Pre-Feasibility Report

for

Proposed Refrigerated Propane/Butane/LPG Import

Terminal
at
Krishnapatnam Port, District Nellore, Andhra Pradesh

Proposed By

NGC Energy India Private Limited

Prepared By

Environmental Consultancy and Laboratory

Unit No. 206, 224, 225 Jai Commercial Complex,
Eastern Express Highway, Opp Cadbury Factory,
Khopat, Thane (West) – 400 061
 1. EXECUTIVE SUMMARY

M/s NGC Energy India Private Limited (NGC) is proposing to set up a new Refrigerated
Propane/Butane/LPG import Terminal, jetty to terminal pipelines & associated facilities at
Krishnapatnam Port, District SPSR Nellore, Andhra Pradesh. Two above ground, full
integrity double walled tanks of capacity 16,600 MT each, shall be provided to store propane
and butane in a refrigerated condition. In addition, two mounded bullets of capacity 370 MT
each, shall also be provided for Propane/Butane/LPG storage. The proposed terminal and
associated facilities shall be approved by PESO, and comply with other statutory
requirements.

The Terminal is proposed to be constructed within a plot of ~ 4.91 Hectares (12.14 Acres)
on land sub-leased from M/s Krishnapatnam Port Corporation Limited (KPCL). This facility
will be set up within the Liquid Cargo Terminal area being developed by KPCL.

NGC have appointed M/s. ULTRA TECH Environmental Consultancy & Laboratory
(MoEFCC recognized and NABET accredited), Thane, to carry out study of the impacts of
the project on the local environment and for obtaining Environmental Clearance. ULTRA
TECH is an established Consultancy in the field of Environmental Services for the past 30
years.

The brief details of the project are as provided in Table 1.

Table 1: Project Details

Sr. No Reference to Proposed Site Description
a Project Proponent
b Area
c Nature of Proposed Project
d Material Transportation
Facilities
NGC Energy India Private Limited
~ 4.91Hectares (12.14 Acres)
Proposed Project is related to Isolated storage &
handling of hazardous chemicals listed in S.N. 6(b)
of schedule of EIA Notification, 2006 covered
under category ‘B’
The terminal operations will receive, store and
dispatch Propane, Butane, & LPG. Ethyl Mercaptan
at ppm levels will be dosed into LPG for stenching
prior to dispatch in LPG tank trucks.

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e Settled areas nearby with
distance
f Overall Project Cost
g Manpower
h Project completion time
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Krishnapatnam Town - 1.4 km
Muthukuru Village - 4.1 km
~ INR 300 Crores
Construction phase: 160
Operation Phase: 45
Estimated 24 months upon approval of Statutory
Clearances
2
 2. INTRODUCTION

2.1 Project Proponent

NGC Energy India Private Limited is the Indian subsidiary of its parent, National Gas
Company, S.A.O.G, Oman. National Gas has been a pioneer since 1979, in LPG Marketing
in the Sultanate of Oman, with businesses also in the UAE, Saudi Arabia and Malaysia.
NGC is, inter alia, proposing to engage in the business of importing, storing, terminalling and
dispatching of LPG. This project will contribute to the nation’s growing demand for LPG, a
clean cooking fuel. It will support the significant initiatives being undertaken by the
Government to increase LPG use and penetration in the country.

2.2 Nature of Project

The main activities of the Terminal will be Receipt, Storage and Dispatch of
Propane/Butane/LPG. No by-products or additional products will be generated or
manufactured during the operations. Hence, the present proposal is classified under Schedule
6(b) & Category ‘B’ according to EIA Notification 2006 & subsequent amendments.

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 3. SITE INFORMATION

NGC has proposed to set up a new refrigerated Propane/Butane/LPG import Terminal and
associated facilities with two refrigerated tanks of capacity 16,600 MT each, and two
Mounded Bullets of Capacity 370 MT each at Village Krishnapatnam, District SPSR Nellore,
Andhra Pradesh. The project location is well connected with Krishnapatanam railway station
within a distance of 8.6 km (W). The total plot area for the terminal is approximately ~
4.91Hectares (12.14 Acres).

3.1 Site Alternates

NGC finalised the Krishnapatnam location for the project, to meet the growing LPG demand
in its hinterland states of Andhra Pradesh, Telengana, Tamilnadu and Karnataka.
Krishnapatnam Port has a deep draft for berthing Very Large Gas Carriers (VLGC) to import
Propane/Butane/LPG, and excellent other port infrastructure and connectivity for the setting
up of the LPG Terminal. Importantly, this project location is planned within Andhra Pradesh,
a very progressive state in terms of ease of doing business.

3.2 Environmental Setting

The Environmental Setting in 10 km radius of project site is presented in Table 2.

Table 2: Environmental Setting

Sr. No. Particulars Details

1 Plant location Village Krishnapatnam, Mandal Muthukur,
District SPSR Nellore, State
Andhra Pradesh
2 Site Coordinates

Proposed Project Site Coordinates

S.No Latitude Longitude

A 14°16'32.98"N 80° 8'20.17"E

B 14°16'27.31"N 80° 8'19.06"E

C 14°16'28.94"N 80° 8'10.01"E

D 14°16'34.64"N 80° 8'11.12"E

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 Climatic conditions at Krishnapatnam IMD station, 2017
3 Maximum temperature 39 °C
4 Minimum temperature 21 °C
5 Relative humidity Maximum - 80 %, Minimum - 23 %
6 Annual rainfall (total) 822 mm
7 Plant site elevation above MSL 5.79 Meter
8 Plant site topography Plain
9 Present land use at the site Land use pattern is notified for port use
10 Nearest highway Mydukar – Krishnapatnam Port Road : 0.5 km
11 Nearest railway station Krishnapatnam Station – 8.6 km (W)

12 Nearest Airport Tirupati Airport – 128 km (SW)

13 Nearest major water bodies
14 Nearest town/City
15 Archaeologically important
places
16 Protected areas as per Wildlife
Protection Act, 1972 (Tiger
reserve, Elephant reserve,
Biospheres, National parks,
Wildlife sanctuaries,
community reserves and
conservation reserves)
17 Reserved / Protected Forests
18 Defence Installations
19 List of major Industries in 10
km radius
20 Seismicity
Nil
Nellore – 27.6 KM
Muthukuru Village - 4.1 KM
Nil
Nil
Tammenapatnam RF : 5.5 km (Aerial)
Momidi RF : 9.5 km (Aerial)
Ipuru RF : 2 km (Aerial)
Nil
AP Genco, Thermal Power Tech, NCC Power,
Meenakxhi Energy Pvt, Ltd., Simhapuri Energy
Pvt. Ltd., Emami Edible oils, Lueid Refires,
Food Fat &Fertilizers Pvt Ltd, Adani Walimer
Ltd, Saraiwala, Agro Ind Pvt Ltd.,
Seismic Zone-III as per IS 1893 (Part I): 2002

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The location map of the project site is as depicted in Figure 1 and Google Image is as shown
in Figure 2.

Figure 1: Project Location

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 Figure 2: Google Image of the Project Site

3.3 Land Use and Land Ownership

The land for setting up the terminal has been sub-leased from Krishnapatnam Port by NGC
on a long term basis.

3.4 Water Requirement

Water requirement during construction and operations of the Terminal is on average
estimated to be as below:

a) During Construction stage: 100 KLD

b) During Operations (Post Commissioning): 10 KLD for domestic consumption and a small
quantity for process and fire water make up

c) The fire water requirement (one time) is 10,000 m3

Water will be provided by Krishnapatnam Port.

3.5 Power Requirement

Maximum power requirement for operation of the Terminal has been estimated to be about 2
MVA. Incoming power at 6.6 KV is planned to be drawn from a nearby KPCL sub-station.
100% emergency backup power shall be provided by DG sets to allow for un-interrupted
Terminal operations. . The DG sets will be provided with Acoustic enclosures for noise
reduction.

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3.6 Manpower Requirement
The estimated manpower requirement for the Operation of the Terminal in two shifts is as
follows:

Category Manpower (Numbers)

Management 15

Terminal Operational Staff 30

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 4. PROJECT DESCRIPTION

There is no manufacturing process involved in the Terminal. The Process Flow Chart and
description of the main operations of the Terminal are as below:

Figure 3: Process Flow chart

Receipt: Refrigerated Propane & Butane imported in ocean tankers shall be received through
insulated pipelines from Jetty to the Terminal.

Storage: These will be stored in two separate above-ground tanks and two mounded bullets.
The tanks and bullets will be designed as per applicable Indian and international standards.

Dispatch: LPG, blended from Propane & Butane will be dispatched in LPG tank trucks by
road within India and in ships to regional markets.

The entire operation of Receipt, Storage and Dispatch of Propane, Butane, & LPG will be
carried out in a completely closed system thereby eliminating risk of leak and spillage of the
product.

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4.1 Receipt through Ocean Tanker

Receipt to NGC’s Terminal at Krishnapatnam port shall come from imports in refrigerated
ocean tankers. These ships will berth at the multi-purpose Liquids jetty to be constructed by
KPCL, and discharge Propane & Butane through dedicated marine un-loading arms at the
jetty connected to insulated pipelines that will run from the jetty to the terminal.

4.2 Storage in Tank Farm

Storage of Propane and Butane discharged from ships will be in two dedicated refrigerated
tanks of 16,600 MT capacity each. Additionally, two mounded bullets of capacity 370 MT
each shall be provided. The design of the Terminal will be in accordance with Petroleum
Rules, PESO standards, and relevant OISD guidelines. The details of storage Tanks are as
shown in Table 4.

Table 4: Storage Tanks & Bullets Details

Tank Diameter (m) Capacity Height / Type Total Tanks

(m3) Length (m)
Refrigerated 44 / 46 (Inner 30410 20/21 (Inner Above 1
Propane / Outer) / Outer) ground
Tank Double Wall,
Full Integrity
with external
insulation
Refrigerated 44 / 46 (Inner 30410 20/21 (Inner Above 1
Butane Tank / Outer) / Outer) ground
Double Wall,
Full Integrity
with external
insulation
Propane 6.25 710 25.25 Mounded 1
Bullet Bullet
Butane 6.25 710 25.25 Mounded 1
Bullet Bullet
Diesel Tank 2 15.7 5 Coned Roof 1

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4.3 Dispatch through LPG Tank Trucks

Dispatch of LPG through tank trucks is expected to progressively grow in volume post
terminal start-up. On average, at sustained operation, about 150 trucks per day are expected
to be loaded and dispatched from the terminal. Plan is to build a loading gantry shed with 8
bays, with provision to add another 8 bays in future. Supply from the terminal is expected to
serve the growing LPG demand around the Krishnapatnam hinterland market, primarily in
the states of Andhra Pradesh, Telangana, Karnataka and Tamilnadu.

4.5 Plant and Non Plant Buildings and Other Civil Works

The list of major Plant and Non-Plant Buildings proposed is given in Table 5.

Table 5: Plant and Non-Plant Buildings

Sl. No. Description Built up Area, m2

(Estimated)
1. Security Room 18
2. Security Cabin, Quality Control Lab, Billing & 90
Logistics Building & Truck Driver Resting Area
3. MCC, PCC and Metering Room 800
4. DG Set Shed 140
5. Administrative Building, Stores, Workshop & 800
Occupational Health Center
6. Control Room 100
7. Fire Pump House Shed 150
8. Non FLP Utility 300
9. LPG Compressor, Condenser & Pumps 840
10. LPG Heater and Cooling Tower 840
11. Truck Loading Gantry 1692
12. Watch Towers 16
13. Weigh Bridge Cabin 6

Detailed layout is attached as Annexure I.

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4.6 Tank Fabrication Work

Tanks as specified in Table 4, will be designed, fabricated and constructed as follows:

• Two above-ground refrigerated Propane and Butane storage tanks of double wall full
integrity design, both rated for Propane, designed as per API 620 or equivalent.
• Two mounded bullets on Propane/Butane/LPG service, designed as per IS 2825 or
ASME Sec VIII, Division II, or equivalent.
• One above ground vertical cone roof diesel storage tank for DG’s and fire water
pumps’ engines fuel storage
• Two fire water storage tanks of total capacity 10,000 m3 to meet fire-fighting
requirements as per applicable codes and OISD guidelines, shall be provided in
addition to the hydrocarbon storage tanks listed in Table 4.

4.7 Pipeline Work

Major pipelines and pipeline systems outside and inside terminal battery limits are as below.
These will all be designed as per applicable piping codes like ANSI B 31.3 and 31.4. All
pipeline work will include in its scope required flanges, metallic gaskets, fire safe valves,
safety and other fittings. The design will also consider and cater to the need for easy
inspection and maintenance of the pipelines.

• 2 numbers marine unloading and loading arms connected to 2 insulated pipelines from
the jetty to terminal, for receiving Propane and Butane from ocean tankers. These
lines can also be used for loading Propane and Butane from the terminal into ocean
tankers for dispatch to regional markets. Provisions to pig both lines will be provided.
• Pipelines to load Propane/Butane/ LPG from the refrigerated tanks or mounded
bullets into LPG tank trucks at the loading gantry
• Pipelines associated with the tank boil off gas compression, condensation and
recovery system
• Various utility system pipelines for process and potable water, instrument air, sewage
water, etc.
• Fire water system pipelines

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 5. ENVIRONMENT CONTROL MEASURES

• During the construction phase, there will be fugitive emissions due to movement of
equipment at site, dust from leveling, grading, earthwork, foundation work and other
construction related activities. These impacts will however, be marginal and
temporary in nature.
• Sewage generation is envisaged during the operation phase and hence a STP (Sewage
Treatment Plant) is proposed to cater to the sewage load. Sewage from the
administration building will be routed to the septic tanks followed by soak pits and the
sludge generated from the septic tank will be dried and used as manure for the
landscaped plants and greenery within the terminal.
• Storm water drains will be provided at the Terminal. These drains will drain storm
water from Tank dykes and other areas within the Terminal premises to prevent
flooding during rains.
• The DG sets shall be acoustically insulated for reduction of noise as per limits
prescribed by State Pollution Control Board. The exhaust pipe from DG sets shall be
taken above the building as per State Pollution Control norms.
• No manufacturing is involved in the Terminal Operations, and there is no hazardous
waste generated from the operations. The waste oil generated from the DG sets and
fire water pump diesel engines will be collected in drums and stored in a closed shed
for safe disposal. Spent oil, Oily sludge, empty drums of mercaptan and used lead
batteries shall be sent to authorized vendors for disposal.
• All conditions & pre-requisites of water and air consents together with certificate to
handle hazardous products issued by State Pollution Control Board shall be strictly
complied with.

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 6. FIRE AND SAFETY MEASURES

6.1 Fire Protection Facilities

Fire protection facilities conforming to applicable OISD guidelines and latest SMPV Rules
are to be provided as follows:
• Full-fledged auto-pressurized Fire Hydrant System to cover all facilities in the
Terminal
• Fire Fighting Pumps with diesel engines including stand by units
• Fire Hydrant network system with monitors & hydrants, hoses and branch pipe
• Jockey Pumps
• Medium Velocity Water Spray (MVWS) systems for storage tanks, tank truck bay,
pump house, compressor house. All the water spray systems will be controlled with
deluge valves for automatic and remote operation
• Above ground fire water tanks and pumping facilities
• Portable firefighting equipment

6.2 Electrical Systems

Maximum power requirement for operation of the Terminal has been estimated to be about 2
MVA. Incoming power at 6.6 KV is planned to be drawn from a nearby KPCL sub-station.
100% emergency backup power shall be provided by DG sets to allow for un-interrupted
Terminal operations. The DG sets will be provided with Acoustic enclosures for noise
reduction.
Electrical work includes providing all facilities required as per codes, standards, IE rules,
OISD guidelines and SMPV rules, which include the following:
• Transformed yard.
• Transformer
• HT panels
• Cabling
• PCC, MCC and LT panels
• DG sets for power and lighting (100% stand by capacity)
• VFD for all LPG pumps
• Building and yard lighting area wise as per industry standards
• Earthing, Bonding and Lightning protection systems
• UPS system of adequate capacity for critical safety trip and shut-down systems

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 • Air-conditioning system
• Emergency shut-off systems
• All electrical systems shall be provided as per Zone Classification for electrical
equipment at hydrocarbon facilities
• Earthing at all the facilities and structures including tanks as per IS 3043 and
complying to statutory norms
• All Power and control cables shall be laid either underground or over GI cable trays
with proper segregation between Power and control/instrumentation cables. Cable
route markers and identification tags to be provided.

6.3 Safety Systems

The Terminal will be designed to meet safety requirements of a HAZOP study and as per
PESO and OISD guidelines including:

• All requisite clearances shall be obtained from PESO and other statutory authorities
• Meet the provisions as per Manufacture, Storage and Import of Hazardous Chemicals
Rules 1989, as amended in 2000 and the Public Liability Insurance Act for handling
of hazardous chemicals
• The terminal will be provided with gas leak detection and flame detection systems.
These systems will be interlocked with the safety and fire fighting systems of the
terminal
• All the hazardous waste shall be properly treated and disposed of in accordance with
the Hazardous Waste Rules 2008 and its subsequent amendments 2016
• Provision shall be made for maximizing landscaping with plants and green cover
inside the terminal
• Offsite disaster management plan shall be prepared in accordance with PNGRB
guidelines
• Occupational health surveillance of workers shall be conducted and records
maintained as per the Factory Act
• Parking area for the LPG tank trucks waiting to enter the terminal for filling shall be
provided in the Port premises
• A traffic management system shall be developed for the smooth and safe movement
of trucks within the terminal
• Consent To Establish and Consent To Operate shall be obtained prior to construction
and operations of the terminal.

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6.4 Automation and Instrumentation System
Automation and Instrumentation shall be provided as per good industry practice, applicable
codes and guidelines for safety, integrity and reliability of the refrigerated LPG terminal
during normal operations and emergency situations.

A HAZOP study will be conducted based on which a process control matrix and safety
control matrix will be developed which will be used for managing safe operations of the
terminal. The safety control matrix will be used for emergency shut-down and fire-fighting.
The system architecture shall provide for 100% redundancy of critical Process and Safety
instrumentation. The entire automation system shall be powered with an online UPS of
adequate capacity and battery back-up. The design of Instrumentation and automation for key
systems will consider provision for:

Refrigerated LPG tanks:

o Two independent electronic level transmitters
o Temperature transmitters at various locations in the tank
o Pressure transmitters
o Density transmitter
o High level alarm
o Safety relief valves
o Vacuum Valves
o Outer tank pressure transmitter

Mounded LPG tanks:

o Two independent electronic level transmitters
o Temperature transmitter
o Pressure transmitter
o Density transmitter
o High level alarm
o Safety relief valves
o Nozzles of the LPG storage tanks provided with Remote Operated Valves
(ROV)

Truck loading bays:

o Loading arms

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 o ROVs
o Flow transmitter
o Tank truck earthing interlock
o Temperature & Pressure measurements

Pumps:
o No flow / dry run protection
o Minimum flow protection
o Overload protection
o Temperature and Pressure measurements
o ROVs
o Soft starters

Compressors:
o Low suction pressure protection
o High discharge pressure protection
o Overload protection
o High temperature protection
o Low lube oil pressure protection
o Soft starters
o ROVs will be provided on Propane / Butane / LPG product pipelines for
remotely managing operations
o Automatic system for blending of Propane and Butane and dosing mercaptan
at desired ratios in a static mixer
o Pressure & temperature transmitters, flow indictors on pipelines to meet
process requirements

Safety:
o Gas detection systems
o Flame detection system
o Fire alarm call point
o Emergency shut-down system
o Emergency local stop
o Grounding system

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 o Deluge valves for sprinkler system
o Sound & light beacon

Other:
o Automatic boil-off gas management system to maintain refrigerated tanks’
pressure within safe limits
o Mass flow meter for monitoring the receipt of Propane and Butane cargoes
o Digital Control System (DCS) with independent programmable logic
controllers (PLCs) for Process and Safety

6.5 Painting
All equipment, structures, pipelines, buildings, sheds, compound wall etc. shall be painted as
per IS-Code and as per standard engineering practice.

6.6 Pollution Control Facilities

• Pollution Control facilities as per latest MoEF norms, meeting State Pollution
Control Board rules and stipulated as per consent letters/EC conditions.
• Effluent shall meet pollution control norms and oil contents not to exceed stipulated
level as per guide lines/statutory norms.
• Exhaust pipes of DG sets and diesel engines as per air pollution control norms.
• Noise level of DG sets and diesel engines shall not exceed laid down norms by the
state pollution control board by provision of acoustic enclosures as required

6.7 Security
• Security features including CCTV, Access Control System
• Compound Wall Covering entire plot will be provided as per statutory requirements
and safety norms.
• 1.8 m high Chain Link fencing for operational area demarcation based on Electrical
Zone Classification.
• Truck Entry & Exit gate will be provided as per statutory requirements and safety
norms.
• Watch Towers of suitable heights will be provided. depending upon security
requirement for effective coverage of entire Terminal.
• Common LPG Tank Truck inspection platform at entry and exit points.

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6.8 Communication System
Telephone lines connected to an intercom by P&T or an equivalent service provider will be
provided. VHF or Walkie-Talkie System shall be provided for communications between the
jetty and the terminal and as required within the terminal. A CC TV system shall be installed
to monitor critical terminal operating areas.

7. PROJECT SCHEDULE AND COST ESTIMATES

7.1 Project Schedule

The commercial operation date is envisaged in 24 months reckoned from the date of
obtaining the Consent To Establish (CTE).

7.2 Project Cost Estimates

The total project cost for the proposed LPG Terminal project is around Rs. 300 crores. This
includes the cost of Land and project work scope for land development, Civil Buildings,
Internal Roads, Mechanical, Electrical, Instrumentation, Automation, and fire detection and
protection facilities for ensuring safety of the Terminal.

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