CCB 3024

Process Plant Design

Sept 2014

Assignment 1

Group 12

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GOH AIK WEI 18165MUHAMAD IZZUDIN BIN SUKARI 18209DHANESH KUMAR A/L BABU 18119MOHAMAD AZRUL BIN SUHAIMI 18317THINESWARY 18172

Path 2

C2 H 4

ethylene+ Cl2

chlorine

→ C2 H 4 Cl2

dichloroethane

C2 H4 Cl2

dichloroethaneheat→

C2 H 3Cl

vinyl chloride+ HClhydrogen chloride

This report is divided into 12 factor that needed to be considered when choosing where to

construct the plant. The factors are:

Raw materials availability Markets Energy availability Climate Transportation facilities Water supply Waste disposal Labor supply Taxation and legal restrictions Site characteristics Flood and fire protection Community factors

RAW MATERIAL

The raw material required to produce vinyl chloride are ethylene and chlorine.

Ethylene Supplier

1) PETRONAS Ethylene Malaysia Sdn Bhd

Location: Kerteh

2) Linde Malaysia Sdn Bhd

Location: Melaka, Klang, Belakong, Penang, Prai, Ipoh, Pasir Gudang, Kluang, Nilai, Kuantan, Kerteh, Kota Kinabalu, Tawau, Sandakan, Bintulu, Kuching, Miri, Sibu

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3) B.I.G Industries Berhad

Location: Bintulu, Miri

4) Southern Industrial Gas

Location: Puchong, Kuantan, Penang, Melaka, Nilai, Bintulu, Ipoh

5) Well Solution Sdn Bhd

Location: Penang

Chlorine Supplier

1) Linde Malaysia Sdn Bhd

Location: Melaka, Klang, Belakong, Penang, Prai, Ipoh, Pasir Gudang, Kluang, Nilai, Kuantan, Kerteh, Kota Kinabalu, Tawau, Sandakan, Bintulu, Kuching, Miri, Sibu

2) Malay-Sino Chemical Industries Sdn Bhd

Location: Kemaman

3) KLH Chemicals

Location: Penang, Ipoh, Johor, Kuching

4) PBC Alliance Sdn Bhd

Location: Kuala Lumpur

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MARKET

Vinyl chloride is an important industrial chemical widely used to produce polymer polyvinyl chloride (PVC). In year 2013, about 39.3 million tonnes of PVC were consumed worldwide. This shows that the market for vinyl chloride is huge and worldwide.

Almost all our surroundings are made of PVC. Pipes, bottles, electric cables, are few examples which are made of PVC. This is due to cheaper cost of production, high strength, as well as chemical resistance of it.

Three regions drive PVC demand—Northeast Asia (mostly China), North America (primarily the United States) and Western Europe. Together, these regions account for about 68% of world demand for PVC.

The following pie chart shows world consumption of PVC:

World vinyl chloride demand fluctuated in the past few years because of crisis in construction industry and high feedstock material prices. But now, situation becomes more stable due to growing demand in China, India, Middle East region and Eastern Europe countries. PVC demand is forecast to increase at an average annual rate of 3.2% until 2021.

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ENERGY AVAILABILITY

To run the vinyl chloride plant, we need constant supply of electricity. Since the process are highly exothermic, some of the heat can be recovered and generate some electricity. If the supply is not enough, then it needs external supply of electricity, which is TNB. The figure below show the power grid system distributed in Malaysia.

Peninsular Malaysia

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Sarawak

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Sabah

CLIMATE

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Season

Generally in Malaysia there only two seasons, wet season and dry season. We also should consider a tropical climate it can rain any time of the year with thunderstorm. Normally the wet season begins at November and ends at March. November is the rainiest month of the year it could rain up to 20 days in the month. Meanwhile the dry season occurs from May to September, where June is the driest month of the year, it rains less than 10 days in the month.

Monsoons

Malaysia experience two monsoons season, which are March to April and October to November. In monsoon days the rain will begin on the afternoon rather in the morning .It will rain for an average about an hour.

Choosing the right site is very vital concerning about the monsoons and seasons in Malaysia. Its best to choose the location that have safer grounds from flooding and good drainage system in the area to avoid unforeseen circumstances that can damage the plant

Temperature

Source http://www.worldweatheronline.com/

Based on the graph, the average high and low have almost constant data and no extreme fluctuation of temperature between the months. Malaysia is known as a hot climate country, therefore to construct plant it has to be integrated with cooling mechanism to run the production as planned concerning about the surrounding temperature.

TRANSPORTATION FACILITIES

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There are several aspects in this factor. Transportation in Malaysia can be rail, road, water and air.

Rail

Based on the map the rail road system in Malaysia is mainly focused on the Western Malaysia then the Eastern Malaysia. If the plant puts priority to use train as a transport facilities its best to choose Western Malaysia

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Road

When considering to transport by road we are able to know which areas are suitable to build the plant based on the map above. We can interpret that most of the roads are closer to the sea shore, which gives a suggestion that choosing a plant site closer along the sea shore lines is better.

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Air

Source from www.mapsofworld.com

Basically every state have an airport which could be easier traveling from headquarters to plant and back, except for Negeri Sembilan considering that Kuala Lumpur Airport is closer.

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Water

Malaysia is surrounded by many ports as you can see the map above. It is better to build a plant that is closer to the sea shore, so that transporting the products in large quantity to local and international market can run smoothly.

WATER SUPPLY

A steady water supply is very important in order to carry out the large scale of vinyl chloride production plant. The plant must be equipped with enough water supply to make sure that the plant can be continuously operating as desired by the company. Basically in Malaysia, water supply is easily can be obtained from the rivers and lakes across the country.

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River in Malaysia (water source)

For example the company of Malay-Sino Chemical Industries Sdn Bhd in Kemaman as the place that we choose for the best place for the vinyl chloride production plant. For the industrial scale of water supply for the vinyl chloride production plant, Terengganu must supply a large amount of water to make sure the plant could be operated. So, Kemaman Water Supply Project was established by the Syarikat Air Terengganu to make sure the water supply for the plant is enough to support the operation.

In the 90’s Terengganu experienced surge in water demand in the area of Telok Kelang as the industrial area was developed in Kemaman district in that time. ACS carried out water resources study, detailed investigation, detailed design, construction supervision and contract management for the Stage 2 upgrading works. The existing plant was upgraded from 114 Mld to 225 Mld. Two 50 Ml inground HDPE lined reservoirs were constructed. The water reservoir was built for potable water storage to support the demand of plat industry and it was the first reservoir of its kind that has been built in Malaysia. To overcome the geotechnical problems rises from the settlement of the structures and slope instability they use HDPE lining.

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WASTE DISPOSAL

Basically, the waste disposal is managed by the Waste Management of Malaysia Association (WMAM). The main role of the WMAM is to promote and encourage the maintenance of high standards of waste management services in Malaysia like solid and liquid waste, hazardous, clinical or any other type of waste that are available.

Waste management partners with customers and communities in order to provide recycling and a proper waste disposal to manage the waste for creating a clean and green environment for the benefits of all.

For example, Kemaman Malay-Sino Chemical Industries Sdn Bhd, there are a few companies that are obligated to manage the disposal of waste in that area. The companies were to ensure the wastes are being disposed correctly and properly without affecting the people living nearby the industry area. The example of companies that are obligated for the disposal is as below:

Qualitest Engineering Sdn Bhd(QESB)

UDPS SDN BHD

Aldwich Enviro-Mangement Sdn Bhd

Taking an example from Qualitest Engineering Sdn Bhd(QESB), they are specified with three main jobs which are waste water treatment, waste management, and recycling to maintain the clean environment at the industrial site.

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LABOR SUPPLY

A huge labor supply is needed in to order to design 150 000 00 lb/year vinyl chloride plant since it is a very huge amount. The process of designing requires few stages of processes including processes whereby the usage of machines is needed. In order to handle these huge machines which constantly working, a high labor supply is indeed needed. The place which the plant should be located should have a constant flow of labor supply around.

Plant location should be convenient and easily accessible to skilled workforce such as engineers, management experts, technicians, computer programmers, safety officer and etc. We should consider the availability of competent and skillfull-workforce at a particular place to locate their business.

TAXATION AND LEGAL RESTRICTION

Some of the petrochemical plants in Malaysia that produce vinyl chloride are located in Kerteh, and Pasir Gudang, Johor. A 6% sales tax rate is implied on both local and foreign-owned business in Malaysia. In addition to that, companies are also subjected to income tax and investment tax as well. However, there is a wide range of tax incentives available for these companies. These incentives are persistently reviewed by the Malaysian government to ensure that the companies maintain their competitiveness. The incentives include incentives for manufacturing companies, high technology companies, strategic projects and R&D.

Initial Statutory Requirements

The main statutory requirement falls under the Environmental Quality Acr (EQA) 1974. Under this act, the regulation there under industrial activities are required to obtain approvals from the Director General of environment quality prior to project implementation are:

a) Environmental impact Assessment

b) Site suitability evaluation

c) Written permission to construct

d) Written approval for installation of incinerator, fuel burning equipment and chimney

e) License to occupy and prescribed premises and prescribed conveyances.

Industry Specific Statutory Requirements

Two main regulatory bodies that are responsible to environmental issue are Environmental Protection Department (EPD) and Department of Environment (DOE). EPD is a state department which manages the approval and management of earthworks. DOE is a federal department which is responsible for the assessment and approval of the process engineering works that is associated with investors’ facilities.

Before actually operating a business, there is a need to comply with some form of licensing. These business licenses are required by the legislation and administered by various government agencies, statutory bodies and local authorities. These business licences include registrations, approvals, licences and permits. Business licences can be classified into three different categories namely:

a) General licences

• These licenses are compulsory and shall be applicable the moment the investor decides to incorporate a company and employs staffs.

• Some of the general licences which are applicable to the ammonia production plant are:

- Company registration

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- Company and Employees Income Tax Registration

- Employees Provident Fund

- Social Security Organization

- Human Resources Development Fund

b) Sector Industry Specific licences

• These licences are unique licenses which are related to a particular industry or sector that is specified by the Malaysian Government.

• They involve major polices that control the development of industries or sectors in line with the development policy of the country

• Some of the licences applicable to the production of ammonia industry are manufacturing license and oil exploration license.

c) Activity Specific licenses

• These licenses regulate particular activity

• Investor has to comply with sets of specific guidelines designed to protect the interest of the citizen, employment, safety of workers, environment and general public.

• Some examples of these licences that are needed in an ammonia production plant are Building Plan Approval, Certificate of Fitness for Certified Machinery and Sales Tax License.

In addition to the above licenses and approval from the Director General of the Environment Quality under the EQA 1974, there are other statutory requirements that are relevant to the industries which investor may need to abide and adhere. Some examples of statutory requirements for ammonia production are as follow:

a) Written notification to Director General to carry work on solid waste transfer station or land fill, or construct on land any facility or building that may produce leachate

b) Written notification to Director General on changes of industrial activities that may cause discharge of effluent or mixed effluent

c) Comply with gaseous emission regulation

d) Stack Gas Emission Standards from Environmental Quality (Clean Air) 1978

e) Recommended Air Quality Guidelines (Ambient Standards)

f) Sewage discharge Standards

g) Industrial effluent discharge limits

h) Leachate discharge limits

i) Prohibitions on Ozone Depletion Substance (ODS)

j) Environmental Quality (Schedule Wastes) Regulations 2005

k) Environmental Quality (Prescribed Conveyance) (Schedule Wastes) Order 2005

l) Environmental Quality (Prescribed Premises) (Schedule Wastes Treatment and Disposal Facilities) Order 1989

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m) Customs (Prohibition of Export) Order (Amendment)(No.2) 1993

SITE CHARACTERISTICS

Characteristics of the land at a proposed plant site should be examined carefully. Our proposed plant sites need to take into account about the flora and fauna and heritage protection. Clearly in our view, we are producing the ethylene to sell it. We need to build our plant areas proximity to offshore oil and gas supplies and port facilities maybe near to PETRONAS Kerteh Berhad since it can cut our cost. Plus, we need to have our site near to a water source. Water are using for the steam and cooling purposes for use in the ethylene production. Our plant site also should be constructed where additional space is available since we need use large area. One of the reasons is because the ethylene will be stored at the plant site in two 40,000 tons storage tanks until ready for loading. Vinyl chloride is stored as a liquid. The presently accepted upper limit of safety as a health hazard is 500 ppm. Exposure of test animals to just a single short-term high dose of vinyl chloride caused liver damage. Additionally, our plant shall covers approximately 12 hectares which make the total about 13-15 hectares including all infrastructures. We also need our site to have utilities such as roads and telecommunications. To make it more easily, it will be great if we can build our plant near to port since we may need to have the ship loading system to transfer the product. Our plant also needs to consume power so that it will be necessary to have our site near to internal power generation and distribution. Last but not least, out plant site need to be build a bit far from the citizens. This is because it may produce noise and risk to the people.

FLOOD AND FIRE PROTECTION

Before selecting a plant site, regional history of natural events such as flood should be examined. Information as in how often flood occurs, ways to prevent it and how bad if there is any occurrences of flood should be collected. Since we are dealing with a high temperature process, events such as fire could occur. If in that case, fire protector should be easily accessible. Besides, assistance from outside fire departments should be also available.

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The picture above shows the occurrence of flood in the states. It can be seen that flood occurs very frequently in Terengganu, Kelantan and Pahang. Which means if we are placing the plant in these states, we are having the risk of flood.

In the U.S., OSHA lists vinyl chloride as a Class IA Flammable Liquid, with a National Fire Protection Association Flammability Rating of 4 which means vinyl chloride is highly flammable. As mentioned earlier, there are high chances of fire to occur. Thus it very vital to have a fire department nearby the plant location. Moreover, even if the location is not nearby to the fire department, at least the current plant location should be accessible.

COMMUNITY FACTORS

When choosing a location for vinyl chloride plant too, one should consider the community factors. There must be sufficient recreation for the workers and people around. For an example, mosques, temples, schools, theaters and hospitals. As when the plant is in operation there might be certain disagreement with the local communities, so things have to be sorted out with them before even building the plant. Plus considering that when this plant is operational does it gives negative effects to the local communities such as disruption of the fishing villages that cause their source of money stopped. Or by building this plant gives a positive impact to the local communities. As explain before safety standards must be taken very serious matter so that any unforeseen circumstances can be avoided and maintain a harmony environment.

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