 6-1 6.1 PUBLIC CONSULTATION AND DISCLOSURE 6-1 vi 6.1.1 Regulations and Requirements 6-1 6.1.2 Public Consultation and Disclosure Program 6-1 6.2 PUBLIC CONSULTATION RESULTS 6-3 6.2.1 The First Consultation (4 & 5 November 2008) 6-3 6.2.2 The Second Consultation (27th & 28th January 2010) 6-4 6.3 OPINIONS OF LOCAL COMMUNAL PEOPLE COMMITTEE AND FRONT FARTHERLAND COMMITTEE 6-6 6.3.1 Consultation with Mai Lam Commune 6-6 6.3.2 Consultation with Tinh Hai Commune 6-7 6.3.3 Consultation with Hai Yen Commune 6-8 6.4 FEEDBACK AND COMMITMENT OF PROJECT OWNER 6-9 6.4.1 Feedback from Project Owner 6-9 6.4.2 Commitment of the Project Owner 6-10 6.4.2.1 Social Issues 6-10 6.4.2.2 Environmental Issues 6-11 7. CONCLUSION, RECOMMENDATION AND COMMITMENT 7-1 7.1 CONCLUSION 7-1 7.2 RECOMMENDATION 7-4 7.3 COMMITMENT 7-4 vii ENVIRONMENTAL IMPACT ASSESSMENT Page 0-1 NGHI SON REFINERY AND PETROCHEMICAL COMPLEX Final Report 0 Section INTRODUCTION 0.1 PROJECT BACKGROUND As proposal in Pre-Feasibility Study Report (PFS), the second Refinery and Petrochemical Complex Project is selected in Nghi Sơn, Tinh Gia District, Thanh Hoa Province based on natural condition, infrastructure, products market, socio-economic activities and national security by comparison in four (04) best locations in the North to establish the second refinery, including: 1. Dinh Vu, Hai Phong Province 2. Nghi Son, Thanh Hoa Province 3. Vung Ang, Ha Tinh Province 4. Hon La, Quang Binh Province The site selection was carried out from August 1998 to March 1999 by Inter-ministrial Working Group including the members from the Government Office, Ministry of Planning & Investment, Ministry of Construction, Ministry of Transportation, Ministry of Industry, Ministry of Science, Technology & Environment and Vietnam Oil and Gas Petroleum Cooperation – presently Vietnam Oil and Gas Group (PetroVietnam). The criteria for site selection were based on natural conditions, infrastructure, product market, socio-economic activities and national security. The most important reasons for the selection of the site can be summarized as follows:  Close to the key economic triangle of Hanoi-Hai Phong-Quang Ninh, northern Delta and former Zone IV.  Suitable natural condition: large area, high topography and Bien Son Island can be used as natural breakwater.  Available infrastructure system including transportation system, power supply, water supply and port  Suitable with strategic development orientation of PetroVietnam  Suitable with master social and economic plan development of the North Central Zone, Northern Zone and the nation.  Suitable with master plan development of the Nghi Son area. The Pre-FS Report was approved by the Vietnamese Prime Minister under Decision No.647/QD-TTg dated August 5, 2002 and according to this Decision, Nghi Son had formally been selected as the site for the Refinery and Petrochemical Complex No. 2. In 2003, Petrovietnam had carried out Detail Feasibility Study (DFS). However, since that time to 2007, there were many changes in marketing situation. The different of light and heavy oil price is insignificant, so the heavy oil processing have not brought much benefit than the light oil processing because of heavy oil processing uses complicated technology and needs much investment capital. Since 2004, crude price was sharply increased and broke out refinery investment that made investment capital was increased. And the consequence of project investment capital was increased accordingly. NSRP LLC - CPSE/SNC Lavalin June, 2010