ENVIRONMENTAL IMPACT ASSESSMENT (EIA) …

1 ENVIRONMENTAL IMPACT ASSESSMENT (EIA) FOR A PROPOSED METHANOL FACILITY IN DAMIETTA PORT (Draft Report) Prepared for: Egyptian Methanex Methanol Company Prepared by: WorleyParsons Komex KE 60029 August, 2006 Environment & Water Resources 50, El-Hegaz St., Mohandeseen, Giza, Egypt Telephone: +20 (0)2 344 0094 Facsimile: +20 (0)2 344 0097 Email: EMethanex Methanol Plant EIA Damietta Port DRAFT EIA Report (KE-60029) Page i TABLE OF CONTENTS EXECUTIVE SUMMARY ..X 1 INTRODUCTION .. 1 PROJECT PURPOSE OF THE ENVIRONMENTAL IMPACT 2 LEGISLATIVE AND REGULATORY FRAMEWORK .. 3 EGYPTIAN ENVIRONMENTAL Conditions in the Workplace ..4 Use of Dangerous Materials and Management of Wastes .. 5 Air/Odour Emissions .. 5 Noise Emissions .. 6 Disposal of Liquid Wastes ..7 Protection of the River Nile and its waterways .. 7 Specific Relevant Laws for Marine Effluent .. 8 EEAA ENVIRONMENTAL IMPACT ASSESSMENT 11 Additional Relevant National Laws.

2 12 INTERNATIONAL European Investment Bank (EIB) ENVIRONMENTAL Guidelines .. 13 Equator Principles (July, 2006).. 15 IFC Performance Standards on Social and ENVIRONMENTAL Sustainability (Exhibit III of EP, July 2006).. 19 Industry-Specific ENVIRONMENTAL , Health and Safety (EHS) Guidelines (Exhibit IV of EP) .. 20 Petrochemicals Manufacturing Guidelines, PPAH, World Bank Group (July, 1998) .. 20 IFC ENVIRONMENTAL , Health and Safety Guidelines .. 26 EU Community Involvement and ENVIRONMENTAL Management 29 Processing .. 31 32 Waste ..32 Water effluent .. 33 Air emissions .. 36 Noise .. 38 Biodiversity ..39 39 SUMMARY OF EMISSION METHANEX Methanex as Responsible Care Company .. 44 Methanex ENVIRONMENTAL Policy .. 45 Methanex ENVIRONMENTAL Standard for New 46 EGYPTIAN PETROCHEMICALS HOLDING COMPANY (ECHEM) HSE MANAGEMENT SYSTEM 46 3 DESCRIPTION OF THE PROPOSED PROJECT.

3 48 CONSTRUCTION MATERIALS, EQUIPMENT, AND OPERATIONAL DECOMMISSIONING PROCESS Process 49 Process Outline .. 50 Natural Gas 51 Natural Gas 52 EMethanex Methanol Plant EIA Damietta Port DRAFT EIA Report (KE-60029) Page ii Methanol Synthesis .. 53 Methanol Distillation .. 53 Natural Gas and Methanol Product Specifications .. 54 Methanol Storage and Loading .. 57 Crude/Off-specification Methanol Tank .. 57 Methanol Shift 57 Methanol Product 57 Methanol Ship 57 Methanol Truck Loading .. 58 Chemical Storage .. 58 Caustic Storage .. 58 Sulphuric Acid Storage .. 58 Diesel Storage .. 59 Cooling Water .. 59 Cooling Water 59 Cooling Water 59 Raw Water Intake and 60 Raw Water Intake .. 60 Raw Water Treatment .. 60 Filtered Water .. 60 Potable 61 Fire Water ..61 Demineralised Water .. 61 Condensate 61 Instrument and Plant Air.

4 62 Instrument Air .. 62 Plant Air .. 62 Power 62 Turbo-Alternator .. 62 Diesel Emergency Generators .. 63 Steam Production .. 63 Package 63 PLANT EFFLUENT AND Liquid Effluent: Waste Streams during Operational 63 Cooling Tower Makeup and 63 Neutralization Vessels .. 64 Process Buildings .. 64 Methanol Storage Tanks .. 64 Truck Loading .. 64 Waste water Treatment Package .. 64 Sewage Treatment .. 65 Rainfall to Unpaved Areas .. 65 First Flush Pond .. 65 Storm Water Catch 65 Seawater Outfall .. 66 Raw Water Silt Return .. 69 Solid 69 Construction Phase .. 69 Operational 70 Hydrocarbon and Hazardous 71 Air Emissions .. 71 Construction Phase .. 71 Operational 72 Noise .. 78 Construction Phase .. 78 Operational 78 Process Flow 78 LABOUR REQUIREMENTS (CONSTRUCTION AND OPERATIONS) ..79 EMethanex Methanol Plant EIA Damietta Port DRAFT EIA Report (KE-60029) Page iii 4 DESCRIPTION OF THE EXISTING ENVIRONMENT BASELINE 80 PROJECT Groundwater.

5 81 Site Specific Groundwater Quality ASSESSMENT .. 82 Analysis Results for Groundwater Quality ASSESSMENT .. 83 Surface Water (Freshwater) .. 85 Site Specific Freshwater Quality ASSESSMENT .. 85 Analysis Results for Freshwater Quality ASSESSMENT .. 86 Analysis Results for Nile Sediment Quality ASSESSMENT .. 88 Analysis Results for Freshwater Biota .. 89 Seawater .. 90 Desk Study .. 90 Site Specific Seawater Quality ASSESSMENT .. 94 Analysis Results for Seawater Quality ASSESSMENT .. 95 Analysis Results for Sea Sediment Quality 101 Analysis Results for Marine 101 Thermal Dispersion 103 Natural 104 Surface 104 Flash Flood Hazards .. 104 Seismicity .. 105 AIR AND Climate and 106 Temperature .. 106 Air Quality .. 109 Site Specific Air Quality 109 Analysis Results for Air Quality 110 Air Dispersion Model .. 110 Noise ASSESSMENT ..111 Site Specific Noise ASSESSMENT .

6 111 Analysis Results for Noise ASSESSMENT .. 112 Noise Levels 113 Surrounding Geology and Soils .. 114 Desk Study .. 114 Site Specific Soil Quality ASSESSMENT .. 114 Analysis Results for Soil Quality ASSESSMENT .. 115 ECOLOGY AND Terrestrial Ecology and Biodiversity .. 117 Methodology .. 117 Biodiversity Features .. 118 Vegetation .. 118 Birds ..119 Mammals .. 120 Insects and Reptiles .. 121 Endangered Species of Egypt .. 122 Marine Ecology and 123 Fish .. 124 Marine Mammals .. 124 Endangered Marine Species .. 125 Sensitive Habitats .. 125 Species of Commercial 125 HUMAN EMethanex Methanol Plant EIA Damietta Port DRAFT EIA Report (KE-60029) Page iv 126 Total Units and Vehicles by 126 Economic Activities: Egypt .. 127 Damietta Port 128 Agricultural and Grazing 128 Historical/ Archaeological 129 Damietta, the City and the Port .. 129 Ancient History.

7 129 Recent History .. 129 131 Archaeological Locations in the Study Area .. 131 5 DESCRIPTION AND ANALYSIS OF PROJECT ALTERNATIVES .. 132 STATEMENT OF CONSIDERATION OF ALTERNATIVES AND JUSTIFICATION FOR THE PREFERRED The No Action Alternative .. 132 Alternative 133 Alternative Design and Technologies .. 134 Alternative Port Layout .. 134 Alternative Berth 137 Alternative Water Intake .. 137 6 ENVIRONMENTAL IMPACT ANALYSIS .. 139 ENVIRONMENTAL ASSESSMENT VALUED ECOSYSTEMS ENVIRONMENTAL PREDICTED Water .. 143 Groundwater 143 Freshwater Quality .. 144 Seawater Quality .. 146 Air and Climate .. 149 151 Ecology and Biodiversity .. 152 Marine Ecology and Biodiversity .. 152 Terrestrial 158 Human Environment .. 159 Socio-Economic Activities .. 159 Community Health and 161 Noise 162 Agriculture .. 163 Archaeological Heritage .. 163 Light Pollution.

8 163 IMPACT 7 PUBLIC PARTICIAPTION / HEARING .. 175 EXECUTIVE Developing a Program .. 176 First Public Meeting Proceeding at CULTNAT .. 176 Introduction from CULTNAT .. 176 Introduction from EMethanex .. 176 Introduction from 177 Background about the project and EMethanex ENVIRONMENTAL commitment .. 177 EIA for the Proposed Project .. 178 EMethanex Methanol Plant EIA Damietta Port DRAFT EIA Report (KE-60029) Page v Open 181 Second Public Meeting Proceeding at Damietta .. 185 Opening .. 185 Introduction to 185 Background about the project and EMethanex ENVIRONMENTAL Commitment .. 186 EIA Process for the Proposed Project .. 187 Open 188 Conclusion .. 191 8 MITIGATION 193 WATER ..193 Groundwater .. 193 Surface Water (Freshwater) .. 194 Seawater .. 195 AIR AND LAND ..200 ECOLOGY AND BIODIVERSITY ..201 Terrestrial Ecology and Biodiversity, and Agriculture.

9 201 Marine Ecology and 202 HUMAN ENVIRONMENT ..203 Socio-Economics ..203 Heritage 204 Accidental Events (Fire, Explosion, and Releases) .. 204 Noise .. 205 Health and Safety 206 Light Pollution .. 206 SUMMARY OF RESIDUAL IMPACTS FOLLOWING MITIGATION ..207 9 ENVIRONMENTAL MANAGEMENT PLAN .. 216 THE 217 DOCUMENTATION AND RECORDS .. 217 MANAGEMENT 218 RESPONSIBLE CARE .. 218 TRAINING / EMPLOYEE COMPLIANCE WITH LAWS / REGULATIONS / MONITORING PLAN ..220 INTRODUCTION .. 220 MONITORING PLAN .. 221 ENVIRONMENTAL MONITORING .. 221 Socio-Economic 234 Monitoring 235 Monitoring Work Plan .. 235 LEGISLATIVE 236 SUPPLIER ASSESSMENTS .. 236 ASSESSING ENVIRONMENTAL EFFECTS AND SETTING ASSESSING ENVIRONMENTAL 237 SETTING ENVIRONMENTAL 237 PERFORMANCE 239 WASTE MANAGEMENT 239 Waste 240 Waste Handling Program .. 240 Waste containers and Labelling.

10 241 ENVIRONMENTAL OBJECTIVES FOR THE 242 PROCEDURES AND PROCEDURAL REVIEW ..242 FACILITY CONSTRUCTION AND OPERATING 242 Construction 242 Normal Operating Procedures .. 242 EMethanex Methanol Plant EIA Damietta Port DRAFT EIA Report (KE-60029) Page vi Emergency 242 Operational 243 Administration 243 Production and Utilities Technical 243 Laboratory 243 ENVIRONMENTAL PROCEDURES .. 243 ENVIRONMENTAL PROCEDURE 244 EMERGENCY PREPAREDNESS ..244 EMERGENCY PROCEDURES .. 244 EMERGENCY RESPONSE PERSONNEL .. 244 COMMUNITY COMMUNITY PROJECTS .. 245 COMMUNITY ADVISORY PANEL .. 245 COMPLAINTS / QUERIES .. 245 REPORTING ..246 REPORTING OF ENVIRONMENTAL EXCEEDANCES .. 246 INTERNAL 246 INCIDENT / INJURY REPORTING .. 246 REGULATORY 247 ANNUAL 247 AUDITING AND MANAGEMENT AUDIT PROGRAM .. 247 AUDIT PURPOSE .. 247 AUDIT SCOPE ..248 10 QUALITATIVE RISK ASSESSMENT .