- 1 -

The National Petroleum Refiners of South Africa (NATREF) has initiated the NATREF Clean Fuels II (NCF II) project which is aimed at complying with future, foreseeable government clean fuel specifications. NATREF is a joint venture between petrochemicals companies Sasol Oil and Total South Africa. The NATREF refinery is designed to process heavy, high-sulphur crude oils. The purpose of this Background Information Document (BID) is as follows: 1. It serves to provide an overview of the proposed NCF II project; 2. It provides an outline of the Environmental Impact Assessment (EIA) process; 3. It grants the opportunity to be registered as Interested and Affected Parties (I&APs); and 4. It serves as notification of the review of the draft Environmental Impact Assessment Re-

port. The purpose of the EIA is to identify and evaluate potential impacts, to recommend measures to avoid or reduce negative impacts and to enhance positive impacts.

1.1. PPURPOSE OF THIS URPOSE OF THIS DDOCUMENTOCUMENT

C O N T E N T :

Purpose of this

document

1

Background

and Motivation

1

Project Over-

view

2

Environmental

Assessment

5

Contact Details 7

PROPOSED NATREF CLEAPROPOSED NATREF CLEAN FUELS IIN FUELS II IN SASOLBURG, FREE STATEIN SASOLBURG, FREE STATE

(NEAS Ref No: DEA/EIA/0001446/2012; DEA Ref. No: 14/12/16/3/3/2/413)

BACKGROUND INFORMATION DOCUMENT

South Africa has very limited oil reserves and about 95% of its crude oil requirements are met by imports from the Middle East and Africa (SAPIA, 2012). There are six refineries in the country; namely Chevref, Enref, Sapref, Sasol Secunda, PetroSA and NATREF. World regions are mandating increasingly restrictive emission standards which requires new or cleaner fuel technology. In order to meet this, NATREF is undertaking the Clean Fuels II (NCF II) project which aims to reduce the concentration of sulphur in both Gasoline and Diesel. The design specification for NCF II meets EURO V specifications whereas cur-rently South Africa works to a EURO II specification.

2.2. BBACKGROUND & ACKGROUND & MMOTIVATIONOTIVATION

March 2014

- 2 -

The process of introducing cleaner fuels into the South African market started with the removal of lead in petrol, the subsequent introduction of unleaded petrol (ULP) and the reduction of sulphur levels in diesel. The process of removing lead from petrol started in 1986, with unleaded petrol being available from 1996. South Africa’s first clean fuels programme was implemented in 2006 with the ban-ning of lead from petrol and the reduction of sulphur levels in diesel from 3 000 parts per mil-lion (ppm) to 500ppm, along with a niche grade of 50ppm. The NATREF Clean Fuels I project aimed at expanding the NATREF diesel hydrotreater to enable the production of a low-sulphur diesel. The NATREF petrol processing units were modi-fied to enable the termination of leaded petrol production. The process was completed in No-vember 2005 and ensured NATREF’s compliance with South Africa’s new fuel specifications that become mandatory in January 2006. As a result of the new fuel specifications, the produc-tion and marketing of leaded petrol was discontinued and the maximum sulphur content of die-sel was reduced from 3 000 parts per million (ppm) to 500 ppm The main motivation for the NCF II project is the reduction of sulphur to 10ppm; the lowering of benzene from 5 percent to 1 percent of volume; the reduction of aromatics from 50 percent to 35 percent of volume; and the specification of olefins at 18 percent of volume.

The project is located in the NATREF facility at Sasolburg, Free State (Figure 1), within a cur-rently operational petroleum refinery.

3. 3. PPROJECT ROJECT OOVERVIEWVERVIEW

3.1 Project Location

Figure 1 1:250 000 Topo-Cadastral Locality Map of the NATREF Refinery in Sasolburg, Free State

- 3 -

As part of the NCF II project the following components will be revamped or upgraded:

A new C6/C7 splitter will be added to minimise benzene pre-cursors to the Platformer and to reduce C7’s in the feed to a new LSR Hydrotreater and Isomerisation. Downstream of the new C6/C7 splitter, on overheads, a new LSR Hydrotreater and Isomerisation unit will be added.

A new Reformate Splitter column will be added downstream of the Platfomer unit. The Reformate Splitter over-head stream is sent to the new Isomerisation unit for Benzene saturation while the bottoms are sent to the pet-rol pool.

The existing Diesel Hydrotreating Unit (DU) will be revamped to decrease the Sulphur concentration in Diesel and increase capacity.

A new LFCC Prime G Partial Desulphurisation unit will be installed to meet FCC petrol sulphur requirements. In addition to the above refinery unit changes, the following modifications on other units are required:

A new Amine system for new unit off-gasses will be installed. The new Amine unit will incorporate debottle-necking of the DU Amine system.

NCF II will also include integration of the Unsaturated LPG Amine system with the existing amine system.

There will be an increase in Sour Water production due to NCF II. A new Sour Water Stripper will be installed. Stripped water from this new stripper will be sent to the desalter for phenol extraction and then combined with stripped water from the existing Sour Water Stripper and is routed to the effluent treatment plant. The intent is to recycle part of the stripped water in order to reduce effluent volume.

Hydrogen requirement will increase due to addition of the new units to decrease sulphur in the products. A new hydrogen plant will be built to increase hydrogen production.

The following changes to the utility and tank farm infrastructure is required due to NCF II:

A new cooling tower system to provide cooling water to the new units. A new steam and condensate recovery system is required including new steam boiler(s). New air compressors will be installed to supply additional plant and instrument air to meet the demand of the

new process plants. On effluents, a new process oily sewer, oily storm water and waste water effluent separators are required as

the existing system is constrained. Clean storm water to be integrated to the existing system. A new flare system is required for additional flaring from new and modified units. Electricity consumption will increase due to NCF II. Additional substation(s) will be required to supply the new

units with electricity. Existing Sulphur Recovery Unit will handle additional sulphur removed from the fuels due to new Clean Fuels

II specifications. Six new storage tanks will be built. Two for storage of intermediate product during normal operation, two for

crude oil storage and two for storage of blending components during plant shutdowns. A number of tanks will change service and require modification. Two new crude oil tanks will be constructed.

Demolition of certain areas not required for NCF II.

3.2 Project Components

- 4 -

3.4 ALTERNATIVES As part of the Scoping and EIA process, 4 layout and design alternatives have been assessed. As well as the no-go

alternative.

3.3 HOW WILL NCF II UPGRADE TAKE PLACE?

The proposed project will be undertaken in a phased approach whereby different components will be revamped or replaced in a systematic manner.

Figure 2 Work Breakdown Structure

- 5 -

Table 1: Listed Activities

The following specialist studies were conducted:

An Air Quality Impact Assessment;

A Traffic Impact Assessment; and

A Noise Impact Assessment.

4.3 SPECIALIST STUDIES

4. 4. EENVIRONMENTAL NVIRONMENTAL AASSESSMENTSSESSMENT

4.1 EIA PROCESS

Nemai Consulting was appointed to act as the Independent Environmental Assessment Practitioner (EAP) to under-take the requisite environmental assessment for the proposed project. The EIA process will be aligned to the require-ments of GN No. R 543 of 18 June 2010 (see Figure 3). To date, the Scoping Report was accepted by the DEA and the Draft EIR has been compiled and submitted to all registered Interested and Affected Parties (I & APs) for comment. I & APs have 30 days within which to provide comment. Upon completion of the comment period, the EIR will be finalised and submitted to all I & APs for review following which the final EIR will be submitted to DEA for approval / rejection.

The proposed NCF II triggers certain activities listed in Government Notice (GN) No. R 544 and R 545 of 18 June 2010, which require environmental authorisation in terms of the EIA Regulations (2010) that were promulgated in terms of the National Environmental Management Act (Act No. 107 of 1998). The lead decision-making authority for the environmental assessment is the National Department of Environmental Affairs (DEA), as certain listed activities related to electricity generation or distribution (Activity 10 of GN. R 544 of 18 June 2010; Activity 1 of GN. R 545 of 18 June 2010) as thus require authorisation from the National Department. Table 1 contains the potential listed activ-ities.

4.2 LISTED ACTIVITIES

EIA Authority

GN Relevant Activity No.

Environmental Assessment

Authority Ref. No.

DEA

544, 18 June 2010 10, 23 (i), 27(v), 28, 29(i), 37(b), 42, 48

Scoping and EIA Process

NEAS Ref No: DEA/EIA/0001446/2012;

DEA Ref. No: 14/12/16/3/3/2/413

545, 18 June 2010 1 ,3, 4, 5, 26

- 6 -

4.4.1. Overview of Public Participation Process

The diagram below outlines the Public Participation Process for the Scoping (complete) and EIA phases (current).

4.4.2. Registration as an I&AP

To register as an I&AP, complete the attached Reply Form and return to Nemai Consulting by 14 April 2014. 4.4.3. Review of Draft Environmental Impact Assessment Report

The Draft Environmental Impact Report will be lodged for public review at the following venues between 14 March 2014 to 14 April 2014:

Table 2.: Locations for review of Draft Environmental Impact Assessment Report

4.4.4. Public Open Day to present the Draft Environmental Impact Assessment Report

A public meeting will be held to present the Draft Environmental Impact Report: Date: 26 March 2014 Time: 16h00-18h00 Venue: Boiketlong Community Hall Address: On the Main Street, Zamdela

4.4 HOW CAN YOU BE INVOLVED?

Figure 3: Outline of Public Participation process

Copy Location Address Tel. No.

1 Sasolburg Library John Forster Road, Sasolburg 016 973 8467

2 Zamdela Library Next to Zamdela hall and clinic on the main Road, Zamdela.

016 974 2163

We are here

- 7 -

Proposed NATREF Clean Fuels II in Sasolburg, Free State (NEAS Ref No: DEA/EIA/0001446/2012; DEA Ref. No: 14/12/16/3/3/2/413)

(Complete and return by 14 April 2014 to Rivani Maharaj)

ENVIRONMENTAL & SOCIAL CONSULTANTS

Reply Form Registration as an Interested and Affected Party

Date: O F F I C I AL U S E

Name of organisation: (if applicable)

Date received:

Name & Surname: Our reference:

Address Postal: Physical: Status

Tel No:

Cell No

Fax No:

Email:

Registration as an I&AP:

Yes

No

Please include the contact details of any possible other I&APs you might be aware of:

Comments: (note - additional pages may be included if the space provided is insufficient)

P.O. BOX 1673 SUNNINGHILL 2157

147 Braam Fischer Drive Ferndale 2194

Phone: (011) 781 1730 Fax: (011) 781 1731 Email: vanessab@nemai.co.za

- 8 -

THANK YOU FOR THANK YOU FOR PARTICIPATION AND PARTICIPATION AND

CONTRIBUTION TO THISCONTRIBUTION TO THIS PROJECTPROJECT

5. 5. CCONTACT ONTACT DDETAILSETAILS

For any queries pertaining to the project, please contact the Environmental Assessment Practitioner below:

Contact Person:

Tel:

Fax:

Email:

Postal Address:

Rivani Maharaj

031 266 3884

031 266 5287

rivanim@nemai.co.za

PO Box 1673, Sunninghill, 2157