Feasibility Study Report For Lixing Tank Terminal: Qingdao Lixing Logistics Co., LTD

QINGDAO LIXING LOGISTICS Co., Ltd.
MARCH 2010 ()
PART - 1 TANK TERMINAL PROJECT FEASIBILITY STUDY REPORT
QINGDAO LIXING LOGISTICS Co., Ltd.
FEASIBILITY STUDY REPORT for LIXING TANK TERMINAL
March 2010
MA-PEC Plant E&C Co., Ltd.
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QINGDAO LIXING LOGISTICS Co., Ltd. MARCH 2010 ()
CONTENTS
1. 2. 3.
3.1. 3.2.
EXECUTIVE SUMMARY .................................................................................................. 6 INTRODUCTION............................................................................................................. 10 PROJECT OVERVIEW ................................................................................................... 13

PROJECT BACKGROUND ............................................................................................... 13 PROJECT SCOPE .............................................................................................................. 15 Storage Tank ................................................................................................................. 16 Utility System ................................................................................................................ 19 Building .......................................................................................................................... 20 Project General .............................................................................................................. 20
3.2.1.1. Tankage Plan ............................................................................................................................. 17
3.2.1. 3.2.2. 3.2.3. 3.2.4.
4.
4.1. 4.2.
OBJECTIVE OF THE FEASIBILITY STUDY.............................................................. 22

PHASE - 1 ........................................................................................................................... 22 PHASE 2 ........................................................................................................................... 23
5.
5.1.
BASIS OF THE FEASIBILITY STUDY ........................................................................... 25

TANK TERMINAL ............................................................................................................... 27 Conceptual Design Basis ............................................................................................. 29
5.1.1.1. Tank Terminal Site Area............................................................................................................. 29 5.1.1.2. Tank Design ............................................................................................................................... 29 5.1.1.2. Tank Design ............................................................................................................................... 29 5.1.1.3. Utility and Offsite Facility Concept .............................................................................................. 31 5.1.1.4. Tank Pump Design ..................................................................................................................... 32 5.1.1.5. Piping and Valves....................................................................................................................... 33 5.1.1.6. Control System ........................................................................................................................... 33 5.1.1.7. Fire Fighting System .................................................................................................................. 35 5.1.1.8. Emergency Shut Down System (ESD) ....................................................................................... 36 5.1.1.9. Nitrogen Purge System .............................................................................................................. 37 5.1.1.10. Electric Power ......................................................................................................................... 37 5.1.1.11. Telecommunication .................................................................................................................. 38 5.1.1.12. Pipeline connection to Fengrun Railway Station ...................................................................... 38 5.1.1.13. Others ...................................................................................................................................... 39 5.1.1.14. Utility Specification Information for Tank Design ...................................................................... 39 5.1.1.15. Meteorological Information for Tank Terminal Design .............................................................. 43
5.1.1.
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5.2.
OPERATIONAL PHILOSOPHY (TANK TERMINAL) .............................................................. 46 Truck Loading ............................................................................................................... 47 Stripping (Purging) ....................................................................................................... 47
5.2.1. 5.2.2.
5.2.2.1. Loading arm .............................................................................................................................. 47 5.2.2.2. Slop Material ............................................................................................................................. 48
5.2.3. 5.2.4.
Slop Operation .............................................................................................................. 48 Estimated Utility Requirement ..................................................................................... 48
5.2.4.1.Utility Operation Concept ............................................................................................................ 48 5.2.4.2.Utility Requirement ...................................................................................................................... 48 5.2.4.3. Estimated Utility Consumption.................................................................................................... 49
5.2.5. 5.2.6. 5.2.7. 5.2.8.
Waste Water System ..................................................................................................... 49 Sewer (Monitoring Pond) System................................................................................ 49 Emergency Power Philosophy .................................................................................... 50 Laboratory Equipment .................................................................................................. 50
6.
6.1. 6.2.
MARKET ANALYSIS...................................................................................................... 52
ANALYSIS
OF
QINGDAO DEVELOPMENT PLAN ......................................................... 52

OF
INDUSTRIAL RESTRUCTURING
QINGDAO ............................................................. 52
6.2.1. 6.2.2. 6.3. 6.3.1. 6.3.2. 6.4. 6.5.
Basic Circumstance ...................................................................................................... 53 Space Layout Planning................................................................................................. 53 Chinese Market Survey................................................................................................. 54 Shandong Area Market Survey .................................................................................... 55
MARKET RESEARCH ....................................................................................................... 54
TANK RENTAL COST IN CHINA ........................................................................................ 62 TARGET MARKET.............................................................................................................. 63
7.
7.1. 7.2.
PROJECT COST ESTIMATION ................................................................................... 65

INVESTMNET COST ESTIMATION .................................................................................. 65 OPERATING COST ESTIMATION.................................................................................... 65
8.
8.1.
ECONOMIC ANALYSIS ................................................................................................. 70

SALES REVENUES ............................................................................................................ 73 Tank Terminal Sales Revenue Estimation .................................................................. 74 Sales Revenue Distribution ......................................................................................... 77
8.1.1. 8.1.2. 8.2. 8.3. 8.4.
PRODUCTION COST ......................................................................................................... 80 PROFITABILITY ................................................................................................................. 84 SENSITIVITY ANALYSIS ................................................................................................. 100
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9. 10.
CONCLUSION & RECOMMENDATION ...................................................................... 108 PROJECT SCHEDULE ................................................................................................ 111
APPENDIX 1. CONCEPTUAL DESIGN BASIS ....................................................................... 116 APPENDIX 2. PROJECT COST ESTIMATION ........................................................................ 158
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SECTION 1 EXECUTIVE SUMMARY
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1.
EXECUTIVE SUMMARY
Qingdao Lixing Logistics (hereinafter refer to Lixing) would like to construct its own tank terminal in the area where locate between Lixing Wharf and Qingdao Lidong Chemical Aromatic Plant in Economic and Technological Development zone in Qingdao. MA-PEC Plant Engineering & Construction (hereinafter refer to MA-PEC) in Korea implements the feasibility study for the project of Lixing Tank Terminal since MA-PEC has executed several projects in China, such as Lidong OSU & NGRU unit in Qingdao Lidong Chemical plant area and Lidong plant revamping study etc., successfully. From the report of market research analysis, the tank terminal business model have still potential to penetrate the market and future benefit to the project owner since the existing infra-structure of wharf and tank terminal wouldnt follow up to cover the required capability of wharf and new potential demand of storage facility, considering current exporting and importing volume data and future plan of terminal and wharf as well as the additional refinery and petrochemical plant in Shandong Area. In addition, Qingdao Port Group already announced to rent the Crude Oil Tank in future Lixing Tank Terminal, using Qingdao Port Groups own wharf facility where located beside future Lixing Tank Terminal area. Furthermore, since the potential clients such as Oman Aromatics, GS Aromatics Chemical, Qingdao Lidong Chemical and Samsung Corporation are currently existing clients of Lixing Logistics, feasibility of the tank storage terminal can achieve the minimum revenue level of normal tank terminal operation. From the discussion and market situation with the potential clients can show the interesting of tankage facility requirement and high possibility to drive up to initial profitable line of terminal operation. However, because the location of Lixing wharf and tank terminal is not the mainly concentrated wharf and tankage area in the point of economic growth of Shandong area, it is necessary to promote sales activity in advance to tank terminal project implementation to gather potential clients for tank terminal. Many of Korean refinery and petrochemical have required storing their own products in China to reinforce their sales capability to China. Lixing tank terminal that is able to be known Korean ownership terminal shall be one of good opportunity to the potential clients of Korean refinery
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and petrochemical companies, based on providing the services of international standard of operation and reliability. The tank terminal can expand the business model from storage facility business to blending manufacturing business in Naphtha, Benzene, and Mixed Xylene for producing and selling higher quality product to market. The Economic and Financial analysis are shown on section 8.The assumption of financial modeling with COMFAR- expert was exercised by MA-PEC with the experience of similar size and purpose projects in China as well as in other countries. Fixed investment cost is estimated with Project Engineering, Procurement, Construction and Owners project management cost including government permit cost, land depreciation cost and fund interest etc. Considering probable operational case, the project IRR can be reached to 11.39% in worst case, 13.51% in probable case and 14.73% in best case. Worst Case Fixed investment cost : 537.60 MM RMB IRR : 11.39% NPV : 43.53 MM RMB Payout Periods : 8.19 years Probable Case Fixed investment cost : 537.60 MM RMB IRR : 13.51% NPV : 112.31 MM RMB Payout Periods : 7.36 years Best Case Fixed investment cost : 537.60 MM RMB IRR : 14.73% NPV : 153.4 MM RMB Payout Periods : 6.95 years
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The land depreciation cost is considered as the opportunity cost for the project investment cost and Chinese local tax exemption, 100% for first three years and 50% for next three years, is applied in the financial analysis. From the sensitivity analysis in probable case, shown in Figure 8.4A, the factor of sales revenue is the main critical parameter to determine the project profitability and risk disbursement, comparing to the factors of increase fixed asset and operational cost, because the tank terminal operation scheme and structure are very simple to affect profitability. However, as the terminal operation revenue contribution figure, shown in 8.1A, express the Crude Oil tankage ratio and Crude Oil Truck Loading fees are also the main parameter to determine sales revenue of Lixing tank terminal, the Lixing tank terminal project can start in better and stable position in the point of profitability and economic feasibility, because the main client of Crude Oil tankage and truck loading shipping plan are already settle down with the client, Qingdao Port Group, as described above. Reviewing market survey and research as well as current sales promotion result with economic analysis, the Lixing Tank Terminal project can encourage the synergy with existing Lixing Wharf and future Hongxing Tank Terminal and can show profitable feasibility conclusion in project wise view point.
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SECTION 2 INTRODUCTION
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2.
INTRODUCTION
Qingdao Lixing Logistics Co., Ltd. is a large scale foreign funded enterprise, invested by Singapore GS Aromatics Co., Ltd. and Oman National Oil Company. Established on April. 2005, Lixing mainly involves in the business of wharf operation of chemical and oil products for Lidong Chemical Co., Ltd. The own wharf has two ship berths, that the berthing capacity for No.1 berth is in the range of 2,000DWT to 10,000DWT and No. 2 berth in the rage of 5,000DWT to 100,000DWT respectively. In March 2009, Qingdao Lixing Logistics Co., Ltd. (hereinafter refer to Lixing) announced his intention to construct new Oil and Petrochemical terminal for participating tank terminal business in the vicinity of Lixing wharf, in reclaimed area northern to the Aromatics Complex of Lidong Chemical Co., Ltd., located in the Economic and Technological Development Zone of Qingdao, China. MA-PEC Plant Engineering & Construction Co., Ltd. (hereinafter refer to MA-PEC) had received Feasibility Study ITB on March 17. 2009. Following an extensive review of the proposal, submitted by MA-PEC, Lixing advised MA-PEC that they were selected as the partner to execute Feasibility Study in April. 2009. Through the investing plan to build large storage tank, it aims to upgrade the function of the petrochemical industry base in Qingdao. The total area of tank terminal covers about 240,000 square meters with the proposed 51tank, total capacity about 900,000 cubic meters. Lixing has own existing wharf in the vicinity of the planned tank terminal area and can use own wharf as well as Hongxing wharf to operate tank terminal. MA-PEC as the selected partner for Feasibility Study of Qingdao Lixing Tank Terminal plans to divide the construction plan into two phases, 1st Phase for construction of the most feasible tanks in the sales promotion point of view and 2nd Phase for remaining tank construction. The proposed terminal location is in Qingdao Huangdao petrochemical industrial zone, the west of Qingdao port for liquid chemicals logistics and the south of Qingdao
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Lidong Chemical Aromatic Plant, along with the north side of Jiaozhou Bay.
Existing Lixing Wharf
New Hongxing Wharf
HongXing Tank Terminal Area
LIXING TANK TERMINAL AREA
Existing Lidong Aromatic Plant
Lixing also consider receiving parts of utilities from Qingdao Lidong Chemical Co., Ltd. since the main pipe rack from Lidong Aromatic Plant to Lixing wharf which is currently used for inbound gate of Naphtha for Lidong Aromatic plants, is located between the area of Qingdao Hongxing Tank Terminal and Qingdao Lixing Tank Terminal. The capacity of Waste Water Treatment facility, planned to construct in Lixing tank terminal area, shall be considered to cover Hongxing Tank Terminal construction and operation, since it shall be additional income plan of terminal operation in the point of long term view, without allotting additional area to construct larger capacity of facilities and utility equipment for Hongxing. Following Lixings plan to connect Lixing tank terminal to Fengrun railway station in the vicinity of Lixing Tank Terminal, MA-PEC has studied to connect a pipeline between the station and Lixing Tank Terminal in order to transfer Naphtha utilizing RTC facilities. This report details the finding of study and provides technical and economic analysis to help the owners decision for maximize project feasibility and profitability.
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SECTION 3 PROJECT OVERVIEW
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3.
3.1.
PROJECT OVERVIEW
PROJECT BACKGROUND Since Qingdao Lixing Logistics Co., Ltd. has operated own wharf (two berths) in the area of Qingdao Lidong Aromatic Plants in Economic and Technological Development Zone of Qingdao, China and involved in Petrochemical and Refinery product trading business already, it is necessary to operate own storage facilities to maximize synergy. In addition, because currently existing Lixing wharf is operated as the role of inbounding gate to receive and forward Naphtha to Qingdao Lidong Aromatic Plants, Lixing can develop the business relationship with Qingdao Lidong Chemical to store Aromatic products in Lixing tank terminal. The main products of Qingdao Lidong Chemical Co., Ltd. are Para-Xylene, Benzene, Toluene and by products of Petroleum Gas, Hydrogen, Raffinate Oil, Heavy Aromatics, Fuel Gas and others. Lixings top management have decided to review the feasibility to construct own tank storage facility terminal linking to existing Lixing wharf and existing Qingdao Lidong Chemical Aromatic plants for handling of refinery, petrochemical and Oil products. Five years ago, Lixing already occupied the vicinity land (about 244,189 square meter) of existing Lixing wharf in the reclaimed area northern to the Aromatics Complex of Lidong Chemical Co., Ltd. The proposed site is located on the west side of first phase terminal in the Economic and Technological Development Zone of Qingdao (Huangdao), along the west coast of Jiaozhou Bay. Its reservoir site is about 3km away from Huangdao power plant, in the west to Qingdao Refinery & Chemical with the distance of 3Km or so, in the north next to Jiaozhou Bay, in the south about 100m away from Lidong Chemical Aromatic Plant and in the east about 50m away from liquid chemical terminal in Qingdao port.
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Lixing have planned to participate the own tank terminal together because trading business for petrochemical and chemical will be rapidly increased in Qingdao area as the main port of Shandong province, under the following market circumstances,. International oil price comes down and head to bottom price in the market Major trading companies have plans to store of oil and petrochemical products but there are not enough storage facility in Shandong province. The international price of raw material for steel and pipe reach the half price of the previous price in 2008 year and it can provide to total construction investment cost saving. Recently Sinopec Refinery and Lidong Chemical operate according to development plan of Shandong province. The main market structure for importing, sales, storage and transportation logistics of Crude Oil, Aromatics products and Oil products as well as petrochemical products has been changed. Major and Middle size refinery plants have plan to prepare own process structure to solve the matter of importing and storage. However it is difficult to have seaside lands and appropriate yard area for construction of enough storage facility and wharf. Lixing already received the intention of long term tank rental contract by potential clients for new tank terminal storage facility and to use wharf for in-bounding and out-bounding products. The collaboration plan with Qingdao Lidong Chemical has been settled down for minimization of investment while increasing of synergy effect for operation of tank terminal and wharf together. Potential clients such as Oman Aromatics, Qingdao Port Group, Lidong Chemical, GS Aromatics to rent storage tank facilities have been already founded and those companies are principally agreed to construct and to rent the tank facilities.
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Considering further market consumption, Solvent and Methanol products have high potentiality in Chinese market, cooperating with Samsun Corporation and GSC BD plant. MA-PEC has been appointed to execute research and analyze the most profitable case of the terminal operation and concept technically and economically. 3.2. PROJECT SCOPE This section outlines the extent of the storage tanks and utility & off-site system, which shall be constructed in Phase-1 and Phase-2 stages. The terminal site is classified into three (3) areas, storage tank area, truck loading/unloading area and offsite supplementary facility area. The entire tank terminal is arranged from east to west, the most eastern side of crude oil tank area, the middle side of Gas Oil/Kero/Mogas, Naphtha, MTBE, Solvent and lube base oil tank area as well as truck loading area, the most western side of Aromatic and Methanol tank area as well as all of offsite facilities. The truck loading area and offsite facility area face to the Liao He Road, convenient for transportation and external connection. The whole of tank terminal is designed to have four (4) passageways namely; one entrance for staff access where the comprehensive office building faces an urban road; two entrances and exits to be set up as accesses of vehicle traffic to transport oil chemical products where area of truck loading and unloading facilities faces an urban road; one fire control access that sets up between utility area and area of truck loading facility. The specific arrangement can be seen in the general layout plan, Figure 5.A.
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Following List of Land utilization table can provide the information of area occupation.
No Description Area (m2) 244,200 121,600 56,100 13,400 13,400 12,300 12,300 6,000 8,100 18,200 8,500 104,000 49.8 23.0 5.5 5.5 5.0 5.0 2.5 3.3 7.5 3.5 39.3 % Remark
Within the scope of enclosing wall
Land Occupied for project 1 1-1 1-2 1-3 1-4 1-5 1-6 1-7 2 3 4 Storage tank site Crude tank dike Gas Oil / Kero / Mogas tank dike Naphtha tank dike PX & Benzene tank dike MX and Toluene tank dike Methanol tank dike MTBE & Lube base Oil tank dike Truck Loading Area Utility & Offsite Facility Area Corridor Land
The tank terminal design shall consider following Chinese code and standards. - GB50074-2002 code for design of oil depot - SH/T3013-2000 specification on vertical layout design of petrochemical plant zone - SH/T3023-2005 specification on road design in the petrochemical plant - SH3008-2000 - SH3094-1999 - SH3084-1997 complex - GB50160-2008 Code of fire protection design for petrochemical industry specifications on green design of petrochemical industry specifications on rainwater open drain for petrochemical complex legend of transport design in the general drawing for petrochemical
3.2.1.
Storage Tank
In order to achieve the project objectives, which are to minimize investment cost and maximize operational efficiency, MA-PEC has studied terminal master plan in several cases together with Owner and decided to construct following capacity of product tanks by owner, considering market survey result and potential customer requirements in the planned site.
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MA-PEC plans the terminal layout to cover the following minimum net volume in total available site area. Para-Xylene Benzene Toluene Mixed Xyelene Future Aromatic Tanks Crude Oil (Bunker-C) Naphtha Future Naphtha Tanks Gas Oil / Kero / Mogas Future Gas Oil / Kero / Mogas Lube Base Oil Future Lube Base Oil Solvent MTBE Future Solvent / MTBE Methanol Future Methanol Net 40,000m3 Net 10,000m3 Net 6,000m3 Net 12,000m3 Net 24,000m3 Net 440,000m3 Net 40,000m3 Net 40,000m3 Net 40,000m3 Net 40,000m3 Net Net Net Net 2,600m3 2,600m3 2,600m3 5,000m3
Net 10,000m3 Net 12,000m3 Net 12,000m3
Available Site Area : 244,189m2 / Total Storage Nominal Volume : abt 906,352 m3 3.2.1.1. Tankage Plan It is proposed to construct relevant storage tanks and offsite facilities in the planned site by as follows ;
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PHASE-1 : 25 tanks (Nominal Volume 650,583m3) Para-Xylene Benzene Toluene Mixed Xylene Crude Oil (Bunker-C) Crude Oil (Bunker-C) Naphtha Lube Base Oil Solvent Methanol Available Site Area : 224,165m2 Total Storage Nominal Volume : 650,583m3 Total Storage Net Volume : 537,516m3 (designed about 82% of Tank capa.) Net 11,560m3 x 2 tanks Net Net Net 5,618m3 x 2 tanks 3,448m3 x 1 tanks 6,896m3 x 2 tanks
Net 50,000m3 x 8 tanks Net 20,700m3 x 2 tanks Net 13,500m3 x 2 tanks Net Net Net 1,300m3 x 2 tanks 1,300m3 x 2 tanks 6,160m3 x 2 tanks
PHASE- 2 (Future) : 26 tanks (Nominal Volume 255,769m3) Para-Xylene Toluene Toluene Mixed Xylene Naphtha Gas Oil / Kero / Mogas Lube Base Oil Solvent MTBE Methanol Available Site Area : 224,165m2 Total Storage Nominal Volume : 255,769m3 Total Storage Net Volume : 216,088m3 (designed about 84% of Tank capa.) Net 11,560m3 x 2 tanks Net Net Net 3,450m3 x 1 tank 8,200m3 x 1 tank 8,200m3 x 2 tanks
Net 13,500m3 x 4 tanks Net 13,500m3 x 6 tanks Net Net Net Net 1,300m3 x 2 tanks 2,500m3 x 4 tanks 2,500m3 x 2 tanks 6,160m3 x 2 tanks
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The tanks are combined in following dike for design according to China GB Code (GB50074-2002 Code for design of oil depot, issued in March 1st 2003) and to efficiency of area plot. Aromatics Products Dike-1 Aromatics Products Dike-2 Oil Products Dike -1 Oil Products Dike-2 Crude Oil Products Dike Lube Oil Products Dike Petrochemical Products Dike -1 Petrochemical Products Dike -2 : Para-Xylene, Benzene : Toluene, Mixed Xylene : Naphtha : Gas Oil / Kero / Mogas : Crude Oil (Bunker-C) : Lube based Oil : MTBE, Solvent : Methanol
3.2.2.
Utility System
For Lixing tank terminal operation, following utility systems are required. It is proposed to consider and to tie in utility system to the Lidong Aromatic Plant to optimize the investment cost. Tie-In Utility from Lidong Chemical Aromatic Plant or Receiving from out of terminal. Steam and condensate supply from Lidong Chemical Instrument and plant air supply from Lidong Chemical Cooling Water supply from Lidong Chemical Nitrogen Supply from Air Liquid Utility Water supply from City Council New Utility Facility required for Lixing Terminal. Fire Water Pump and Fire Fighting System Electrical Power supply and distribution Waste water system Flow measurement system Sewer System
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WWT facility of Lixing Tank Terminal shall cover the capacity of waste water treatment requirement for not only Lixing tank terminal but also future Hongxing tank terminal which shall be constructed on the left side of Lixing Tank Terminal.
3.2.3.
Building It is proposed to construct the following facilities and buildings. Ticketing shelter Control Room and MCC Office and Conference Room Waiting Room Sample storage rack Maintenance and tool room Ware house Fence and gate-house with CCTV and fire alarm system Note : All sample test service, spare parts management and reliability management service will be provided by Lidong Chemical Co., Ltd. so the building sizes for the maintenance shop and warehouse will be minimized.
3.2.4.
Oil Movement Design It is proposed to consider followings for the oil movement operation at the terminal. Possibility of inbounding and out-bounding through wharves & trucking Pipelines from Qingdao Lidong Chemical Co., Ltd. Loading and Unloading racks for trucking and for marine shipping Possibility of inbounding and out-bounding through a pipeline from Fengrun railway station to Naphtha tanks. All the tanks and facilities in the Lixing Tank Terminal shall meet the Chinese local code and standard requirements, described in 3.2. Project Scope, as well as Chinese Energy Saving Plan and Environmental Impact Protection Plan.
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SECTION 4 OBJECTIVE OF THE FEASIBILITY STUDY
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4.
OBJECTIVE of THE FEASIBILITY STUDY The purpose of the feasibility study is to identify the best tank terminal design and operational configuration as well as to confirm that the proposed terminal project is economically justified on the basis of current market situation and future demand within an acceptable range of environmental impact. In this Feasibility Study, preliminary Health, Safety and Environmental (HSE) issues are briefly described. The detail HSE study was performed by Chinese local specialty company and the report was issued for project approval to Chinese Government. The feasibility study and the recommendation for tank terminal have been developed and evaluated with the following objectives. Maximization of Tank Terminal Operational Efficiency Maximization of Tank Terminal profitability with high return on investment cost Optimization of integrity Lixing Tank Terminal construction Optimization of the investment cost for the project implementation by market trend To achieve above objectives, two most probable configurations of Phase-1 and Phase-2 have been considered below. 4.1. PHASE - 1 Net 11,560m3 x 2 tanks Net Net Net 5,618m3 x 2 tanks 3,448m3 x 1 tanks 6,896m3 x 2 tanks
Para-Xylene Benzene Toluene Mixed Xylene Crude Oil (Bunker-C) Crude Oil (Bunker-C) Naphtha Lube Base Oil
Net 50,000m3 x 8 tanks Net 20,700m3 x 2 tanks Net 13,500m3 x 2 tanks Net 1,300m3 x 2 tanks
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Solvent Methanol Utility & Off-Site Facility
Net Net
1,300m3 x 2 tanks 6,160m3 x 2 tanks
: all of utility and offsite facility shall be considered in
Phase-1 and in Phase-2 stage, only tanks shall be added. 4.2. PHASE 2 Para-Xylene Toluene Toluene Mixed Xylene Naphtha Gas Oil / Kero / Mogas Lube Base Oil Solvent MTBE Methanol Net 11,560m3 x 2 tanks Net Net Net 3,450m3 x 1 tank 8,200m3 x 1 tank 8,200m3 x 2 tanks
Net 13,500m3 x 4 tanks Net 13,500m3 x 6 tanks Net Net Net Net 1,300m3 x 2 tanks 2,500m3 x 4 tanks 2,500m3 x 2 tanks 6,160m3 x 2 tanks
From the thorough evaluation of above candidate cases, the initial construction plan is set with phase-1. The phase-2 plan shall be considered in the future as the result of sales promotion in the market.
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SECTION 5 BASIS OF FEASIBILITY STUDY
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5.
BASIS of the FEASIBILITY STUDY Feasibility review team from Lixing and MA-PEC collated with data on prospective clients and tank contents, and developed an outline design basis for tank terminal. Layout drawing, tank list, main equipment list, PFD and utility consumption have been discussed and confirmed for this feasibility study. Accordingly the aforementioned engineering products become the basis of subsequent design considerations and concept which were made by MA-PEC for its feasibility study report. Furthermore, based on the Lixings basic data and information, MA-PEC developed the design concepts putting its various engineering knowledge, experiences and practices accumulated from pervious execution experiences of wide range of project cases and offsite facilities. Such basic design data as site conditions and product specifications etc. were quoted from the documents of Lixings project application report for Chinese government approval. For technical and economical evaluation of the tank terminal project, the following bases are applied.
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Figure 5A. Project Layout Drawing (Phase-1)
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5.1.
TANK TERMINAL The design basis will reflect the operation philosophy that is set for the terminal operation and also reflects the maximum flexibility that enhances the operability. There are general criteria that govern the operation of the terminal. Those can be summarized as follows; - The terminal will receive oil and petrochemical products for storing and re-export; the cargo volume should be accurately measured. - Crude oil (Bunker-C) tanks of the terminal will be the subject of long term rental business over 10 years with the specific potential client, Qingdao Port Group. - Para-xylene, Mixed xylene and Naphtha tanks of the terminal will be the subject of long term rental business with the specific potential clients, GS Aromatics Qingdao, GSC and other international trading companies. - Benzene, Toluene and Lube Base Oil tanks of the terminal will be the subject of long term rental business with the specific potential clients, GS Aromatics Qingdao and other international trading companies. - Methanol and Solvent tanks of the terminal will be the subject of long term rental business with the specific potential clients, GS Aromatics Qingdao, Samsung Corp, and other international trading companies. - For Naphtha, MX, and Benzene, simple mixing in a tank with higher quality Naphtha, MX, Benzene can produce value added product and create new niche market of small volume product sales in China - The imported oil and petrochemical products could be exported in total as received. - The terminal shall be constructed, in line with the result of economic analysis and the decision of owner board meeting.
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- There will be separated zones among Crude Oil (Bunker-C), Aromatic products, Oil products, Lube base oil and Petro-chemical product in the terminal and each storage zone has future tank plan. - The storage system is flexible to change service from one tank to another, in a dike meeting seasonal storage requirement. - Especially in aromatic product tanks, the severe condition among the products shall be applied to tank design, so that any tank can be used for one of aromatic products. - Site is congested, It will require the control system together with fire fighting having high standards to compensate for the tightness of site in consideration of the type of products handled. - MOV as the emergency shutdown method shall be installed in the line of tank inlet piping in case of 10,000m3 capacity tanks according to revised Chinese code and standards. - Waste Water Treatment facility shall cover the Hongxing tank terminal operation requirement. The basic skeleton conceptual design basis for making this feasibility study shall be described in below 5.1.1. Conceptual Design Basis (Tank); The Conceptual Design basis data including tank design concept detail, main equipment list, utility consumption, utility and auxiliary facility and retention schedule is attached in Appendix 1.
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5.1.1.
Conceptual Design Basis 5.1.1.1. Tank Terminal Site Area Along with Jiaozhou Bay in north side, Lixing owns the site area, approximately 244,189m2, located in the east side of the common pipe rack from Lidong Aromatic Plant to existing Lixing Wharf. 5.1.1.2. Tank Design - Tanks are designed according to Chinese GB Code and standards welded steel tanks for oil storage and the design and construction of large welded low pressure storage tanks to maintain the 21.5m height as possible. - The Crude Oil storage tank use external floating roof type with steam heating coil at the bottom of tanks and other tanks are designed with internal floating roof type while Lube base oil storage tank only use Corn roof type. - Benzene is moderate hazardous material that is close to be flammable, explosive and volatile, thus the tank shall be designed in internal floating roof type with carbon steel material. - Methanol is flammable, explosive and volatile material, so storage tank with internal floating roof is selected with carbon steel material. - The maximum wind velocity of 160km/hr will be used to design the tank structures. - All tanks will be properly earthed. - The design concept of all of aromatic product tanks shall be considered to be able to storage one of each product, Para-Xylene, Toluene, Mixed Xylene, by designing based on the most severe requirement condition. - Regardless of aromatic services, LP steam heating devices shall be installed inside all of aromatic product tanks for interchange-ability.
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- Crude Oil (Bunker-C) tanks will be insulated to save energy cost while others will not have the special insulation. - In order to prevent oxidation, hygroscopic effect and metamorphism of chemicals, nitrogen sealed process is used to protect chemical storage tank, at the top of which is sealed with nitrogen, with the use of nitrogen sealed breather valve to control the nitrogen pressure in the tank; in addition, oil products and chemicals that need heating also have the heating process for safety. - Design Pressure of Positive Pressure during the filling of tanks, the BV to be out-breathing is calculated ; BV Set Pressure (0.01) x 1.5 = 0.01Kg/cm2g - Design Pressure of Negative Pressure while pumping out from tank, the BV to be inbreathing is calculated ; BV Set Pressure (-0.0025) x 2.0 = -0.005Kg/cm2g Set Point of Nitrogen Pressure Regulating Valve = 25mmH2Og
- Set Point of Breather Valve = 100 / -25mmH2Og = 0.01 / -0.0025Kg/cm2g (1Kg/cm2g = 10,000mmH2Og = 10mH2Og) Table 5.1A Phase-1 Storage Tank List by service purpose
Nominal Volume
Dimension ID x TL (mm) 28.4*21.5 19.9*21.5 15.6*21.5 22.1*21.5 60.1*21.5 38.0*21.5 30.6*21.5
Conditions Press (kg/cm2g) 0.015/ -0.005 0.015/ -0.005 0.015/-0.005 0.015/-0.005 ATM ATM 0.015/-0.005 Temp () 80 80 80 80 150 150 80 CS CS CS CS CS CS CS Shell Material Remar k
Service
Q'ty
Type
(m3) Para-Xylene Benzene Toluene Mixed Xylene Crude Oil (Bunker-C) Crude Oil (Bunker-C) Naphtha 2 2 1 2 8 2 2 IFRT IFRT IFRT IFRT FRT FRT IFRT 13,612 6,683 4,107 8,243 60,961 24,370 15,803
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Lube base Oil Solvent Methanol
2 2 2
CRT IFRT IFRT
1,584 1,584 7,515
11.6*15.0 11.6*15.0 21.1*21.5
ATM 0.015/-0.005 0.015/-0.005
150 80 80
CS CS CS
Table 5.1B Phase-2 (Future) Storage Tank List by service purpose

Conditions Dimension Press
ID x TL (mm) (kg/cm2g) 0.015 / -0.005 0.015 / -0.005 0.015 / -0.005 0.015 / -0.005 0.015 / -0.005 0.015 / -0.005 ATM 0.015 / -0.005 0.015 / -0.005 0.015 / -0.005
Service
Q'ty
Type
Nominal Volume
Temp () 80 80 80 80 80 80 150 80 80 80
Shell Material CS CS CS CS CS CS CS CS CS CS
Remar k
(m3) ParaXylene Toluene Toluene Mixed Xylene Naphtha Gas Oil / Kero / Mogas Lube base Oil Solvent MTBE Methanol 2 1 1 2 4 6 2 4 2 2 IFRT IFRT IFRT IFRT IFRT IFRT CRT IFRT IFRT IFRT 13,612 4,107 9,966 8,243 15,803 15,803 1,584 3,052 3,052 7,515
28.4*21.5 15.6*21.5 24.3*21.5 24.3*21.5 30.6*21.5 30.6*21.5 11.6*15.0 15.1*17.0 15.1*17.0 21.1*21.5
5.1.1.3. Utility and Offsite Facility Concept Lixing Tank Terminal shall construct following utility and offsite facility - Electricity Substation - Monitoring Pond - Truck Loading Arm (Lixing 15MW) (Lixing 6,000m3) (Lixing 29arms)
- Fire Water Tank with Fire Fighting System - Waste Water Treatment Facility - OCB / MCC Building Lixing Tank Terminal plan to tie-in to Lidong Aromatic Plant for following utility service. - Cooling Water - LP Steam - IA/PA (Lixing 50m3/hr) (Lixing 15Ton/hr) (Lixing 1,500Nm3/hr)
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Lixing Tank Terminal plan to receive following utility from outside of terminal. - Utility Water - Nitrogen - City Water from City Council (Lixing 1,000Nm3/hr) - Air Liquid
5.1.1.4. Tank Pump Design There will be two types of pumps for serving tanks used in the terminal a) Loading/Unloading centrifugal pumps for smaller viscosity products b) Loading/Unloading gear pumps for higher viscosity products For loading and unloading , the pumps shall be selected according to ANSI / API600 standard and ISO13709 or equivalent GB standard for centrifugal pumps for Petroleum and petrochemical industries. The flow rate of marine loading pumps is designed from 500 ~ 2,000m3/hr according to different service of products. In Truck loading, for the products distillates the flow rate will be all 140m3/hr. Generally these pumps will be designed in one for operation and the other for spares in Marine and Truck loading case, while two (2) operational pumps and one (1) spare pump for Crude Oil (Bunker-C) marine loading purpose and Five (5) operational pumps and one (1) spare pump for Crude Oil (Bunker-C) truck loading purpose. The physical spec. and property of each pump is based on general engineering technical data. The detailed information of Marine Loading Pump and Truck Loading pump shall be summarized in Conceptual Design Basis in Appendix 3.
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5.1.1.5. Piping and Valves The pipe works will be designed to aim a high flexibility in the operation and at the same time provide high reliability and safety. The piping system will designed to allow nitrogen purging between shipments. Butterfly and gate valves can be used in services however whenever there is possible contamination of product Tight shut off (TSO) valves with soft seats will be used. The fuel oil lines will trace heated electrically and insulated. Valves will be pneumatically and manually actuated and controlled from the control room. Brake valves are mainly used in tank terminal and ball valves in the connection place of crane pipes. The full bore valves are selected to meet the requirement of ball pass, while stainless steel valves are selected for corrosive medium. The refined oil and chemical pipelines in need of passing ball use pigging valves Any valve related species switch and operation of pass ball chooses electric valve. The electric actuator uses imported products and the rest use Chinese made products. 5.1.1.6. Control System The control system will provide information regarding status of the storage terminal (pumps, process data), allow remote operation of main equipment and to secure the plant increase of faults or emergency. In addition the control system will collect and provide data to allow management for optimize operations. Design Objectives are ; Reliability Expandability
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Modularity Flexibility Ease of installation Ease of testing Improvement of productivity and economic efficiency Reduce of labor intensity
Technical spectrum used ; Field devices (Tank gauges, sensors, actuators, instruments) Program logic controllers (PLC) Communication Networks Operation control center
a) Design principle From the standpoint of reality, mature and reliable technology and control equipment are used, aiming at living up to the domestic advanced level. b) Level of Automation The tank terminal project makes use of computer control and data acquisition system (hereinafter refer to SCADA system), which carry out real-time monitoring and management to the entire tank terminal and its corollary facilities, realizing automation of the storage and transportation system of the tank terminal. According to the scale of characteristics of the tank terminal project, the R-IO station with SCADA system is set up to form the distributed automatic loading control subsystem together with quantitative loading controller and complete the control of automatic quantitative loading and management of measurement sales. There are 3 ranks in the entire system, i.e. management station, operator station and control station. The control station, with the focus of programmable logic controller (PLC),
completes collection, processing control and implementation of all data;
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The operator station carries out data management, operation control, control The management station obtains field data from the operator station, giving
intervention and man machine dialogue; service to scheduling and also can link with the MIS system to office, so that the relevant managers can directly browse through data and control pictures the same as those on site on the computer in control office., which lays the foundation for the realization of the plant computer process control and computer integrated information management system (i.e. management and control integration CIMS Computer Integrated Management System), as well as the improvement of management level. c) Control Program Monitoring and management of the tank terminal; All tele-transmitted signals in the tank terminal are forwarded to the field cabinet room and are communicated to the SCADA system in the ventral control room for display, control, alarm, interlock as well as print statements, so that the SCADA system can realize the real-time monitoring and management to the entire tank farm and its corollary facilities. It mainly includes; valve Security detection alarm Pump monitoring and protection Measuring System of Oil Tank Transfinite alarm interconnection of the liquid level of oil storage tank Transfinite alarm of oil pressure into and out of tank terminal Valve phase indication, remote control and interconnection of electric control
5.1.1.7. Fire Fighting System The fire fighting system will consist of ; - Fire water tank (Capacity 4,000 cubic meters x 2ea) - Foam System - Independent fixed tank fire fighting system
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The fire water source should be adequate to fill the water tank in 8 hours. The observed following standards for firefighting equipments shall be equivalent to be GB standard; NFPA 30 FSIA NFPA 11 NFPA 15 NFPA 16 NFPA 20 NFPA 22 guideline for petroleum fire system low expansion foam water spray fixed system deluge foam installation of centrifugal fire pumps standard for water tank
5.1.1.8. Emergency Shut Down System (ESD) The emergency shutdown system will be designed to meet emergencies and faults. The ESD system is initiated manually by push button by means of emergency system alarm signals received from the tanker facilities. And acts to close valves and stop pumps in the transfer system. The ESD system will be designed to allow transfer to be restarted with minimum delay after corrective action has been taken. MOV (as emergency shutdown method) shall be equipped on tank inlet piping line in case of 10,000m3. ESD valves shall be remote by operated fail-safe fire-safe tight shut off valves. At the export berth it is important that the ship is able to stop the shore loading pumps and to start shore ESD, this achieving at safe emergency shutdown within design parameters of the shore system The Power system shall receive dual source line for keeping stable power supply.
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5.1.1.9. Nitrogen Purge System A nitrogen plant shall supply nitrogen purge that will be used at loading arms, loading lines and sparge system in fuel oil tanks. The system will have a design pressure of 9 bars and purity of nitrogen about 95%. 5.1.1.10. Electric Power The scope of the study for this project includes power supply and distribution, brightening, lighting protection, anti-static and grounding system of Lixing Tank Terminal project. The electric power supply of the project adopts two-loop 35KV power supply, which are supplied respectively by different bus sectors of 35KV switchgear from local substation. Each open loop should be able to meet the capacity of 10,000KVA power supply. External electric power supply is inducted by cable. a) Load Statistics According to the commission of working power design provided by upstream profession, the substation in the tank terminal needs load capacity of 8091KW, considering majority of secondary load and some of tertiary load. Expected Statistical list of Electric Power working load is shown in the Table 5.1C. Table 5.1C. Statistic List of Electric Power Working Load
10KV Device
Required (KW)
380V
Required (KW)
Lighting
Required (KW)
Sub Total
Required (KW)
Note
Oil Tank Naphtha Tank Methanol Tank MTBE / Lube Oil / Solvent Light Oil Tank Toluene / MX Tank Benzene / PX Tank
5600 2080
130 130 230
5 5 2 5 5 5 5
5735 2215 232 880 795 615 840
535 725 530 720
340 65 80 115
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Utility Ancillary Facilities Tank Brightening Other Load Total Synchronizing Coefficient 10190
300 300 72 1500 3190 104
300 300 11984 1500 13484 8091
b) Power Program A master transformer and distributing station with 35/10/0.4KV and a transformer substation with 10/0.4KV are to be set up in the tank terminal. c) Way of wiring The high performance flame-retardant cables are mainly laid along the overhead cable tray and the laying approach of directly burying cables are used in exceptional cases. The cable bridge uses corrosion-resistant aluminum-alloy bridge with high strength and large span. d) Lighting Lighting is mainly divided into work lighting, emergency lighting and maintenance lighting. Lighting power supply and dynamic power supply share the voltage transformer, set voltage regulation and energy-efficient lighting control cabinet, and have the function of power measurement. 5.1.1.11. Telecommunication Telecommunication in the project of tank terminal shall include ; data and voice communication systems, automatic fire alarm system, optical fiber and grating heat actuated detection alarm system of large storage tanks, industrial TV monitoring system, explosion-proof intercom PA system and infrared correlation security systems. 5.1.1.12. Pipeline connection to Fengrun Railway Station The pipe line connection from Lixing Tank Terminal (Naphtha tanks) to Fengrun railway station is considered. The possible pipe line connection route is limited in 2
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ways, one for adding a line on the existing city pipeline route and the other to connect through Qingdao Lidong chemical. The possible two(2) ways of connection route shall be reviewed and studied in detail designing stage under contacting and consulting with China government according to Chinese local regulation and law. The main consideration point to study and to make decision among the two (2) possible connection routes is to across the main city road in front of Lixing Tank Terminal. 5.1.1.13. Others a) The size, material, capacity, type and quantity etc of all equipments are prepared by MA-PEC in conceptual design status. b) The specification control for each hydrocarbon material such as blending is not considered (No laboratory basis). Only sample check at tank is considered. Sample may be taken from tanks and stored at the sample room to be analyzed. c) The design shall take into consideration future extension of the terminal. Tie in points will be provided for future provision. Details will be further clarified between Hongxing Logistics and MA-PEC. d) Truck Loading Arm will have level switch, sealing hood, alarm console for emergency safety and vapor recovery for loading/unloading arms. e) The tank terminal can save the project investment cost by creating new profitable business model from existing solvent blending unit. 5.1.1.14. Utility Specification Information for Tank Design The following utility supply conditions of Qingdao Lidong Chemical Co., Ltd. are referred to the tank terminal design and these information shall be clarified in the detail design engineering stage.
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a) Utility Design Information Technical Specification including operating conditions and design parameters supplied by Qingdao Lidong Chemical Co., Ltd. are as follows ;
Table 5.1C. Steam

Pressure at BL, Kg/cm2 (g) Steam Category Norm Max 44.2 19.3 4.2 Min 40.2 16.5 2.8 Des 49 21.5 6 Temperature at BL, Norm 390 260 177 Max 406 288 204 Min 374 208 149 Des 426 320 235
HP steam MP Steam LP Steam
42.2 17.6 3.5
Table 5.1D. Condensate

Destination Steam Source BL Condensate Station (*) Flash Drum (OSBL) Flash Drum (OSBL) Pressure at Destination Kg/cm2 (g) 17.6 3.5 0.2
HP steam MP Steam LP Steam
Table 5.1E. Circulating Cooling Water

Pressure at BL, Kg/cm2 (g) Description Norm Max 6.5 Min Des 9.5 9.5 0.0006 KCS Temperature at BL, Norm 33 47 Max Min Des 120 120
Supply Return
5.0 3.4
Fouling Factor, m2hC/Kcal Heat Exchanger Metallurgy, Tubes
Table 5.1F. De-Mineralized Water

Pressure at BL, Kg/cm2 (g) Description Norm Max Min Des 9 Temperature at BL, Norm 40 Max Min Des 120
Supply
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pH Conductivity : micromhos/cm SiO2 : mg/l Total Fe : mg/l
6~8 0.2 Max < 0.02 < 0.03
Table 5.1G. Boiler Feed Water

Pressure at BL, Kg/cm2 (g) Description Norm Max Min Des 76 Temperature at BL, Norm 116 8.8 ~ 9.2 0.02 0.03 0.005 0.015 1 0.2 max Max Min Des 114
Supply pH SiO2 : wt ppm Total Fe : wt ppm Cu2+ : wt ppm Soluble Oxygen : wt ppm Oil : wt ppm
63
Conductivity : micromhos/cm at 25 Incremental Value : Chlorine : wt ppm
Table 5.1H. Electrical Power

Motor Power, kW from > 110 0 110 to Voltage, V 6,000 380 Phase 3 3 Frequency, Hz 50 50
Table 5.1I. Air

Parameter Instrument Air Plant Air
2
Pressure, Kg/cm (g) Normal Maximum Minimum Design Temperature, Normal 40 40 7.5 8.5 7 10 7.5 8.5 7 10
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Maximum Minimum Design Dew point Oil-free Capacity Limitation
70 AMB. 120 -40 yes
70 AMB. 120
yes
Table 5.1J. Nitrogen

Parameter Nitrogen Category
Pressure, Kg/cm2 (g) Normal Maximum Minimum Design Temperature, Normal Maximum Minimum Design Dew point Composition, vol % N2 O2 CO CO2 Other Carbon Compound Chloride H2O Hydrogen Noble Gas Total 99.5% minimum 20 ppm maximum 20 ppm maximum 20 ppm maximum 5 ppm maximum 1 ppm maximum 5 ppm maximum 20 ppm maximum Remainder, ppm 100% 30 45 5 120 7.5 8.5 7 20
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5.1.1.15. Meteorological Information for Tank Terminal Design The following meteorological information of Qingdao area are referred to the tank terminal design and these information shall be clarified in the detail design engineering stage. a) Table 5.1K. Annual Average Air Temperature in Site Area
Temperature Month JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Data Period 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 Mean Max. 2.6 3.8 8.7 14.4 19.7 23.3 26.7 28.3 24.9 19.7 12.4 5.3 Mean -0.9 0.2 4.8 10.4 15.8 19.9 23.8 25.3 21.5 16.1 9.0 2.0 Mean Min. -3.7 -2.5 2.0 7.5 12.9 17.6 21.9 23.0 18.6 13.2 6.0 -0.8
Location of weather station : - Longitude : 120.3 E - Latitude : 36.1 N - Altitude : 76m Source : Hong Kong Observatory
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Rainfall data corresponding to the site are presented in below tables in b) b) Table 5.1L. Average Monthly Rainfall in Site
Days with Rain (at least 1.0mm of rainfall) 1.9 2.1 2.8 4.6 4.9 6.0 9.9 8.0 5.7 4.2 3.2 2.2 Mean Daily Sunshine Duration (Hours) 6.0 6.4 7.1 7.4 7.9 7.3 5.9 7.2 7.3 7.1 6.3 5.9
Data Period JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990 1961 ~ 1990
Rainfall Amount (mm) 10.5 12.4 21.0 36.4 50.9 82.7 177.1 156.0 90.2 46.5 26.6 9.7
c) Climatic Condition Weather Conditions : Marine Climate
Ambient Temperature : Average daily maximum dry bulb temp. : 32 Average daily minimum temp. Maximum temperature on record Minimum temperature on record Blower design : -16.9 : 38.9 : -16.9 : 17 : : 92% (July) : 64% (November) : 75%
Relative Humidity
Average monthly max. humidity Average monthly min. humidity Annual average humidity
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Barometric Pressure Maximum Minimum Annual Average
: : 1016.9 milli-bars : 997.2 milli-bars : 1008.2 milli-bars
Wind : Direction of prevailing wind

Season Summer Fall Winter Spring
:
Wind Direction S & WN SE ES SE
Average wind velocity record Maximum wind velocity record Moment Maximum Wind Speed Reference Wind Pressure
: 7.5 m/s (in winter) : 35.8 m/s (once of 100y) : 46.9 m/s (once of 100y) : 0.6kN/m2 with10min.at10m in high Chinese Code (GB50009-2001)
Ground Roughness Rain : Maximum rainfall recorded Average rainfall per year Design rainfall Reference Snow Pressure -
: Category A (Sea Shore)
: 296.6 mm per day : 694.8 mm : 103.2 mm per hour : 0.2 kN / m2
Earthquakes : Chinese Code (GB50011-2001) - Average Seismic Fortification Intensity - Design Basic Acceleration Ground Motion Chinese Code (SHJ39-91) for Piping - Seismic Factor : 0.09g UBC - Qingdao : zone 3 - Soil Profile Type : SE
: 6 group 2 : 0.05g
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5.2.
OPERATIONAL PHILOSOPHY (Tank Terminal) The tank terminal will receive petroleum and petrochemical products of international standards and specifications ranging from Aromatics (PX, Benzene, Toluene, MX), Crude oil (bunker-c), Oil products (Naphtha, Gas Oil / Kero / Mogas), Lube based oil and Petro chemical (Solvent, MTBE, Methanol). The pumping system will use centrifugal pump, if necessary, followed by positive displacement pumps that can accommodate negative NPSH. The crude oil-bunker-c and lube base oil tanks are designed with external floating roof type while other tanks are designed with internal floating roof. Flexibility in aromatic tanks will allow moving one parcel from one tank to the neighboring one or even circularity within the same tank. LP steam is mainly used for both of bunker-c and lube based oil tanks and their steam tracing loading lines maintaining oil temperature with 60 in storage and heating up to 70 during loading. Also LP steam is used for maintaining PX and benzene storage and steam tracing loading lines with 40. The tanks will be thermally insulated to save on energy and lines are also traced with steam or electrically. The facilities will have an emergency shutdown system (ESD) that transfers operation in a quick, safe and controlled manner to minimize the potential release of liquids in the event of emergency. In order to minimize contamination between different parcels of products, a nitrogen purge system will be used to purge loading arms and loading lines. Due to large piping diameters pneumatic controlled valves were preferred over operated ones due to ease of operation and maintenance of these large sizes.
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5.2.1.
Truck Loading a) Truck loading shipment ratio of each product storage capacity is expected as following. b) c) Para-xylene Benzene Toluene Mixed Xylene Crude Oil (Bunker-C) Naphtha Gas Oil / Kero / Mogas Lube Based Oil Solvent (MEK/ACET/EA) MTBE Methanol 0% 10% 30% 10% 60% 10% 80% 30% 80% 0% 50%
The maximum loading rate is 140m3/hr per product 140m3/hr x 1 loading arms per each product, except 14 loading arms per Crude Oil and 5 loading arms per Gas Oil / Kero / Mogas, one loading pump covers 1 loading arms capacity.
d) e) f)
Twenty one (21) truck loading arms (Eight (8) loading arms for future) shall be reflected on the plot plan. Truck loading control can be done either at the truck loading control room or in the main control building. T/T Vapor Recovery Unit (VRU) shall be equipped for loading/unloading Benzene at T/T loading arm area.
5.2.2.
Stripping (Purging) 5.2.2.1. Loading arm Loading arm after loading/unloading work shall be pushed to vessel (loading case) or pushed back to the front section of the last isolation valve near loading arm (unloading case) by nitrogen gas. No oil drain from loading arm will be conducted (No oil drain pump and sump tank)
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5.2.2.2. Slop Material a) Loading arm after loading / unloading work shall be drained to the stripping sump tank. b) The last pigged oil part (contaminated with other product) shall be routed to the same sump tank. 5.2.3. Slop Operation All kinds of slop oil (source of slop oil : L/A drained oil, WWT recovered oil, pigged oil etc..) can be collected as much as possible in each dedicated slop oil storage tank and then each oil is transferred to the storage tanks in tank yard through slop oil pump when the accumulated oil in slop oil tank reaches the high level. This concept of slop oil operation is only for the purpose of engineering of relevant facilities. In case that Owner does not want to transfer the slop oil to the storage tank in tank yard, the downgrading of all kinds of slop oil by transferring to fuel oil storage can be a possible option. 5.2.4. Estimated Utility Requirement 5.2.4.1. Utility Operation Concept
All kinds of utilities required for the tank terminal operation will be shared with Hongxing Tank Terminal under separate utility supply contract between two tank terminal companies. 5.2.4.2. Utility Requirement
The following utilities will be required for the terminal. a) Utility water (City water) for sanitary water and hose stations etc, will be supplied from the city council b) Cooling water for API pump seal etc. will be supplied from the Lidong Aromatic Plant. c) LP Steam for tank heating coil and hose stations etc. will be supplied from the Lidong Aromatic Plants.
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d) Nitrogen for tank blanketing and hose stations etc. will be supplied from the vendor (Air Product Company) e) IA/PA for instrumentation and hose stations etc. will be supplied from the Lidong Aromatic Plant. f) Electricity is mainly used for pumps, tank mixers utility packaged items (if necessary), auxiliaries, lighting etc., which will be supplied from Lixing Tank Terminal. 5.2.4.3. Estimated Utility Consumption
Refer to the attachment Conceptual Design Basis Utility Consumption The consumption is estimated only for design and will be verified in detail design engineering stage. 5.2.5. Waste Water System Waste Water Treatment Pit is considered as a reservoir for holding the oily drainage, storm water and sanitary drainage water before transferring to public sewage system. All the waste oily water from tank drain and oily surface water in oil contaminated tank farm area will be gathered through oily sewer network into the centralized to WWT facility. The Waste Water system will be consolidated to construct and to be located in Lixing Tank Terminal. The relevant tie in, drainage line, piping and required connection lines shall be considered from Lixing Tank Terminal to Hongxing Tank Terminal in detail engineering design stage. 5.2.6. Sewer (Monitoring Pond) System Basically the surface water in tank dike area is considered as clean water. However for the design purpose of waste oily water sump and transfer, only one largest tank dike is considered to be oil contaminated and pump station, truck loading station are considered as oily area.
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Pump station and truck loading station are in the vicinity of waste oily water sump. Therefore, oily water gathered in this area during raining shall be routed to monitoring pond by gravity flow. If oil spill occurs in one tank dike, operator should divert the sewer system to oily sewer network, even if there is no raining, to prevent clean water network from the oil contamination. Oily water coming from oil contaminated tank dike is collected in the monitoring pond and transferred to the waste water treatment system by pumping. Water coming out of wwt sump is going to be discharged to the sewer network after passing a treatment through sand traps and mechanical oil separators to meet environmental regulations. Basically, oily water and storm water gathered in tank area shall be routed to sewer system through open ditch by gravity flow. If the free drainage flow would not be proper in site condition, the waste water can be collected in the oily water sump in tank yard and then the collected oily water is transferred to the waste water treatment sump by pumping. The Sewer (Monitoring Pond) system will be consolidated to construct and to be located in Lixing Tank Terminal. The relevant tie in, drainage line, piping and required connection lines shall be considered from Lixing Tank Terminal to Hongxing Tank Terminal in detail engineering design stage. 5.2.7. Emergency Power Philosophy If power is failed, some MOVs (in T/T area) are simultaneously activated for isolation the system (All MOVs are connected to the emergency power) There will be additional demands for emergency power such as control power and lightings etc., which shall be discussed with Owner in view of investment cost.
5.2.8.
Laboratory Equipment The laboratory equipment is not considered in this feasibility study. Sample room will be installed to store sample bottles for analyzing by laboratory of Qingdao Lidong Chemical.
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SECTION 6 MARKET ANALYSIS
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6. 6.1.
MARKET ANALYSIS ANALYSIS of QINGDAO DEVELOPMENT PLAN Chinese government aggressively encourage basic infrastructure construction and investment in China in order to minimize the damage and domestic influence from the international financial crisis and to maximize the national employment, domestic consumption and stable house economy. Qingdao located in the south-east side of Shandong Peninsula in China and on the brink of the Yellow Sea, is the Chinas well known coastal open city with port trades, light industry, household electrical appliances electronics, financial services, tourism resorts and marine scientific research as the main features. It has been ever ranked by Chinese government as the central city in the national economy, the coastal open city as well as the city with independent plans. According to The Urban Overall Plan for the City of Qingdao (1995 ~ 2010), Qingdao Economic and Technological Development Zone (Huangdao) plans the five functional areas according to the nature of land usage. i.e. the executive business center, the storage processing zone for international trade, the integrated resorts, the heavy chemical industry zone and the dock industrial zone. The industrial zone mainly was planned to arrange petrochemical and related industries in the north of Huangdao as well as dock processing industry and shipbuilding repairing industry in the circum-front bay area. The project site is located in the heavy chemical industrial zone, mentioned in the above planning, in line with the requirements of the urban overall planning.
6.2.
INDUSTRIAL RESTRUCTURING of QINGDAO In recent years, the industrial structure of Qingdao city has changed from light industry to heavy industry as a result of a sustainable development economy that is building by Qingdao. The core of this system is to develop economy with three major characteristics of port, tourism and marine, to construct four major industrial bases of
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domestic electronic appliances, automotive shipbuilding, petrochemicals and new materials, to form six industrial clusterws of domestic electronic appliances, petrochemicals, automobiles, ship buildings, ports, iron and steel. 6.2.1. Basic Circumstance (1) with the use of the oil terminal in Qingdao, petrochemical enterprise group and other infrastructure, it is necessary to develop the oil storage refining primary organic chemicals fine chemicals industries with industry chain extension effect. (2) The industry chains of upper, middle and lower reaches in the petrochemical industry cluster are longer, among which there are strong correlation for the utilization of material and energy with large-scale comprehensive features. (3) There is a tendency to gather towards areas with the abundant water resources and prosperous logistics industry. The vertical integration development with the relative concentration and large scaled is required to meet higher requirements on the land resources. 6.2.2. Space Layout Planning (1) The oil refining industry in the upper reaches is mainly distributed within the areas, the east side to Jiaozhou Bay, the west side to circum Jiaozhou bay highway, the north side to Huangdao power plant and Huangdao oil terminal, the south side to Yanghe. The heavy petrochemical industry and the petrochemical processing industry should mainly be located in this region. (2) The distribution of petrochemical deep processing industries mainly follows the principle of concentration on the regional spread area. The layout focuses on Jiaonan City, Jiaozhou City, North City in Red Island Group, Licang District, and Sifang District, in which Lican District and Sifang District are primarily to update, reconstruct and upgrade the existing petrochemical projects. The layout projects mainly include rubber, fine chemicals and pharmaceutical industries.
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(3) On this basis, it is necessary to further develop new materials and deep processing projects driven by new technologies, such as motor vehicle resin, new materials used for textiles, and further lengthen the industrial chain, promoting the development of petrochemical industries group.
6.3. 6.3.1.
MARKET RESEARCH Chinese Market Survey In recent years, oil production of China cannot nearly meet the needs of processing and consumption growth, changing from a net exporter into a net importer. Port as a logistics platform plays an increasingly important role in support of market allocation of oil resources, so that the terminal distribution and oil depots have a significant impact on the flow of oil. Statistics show that Chinas crude oil production is currently No.7 in the world. The crude output is 162.3million tons, approximately 4.5% of the world production in 2000 year. The processing volume of Crude Oil increases from 183.5 MT in 1999 to more than 200MT in 2000 in China. The current crude oil processing capacity reached 280 million tons, becoming Asias largest oil refining country. The refining capacity of China has ranked in third place after United States and Russia in the world. China has become the second largest oil product demanding country after Japan in Asia-Pacific region. In year of 2000, Chinese oil consumption has reached 226.9 MT and beginning from 1993 year, China has become oil importing country from oil exporting country with 9.8MT of net import. By the year of 2000, foreign trade imports through coastal ports reached 69.67MT while total import volume in China reached 80MT. Dependence rate of oil imports in China consumption reached 25% in 2001 year. According to forecasts, Chinese importing oil volume reach 100MT in 2005 year and until 2010, it will reach 155MT.
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Accordingly dependence rate of oil imports will rise to 30%. In 2020 it will rise up to 50%. With the rapid growth of the domestic economy, the automobile consumption gradually increase annually and the growth of oil consumption shall boost oil imports at the speed of nearly 10million tons annually. Chinas crude oil import came mainly from the Middle East, the need for more than 200,000DWT transport ship, and most of Chinas port for more than 100,000DWT crude oil berth difficult to adapt to this requirement. Coupled with the need for development of the international situation, China also considers investing to construct oil reserves base in the coastal area. From now on, one 250,000ton Crude oil terminal should put into production every year, to meet the needs of crude oil import. Therefore the further reinforcement of construction for crude oil terminal and depot is a general trend. The goal of access system for chemical industry is to rationally adjust the layout, control volume, transform and improve. The project mainly involves storage, receiving and unloading of liquid chemicals, which belongs to oil and gas projects that focus on storage and transportation of crude oil, natural gas, liquefied natural gas and refined oil as well as construction of pipeline transmittal facilities and network encouraged by the state, in line which guideline of access system of chemical industry in China. 6.3.2. Shandong Area Market Survey In China, the typical ports for handling petrochemical and refinery products are Ningbo Port, Shanghai Port and Zhangjiagang area Port. Ningbo port is located in the middle of Asia as the connection point between America and Asia. In addition, because the region of Zhangjiagang have large volume of importing chemicals, Ningbo port have good potential to be developed in the future. Shanghai port is also located in connection between America and Asia and in the line of branch sea route () of Petroleum and chemical vessel. The port has
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the level of 35,000DWT berths and since most of vessels pass through by the way of the port, the Shaghai port has also good advantage in location. Zhangjiagang port is located in the entrance of the Zhangjiagang and connected between America and Asia also. Even though the port location is not in the branch sea route, it has good advantage of location and now it has the role of feeder port. Qingdao, Shandong area have small size of ports and have also good location to role of main gate from Shandong area petrochemical and refinery products to southern part of China. In addition, it can be developed to be the main gate from inbounding products to inland of China by trucking as well as to southern China by sea way. This Analysis will investigate Shandong area wharf and chemical and refinery product transportation volume information for Lixing Tank Terminal project as well as such main ports and tank terminal as Ningo, Shanghai and Zhangjiagang area. At present, Qingdao, Shandong Province where Lixings proposed tank terminal site located, is the main central city geologically and attract foreign and domestic investment for large scale of petrochemical and refinery industry. However, comparing to the production capability of the existing petrochemical and refinery plants, logistic infrastructure is not enough to cover the area and demand. Since the most of Petrochemical and Refinery Plants in Shandong Province have used the way of tank trucking and railway train to sell products, about 3times more cost is required in the logistics cost, comparing to Seaway logistics method. Thus, the logistics cost can be saved about 30% if the vessel transportation is used via the tank terminal which is located in coast area. The proposed tank terminal can provide competitive service to the Petrochemical and Refinery Plants in Shandong Province. Because the proposed tank terminal location is planned to be approved a bounded district, the potential tank terminal clients can import products from Korea, Japan and Middle East and sell to domestic market or to over-sea countries. In addition, the
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potential clients may have better opportunity to maximize the profit through Time and Location SWAP trading. Following Table can show overall importing volume of chemical in China. The importing volume to China estimate annual increasing as follows; Table 6A. Overall export volume via Chinese wharf. Unit: DWT
Area Country Nigeria The Netherlands Germany Mexico USA North-East China Belgium Argentina England Egypt Colombia Peru Australia South China Nigeria USA Nigeria The Netherlands Mexico Shanghai USA Belgium England Colombia Peru Jiangsu Nigeria The Netherlands Germany Mexico USA 2002 0 21 0 0 836 0 0 42 0 0 0 0 42 42 0 0 450 332 0 0 0 0 63 0 0 0 1,013 2003 55 186 0 0 2,164 0 0 89 0 0 0 0 0 0 134 7 845 278 0 0 0 0 55 0 0 0 1,312 2004 0 1,333 8 366 1,025 0 0 163 43 33 0 544 0 0 0 0 694 69 0 0 0 0 163 109 3 0 404 2005 0 1,669 0 0 1,983 28 0 149 0 0 0 668 0 0 6,723 0 272 127 28 340 0 0 56 79 2 0 19,753 2006 158 1,849 36 0 966 40 59 150 164 0 26 443 0 1,866 937 0 223 164 652 0 46 598 728 129 3 183 361
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Belgium England Egypt Colombia Peru Yangtze Inland Nigeria The Netherlands USA Belgium Cambodia Peru
0 0 0 0 0 0 0 433 0 0 0
52 0 0 21 0 0 0 498 0 0 0
0 0 130 15 0 0 51 402 99 0 0
12 0 0 0 0 64 0 129 0 0 0
5 2 2 42 290 2 0 195 0 3 43
Source : KMI
Table 6B. Overall import volume via Chinese wharf.
Area
Country Germany Mexico USA
2002 0 1,163 127,199 1,409 0 2,310 5,998 16 78 0 105,326 0 0 0 0 0 52,979 2,481
2003 86 0 104,399 5,621 1,751 5,614 15,440 0 7 12,249 96,701 0 1,544 0 7 21,951 98,026 1,430
2004 188 3,636 111,958 19,492 0 38,902 12,444 50 9 11,974 82,230 0 4 0 0 14,472 104,956 6,356
2005 18 13,109 99,852 3,737 1,019 41,373 13,677 41 23 11,371 89,626 1,312 3,108 0 0 20,965 62,657 14,882
2006 158 10,005 56,363 9,736 1,538 1,718 6,991 145 187 20,838 85,635 1,198 1,595 4,661 0 60,967 23,363 14,887
North East China
Belarus Belgium Canada Poland France Germany Mexico USA Belarus
Guangdong
Belgium Algeria England Chile Canada Poland
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France Australia Germany Mexico USA Yangtze southern area Belarus Belgium Chile Canada Poland Germany Mexico USA Belarus Shanghai Belgium Chile Canada Poland France South Africa Germany Mexico USA Belarus Jiangsu Belgium Algeria Chile Canada Poland France USA Germany Yangtze Inland Mexico Belarus Belgium Chile
212 0 5 0 6,421 0 191 0 36,645 241 0 2,782 93,802 3,727 0 0 168,849 1,991 241 0 5 6,678 31,850 13,150 1,425 0 0 217,235 10,224 0 91,061 0 885 11,849 736 0
114 0 0 0 6,710 0 2,406 0 66,766 400 29 2,109 98,055 16,420 13,032 0 171,627 5,349 16 0 4,441 32,577 64,229 30,511 36,965 0 10,414 243,346 19,938 0 95,038 0 4,115 16,068 14,238 9,881
61 0 0 0 3,482 0 0 1,514 68,939 0 11 13,143 71,769 5,052 16,059 4,106 210,159 1,222 67 0 2,523 34,796 50,283 50,660 43,112 0 11,506 425,345 26,842 1,519 94,009 1 0 0 8,967 2,143
190 32 0 3,512 2,698 3,129 0 0 51,820 0 753 5,705 86,482 11,301 9,187 801 165,218 13,732 116 290 3,677 40,796 82,994 58,967 18,788 0 42,353 528,774 40,931 7 99,469 0 8,652 13,071 5,859 7,129
146 20 1 8,615 2,215 1,197 0 0 55,366 1,561 625 12,019 59,077 13,900 18,863 0 89,740 11,862 423 0 1,255 38,528 47,115 37,092 15,942 3,075 53,594 407,252 27,514 1,133 127,159 258 18,640 27,583 5,867 6,573
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Canada Poland France Germany China Inland USA Canada France
70,102 37,379 175 0 0 4,320 0
122,786 31,182 145 3 12 0 0
160,566 26,952 22 5 0 0 18
0 26,914 20 0 19 0 0
228,187 22,577 195 0 6 18,605 0
Source : KMI
Table 6C. China Chemical Volume Expectation

Unit : ton Year Volume 2007 657,357 2008 733,611 2009 818,710 2010 913,680 2011 1,019,667
Source : KMI
Table 6D. Overall import volume Estimation via Chinese wharf

Unit : 1,000 ton Year Reference 2005 2006 2007 2008 Prediction 2009 2010 2011 Annual Increasing Rate (%) 06~11 66,742 78,498 83,124 13.1% 56,504 66,879 70,772 13.1% 68,713 79,163 84,391 11.6% 50 644 489 12,259 12,928 14,108 5.9% Capacity 36,945 44,916 51,622 58,768 Production 32,464 38,199 42,957 49,024 Demand 43,751 48,793 54,297 60,139 Balance (Export) 0 0 0 0 Balance (Import) 11,287 10,595 11,340 11,115
At present, in Shandong province, there are 26 plants for Crude Oil Processing Companies and the capability of crude oil processing is 3,500,000TPA and the crude
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oil processing volume is 2,423,000TPA. According to this figure, Shandong province companies in refinery industry cover 10% of whole Chinese production and are ranked no. 2 in China. About 40% of main 3 Oil products are consumed in Shandong province area and about 60% of main 3 Oil products are transported to Changjiang () area and Southern China () area through mostly seaway vessel. The companies who process daily over 3,000ton are ; Table 6E. Shandong Petrochemical capacity Trend
Company Sinopec Qingdao Refinery & Chemical Shandong BinHua Group Shandong JingBo Group Shandong HuaXing Petro Chemical Zhenhe Group LiHuaYi Group Shandong Kenli Petro Chemical DongJing Hualion Petro Chemcial ZhongHai Petro Chemical SHIDA Refinery & Chemcial Haike Petrochemical Gifeng Petrochemical Jincheng Petrochemical Dongming Petrochemical Zixian Petrochemical WeiFang HongRu Pertochemical Shanguang company Shendong Hanguan Petrochemical Jinan no.2 company Linzi petrochemical Changyi Petrochemical Jinan Greatwall Petrochemical Capa (TPA) 27,000 8,000 3,600 6,000 2,000 3,000 2,000 1,000 3,000 3,000 1,000 600 1,000 8,000 800 2,000 800 2,000 800 200 2,000 800 200 100 110 56 50 26 25 20 70 30 8 25 160 20 80 25 80 15 5 60 15 230 140 140 70 65 30 30 28 80 40 12 30 200 35 90 30 90 20 8 80 25 Process (10,000TPA) 2005 yr 2006 yr 2010 yr 1,000 300 210 170 120 95 60 60 40 120 70 20 45 300 40 180 40 100 45 14 110 35
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Shenchi Petrochemical DongYing Wanlong Petrochemical Shandong HaiHua Group Huifeng Petrochemical Others TOTAL
800 1,000 1,500 1,000
25 15 48 20 270
30 30 60 30 360 2,053
40 45 80 40 500 3,879
82,900
1,558
Among these companies, the QRC process of Sinopec Qingdao Refinery & Chemical has the production capability of 10,000,000TPA for refinery, 4,000,000TPA for Diesel, 2,500,000TPA for Gasoline, and 500,000TPA for Kerosene. According to the table above, in 2006yr, Petrochemical production is 2,053PTA and transportation through wharf is 1,437TPA and estimate 3,879TPA in production and 2,715TPA transportation in 2010 year. MA-PEC analyzes current capability of wharf transportation with terminal capability in order to find out the business model of wharf and tank terminal. In addition, similar wharf with tank terminal research is followed. 6.4. TANK RENTAL COST in CHINA Comparing to such other countries as Korea, Japan and Singapore, Chinese tank rental cost is still competitive. 6.4A. Tank Rental Cost Reference in China
Area Shanghai Ningbo Ningbo Ningbo Company Name Shanghai Orient Terminal Co., Ltd. Xinxing Liquid Chemical Store Co., Ltd. CNCCC-Ningbo Hanhwa Chemical Tanking & Transportation Co., Ltd. Ningbo Jinhailing Liquid Chemicals Storage & Transportation Co., Ltd. Storage Capacity (m2) 47,000 29,000 24,000 19,750 Income per ton (RMB) 113 41 40 49 59 72 Rental Cost per ton (RMB) 130 30 30 30 30 30
Source : Growell Research 2007.
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6.5. TARGET MARKET The potential market and clients shall be targeted and MA-PEC suggests to penetrate the following market initially. a) The imported Crude Oil and Fuel Oil by Refinery Company in Shandong Area. b) Oil end product, transferred to Southern area of China. c) Liquid Petro Chemical products about 10,000,000ton from QRC and additional production volume of 10,000,000ton per year from 2nd QRC Refinery units. d) Importing & exporting Liquid Chemical products of Petro Chemical plants in Shandong Area. e) Small volume purchasing clients for Naphtha, Mixed Xylene, Benzene by simple mixing in a tank with higher quality Naphtha, Mixed Xylene, Benzene. f) The potential clients of existing trading business in petrochemical and refinery end product market From existing market information, MA-PEC can analyze that ; The volume of Crude Oil and Fuel Oil imported by refinery companies in Shandong area is about yearly 20,000,000 Ton and Qingdao port group are in lack of terminal facilities for smooth transportation because the tanks of Qingdao Port Group have sold to Sinopec already. Thus now the refinery companies imported Crude Oil and Fuel Oil from Laizhou () and Longkougang (). Hongxing projects shall target the niche market of this.
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SECTION 7 PROJECT COST ESTIMATION
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7.
PROJECT COST ESTIMATION
7.1. INVESTMNET COST ESTIMATION Table 7.1A. Tank Terminal

Unit : RMB Scope of Project Execution Engineering Procurement Construction Others (Owners Project Management Cost) SUM Estimated Cost 19,450,000 81,822,000 334,338,200 102,030,035 537,640,235 Note
Detailed Investment Cost Estimation Tables are attached in this Feasibility Study Report. Please refer to Appendix 2.
7.2. OPERATING COST ESTIMATION The operating cost consists of two groups, fixed operating cost and variable operating costs. Fixed operating costs are associated with operating manpower and with routine maintenance. Variable costs related to catalysts, chemicals and purchased utilities. An Operation Organization is estimated in below;
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Figure 7.2A. Organization
PLANT MANAGER (1)
OPERATION MANAGER (1) ENGINEER (4)
MAINTENANCE MANAGER (1)
ADMIN. MANAGER (1)
TANK TERMINAL
TRUCK LOADING
ROTATING
STATIONARY
INSTRUMENT ELECTRIC ENGINEER (2)
SECRETARY (3) ACCOUNT (4) GENERAL AFFAIR (5) SALES (4)
MANAGER (1)
MANAGER (1)
ENGINEER (2)
ENGINEER (2)
1 SHIFT (8)
1 SHIFT (5)
1 SHIFT (8)
1 SHIFT (5)
OUT SOURCING
1 SHIFT (8)
1 SHIFT (5)
1 SHIFT (8)
The operation shift for truck loading is estimated in 16hours operation per day with 3 shift organization. (5 people per shift) The operation shift for tank terminal is estimated in 24hours operation per day with 4 shift organization. (8people per shift) It is recommended to place the maintenance and operational works and service to an external specialty expert vendors care who has known the tank terminal operation scheme and construction details for better efficiency and better operational benefit. Furthermore, the early appointment of the maintenance and operation vendor, possibly one company, and early involvement in tank terminal project execution stage shall encourage the possibility of earlier stable operation and shorten the schedule of initial operation. A summary of manning requirement is included Table 7.3A and operation cost in Table 7.3B.
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Table 7.2A Detail Required Manpower for Day Operation

Assumed manpower Management General Manager Manager Engineer Day Worker Maintenance Operator Total 47 79 1 3 6 10 12 Out sourcing with Maintenance Vendor Wharf & T/T : 3shift (5people per shift) for 18hours / day Tank Terminal : 4 shift (8people per shift) for 24hours / day
Note
Table 7.2B Operating Costs (Worst Case)

Unit : MM RMB
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Utilities
3.33 2.80 7.83
3.40 2.85 8.06
3.46 2.91 8.31
3.53 2.97 8.56
3.60 3.03 8.81
3.68 3.09 9.08
3.75 3.15 9.35
3.82 3.21 9.63
3.90 3.28
3.98 3.34
4.06 3.41
4.14 3.48
4.22 3.55
4.31 3.62
4.39 3.69
Maintenance
Labour
9.92 10.22 10.52 10.84 11.16 11.50 11.84
Factory Cost
13.96 14.31 14.68 15.06 15.44 15.84 16.25 16.67 17.10 17.54 17.99 18.45 18.93 19.42 19.93 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08
Insurance
Operating Cost
15.03 15.39 15.75 16.13 16.52 16.92 17.32 17.74 18.17 18.61 19.06 19.53 20.01 20.50 21.00
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Table 7.2C Operating Costs (Probable Case)

Unit : MM RMB
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Utilities Maintenance Labour
Factory Cost
3.75 2.80 7.83
3.82 2.85 8.06
3.90 2.91 8.31
3.97 2.97 8.56
4.05 3.03 8.81
4.14 3.09 9.08
4.22 3.15 9.35
4.30 3.21 9.63
4.39 3.28
4.48 3.34
4.57 3.41
4.66 3.48
4.75 3.55
4.85 3.62
4.94 3.69
9.92 10.22 10.52 10.84 11.16 11.50 11.84
14.37 14.74 15.11 15.50 15.89 16.30 16.72 17.14 17.58 18.03 18.50 18.97 19.46 19.96 20.47 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08
Insurance
Operating Cost
15.45 15.81 16.19 16.57 16.97 17.37 17.79 18.22 18.66 19.11 19.57 20.05 20.53 21.04 21.55
Table 7.2D Operating Costs (Best Case)

Unit : MM RMB
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Utilities Maintenance Labour
Factory Cost
4.16 2.80 7.83
4.24 2.85 8.06
4.33 2.91 8.31
4.42 2.97 8.56
4.50 3.03 8.81
4.59 3.09 9.08
4.69 3.15 9.35
4.78 3.21 9.63
4.88 3.28
4.97 3.34
5.07 3.41
5.17 3.48
5.28 3.55
5.38 3.62
5.49 3.69
9.92 10.22 10.52 10.84 11.16 11.50 11.84
14.79 15.16 15.55 15.94 16.34 16.76 17.18 17.62 18.07 18.53 19.00 19.49 19.99 20.50 21.02 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08 1.08
Insurance
Operating Cost
15.86 16.24 16.62 17.01 17.42 17.83 18.26 18.70 19.15 19.61 20.08 20.56 21.06 21.57 22.10
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SECTION 8 ECONOMIC ANALYSIS
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8.
ECONOMIC ANALYSIS
An economic and financial analysis has been performed for the Lixing tank terminal to evaluate and compare such alternative cases as probable case and best case, and determine the financial feasibility of the selected cases. The calculation of economic attractiveness in the project was undertaken, based on the market, experience assumption and configuration data developed as described above. The economic model of the project is used to COMFAR Expert, developed by UNIDO for feasibility study software, and used to assess the attractive of the alternative process configuration. The Internal Rate of Return (IRR) is the primary parameter used to evaluate the profitability of the project and compare it with any alternative cases. Financial calculation made for the cases with different intake volume and costs, rental prices and other revenue prices, and capital cost consumption. The net income and cash flow projection details for the all cases are described in this section. For the financial calculation, GS Caltex financial standard index of WACC is applied as 10%. Economic analysis shall be implemented in this Feasibility Study with Phase-1 construction plan. Phase-1 plan is defined with worst, probable and best cases for economic analysis procedure.
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The probable case and best case are defined as in table 8A. Table 8A. Case Definition
Worst Case Probable Case Best Case In Crude Oil Tank 100% 100% 100% : other wharf LX T/T 25% & other wharf from 2012yr Naphtha Tank 25% 65% 85% In : LX Wharf Out : LX T/T 10% & LX Wharf 90% In : LX Wharf Note
Out : LX T/T 50% & other wharf in 2011yr
PX Tank
25%
70%
85%
Out : LX T/T 0% & LX Wharf 100% In : LX Wharf
Benzene Tank
20%
40%
70%
Toluene Tank
30%
50%
80%
MX Tank
20%
65%
85%
Out : LX T/T 10% & LX Wharf 90% In : HX Wharf
Methanol Tank
25%
55%
80%
Out : LX T/T 50% & HX Wharf 50% In : HX Wharf
Solvent Tank
27%
50%
77%
Out : LX T/T 80% & HX Wharf 20% In : HX Wharf
Lube B/O Tank
30%
50%
80%
Out : LX T/T 30% & HX Wharf 70%
Tank Turnaround is assumed Eight (8) times per year. All revenues and expenses are escalated due to impacts of inflation, Inflation rate is estimated to be Two(2) percent increment per annum. All prices of sales objects such as T/T and wharf loading, unloading, and tank rental are assumed to be impacted by foreign inflation and all of these were implemented in Market Study. Depreciation is assumed with 15 years straight line method remaining 10% of book value for the economic analysis and Taxation Rate is 25.0% per annum but 100% of Chinese local tax in first three operating years is exempted and 50% of tax in next three years will be exempted.
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The investment disbursement plan is set for 5% in 2009year, 70% in 2010year and 25% in 2011year. Table 8B shows the project economics in probable case. Table 8B. Project Economics.
Basic Assumption & Economics
Worst Case
Probable Case
Best Case
Tank Utilization Rate (%) Crude Naphtha PX Benzene Toluene MX Methanol Solvent Lube Base Oil 100% 25% 25% 20% 30% 20% 25% 27% 30% T/T handling Rate (%) Crude Naphtha PX Benzene Toluene MX Methanol Solvent Lube Base Oil WACC 10% 0% 10% 25% 10% 50% 80% 30% 10% PROJECT ECONOMICS IRR (%) NPV (MM RMB) Payout Periods (years) 11.39 43.53 8.19 13.51 112.31 7.36 14.73 153.4 6.95 50% in 2011yr, 25% in 2012yr 10% 0% 10% 25% 10% 50% 80% 30% 10% 10% 0% 10% 25% 10% 50% 80% 30% 10% 100% 65% 70% 40% 50% 65% 55% 50% 50% 100% 85% 85% 70% 80% 85% 80% 77% 80%
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8.1. SALES REVENUES Sales revenues are generated from the rental of tanks, truck loading and unloading and other incomes. Any non operating profit is not included. The sales revenue analysis is implemented under the case of probable operation of tank terminal and truck loading facilities. Tank utilization rate and truck loading/unload utilization rate are described in Table 8B. The following values that collected and compared from market research, are assumed for sales revenue analysis. Table 8.1A. Sales Revenue Values for Terminal Operation
Revenue Description Truck Loading Value Crude Oil Truck Loading Value Others Crude Tank Naphtha Tank PX Tank Benzene Tank Toluene Tank MX Tank Methanol Tank Solvent Tank Lube Base Oil Tank Values in Revenue Analysis RMB 8 per Metric Ton RMB 16 per Metric Ton RMB 14.5 per Metric Ton per Month RMB 30 per Metric Ton per Month RMB 30 per Metric Ton per Month RMB 30 per Metric Ton per Month RMB 30 per Metric Ton per Month RMB 30 per Metric Ton per Month RMB 30 per Metric Ton per Month RMB 33 per Metric Ton per Month RMB 33 per Metric Ton per Month
Tank Terminal Sales Revenue is analyzed in Table 8.1B ~ 8.1D and Tank Terminal sales revenue distribution graph is in Figure 8.1B ~8.1D.
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QINGDAO LIXING LOGISTICS Co., Ltd. OCOTBER 2009 ()
PART - 1 TANK TERMINAL PROJECT FEASIBILITY STUDY REPORT Rev.3
8.1.1.
Tank Terminal Sales Revenue Estimation

Unit : MM RMB
2017 80.99 2.08 2.11 0.84 0.38 1.01 1.03 0.29 0.31 14.89 0.15 0.00 0.06 0.07 0.07 0.37 0.15 0.06 104.86 2018 82.61 2.12 2.15 0.86 0.39 1.03 1.05 0.30 0.31 15.19 0.15 0.00 0.06 0.07 0.07 0.37 0.15 0.06 106.95 2019 84.26 2.16 2.19 0.88 0.39 1.05 1.07 0.30 0.32 15.50 0.15 0.00 0.06 0.07 0.07 0.38 0.16 0.06 109.09 2020 85.95 2.21 2.24 0.90 0.40 1.07 1.09 0.31 0.33 15.81 0.16 0.00 0.06 0.07 0.08 0.39 0.16 0.06 111.28 2021 87.66 2.25 2.28 0.91 0.41 1.10 1.11 0.32 0.33 16.12 0.16 0.00 0.06 0.07 0.08 0.40 0.16 0.06 113.50 2022 89.42 2.29 2.33 0.93 0.42 1.12 1.13 0.32 0.34 16.44 0.16 0.00 0.07 0.08 0.08 0.40 0.17 0.07 115.77 2023 91.21 2.34 2.38 0.95 0.43 1.14 1.16 0.33 0.35 16.77 0.17 0.00 0.07 0.08 0.08 0.41 0.17 0.07 118.09 2024 93.03 2.39 2.42 0.97 0.44 1.16 1.18 0.34 0.35 17.11 0.17 0.00 0.07 0.08 0.08 0.42 0.17 0.07 120.45 2025 94.89 2.44 2.47 0.99 0.44 1.19 1.20 0.34 0.36 17.45 0.17 0.00 0.07 0.08 0.08 0.43 0.18 0.07 122.86
Table 8.1B Tank Terminal Sales Revenue Estimation in Worst Case

2011 Crude Tank Naphtha Tank PX Tank Benzene Tank Toluene Tank MX Tank Methanol Tank Solvent Tank Lube Base Oil Tank Truck Loading (Crude) Truck Loading (Naphtha) Truck Loading (PX) Truck Loading (Benzene) Truck Loading (Toluene) Truck Loading (MX) Truck Loading (Methanol) Truck Loading (Solvent) Truck Loading (Lube B/O) Total (real value) 71.92 1.85 1.87 0.75 0.34 0.90 0.91 0.26 0.27 26.45 0.13 0.00 0.05 0.06 0.06 0.32 0.13 0.05 106.34 2012 73.35 1.88 1.91 0.76 0.34 0.92 0.93 0.27 0.28 13.49 0.13 0.00 0.05 0.06 0.06 0.33 0.14 0.05 94.97 2013 74.82 1.92 1.95 0.78 0.35 0.94 0.95 0.27 0.28 13.76 0.14 0.00 0.06 0.06 0.07 0.34 0.14 0.06 96.87 2014 76.32 1.96 1.99 0.79 0.36 0.95 0.97 0.28 0.29 14.04 0.14 0.00 0.06 0.06 0.07 0.34 0.14 0.06 98.81 2015 77.84 2.00 2.03 0.81 0.36 0.97 0.99 0.28 0.30 14.32 0.14 0.00 0.06 0.07 0.07 0.35 0.15 0.06 100.79 2016 79.40 2.04 2.07 0.83 0.37 0.99 1.01 0.29 0.30 14.60 0.14 0.00 0.06 0.07 0.07 0.36 0.15 0.06 102.80
PAGE 74 / 159
Table 8.1C Tank Terminal Sales Revenue Estimation in Probable Case

2011 Crude Tank Naphtha Tank PX Tank Benzene Tank Toluene Tank MX Tank Methanol Tank Solvent Tank Lube Base Oil Tank Truck Loading (Crude) Truck Loading (Naphtha) Truck Loading (PX) Truck Loading (Benzene) Truck Loading (Toluene) Truck Loading (MX) Truck Loading (Methanol) Truck Loading (Solvent) Truck Loading (Lube B/O) Total (real value) 71.92 4.80 5.24 1.50 0.56 2.92 2.01 0.48 0.46 26.45 0.34 0.00 0.11 0.10 0.21 0.71 0.25 0.09 118.14 2012 73.35 4.89 5.35 1.53 0.57 2.98 2.05 0.49 0.46 13.49 0.35 0.00 0.11 0.10 0.21 0.73 0.25 0.09 107.02 2013 74.82 4.99 5.46 1.56 0.58 3.04 2.09 0.50 0.47 13.76 0.36 0.00 0.11 0.10 0.22 0.74 0.26 0.09 109.16 2014 76.32 5.09 5.56 1.59 0.60 3.10 2.13 0.51 0.48 14.04 0.36 0.00 0.11 0.11 0.22 0.76 0.26 0.09 111.34 2015 77.84 5.19 5.68 1.62 0.61 3.16 2.17 0.52 0.49 14.32 0.37 0.00 0.11 0.11 0.23 0.77 0.27 0.10 113.57 2016 79.40 5.30 5.79 1.65 0.62 3.23 2.22 0.53 0.50 14.60 0.38 0.00 0.12 0.11 0.23 0.79 0.28 0.10 115.84 2017 80.99 5.40 5.91 1.69 0.63 3.29 2.26 0.54 0.51 14.89 0.38 0.00 0.12 0.11 0.23 0.80 0.28 0.10 118.15 2018 82.61 5.51 6.02 1.72 0.65 3.36 2.31 0.55 0.52 15.19 0.39 0.00 0.12 0.11 0.24 0.82 0.29 0.10 120.52 2019 84.26 5.62 6.14 1.76 0.66 3.42 2.35 0.56 0.53 15.50 0.40 0.00 0.12 0.12 0.24 0.84 0.29 0.10 122.93 2020 85.95 5.73 6.27 1.79 0.67 3.49 2.40 0.58 0.54 15.81 0.41 0.00 0.12 0.12 0.25 0.85 0.30 0.11 125.39 2021 87.66 5.85 6.39 1.83 0.68 3.56 2.45 0.59 0.56 16.12 0.42 0.00 0.13 0.12 0.25 0.87 0.30 0.11 127.89 2022 89.42 5.97 6.52 1.86 0.70 3.63 2.50 0.60 0.57 16.44 0.42 0.00 0.13 0.12 0.26 0.89 0.31 0.11 130.45
Unit : MM RMB
2023 91.21 6.09 6.65 1.90 0.71 3.71 2.55 0.61 0.58 16.77 0.43 0.00 0.13 0.13 0.26 0.91 0.32 0.11 133.06 2024 93.03 6.21 6.78 1.94 0.73 3.78 2.60 0.62 0.59 17.11 0.44 0.00 0.14 0.13 0.27 0.92 0.32 0.11 135.72 2025 94.89 6.33 6.92 1.98 0.74 3.85 2.65 0.64 0.60 17.45 0.45 0.00 0.14 0.13 0.27 0.94 0.33 0.12 138.44
PAGE 75 / 159
Table 8.1D Tank Terminal Sales Revenue Estimation in Best Case

2011 Crude Tank Naphtha Tank PX Tank Benzene Tank Toluene Tank MX Tank Methanol Tank Solvent Tank Lube Base Oil Tank Truck Loading (Crude) Truck Loading (Naphtha) Truck Loading (PX) Truck Loading (Benzene) Truck Loading (Toluene) Truck Loading (MX) Truck Loading (Methanol) Truck Loading (Solvent) Truck Loading (Lube B/O) Total (real value) 71.92 6.27 6.37 2.62 0.90 3.82 2.92 0.74 0.73 26.45 0.45 0.00 0.19 0.16 0.27 1.04 0.38 0.14 125.37 2012 73.35 6.40 6.49 2.67 0.92 3.90 2.98 0.76 0.74 13.49 0.46 0.00 0.19 0.16 0.28 1.06 0.39 0.14 114.39 2013 74.82 6.53 6.62 2.73 0.94 3.97 3.04 0.77 0.76 13.76 0.46 0.00 0.19 0.17 0.28 1.08 0.40 0.15 116.67 2014 76.32 6.66 6.76 2.78 0.95 4.05 3.10 0.79 0.77 14.04 0.47 0.00 0.20 0.17 0.29 1.10 0.41 0.15 119.01 2015 77.84 6.79 6.89 2.84 0.97 4.14 3.16 0.80 0.79 14.32 0.48 0.00 0.20 0.17 0.29 1.12 0.41 0.15 121.39 2016 79.40 6.93 7.03 2.89 0.99 4.22 3.22 0.82 0.80 14.60 0.49 0.00 0.21 0.18 0.30 1.15 0.42 0.16 123.82 2017 80.99 7.07 7.17 2.95 1.01 4.30 3.29 0.84 0.82 14.89 0.50 0.00 0.21 0.18 0.31 1.17 0.43 0.16 126.29 2018 82.61 7.21 7.31 3.01 1.03 4.39 3.35 0.85 0.84 15.19 0.51 0.00 0.21 0.18 0.31 1.19 0.44 0.16 128.82 2019 84.26 7.35 7.46 3.07 1.05 4.48 3.42 0.87 0.8 15.50 0.52 0.00 0.22 0.19 0.32 1.22 0.45 0.17 131.39 2020 85.95 7.50 7.61 3.13 1.07 4.57 3.49 0.89 0.87 15.81 0.53 0.00 0.22 0.19 0.32 1.24 0.46 0.17 134.02 2021 87.66 7.65 7.76 3.20 1.10 4.66 3.56 0.91 0.89 16.12 0.54 0.00 0.23 0.20 0.33 1.27 0.47 0.17 136.70
Unit : MM RMB
2022 89.42 7.80 7.92 3.26 1.12 4.75 3.63 0.92 0.91 16.44 0.55 0.00 0.23 0.20 0.34 1.29 0.48 0.18 139.44 2023 91.21 7.96 8.08 3.33 1.14 4.85 3.70 0.94 0.92 16.77 0.57 0.00 0.24 0.20 0.34 1.32 0.49 0.18 142.23 2024 93.03 8.12 8.24 3.39 1.16 4.94 3.78 0.96 0.94 17.11 0.58 0.00 0.24 0.21 0.35 1.34 0.50 0.18 145.07 2025 94.89 8.28 8.40 3.46 1.19 5.04 3.85 0.98 0.96 17.45 0.59 0.00 0.25 0.21 0.36 1.37 0.51 0.19 147.97
PAGE 76 / 159
8.1.2.
Sales Revenue Distribution
Figure 8.1A Sales Revenue Distribution in Worst Case
MM RMB
140.00
LubeB/OT/T SolventT/T MeOHT/T
120.00
MXT/T TolueneT/T
100.00
BZT/T NaphthaT/T
80.00
CRUDET/T LubeB/OTank SolventTank
60.00
MeOHTank MXTank
40.00
TolueneTank BZTank PXTank
20.00
NaphthaTank CrudeTank
0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 77 / 159
Figure 8.1B Sales Revenue Distribution in Probable Case
MM RMB
140.00
LubeB/OT/T SolventT/T MeOHT/T
120.00
MXT/T TolueneT/T
100.00
BZT/T NaphthaT/T
80.00
CRUDET/T LubeB/OTank SolventTank
60.00
MeOHTank MXTank
40.00
TolueneTank BZTank
20.00
PXTank NaphthaTank CrudeTank
0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 78 / 159
Figure 8.1C Sales Revenue Distribution in Best Case
MM RMB
160.00
LubeB/OT/T SolventT/T
140.00
MeOHT/T MXT/T TolueneT/T
120.00
BZT/T NaphthaT/T
100.00
CRUDET/T LubeB/OTank
80.00
SolventTank MeOHTank
60.00
MXTank TolueneTank
40.00
BZTank PXTank
20.00
NaphthaTank CrudeTank
0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 79 / 159
QINGDAO LIXING LOGISTICS Co., Ltd. OCTOBER 2009 ()
8.2. PRODUCTION COST The production cost of Tank Terminal is composed of operating cost and other costs. Major portion of the Operating Costs is labor cost for manpower mobilization. And utility cost is calculated based on conceptual design basis of MA-PECs in-house data under the reference of conceptual design basis and current utility cost payment from Lixing Wharf to Qingdao Lidong Chemical and so on. Also Manpower requirement is estimated from similar project data and existing Lixing Wharf operating cost. Maintenance service work is estimated to make contract with sub-contractor for out-sourcing in order to minimize production cost and better management efficiency. Other production costs are depreciation which is considered fixed amount during 15 years, and land depreciation cost is assumed RMB 15 per m2 yearly for total project available site of 244,189m2 The detail costs are shown on following Table 8.2A ~ 8.2C for each case.
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Table 8.2A. Production Cost in Worst Case

Unit : MM RMB 2011 Utilities Maintenance Labor Factory Cost Insurance Operation Cost Depreciation Land Depreciation Cost Total Production Cost Marketing Cost COST OF PRODUCT 3.33 2.80 7.83 13.96 1.08 15.03 32.26 3.70 50.99 0.53 51.52 2012 3.40 2.85 8.06 14.31 1.08 15.39 32.26 3.70 51.34 0.47 51.82 2013 3.46 2.91 8.31 14.68 1.08 15.75 32.26 3.70 51.71 0.48 52.20 2014 3.53 2.97 8.56 15.06 1.08 16.13 32.26 3.70 52.09 0.49 52.58 2015 3.60 3.03 8.81 15.44 1.08 16.52 32.26 3.70 52.47 0.50 52.98 2016 3.68 3.09 9.08 15.84 1.08 16.92 32.26 3.70 52.87 0.51 53.39 2017 3.75 3.15 9.35 16.25 1.08 17.32 32.26 3.70 53.28 0.52 53.80 2018 3.82 3.21 9.63 16.67 1.08 17.74 32.26 3.70 53.70 0.53 54.23 2019 3.90 3.28 9.92 17.10 1.08 18.17 32.26 3.70 54.13 0.55 54.67 2020 3.98 3.34 10.22 17.54 1.08 18.61 32.26 3.70 54.57 0.56 55.12 2021 4.06 3.41 10.52 17.99 1.08 19.06 32.26 3.70 55.02 0.57 55.59 2022 4.14 3.48 10.84 18.45 1.08 19.53 32.26 3.70 55.49 0.58 56.06 2023 4.22 3.55 11.16 18.93 1.08 20.01 32.26 3.70 55.96 0.59 56.55 2024 4.31 3.62 11.50 19.42 1.08 20.50 32.26 3.70 56.45 0.60 57.06 2025 4.39 3.69 11.84 19.93 1.08 21.00 32.26 3.70 56.96 0.61 57.57
PAGE 81 / 159
Table 8.2B. Production Cost in Probable Case

PAGE 82 / 159
Table 8.2C. Production Cost in Best Case

PAGE 83 / 159
8.3. PROFITABILITY Financial feasibility of the project is demonstrated by the projects ability to generate sufficient cash to pay debt service and still provide an adequate return on investment to the equity holders. The following index was used to evaluate the profitability of the project. Net Present Value of NPV; Sum of discounted yearly cash flows connected with the project, negative during the construction phase, and positive during operation; the discount factor, which has the effect of decreasing the value of cash obtained later, has been taken equal to 10% per year, as reference value Internal Rate of Return or IRR; The discount factor for which the NPV would become zero; based on reference value of 10% and higher value is more advantageous. IRR may be affected by the changes of tank prices as well as increase in the operating and maintenance costs) Long term debt coverage ratio; Income before tax and interests are divided by the loan repayments. A Value around one means that all profits are used to repay the debt, a more reasonable value of 2 means that part of the benefits repays the debt and part is profits for the company. Payback or PB; It is, in years, the time necessary for paying back the investments with the benefits. It was based on discounted cash flow. Cash Flow; Cash Flow is the increase or decrease in the cash position and this represents the stockholder equity position in the project) Throughout this analysis, it has been assumed that financing of this project will be a combination of the equity shareholder and debt service financing from commercial banks
PAGE 84 / 159
and/or international funding institutions. The annual Cash Flow / Expenditure Projections are shown in Figure 8.3A through 8.3B Profitability of investment has been evaluated both with regard of equity (assumed at 30% of capital requirement) and with regard to total capital requirement. Summary of Economic Analysis are shown in Table 8.3A for the result of total economic analysis. The IRR for case probable is analyzed. Case Definition a) Worst Case : shown in Table 8A. b) Probable Case : shown in Table 8A. c) Best Case : shown in Table 8A. Sales Revenue Definition For sales revenue calculation, the following sales price values are shown in Table 8.1A. a) Revenue from tank terminal annual lease b) Revenue from truck loading and unloading operation Calculated cash flows are shown on Table 8.3B for construction period and on Table 8.3C for normal operation period and all cases show the positive cash flow. Normal payback period the cumulative net cash flow diagram in Figure 8.3A and also dynamic payback period is shown on cumulative net present value in Figure 8.3C Price discounts were not applied in this feasibility study report since the capability of tank terminal still meet the market volume according to the Market Study.
PAGE 85 / 159
Table 8.3A. Economic Analysis Summary (Year 2011 base)

Unit : MM RMB Worst Case Sales Revenue Utilities Maintenance Labour Insurance Depreciation Land Depreciation Cost Market Cost Total Cost Gross Profit Corporate Tax Net Profit IRR (%) NPV (MM RMB) Pay Back Period (Year) 102.21 3.33 2.80 7.83 1.08 32.26 3.70 0.53 51.52 50.69 7.60 43.09 11.39 43.53 8.19 Probable Case 113.56 3.75 2.80 7.83 1.08 32.26 3.70 0.59 51.99 61.57 9.23 52.33 13.51 112.31 7.36 Best Case 120.50 4.16 2.80 7.83 1.08 32.26 3.70 0.63 52.45 68.05 10.21 57.85 14.73 153.40 6.95 Remark
PAGE 86 / 159
Table 8.3B. Cash Flow Summary for Construction Period (Worst Case / Probable Case / Best Case)
Unit : MM RMB 2009 Total Cash Inflow Inflow funds Total equity capital Inflow operation Other Income Total Cash Outflow Increase in fixed assets Increase in current assets Operating Cost Marketing Costs Income (corporation) tax Financial Costs Loan Repayment Surplus (Deficit) Cumulative Cash Balance Local Surplus (Deficit) Local cumulative cash balance 107.52 107.52 107.52 0.00 0.00 107.52 107.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2010 430.08 430.08 430.08 0.00 0.00 430.08 430.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Note
PAGE 87 / 159
Table 8.3C. Cash Flow Summary for Operation Period (Worst Case)
Unit : RMB
2011 Total Cash InFlow Inflow funds Sales revenue Total Cash Out Flow Operating costs Marketing costs Income (corporate) tax Land Depreciation costs Surplus (deficit) Cumulative Cash Balance Local surplus (deficit) Local Cumulative Cash Balance 106.34 0.00 106.34 27.49 15.03 0.53 8.22 3.70 78.85 78.85 78.85 78.85 2012 94.97 0.00 94.97 26.04 15.39 0.47 6.47 3.70 68.94 147.79 68.94 147.79 2013 96.87 0.00 96.87 26.64 15.75 0.48 6.70 3.70 70.23 218.02 70.23 218.02 2014 98.81 0.00 98.81 29.57 16.13 0.49 9.25 3.70 69.24 287.26 69.24 287.26 2015 100.79 0.00 100.79 30.28 16.52 0.50 9.56 3.70 70.50 357.76 70.50 357.76 2016 102.80 0.00 102.80 33.48 16.92 0.51 12.35 3.70 69.32 427.08 69.32 427.08 2017 104.86 0.00 104.86 34.31 17.32 0.52 12.76 3.70 70.55 497.63 70.55 497.63 2018 106.95 0.00 106.95 35.16 17.74 0.53 13.18 3.70 71.80 569.42 71.80 569.42 2019 109.09 0.00 109.09 36.02 18.17 0.55 13.61 3.70 73.07 642.50 73.07 642.50 2020 111.28 0.00 111.28 36.91 18.61 0.56 14.04 3.70 74.37 716.87 74.37 716.87 2021 113.50 0.00 113.50 37.81 19.06 0.57 14.48 3.70 75.69 792.56 75.69 792.56 2022 115.77 0.00 115.77 38.74 19.53 0.58 14.93 3.70 77.04 869.59 77.04 869.59 2023 118.09 0.00 118.09 39.68 20.01 0.59 15.38 3.70 78.41 2024 120.45 0.00 120.45 40.65 20.50 0.60 15.85 3.70 79.80 2025 122.86 0.00 122.86 41.64 21.00 0.61 16.32 3.70 81.22
948.00 1,027.80 1,109.02 78.41 79.80 81.22
948.00 1,027.80 1,109.02
PAGE 88 / 159
Figure 8.3A. Cash Flow Graph (Worst Case)
Cash Flow (Worst Case)

MM RMB
90 80 70 60 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 89 / 159
Figure 8.3B. Cumulative cash flow (Worst Case)
Cummulated Cash Flow (Worst Case)

1200
1000
MM RMB
800
600
400
200
0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 90 / 159
Figure 8.3G. Cumulative Net Present Value (Worst Case)
Cumulative Net Present Value (Worst Case)

NPV (MM RMB)
100
0 2009 -100 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
-200
-300
-400
-500
PAGE 91 / 159
Table 8.3D. Cash Flow Summary for Operation Period (Probable Case)
Unit : RMB
2011 Total Cash InFlow Inflow funds Sales revenue Total Cash Out Flow Operating costs Marketing costs Income (corporate) tax Land Depreciation Costs Surplus (deficit) Cumulative Cash Balance Local surplus (deficit) Local Cumulative Cash Balance 118.14 0.00 118.14 29.66 15.45 0.59 9.92 3.70 88.48 88.48 88.48 88.48 2012 107.02 0.00 107.02 28.25 15.81 0.54 8.21 3.70 78.76 167.24 78.76 167.24 2013 109.16 0.00 109.16 28.90 16.19 0.55 8.47 3.70 80.25 247.50 80.25 247.50 2014 111.34 0.00 111.34 32.48 16.57 0.56 11.65 3.70 78.86 326.36 78.86 326.36 2015 113.57 0.00 113.57 33.25 16.97 0.57 12.01 3.70 80.31 406.67 80.31 406.67 2016 115.84 0.00 115.84 37.14 17.37 0.58 15.48 3.70 78.70 485.37 78.70 485.37 2017 118.15 0.00 118.15 38.04 17.79 0.59 15.95 3.70 80.12 565.49 80.12 565.49 2018 120.52 0.00 120.52 38.96 18.22 0.60 16.43 3.70 81.56 647.05 81.56 647.05 2019 122.93 0.00 122.93 39.90 18.66 0.61 16.92 3.70 83.03 730.08 83.03 730.08 2020 125.39 0.00 125.39 40.86 19.11 0.63 17.42 3.70 84.53 814.60 84.53 814.60 2021 127.89 0.00 127.89 41.84 19.57 0.64 17.93 3.70 86.05 900.66 86.05 900.66 2022 130.45 0.00 130.45 42.85 20.05 0.65 18.45 3.70 87.60 2023 133.06 0.00 133.06 43.88 20.53 0.67 18.98 3.70 89.18 2024 135.72 0.00 135.72 44.93 21.04 0.68 19.51 3.70 90.79 2025 138.44 0.00 138.44 46.00 21.55 0.69 20.06 3.70 92.43
988.26 1,077.44 1,168.24 1,260.67 87.60 89.18 90.79 92.43
988.26 1,077.44 1,168.24 1,260.67
PAGE 92 / 159
Figure 8.3C. Cash Flow Graph (Probable Case)
Cash Flow (Probable Case)

MM RMB
100 90 80 70 60 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 93 / 159
Figure 8.3D. Cumulative cash flow (Probable Case)
Cummulated Cash Flow (Probable Case)

800 600 400
MM RMB
200 0 2009 -200 -400 -600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 94 / 159
Figure 8.3G. Cumulative Net Present Value (Probable Case)
Cumulative Net Present Value (Probable Case)

NPV (MM RMB) 1400 1200 1000 800 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 95 / 159
Table 8.3E. Cash Flow Summary for Operation Period (Best Case)
Unit : RMB
2011 Total Cash InFlow Inflow funds Sales revenue Total Cash Out Flow Operating costs Marketing costs Income (corporate) tax Land Depreciation Cost Surplus (deficit) Cumulative Cash Balance Local surplus (deficit) Local Cumulative Cash Balance 125.37 0.00 125.37 31.13 15.86 0.63 10.94 3.70 94.24 94.24 94.24 94.24 2012 114.39 0.00 114.39 29.75 16.24 0.57 9.24 3.70 84.63 178.88 84.63 178.88 2013 116.67 0.00 116.67 30.43 16.62 0.58 9.53 3.70 86.24 265.12 86.24 265.12 2014 119.01 0.00 119.01 34.40 17.01 0.60 13.09 3.70 84.61 349.73 84.61 349.73 2015 121.39 0.00 121.39 35.21 17.42 0.61 13.48 3.70 86.18 435.91 86.18 435.91 2016 123.82 0.00 123.82 39.50 17.83 0.62 17.35 3.70 84.31 520.22 84.31 520.22 2017 126.29 0.00 126.29 40.45 18.26 0.63 17.86 3.70 85.84 606.06 85.84 606.06 2018 128.82 0.00 128.82 41.42 18.70 0.64 18.38 3.70 87.40 693.46 87.40 693.46 2019 131.39 0.00 131.39 42.41 19.15 0.66 18.91 3.70 88.98 782.44 88.98 782.44 2020 134.02 0.00 134.02 43.42 19.61 0.67 19.45 3.70 90.60 873.04 90.60 873.04 2021 136.70 0.00 136.70 44.46 20.08 0.68 20.00 3.70 92.24 2022 139.44 0.00 139.44 45.52 20.56 0.70 20.55 3.70 93.92 2023 142.23 0.00 142.23 46.60 21.06 0.71 21.12 3.70 95.63 2024 145.07 0.00 145.07 47.70 21.57 0.73 21.70 3.70 97.37 2025 147.97 0.00 147.97 48.83 22.10 0.74 22.29 3.70 99.14
965.28 1,059.20 1,154.83 1,252.20 1,351.33 92.24 93.92 95.63 97.37 99.14
965.28 1,059.20 1,154.83 1,252.20 1,351.33
PAGE 96 / 159
Figure 8.3E. Cash Flow Graph (Best Case)
Cash Flow (Best Case)

MM RMB
100 90 80 70 60 50 40 30 20 10 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 97 / 159
Figure 8.3F. Cumulative cash flow (Best Case)
Cummulated Cash Flow (Best Case)

MM RMB
1000 800 600 400 200 0 2009 -200 -400 -600 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
PAGE 98 / 159
Figure 8.3G. Cumulative Net Present Value (Best Case)
Cumulative Net Present Value (Best Case)

NPV (MM RMB)
1400 1200 1000 800 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
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8.4. SENSITIVITY ANALYSIS This section covers the sensitivity analysis necessary to evaluate the limits of validity of decisions which can be based on the economical analysis of this study. Some parameters, in fact, which have been estimated at best based both upon past experience and upon market studies are liable of varying in the future. The analysis has thus been repeated varying these parameters in order to assess the range of values within which the same decisions would not be impacted. A list of sensitivity analysis and other economical evaluations is reported below. General Sensitivity For this project, the following sensitivity cases are checked to analyze the general impact of changes, Figure 8.4A express the result of those sensitivity analysis output. a) Operating Cost Change b) Sales Revenues changes such as tank rental, loading and unloading by T/T It shows that the change of sales revenue and operating cost do not affect the order of profitable case. Tank Rental Cost A large impact on economical results may depend on Tank rental price which constitutes the main operating factor. Given the method used for the evaluation using differential investments and profits the price of tank will not have an impact on the decisions concerning cases within roughly 10% of rental cost discount, but rather on the overall operational profitability. Figure 8.4A shows the sensitivity of IRR based upon cash flows for each case. As the sensitivity curve is shown in Figure 8.4A~8.4E, the main factors to determine project profitability are Sales Revenue and Operating Cost, rather than investment cost. Sales Revenue is the most critical factor to determine the project risk and profitability.
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From the analysis of revenue contribution figure in Figure 8.1A, Crude Oil Tank composes most of total revenue structure. From Market Analysis described in index 5, since Crude Oil Tanks are already allocated to the client, Qingdao Port Group, the Lixing tank terminal project has very limited risk of profitability and high potentiality to increase IRR and shorten project investment return.
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Figure 8.4A Sensitivity Analysis for Worst Case.
SENSITIVITY ANALYSIS (WORST CASE)

IRR(%)
16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 20% 16% 12% 8% 4% Variation (%) 0% 4% 8% 12% 16% 20%
Salesrevenue
Increaseinfixedassets
Operatingcosts
MA-PEC Plant E&C Co., Ltd. .
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Figure 8.4B Sensitivity Analysis for Probable Case.
SENSITIVITY ANALYSIS (PROBABLE CASE)

IRR(%)
18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 20% 16% 12% 8% 4% 0% 4% 8% 12% 16% 20% Variation (%) Salesrevenue Increaseinfixedassets Operatingcosts
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Figure 8.4C Sensitivity Analysis for Best Case.
SENSITIVITY ANALYSIS (BEST CASE)

IRR(%)
20.0% 19.0% 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 12.0% 11.0% 10.0% 20% 16% 12% 8% 4% 0% 4% 8% 12% 16% 20% Variation (%) Salesrevenue Increaseinfixedassets Operatingcosts
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Figure 8.4D Sensitivity Analysis for Sales Revenue
SALES REVENUE
20.0%
IRR(%)
18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 20% 16% 12% 8% 4% 0% 4% 8% 12% 16% 20% Variation (%) WorstCase ProbableCase BestCase
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Figure 8.4E Sensitivity Analysis for Operating Cost
OPERATING COST
IRR(%)
20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 20% 16% 12% 8% WorstCase 4% 0% 4% BestCase 8% 12% 16% 20% Variation (%)
ProbableCase
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SECTION 9 CONCLUSION & RECOMMENDATION
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9.
CONCLUSION & RECOMMENDATION
An extensive evaluation study has been made for Lixing Tank Terminal From economical and technical view points, it has been found that the best configuration for the tank terminal project is Phase-1 construction plan. This recommendation can provide Lixing the stable operation configuration and higher flexibility to construct the tankage plan, especially in Aromatic Tank area, all of aromatic tanks shall be designed in severe condition and common utility supply design so that any of tanks can be switched to most profitable and marketable tank according to tank rental promotion. Also, it is recommended to have a manufacturer license as well as storage tank terminal for selling higher quality products of Naphtha, MX, Benzene by simple mixing with each of higher quality product in each tank, so that new clients of small volume purchasing can be created in Chinese Market. From the market analysis investigation, Lixing project has wide range of potentiality to gather tankage clients because Crude tank are already reserved to rent by Qingdao port group and other tanks such as Aromatic, Naphtha, Methanol, Solvent and Lube base Oil have high possibility to rent to such existing potential clients as GS Aromatics Qingdao, Oman Aromatics, Samsung Corporation and GS Caltex. In addition Shandong Area is located very near to Korea as well as the regular vessel sea route as the role of gate to Northern Part and Southern Part of China Inland and comparing to exporting and importing as well as annual petrochemical and fuel oil product demand trends, the ports do not meet total required capability of the tankage volume. Furthermore in China inland, there are many of small and medium sized capacity of petrochemical plants which are required to receive the feed from Shandong area. As the report shown in market analysis in section 6, the condition of small size of relevant tank storage facilities can drive Lixing better economical analysis results (Sales Revenue), shown in section 8.
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Considering also the yearly increasing ratio of Vehicle in China, it is recommended to consider the niche market of consumer products because the tank terminal project can expand the business model with additional Lube Oil Blending facility. Following is the summary of Lixing Tank Terminal Economic analysis, Worst Case Fixed investment cost : 537.60 MM RMB IRR : 11.39% NPV : 43.53 MM RMB Payout Periods : 8.19 years Probable Case Fixed investment cost : 537.60 MM RMB IRR : 13.51% NPV : 112.31 MM RMB Payout Periods : 7.36 years Best Case Fixed investment cost : 537.60 MM RMB IRR : 14.73% NPV : 153.4 MM RMB Payout Periods : 6.95 years Main parameter which has great influence on the profitability of the project is the tank terminal long term lease price. To improve the sales revenue, to keep best scenario of IRR, to minimize rework cost of project execution in engineering, procurement and construction stage and to maximize on time marketing and construction, early sales promotion to potential long term contract clients is surely required High IRR and short payout periods, considering long term debt service trends can result in economically recommendable execution project in current conditions and feasibility analysis stage.
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SECTION 10 SCHEDULE ESTIMATION
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10.
PROJECT SCHEDULE
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APPENDIX 1
CONCEPTUAL DESIGN BASIS
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APPENDIX 1. CONCEPTUAL DESIGN BASIS
CONCEPTUAL DESIGN BASIS
JOB NO. PROJECT NAME CLIENT LOCATION UNIT
: 7A04 : LINGXING TANK TERMINAL : QINGDAO LIXING LOGISTICS Co., LTD. : QINGDAO, CHINA : 100 units
REV
1 2 3 3-1
DATE
2009.05.26 2009.06.22 2009.08.04 2009.08.07
PRE'D
PJK PJK PJK PJK
CHK'D
LNS LNS LNS LNS
APP'D
BJG BJG BJG BJG
DESCRIPTION
REV
4
DATE
2009.08.31 2009.09.17 2009.10.08
PRE'D
PJK PJK PJK
CHK'D
LNS LNS LNS
APP'D
BJG BJG BJG
DESCRIPTION
Lube Base Oil : CRT PEP concept apply Pump Revisiion
ADD TANKS/Equipment
5 6
Add Toluene in Phase-1
MA-PEC PLANT ENGINEERING & CONSTRUCTION
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CONTENTS
1. Tankage Plan 2. N2 Blanketing Tank Summary 3. LP Steam Requried Tank Summary 4. Tank Retention Time Schedule 5. Transfer Rate Data (Marine Loading Pump / Truck Loading Pump) 6. Tank Layout Scale Summary 7. Physical Properties of Terminal Product 8. Equipment List - Tank - Marine Loading Pump - Truck Loading Pump - Jet Mixer - Mechanical Mixer - T/T Loading Arm - Offsite / Miscellaneous
9. Utility & Auxiliary Facilities 10. Quick Line Sizing
MA-PEC PLANT ENGINEERING & CONSTRUCTION
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TRANSFER RATE DATA

Marine Loading Pumps
Lixing Tank Terminal Area (100 Area)
Pump Qty Item No. Marine Loading Pump Service for Phase 1 2 2 2 2 3 3 2 2 2 2 2 20 Note : OP = Operating Pump / SP = Spare Pump 4 Phase 2 Total (OP+SP) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 3 (2+2) 3 (2+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) Type Design Pumping Sp.gr Temp. Flow rate P.T () (m3/hr/ea) 1,000 700 500 700 3,000 3,000 2,000 500 500 500 500 40 40 40 40 90 40 40 50 40 40 40 0.844 0.861 0.850 0.851 0.925 0.728 0.726~0.845 0.850 0.780~0.885 0.720 0.781 at Shipping Range (m3/hr) 700~1,000 500~700 500 700 5,000~8,000 2,000~5,000 1,000~2,000 500 500 500 500 future future Remarks
1) 100G-101A/B 2) 100G-111A/B 3) 100G-121A/B 4) 100G-131A/B 6) 100G-141A~J 7) 100G-151A~C 8) 100G-161A/B 10) 100G-171A/B 11) 100G-181A/B 12) 100G-191A/B 13) 100G-193A/B
P-Xylene Benzene Toluene Mixed Xyl Crude Oil (Bunker C) Naphtha Gas Oil/Kero/Mogas Lube Base Oil Solvent(MEK/Acet/EA) MTBE Methanol
Centri. Centri. Centri. Centri. Centri. Centri. Centri. Gear Centri. Centri. Centri.
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TRANSFER RATE DATA

T/T Loading Pump
Pump Qty Item No. 1) 100G-112A/B 2) 100G-122A/B 3) 100G-132A/B 4) 100G-142A/B 5) 100G-152A/B 6) 100G-162A/B 7) 100G-172A/B 8) 100G-182A/B 9) 100G-192A/B 10) 100G-194A/B Truck Loading Pump Service for Benzene Toluene Mixed Xyl Crude Oil (Bunker C) Naphtha GO/Kero/Mogas Lube Base Oil Solvent MTBE Methanol 2 20 Note : OP = Operating Pump / SP = Spare Pump 4 2 2 2 Phase 1 2 2 2 6 2 2 Phase 2 Total (OP+SP) 2 (1+1) 2 (1+1) 2 (1+1) 6 (5+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) Type Centri. Centri. Centri. Gear Centri. Centri. Gear Centri. Centri. Centri. Design Pumping Temp. Flow rate () (m3/hr/ea) 140 140 140 140 140 140 140 140 140 140 40 40 40 90 40 40 50 40 40 40 Sp.gr at P.T 0.861 0.850 0.851 0.925 0.728 0.726~0.845 0.850 0.780~0.885 0.720 0.781 Shipping Range (m3/hr) 140 140 140 140 140 140 140 140 140 140 future future Remarks
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LIXING TANK LAYOUT SCALE SUMMARY

TANK Q'ty Group Item No. 1) 100D-101A~D 2) 100D-111A/B Aromatics 3) 100D-121A/B 4) 100D-121C 5) 100D-131A/B 6) 100D-131C/D Crude Oil Product Lube 7) 100D-141A~H 8) 100D-142A/B 9) 100D-151A~C 10) 100D-161A~F 11) 100D-171A~D 12) 100D-181A/B Petro. Chem 13) 100D-181C~F 14) 100D-191A/B 15) 100D-192A~D PX Benzene Toluene Toluene (Future) Mixed Xyl Mixed Xyl (Future) Crude Oil (Bunker-C) Crude Oil (Bunker-C) Naphtha Gas Oil/Kero/Mogas Lube Base Oil Solvent Solvent (Future) MTBE Methanol Total 2 25 2 2 4 2 2 26 8 2 2 4 6 2 2 2 Service Phase 1 Phase 2 2 2 1 1 1 2 Total 4 2 2 1 2 2 8 2 6 6 4 2 4 2 4 51 Type IFRT IFRT IFRT IFRT IFRT IFRT FRT FRT IFRT IFRT CRT IFRT IFRT IFRT IFRT Nominal Volume (m3) 13,612 6,683 4,107 9,966 8,243 9,966 60,961 24,370 15,803 15,803 1,584 1,584 3,052 3,052 7,515 Dimension, ID(m) * TL(m) 28.40 * 21.5 19.90 * 21.5 15.60 * 21.5 24.30 * 21.5 22.10 * 21.5 24.30 * 21.5 60.10 * 21.5 38.00 * 21.5 30.60 * 21.5 30.60 * 21.5 11.60 * 15.0 11.60 * 15.0 15.10 * 17.0 15.10 * 17.0 21.10 * 21.5 Scaling for tank plot 1/6,000 scale (i.e 60.10 m= 10 mm) 28.40 m = 4.7 mm circle (say 5.0 mm) 19.90 m = 3.3 mm circle (say 3.5 mm) 15.60 m = 2.6 mm circle (say 3.0 mm) 24.30 m = 4.0 mm circle (say 4.0 mm) 22.10 m = 3.7 mm circle (say 4.0 mm) 24.30 m = 4.0 mm circle (say 4.0 mm) 60.10 m = 10.0 mm circle 38.00 m = 6.3 mm circle (say 6.5 mm) 30.60 m = 5.1 mm circle (say 5.0 mm) 30.60 m = 5.1 mm circle (say 5.0 mm) 11.60 m = 1.9 mm circle (say 2.0 mm) 11.60 m = 1.9 mm circle (say 2.0 mm) 15.10 m = 2.5 mm circle (say 2.5 mm) 15.10 m = 2.5 mm circle (say 2.5 mm) 21.10 m = 3.5 mm circle (say 3.5 mm) Remarks
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PHYSICAL PROPERTIES OF TERMINAL PRODUCT

Group Item No. 1) 100D-101A~D 2) 100D-111A/B Aromatics 3) 100D-121A/B 4) 100D-121C 5) 100D-131A/B 6) 100D-131C/D Crude 7) 100D-141A~H 8) 100D-142A/B 9) 100D-151A~C 10) 100D-161A~F 11) 100D-171A~D 12) 100D-181A/B Petro. Chem 13) 100D-181C~F 13) 100D-191A/B 14) 100D-192A~D PX Benzene Toluene Toluene (Future) MX MX (Future) Crude (Bunker-C) Crude (Bunker-C) Naphtha Gas Oil/Kero/Mogas Lube Base Oil Solvent (MEK/ACET/EA) Solvent (MEK/ACET/EA) (Future) MTBE Methanol 2 25 2 2 4 2 2 26 8 2 2 4 6 2 2 2 Service Q'ty Phase 1 2 2 1 1 1 Phase 2 2 Total 4 2 2 1 2 2 8 2 6 6 4 2 4 2 4 51 Flash Point (Min.) 25 -11 4 4 24 24 65 65 38 38/52/38 180 ~ 240 -9 / -18 / -4 -9 / -18 / -4 -10 11 Sp.gr at P.T 0.844 0.861 0.850 0.850 0.851 0.851 0.925 0.925 0.728 0.726~0.845 0.850 0.780~0.885 0.780~0.885 0.720 0.781 4 for future 2 for future 2 for future 4 for future 6 for future 2 for future 2 for future 1 for future 1 for future Remarks 2 for future
Oil Product Lube
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Lixing Tankage Plan

Group Item No. 1) 100D-101A~D 2) 100D-111A/B Aromatics (*4) 3) 100D-121A/B 4) 100D-121C 5) 100D-131A/B 6) 100D-131C/D Crude 7) 100D-141A~H 8) 100D-142A/B 9) 100D-151A~F 10) 100D-161A~F 11) 100D-171A~D 12) 100D-181A/B Petro. Chem 13) 100D-181C~F 14) 100D-191A/B 15) 100D-192A~D PX Benzene Toluene Toluene (Future) Mixed Xylene Mixed Xylene (Future) Crude Oil (Bunker-C) Crude Oil (Bunker-C) Naphtha Gas Oil/Kero/Mogas Lube Base Oil Solvent Solvent (Future) MTBE Methanol Service for Tank Type (*) IFRT IFRT IFRT IFRT IFRT IFRT FRT FRT IFRT IFRT CRT IFRT IFRT IFRT IFRT Nominal Volume 13,612 6,683 4,107 9,966 8,243 9,966 60,961 24,370 15,803 15,803 1,584 1,584 3,052 3,052 7,515 Net Volume 10,000MT 5,000MT 3,000MT 8,200 6,000MT 8,200 50,000 20,700 13,500 13,500 1,300 1,300 2,500 2,500 6,160 2 2 2 4 2 2 8 2 2 4 6 2 2 2 Tank Q'ty Phase1 2 2 1 1 1 Phase2 2 Total 4 2 2 1 2 2 8 2 6 6 4 2 4 2 4 15,030 3,168 3,168 12,208 6,104 15,030 487,688 48,740 31,606 63,212 94,818 3,168 16,486 19,932 Tank Nominal Volume (m3) Phase1 27,224 13,366 4,107 4,107 9,966 Phase2 27,224 Total 54,448 13,366 8,214 9,966 16,486 19,932 487,688 48,740 94,818 94,818 6,336 3,168 12,208 6,104 30,060 12,320 2,600 2,600 400,000 41,400 27,000 13,792 16,400 0 0 54,000 81,000 2,600 0 10,000 5,000 12,320 Tank NET Volume (m3) Phase1 23,120 11,236 3,448 3,448 8,200 Phase2 23,120 Total 46,240 11,236 6,896 8,200 13,792 16,400 400,000 41,400 81,000 81,000 5,200 2,600 10,000 5,000 24,640 Dimension, Remarks ID(m) * TL(m) 28.40 * 21.5 19.90 * 21.5 15.60 * 21.5 24.30 * 21.5 22.10 * 21.5 24.30 * 21.5 60.10 * 21.5 38.00 * 21.5 30.60 * 21.5 30.60 * 21.5 11.60 * 15.0 11.60 * 15.0 15.10 * 17.0 15.10 * 17.0 21.10 * 21.5 6896 11560 5618 3448
Oil Product Lube
25
Design Considerations :
26
51
650,583
255,769
906,352
537,516
216,088
753,604
1) Regardless of aromatic services, LP steam heating devices shall be installed inside all aromatic tanks for interchangeability. 2) Site preparation shall be covered whole area considering for future phase. 3) Dike for future area shall be pre-built during the 1st phase construction. 4) All provisions shall be finished to construct future tanks without shut down of the 1st phase tank terminal operation.
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N2 Blanketing Tank Summary

Capacity(M3) Group Item No. 100D-101A~D 100D-111A/B 100D-121A/B Aromatics 100D-121C 100D-131A/B 100D-131C/D Oil Product 100D-151A~C 100D-181A/B 100D-181C~F Pet. Chem 100D-191A/B 100D-192A~D MTBE Methanol 3,052 7,515 2,500 6,160 2 13 Note : 1. N2 Supply Condition = Normal 7.5 kg/cm2 g and 30 2. N2 Purge for Loading Arms : Loading arm after loading/unloading work shall be pushed to vessel (loading case) or pushed back to the front section of the isolation valve near loading arm (unloading case) by nitroge gas. 3. Nitrogen blanketing is normally not required in internal floating roof tanks(IFRT), which shall be reviewed and developed by detail design engineering. 4. N2 consumption shall be finalized in detail design engineering. 2 2 18 Toluene (Future) MX MX (Future) Naphtha Solvent Solvent (Future) 9,966 8,243 9,966 15,803 1,584 3,052 8,200 6,000MT 8,200 13,500 1,300 2,500 2 2 4 2 2 4 1 PX Benzene Touene Service Nominal 13,612 6,683 4,107 Net 10,000MT 5,000MT 3,000MT 2 2 1 1 Q'ty Phase 1 Phase 2 2 Total 4 2 2 1 2 3 6 2 4 2 4 32 Dimension ID (m) * TL (m) 28.40 * 21.5 19.90 * 21.5 15.60 * 21.5 24.30 * 21.5 22.10 * 21.5 24.30 * 21.5 30.60 * 21.5 11.60 * 15.0 15.10 * 17.0 15.10 * 17.0 21.10 * 21.5 Tank Type IFRT IFRT IFRT IFRT IFRT IFRT IFRT IFRT IFRT IFRT IFRT N2 Rate (Nm3/hr) PCV Size BV Size/Q'ty Remarks N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing N2 Blanketing
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LP Steam Req'd Tank Summary

Capacity(M3) Group Item No. Service Nominal 100D-101A~D 100D-111A/B 100D-121A/B Aromatics 100D-121C 100D-131A/B 100D-131C/D 100D-141A~H Crude 100D-142A~B Lube Total 100D-171A~D Crude/B.C. Lube B/O 24,370 1,584 20,700 1,300 2 2 19 2 8 Toluene (Future) MX MX (Future) Crude/B.C. 9,966 8,243 9,966 60,961 8,200 6,000MT 8,200 50,000 8 2 2 1 PX Benzene Toluene 13,612 6,683 4,107 Net 10,000MT 5,000MT 3,000MT Phase 1 2 2 1 1 Phase 2 2 Q'ty Total 4 2 2 1 2 2 8 2 4 27 2. Steam coil sizing Basis Steam volumetric flow rate, V(m3/hr) = M / 2.18 Tube heat transfer area, A(m2) = (3.14*OD)*Tube Length Required heat transfer area, A(m2) = Q / (U*dT) 3. LP Steam is mainly used for both of Bunker-C oil/Lube Base oil tanks and their steam tracing loading lines maintaining oil temperature with 50 in storage and heating up to 75 during loading. Also, LP Steam is used for maintaining PX and Benzene storage and steam tracing loading lines with 40 . 4. LP steam consumption shall be finalized in detail design engineering. 5. Regardless of aromatic services, LP steam heating devices should be installed inside all aromatic tanks for interchangeability. Dimension ID (m) * TL (m) 28.40 * 21.5 19.90 * 21.5 15.60 * 21.5 24.30 * 21.5 22.10 * 21.5 24.30 * 21.5 60.10 * 21.5 38.00 * 21.5 11.60 * 15.0 Tank Type IFRT IFRT IFRT IFRT IFRT IFRT FRT FRT CRT 2.7 1.2 0.15 4.75 21.6 2.4 0.6 26.9 Steam Rate Steam Rate per tank total (ton/hr) (ton/hr) 0.45 0.25 1.8 0.5 Remarks
2" heating coil 2" heating coil 2" heating coil (normally no use) 2" heating coil (normally no use) 2" heating coil (normally no use) 2" heating coil (normally no use) 2" heating coil 2" heating coil 2"heating coil
Note : 1. Supplied LP Steam Condition is as follows ; Pressure at BL (kg/cm2 g ) = Norm 3.5 / Max 4.2 / Min 2.8 / Des 6.0 Temperature at BL ( ) = Norm 177 / Max 204 / Min 149 / Des 235
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EQUIPMENT LIST
TANKS
Group Item No. 1) 100D-101A~D 2) 100D-111A/B Aromatics (*4) 3) 100D-121A/B 4) 100D-121C 5) 100D-131A/B 6) 100D-131C/D Crude 7) 100D-141A~H 8) 100D-142A/B 9) 100D-151A~F 10) 100D-161A~F 11) 100D-171A~D 12) 100D-181A/B Petro. Chem 13) 100D-181C~F 14) 100D-191A/B 15) 100D-192A~D PX Benzene Toluene Toluene (Future) Mixed Xylene Mixed Xylene (Future) Crude Oil (Bunker-C) Crude Oil (Bunker-C) Naphtha Gas Oil/Kero/Mogas Lube Base Oil Solvent Solvent (Future) MTBE Methanol Service for Tank Type (*) IFRT IFRT IFRT IFRT IFRT IFRT FRT FRT IFRT IFRT CRT IFRT IFRT IFRT IFRT Nominal Volume (m3/tank) 13,612 6,683 4,107 9,966 8,243 9,966 60,961 24,370 15,803 15,803 1,584 1,584 3,052 3,052 7,515 Net Tank Q'ty Volume (m3/tank) Phase1 Phase2 Total 10,000MT 5,000MT 3,000MT 8,200 6,000MT 8,200 50,000 20,700 13,500 13,500 1,300 1,300 2,500 2,500 6,160 2 25 2 2 4 2 2 26 8 2 2 4 6 2 2 2 2 2 1 1 1 2 4 2 2 1 2 2 8 2 6 6 4 2 4 2 4 51 15,030 646,476 3,168 3,168 12,208 6,104 15,030 259,876 487,688 48,740 31,606 63,212 94,818 3,168 16,486 19,932 Tank Nominal Volume (m3) Phase1 27,224 13,366 8,214 9,966 Phase2 27,224 Total 54,448 13,366 8,214 9,966 16,486 19,932 487,688 48,740 94,818 94,818 6,336 3,168 12,208 6,104 30,060 906,352 Dimension, ID(m) * TL(m) 28.40 * 21.5 19.90 * 21.5 15.60 * 21.5 24.30 * 21.5 22.10 * 21.5 24.30 * 21.5 60.10 * 21.5 38.00 * 21.5 30.60 * 21.5 30.60 * 21.5 11.60 * 15.0 11.60 * 15.0 15.10 * 17.0 15.10 * 17.0 21.10 * 21.5 Design Conditions Press (kg/cm2g) 0.015(*)/-0.005(*) 0.015/-0.005 0.015/-0.005 0.015/-0.005 0.015/-0.005 0.015/-0.005 ATM ATM 0.015/-0.005 0.015/-0.005 ATM 0.015/-0.005 0.015/-0.005 0.015/-0.005 0.015/-0.005 Shell Temp () Material 80 80 80 80 80 80 150 150 80 80 150 80 80 80 80 CS CS CS CS CS CS CS CS CS CS CS CS CS CS CS 4 for future 2 for future 2 for future 4 for future 6 for future 2 for future 2 for future 1 for future 1 for future Remarks 2 for future
Oil Product Lube
Note *1. IFRT: Internal Floating Roof Tank / FRT : External Floating Roof Tank *2. Design Pressure of Positive Pressure while tank filling, the BV to be outbreathing = BV Set Pressure (0.01) * 1.5 = 0.015 kg/cm2g. *3. Design Pressure of Negative Pressure while tank pumping out, the BV to be inbreathing = BV Set Pressure (-0.0025) * 2.0 = - 0.005 kg/cm2g. cf : Set Point of N2 Pressure Regulating Valve = 25 mmH2O g Set Point of Breather Valve = 100 / -25 mmH2O g = 0.01 / - 0.0025 kg/cm2 g ( 1 kg/cm2 g = 10,000 mmH2O g = 10 m H2O g) *4. Regardless of aromatic services, LP steam heating devices should be installed inside all aromatic tanks for interchangeability.
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EQUIPMENT LIST
MARINE LOADING PUMP
Q'ty Item No. Marine Loading Pump Service fo Phase 1 1) 100G-101A/B 2) 100G-111A/B 3) 100G-121A/B 4) 100G-131A/B 5) 100G-141A~J 6) 100G-151A~C 7) 100G-161A/B 8) 100G-171A/B 9) 100G-181A/B 10) 100G-191A/B 11) 100G-193A/B P-Xylene Benzene Toluene Mixed Xyl Crude Oil (Bunker C) Naphtha Gas Oil/Jet/Kerosene/Mogas Lube Base Oil Solvent(MEK/Acet/EA) MTBE Methanol 2 19 Note : OP = Operating Pump / SP = Spare Pump 4 2 2 2 2 2 2 2 3 2 2 0 Phase2 Total (OP+SP) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 3 (2+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) Type Normal Flow rate (m3/hr) 1,000 700 500 700 3,000 2,000 2,000 500 500 500 500 Diff. Head (m) 69.3 67.8 76.9 76.9 97.7 91.7 70.6 98.8 92.2 113.7 91.0 Operating Pressure Suction (kg/cm2g) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Discharge (kg/cm2g) 6 6 6.7 6.7 8.8 6.7 6.0 8.4 8.3 8.4 7.2 Pumping Materials Temp. Casing/ () Impeller 40 40 40 40 90 40 40 50 40 40 40 CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS Power Estimated Remarks (kw) 277 195 155 218 1,122 573 513 195 193 193 167 future future
Centri. Centri. Centri. Centri. Centri. Centri. Centri. Gear Centri. Centri. Centri.
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EQUIPMENT LIST
T/T LOADING PUMP
Q'ty Item No. 1) 100G-112A/B 2) 100G-122A/B 3) 100G-132A/B 4) 100G-142A/B 5) 100G-152A/B 6) 100G-162A/B 7) 100G-172A/B 8) 100G-182A/B 9) 100G-192A/B 10) 100G-194A/B Truck Loading Pump Service for Benzene Toluene Mixed Xyl Crude Oil (Bunker C) Naphtha GO/Kero/Mogas Lube Base Oil Solvent MTBE Methanol 2 20 Note : OP = Operating Pump / SP = Spare Pump 4 2 2 2 Phase 1 2 2 2 6 2 2 0 Phase2 Type (OP+SP) 2 (1+1) 2 (1+1) 2 (1+1) 6 (5+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) 2 (1+1) Centri. Centri. Centri. Gear Centri. Centri. Gear Centri. Centri. Centri. Normal Flow rate (m3/hr) 140 140 140 140 140 140 140 140 140 140 Diff. Head (m) 61.0 56.2 56.2 46.6 60.2 63.5 47.0 44.4 54.7 56.8 Operating Pressure Suction (kg/cm2g) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Discharge (kg/cm2g) 5.4 4.9 4.9 4.2 4.4 5.4 4.0 4.0 4.0 4.5 Pumping Materials Power Temp. Estimated Remarks () asing/Impell (kw) 40 40 40 90 40 40 50 40 40 40 CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS CS / CS 39 35 35 30 31 39 28 28 28 32 future future
PAGE 127 / 159
EQUIPMENT LIST
JET MIXER
Item No. Jet Mixer Service for Jet Mixer Q'ty Phase-1 Phase-2 1) 100MJ-101A~D 2) 100MJ-111A/B 3) 100MJ-121A~C 4) 100MJ-131A~D 5) 100MJ-141A~H 6) 100MJ-142A/B 7) 100MJ-151A~F 8) 100MJ-161A~F 9) 100MJ-191A~F 10) 100MJ-192A~D PX Benzene Toluene Mixed Xylene Crude Oil (Bunker-C) Curde Oil (Bunker-C) Naphta Gas Oil/Kero/Mogas Tank MTBE Tank Methanol Tank Total 2 21 2 2 1 2 8 2 2 4 6 2 2 20 2 2 2 Total 4 2 3 4 8 2 6 6 2 4 41 Fluid : P-Xylene, Fluid : Benzene, Fluid : Toluene, DP : 3.5 kg/cm2g / DT : 80 DP : 3.5 kg/cm2g / DT : 80 DP : 3.5 kg/cm2g / DT : 80 CS CS CS CS CS CS CS CS CS CS 4 for future 6 for future 2 for future 2 for future 2 for future 2 for future 2 for future Description and Design Data Mat'l Remarks
Fluid : Mixed Xyl, DP : 3.5 kg/cm2g / DT : 80 Fluid : Crude Oil, DP : 3.5 kg/cm2g / DT : 80 Fluid : Crude Oil, DP : 3.5 kg/cm2g / DT : 80 Fluid : Naphtha, DP : 3.5 kg/cm2g / DT : 80
Fluid : GO/Kero/Mogas, DP : 3.5 kg/cm2g / DT : 80 Fluid : MTBE, DP : 3.5 kg/cm2g / DT : 80
Fluid : Methanol, DP : 3.5 kg/cm2g / DT : 80
PAGE 128 / 159
EQUIPMENT LIST
MECH. MIXER
Item No. 1) 100MM-101A~H 2) 100MM-111A~D 3) 100MM-121A~F 4) 100MM-131A~H 5) 100MM-141A~P 6) 100MM-141A~D 7) 100MM-151A~F 8) 100MM-161A~L PX Benzene Toluene Mixed Xyl. Crude Oil Crude Oil Naphtha Gas Oil/Kero/Mogas Total 38 Mech. Mixer Service for Mech. Mixer Q'ty Phase-1 Phase-2 4 4 2 4 16 4 4 8 12 32 4 4 4 Total 8 4 6 8 16 4 12 12 70 Description and Design Data Mixing for Homogenization, Mixing for Homogenization, Mixing for Homogenization, Mixing for Homogenization, Mixing for Homogenization, Mixing for Homogenization, Mixing for Homogenization, Mixing for Homogenization, Motor Power : 37 kw Motor Power : 37 kw Motor Power : 37 kw Motor Power : 37 kw Motor Power : 37 kw Motor Power : 37 kw Motor Power : 37 kw Motor Power : 37 kw Mat'l CS CS CS CS CS CS CS CS 2 for future all for future Remarks normally no use normally no use normally no use
PAGE 129 / 159
EQUIPMENT LIST
T/T LOADING ARM
Group Item No. Truck Loading Arm Service for Size (inch) 4" 4" 4" 4" 4" 4" 4" 4" 4" 4" 4" Total 2 21 8 1 1 1 T/T loading Qty (EA) Phase-1 1 1 1 1 12 1 5 2 Phase-2 Total 1 1 1 1 14 1 5 1 1 1 2 29 Main Line Size Truck & Loading Rate Shipment Rate ( m3/hr/arm) 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr 6" & 140 m3/hr (%) 0% 10% 30% 10% 60% 10% 80% 30% 80% 0% 50% Design Press. (kg/cm2 g) 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 9.3 Design Temp. () 80 80 80 80 150 80 80 80 80 80 80 Loading Mat'l Type Top Top Top Top Top Top Top Top Top Top Top CS CS CS CS CS 2 for future CS CS 5 for future CS CS CS 1 for future CS Remarks
1) 100ME-101 Aomatics 2) 100ME-102 3) 100ME-103 4) 100ME-104 Crude Oil Oil Product Lube Oil
PX Benzene Toluene Mixed Xyl
5) 100ME-105A~O Crude Oil & Bunker C 6) 100ME-106 7) 100ME-107A~E 8) 100ME-108 9) 100ME-109 Naphtha Gas Oil/Kero/Mogas Lube Base Oil Solvent (MEK/ACET/EA) MTBE
Petro. Chem. 10) 100ME-110
11) 100ME-111A/B Methanol
Notes : 1. Total 21 truck loading arms, included 8 arms for future, shall be reflected on Plot Plan . 2. All tank turn around will be assumed as 8 times per year. 3. T/T Vapor Recovery Unit (VRU) may be required at Loading Arm Area. This Package consists of Carbon Bed / Absorber Tower / Glycol Separator / Glycol-Absobent Exchanger / Vac.Pump / Rotary Lube Blower / Absorbent Return Pump / Glycol Pump / Absorbent Supply Pump .
PAGE 130 / 159
EQUIPMENT LIST
OFFSITE/MISCELLANEOUS
Item No. 1) 100G-301A/B 2) 100G-302A/B 3) 100G-303A/B 4) 100G-304A/B 5) 100G-305A/B 6) 100G-306A/B 7) 100G-307A/B 8) 100G-308A/B 9) 100D-301 10) 100D-302 A/B 11) 100M-301 12) 100M-302 13) 100M-303 14) 100M-304 15) 100M-305 16) 100M-306 17) 100PK-301 Service Tankage No.1 Oily Water Pump Tankage No.2 Oily Water Pump Tankage No.1 Storm Water Pump Tankage No.2 Storm Water Pump Tankage No.1 Sanitary Drainage Pump Tankage No.2 Sanitary Drainage Pump Tankage No.3 Sanitary Drainage Pump Storm Water Storage Tank Pump Storm Water Storage Tank Fire Water Tank Tankage No.1 Waste Water Pit Tankage No.2 Waste Water Pit Tankage No.1 Fire Water Pit Tankage No.2 Fire Water Pit Tankage No.1 Sanitary Drainage Pit Tankage No.2 Sanitary Drainage Pit WWT Package Q'ty 2 2 2 2 2 2 2 2 1 2 1 1 1 1 1 1 1 Description Sump pump, 22 m3/hr * 4.0 kg/cm2 g * kw Sump pump, 22 m3/hr * 4.0 kg/cm2 g * kw Sump pump, 55 m3/hr * 5.0 kg/cm2 g * kw Sump pump, 55 m3/hr * 5.0 kg/cm2 g * kw Sump pump, 10 m3/hr * 4.0 kg/cm2 g * kw Sump pump, 10 m3/hr * 3.5 kg/cm2 g * kw Sump pump, 10 m3/hr * 2.5 kg/cm2 g * kw Centrifugal, 24 m3/hr * 1.5 kg/cm2 g * kw Mat'l CS CS CS CS CS CS CS CS CS CS Rein. Conc. Rein. Conc. Rein. Conc. Rein. Conc. Rein. Conc. Rein. Conc. OPTION OPTION OPTION OPTION OPTION OPTION OPTION OPTION OPTION OPTION OPTION Remarks
DRT, Nominal 850 m3, 9.5 m ID * 12.0 m TL DRT, Nominal 6,000 m3, 18.90 m ID * 21.50 m TL Capacity : 20 m3 Capacity : 20 m3 Capacity : 50 m3 Capacity : 50 m3 Capacity : 20 m3 Capacity : 20 m3 Capacity : 60 m3/hr, total
PAGE 131 / 159
LX : Utility & Auxiliary Facilities

1. Consumption Summary for Design Purpose
Service Lixing Terminal (LX) [ 100 Area ] 1) Electricity (Substation) Waste Water Treatment (Oily Water / Storm Water) Independently Preliminary Estimated Capacity LX : 8MW HX WW will be transferred to LX WWT facility for final trearment. Remarks
2)
WWT Package
See Layout Dwg.
3) Monitoring Pond 4) Fire Water Tank or Pond 5) Truck Loading Arm Area (w/Control Room)
Independently Independently Independently Independently Tie-in Tie-in Tie-in Tie-in Tie-in
LX : 6,000m3 See Layout Dwg. LX : 24 Arms See Layout Dwg. LX : 30m3/hr LX : 15m3/hr LX : 32Ton/hr LX : 800Nm3/hr LX : 1,100Nm3/hr From City Council From Lidong Plant From Lidong Plant From Air Liquid Company Fron Lidong Plant
6) OCB/MCC Building 7) Utility Water (City Water) 8) Cooling Water 9) LP Steam 10) Nitrogen 11) IA/PA
PAGE 132 / 159
LX : Utility & Auxiliary Facilities

2. Consumption Estimation Basis for Design Purpose
2-1. Electricity
Main Users 1) Pumps 2) Tank Mixers 3) Auxiliaries Sub-Total Safety Factor Total Lixing Area(100) 4.6 MW 1.5 MW 0.3 MW 6.4 MW 1.25 MW 8 MW Bldg. / WWT Pkg. / FW System Remarks
2-2. Steam (LP Steam : 3.5 kg/cm2 g / 177 normal) from Lidong plant
Main Users 1) Tank Heating Coil 2) Hose Stations Sub-Total Safety Factor Total Lixing Area(100) 27 Ton/hr 1.0 Ton/hr 28 Ton/hr 1.15 32 Ton/hr Tie-in : 16"(LX) PX/BZ/B-C/LB Tanks 5pt. (200kg/hr.pt) Remarks
PAGE 133 / 159
2-3. Nitrogen (N2 Supply Condition : 7.5 kg/cm2 g / 30 normal) from Lidong plant Main Users 1) Tank Blanketing 2) Hose Staions Sub-Total Safety Factor Total Lixing Area(100) 500 Nm3/hr 300 Nm3/hr 800 Nm3/hr 1.00 800 Nm3/hr Tie-in : 1.5" LX : 5pt. * (100 Nm3/hr ea) *60*, T/T Loading Arm Purge Remarks
2-4. Compressed Air (Air Supply Condition : 7.5 kg/cm2 g / 40 normal) from Lidong plant Main Users 1) Instrument Air(IA) 2) Hose Staions(PA) Sub-Total Safety Factor Total Lixing Area(100) 800 Nm3/hr 300 Nm3/hr 1,100 Nm3/hr 1.00 1,100 Nm3/hr Tie-in : 2"(LX) LX : 5pt. * (100 Nm3/hr ea) * 60% Remarks
PAGE 134 / 159
2-5. Utility Water (City Water) from City Council Main Users 1) Sanitary 2) Hose Staions Sub-Total Safety Factor Total Lixing Area(100) 15 m3/hr 9 m3/hr 24 m3/hr 1.25 30 m3/hr Tie-in : 3"(LX) Remarks T/T Gate House & Control Room / OCB / Main Gate House / WWT Bldg. / Warehouse & Main. Shop LX : 5pt. * (3 m3/hr pt.) * 60%
2-6 Cooling Water (if needs) from Lidong plant Main Users 1) API Pump Seal Sub-Total Safety Factor Total Lixing Area(100) 11.7 m3/hr 11.7 m3/hr 1.25 15 m3/hr Tie-in : 2"(LX) LX : 39 ea (0.5m3/hr ea) Remarks
PAGE 135 / 159
3. Quick Line Sizing for vapor/gas

3-1. Steam lines (3.5 kg/cm2 g & 177 and density = 2.18 kg/m3 at normal condition)
1) Q = (45,000kg/hr)/(2.18 kg/hr) = 20,642 m3/hr and velosity = 35 m/sec assumed, then d=18" 2) Q = (32,000kg/hr)/(2.18 kg/hr) = 14,679 m3/hr and velosity = 35 m/sec assumed, then d=16" 3) Q = (13,000kg/hr)/(2.18 kg/hr) = 5,963 m3/hr and velosity = 35 m/sec assumed, then d=10"
3-2. Air lines (7.5 kg/cm2 g & 40 normal)

1) Q = (2,200 Nm3/hr) * (313/273) * (1.033/8.533) = 305 m3/hr and velosity = 20 m/sec assumed then d=3" 2) Q = (1,500 Nm3/hr) * (313/273) * (1.033/8.533) = 208 m3/hr and velosity = 20 m/sec assumed then d=2.5" 3) Q = (700 Nm3/hr) * (313/273) * (1.033/8.533) = 97 m3/hr and velosity = 20 m/sec assumed then d=1.5"
3-3. N2 lines (7.5 kg/cm2 g & 30 normal)

1) Q = (1,700 Nm3/hr) * (303/273) * (1.033/8.533) = 228 m3/hr and velosity = 25 m/sec assumed then d=2.5" 2) Q = (1,000 Nm3/hr) * (303/273) * (1.033/8.533) = 134 m3/hr and velosity = 25 m/sec assumed then d=2" 3) Q = (700 Nm3/hr) * (303/273) * (1.033/8.533) = 94 m3/hr and velosity = 25 m/sec assumed then d=1.5" cf. for example 3 inch pipe actual flow rate calculation, V (m3/hr) = A (3" pipe X-sectional arae, m2) * v (velosity, m/sec) ) A = 0.785 * (3" * 0.0254)^2 = 0.00456 m2 ) v =25 m/sec @ ) V = (0.00456) *(25*3600) = 410 m3/hr Convert to normal condition by using the equation (PV/T) = (P`V`/T`) so, V` = (PV/T) * (T`/P`) = V * (P/P`) * (T`/T) = 410 * (8.533/1.033) * (273/303) = 3050 Nm3/hr
PAGE 136 / 159
Process Flow Diagram (Para-Xylene)
PAGE 137 / 159
Process Flow Diagram (Benzene)
PAGE 138 / 159
Process Flow Diagram (Toluene)
PAGE 139 / 159
Process Flow Diagram (Mixed Xylene)
PAGE 140 / 159
Process Flow Diagram (Crude Oil)
PAGE 141 / 159
Process Flow Diagram (Crude Oil)
PAGE 142 / 159
Process Flow Diagram (Naphtha)
PAGE 143 / 159
Process Flow Diagram (GAS OIL / KERO / MOGAS : future)
PAGE 144 / 159
Process Flow Diagram (Lube Base Oil)
PAGE 145 / 159
Process Flow Diagram (Solvent)
PAGE 146 / 159
Process Flow Diagram (Methanol)
PAGE 147 / 159
Process Flow Diagram (MTBE : future)
PAGE 148 / 159
Process Flow Diagram (Truck Loading 1/2)
PAGE 149 / 159
Process Flow Diagram (Truck Loading 2/2)
PAGE 150 / 159
Process Flow Diagram (Oily Drainage System : optional)
PAGE 151 / 159
Process Flow Diagram (Fire & Storm Water System : optional)
PAGE 152 / 159
Process Flow Diagram (Sanitary Drainage : optional)
PAGE 153 / 159
Process Flow Diagram (Storm & Waste Water Treatment Facility)
PAGE 154 / 159
Process Flow Diagram (Marine Loading / Unloading)
PAGE 155 / 159
PLOT PLAN
PAGE 156 / 159
APPENDIX 2
PROJECT COST ESTIMATION
PAGE 157 / 159
APPENDIX 2. PROJECT COST ESTIMATION Tank Terminal Budgetary Cost

LX Phase-1 (Tank 25EA : 650,583m )
Budget by MA-PEC (090828) 6.83 USD % 3
Note
BUDGET INDEX
1. Engineering 1.1 Basic Engineering (FS & Conceptual Design) 1.2 Detail Engineering 1.3 Geological Survey 1.4 Field Audit 1.5 Inspection 1.6 Engineering Supervision 1. Engineering Total 2. Equipment (Pump, Truck Loading Sys.) Marine Loading Pump Truck Loading Pump Truck Loading Arm Truck Scale Loading Shelter Mechanical & Jet Mixer WWT Package VRU System 3. Piping Material 4. Electrical & Instrument Mat'l Sub Station Equipment Panel, DCS, Cable 5. Procurement Service 2 + 3 + 4 + 5. Procurement Total 6. Construction 6.1 Site Preparation 6.2 Soil Improvement Work 6.3 VCS Pile Work (Tank Area) 6.4 PHC Pile Work (Building & Structure) 6.5 Civil Work Tank Foundation Tank Dike Pipe Rack and Sleeper Foundation Pump Foundation Truck Loading Foundation & Paving Road Drainage & Ditch Monitoring Pond Waste Water System & Pit Brick Fence & Gate 6.6 Building Work OCB & MCC TT Control Room Gate House Sub Station TT Area
DESCRIPTION
UNIT QTY UNIT PRICE AMOUNT (RMB)
LOT LOT LOT LOT LOT LOT -
1 1 1 1 1 1
3,750,000 8,000,000 700,000 1,500,000 1,000,000 4,500,000 19,450,000
549,048 1,171,303 102,489 219,619 146,413 658,858 2,847,731 5,104,246 2,049,780 263,543 439,239 65,886 175,695 344,070 1,268,228 497,804 4,216,691 1,780,381 755,490 1,024,890 878,477 11,979,795 15% 5% 2% 4% 6%
128 Phase 1 (27) / Total (31) Phase 1 (18) / Total (22) Phase 1 (21) / Total (29) Phase 1 (1) / Total (1) EA EA EA EA LOT Phase 1 (38&21) / Total (70&41) Phase 1 (1) / Total (1) Phase 1 (1) / Total (1) EA EA EA LOT LOT LOT LOT LOT 27 18 21 1 1 59 1 1 1 1 1 1 1
34,862,000 14,000,000 1,800,000 3,000,000 450,000 1,200,000 2,350,000 8,662,000 3,400,000 28,800,000 12,160,000 5,160,000 7,000,000 6,000,000 81,822,000
M2 M2 LM LM
201,600 20,000 160,000 75,000
10 100 180 150
2,016,000 2,000,000 28,800,000 11,250,000 54,230,000
295,168 292,826 4,216,691 1,647,145 7,939,971 2,544,656 901,903 329,429 92,240 702,782 579,795 527,086 790,630 1,383,602 87,848 1,731,772 1,317,716 43,924 18,741 351,391 2% 2% 2% 5% 2% 10% 3%
Dia. 1.3M * L=17M Dia. 400 * L=30M
C30 Concrete C30 Concrete
M3 M3 M3 M3 M2 M2 M
7,900 2,800 2,500 700 20,000 22,000 6,000 5,400 3,500 1,000
2,200 2,200 900 900 240 180 600 1,000 2,700 600
17,380,000 6,160,000 2,250,000 630,000 4,800,000 3,960,000 3,600,000 5,400,000 9,450,000 600,000 11,828,000
60M*30M*3M=5,400M3 70M*50M
M3 M2 M
60M*30M*2F=3,600m2 12M*10M=120m2 8M*8M 50M*20M=1,000m2
M2 M2 M2 M2
3,600 120 64 1,000
2,500 2,500 2,000 2,400
9,000,000 300,000 128,000 2,400,000
PAGE 158 / 159
LX Phase-1 (Tank 25EA : 650,583m )

Budget by MA-PEC (090828) 6.83 USD 23,164,597 1,299,971 693,734 218,097 660,849 14,995,959 19% 1,903,367 1,469,283 340,146 324,978 660,849 597,365 1,244,510 1,317,716 732,064 1,317,716 439,239 732,064 219,619 3,660,322 5% 2% 2% 2% Phase-1 : 2EA Phase-1 : 2EA Phase-1 : 2EA 2% 2% Phase-1 : 8EA Phase-1 : 2EA Phase-1 : 2EA Phase-1 : 2EA % 29% 2% Phase-1 : 2EA Phase-1 : 2EA Phase-1 : 1EA
Note
BUDGET INDEX
6.7 Tank Construction(material + const.) 100D-101A~D (PX) 100D-111A/B 100D-121A/B 100D-121C 100D-131A/B (Benzene) (Toluene) (Toluene) (MX)
DESCRIPTION
UNIT TON 13,612M3 IFRT * (2+2)EA 6,683M3 IFRT * (2+0)EA 4,107M3 IFRT * (1+1)EA 9,966M3 IFRT * (0+1)EA 8,243M3 IFRT * (2+0)EA 9,966M3 IFRT * (0+2)EA 60,961M3 FRT * (8+0)EA 24,370M3 FRT * (2+0)EA 15,803M3 IFRT * (2+4)EA 15,803M3 IFRT * (0+6)EA 1,584M3 CRT * (2+2)EA 1,584M3 IFRT * (2+0)EA 3,052M3 IFRT * (0+4)EA 3,052M3 IFRT * (0+2)EA 7,515M3 IFRT * (2+2)EA 4,000M3 * 2EA TON TON TON TON TON TON TON TON TON TON TON TON TON TON TON TON TON LOT LOT Foam Station, Alarm Pipe Rack & Insulation Pipe Rack & Insulation Steel Structure LOT LOT LOT LOT LOT LOT 364 340 1,000 1 1 1 1 1 1 1 1 334,338,200 435,610,200 48,951,420 63,778,946 62% 81% 12,400 12,000 8,500 176 124 13,200 17,900 10,896 1,000 784 9,400 13,000 12,800 364 12,400 QTY 15,082 604 318 112 14,700 14,900 13,300 UNIT PRICE AMOUNT (RMB) 158,214,200 8,878,800 4,738,200 1,489,600 4,513,600 102,422,400 13,000,000 10,035,200 2,323,200 2,219,600 4,513,600 4,080,000 8,500,000 9,000,000 5,000,000 9,000,000 3,000,000 5,000,000 1,500,000 25,000,000
100D-131C/D (MX) 100D-141A~H (Crude Oil-Bunker C) 100D-142A/B (Crude Oil-Bunker C)
100D-151A/B/C (Naphtha) 100D-161A~F 100D-171A~D 100D-181A/B (Gas Oil/Kero/Mogas) (Lube Base Oil) (Solvent)
100D-181C~F (Solvent) 100D-191A/B (MTBE)
100D-192A~D (Methanol) Fire Water Tank 6.8 Steel Structure 6.9 Piping & Equipment Work 6.10 Electrical & Instrument 6.11 Fire Fighting 6.12 Insulation 6.13 Painting 6.14 Fire Proofing 6.15. Construction Supervision 6.16. Rail Station Pipe Line (QRC) 6. Construction Total
E + P + C COST Total 7. OTHERS (Owner Cost) 7.1 Commissioning 7.2 Lixing Project Management 7.3 Forwarding, Transportation and Tax 7.4 Government Permit 7.5 Contingency 7.6 Interest (Annual 5% for 1.5year) 7. Others Total LOT LOT LOT LOT LOT LOT 1 1 1 1 1 1
3,000,000 8,000,000 1,000,000 3,000,000 53,145,020 33,885,015 102,030,035
439,239 1,171,303 146,413 439,239 7,781,116 4,961,203 14,938,512 19% 9.9%
TOTAL OPTION : METERING SYSTEM & SUMP PUMP & PIT
537,640,235
78,717,458 100%
78,717,458
PAGE 159 / 159

Feasibility Study Report For Lixing Tank Terminal: Qingdao Lixing Logistics Co., LTD

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Feasibility Study Report For Lixing Tank Terminal: Qingdao Lixing Logistics Co., LTD

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QINGDAO LIXING LOGISTICS Co., Ltd.

PART - 1 TANK TERMINAL PROJECT FEASIBILITY STUDY REPORT

QINGDAO LIXING LOGISTICS Co., Ltd.