China[1]

QINGDAO LIXING LOGISTICS Co., Ltd.

(青岛丽星物流有限公司)

PART - 1 TANK TERMINAL PROJECT

FEASIBILITY STUDY REPORTMARCH 2010

MA-PEC Plant E&C Co., Ltd. PAGE 1 / 159

QINGDAO LIXING LOGISTICS Co., Ltd. 青岛丽星物流有限责任公司

FEASIBILITY STUDY REPORT for

LIXING TANK TERMINAL

March 2010

MA-PEC Plant E&C Co., Ltd.






CONTENTS

1. EXECUTIVE SUMMARY .................................................................................................. 6

2. INTRODUCTION............................................................................................................. 10

3. PROJECT OVERVIEW ................................................................................................... 13

3.1. PROJECT BACKGROUND ............................................................................................... 13

3.2. PROJECT SCOPE .............................................................................................................. 15

3.2.1. Storage Tank ................................................................................................................. 16 3.2.1.1. Tankage Plan ............................................................................................................................. 17

3.2.2. Utility System ................................................................................................................ 19

3.2.3. Building .......................................................................................................................... 20

3.2.4. Project General .............................................................................................................. 20

4. OBJECTIVE OF THE FEASIBILITY STUDY .............................................................. 22

4.1. PHASE - 1 ........................................................................................................................... 22

4.2. PHASE – 2 ........................................................................................................................... 23

5. BASIS OF THE FEASIBILITY STUDY ........................................................................... 25

5.1. TANK TERMINAL ............................................................................................................... 27

5.1.1. 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






5.2. OPERATIONAL PHILOSOPHY (TANK TERMINAL) .............................................................. 46

5.2.1. Truck Loading ............................................................................................................... 47

5.2.2. Stripping (Purging) ....................................................................................................... 47 5.2.2.1. Loading arm .............................................................................................................................. 47 5.2.2.2. Slop Material ............................................................................................................................. 48

5.2.3. Slop Operation .............................................................................................................. 48

5.2.4. 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. Waste Water System ..................................................................................................... 49

5.2.6. Sewer (Monitoring Pond) System ................................................................................ 49

5.2.7. Emergency Power Philosophy .................................................................................... 50

5.2.8. Laboratory Equipment .................................................................................................. 50

6. MARKET ANALYSIS ...................................................................................................... 52

6.1. ANALYSIS OF QINGDAO DEVELOPMENT PLAN ......................................................... 52

6.2. INDUSTRIAL RESTRUCTURING OF QINGDAO ............................................................. 52

6.2.1. Basic Circumstance ...................................................................................................... 53

6.2.2. Space Layout Planning ................................................................................................. 53

6.3. MARKET RESEARCH ....................................................................................................... 54

6.3.1. Chinese Market Survey................................................................................................. 54

6.3.2. Shandong Area Market Survey .................................................................................... 55

6.4. TANK RENTAL COST IN CHINA ........................................................................................ 62

6.5. TARGET MARKET .............................................................................................................. 63

7. PROJECT COST ESTIMATION ................................................................................... 65

7.1. INVESTMNET COST ESTIMATION .................................................................................. 65

7.2. OPERATING COST ESTIMATION .................................................................................... 65

8. ECONOMIC ANALYSIS ................................................................................................. 70

8.1. SALES REVENUES ............................................................................................................ 73

8.1.1. Tank Terminal Sales Revenue Estimation .................................................................. 74

8.1.2. Sales Revenue Distribution ......................................................................................... 77

8.2. PRODUCTION COST ......................................................................................................... 80

8.3. PROFITABILITY ................................................................................................................. 84

8.4. SENSITIVITY ANALYSIS ................................................................................................. 100






9. CONCLUSION & RECOMMENDATION ...................................................................... 108

10. PROJECT SCHEDULE ................................................................................................ 111

APPENDIX 1. CONCEPTUAL DESIGN BASIS ....................................................................... 116

APPENDIX 2. PROJECT COST ESTIMATION ........................................................................ 158






SECTION 1

EXECUTIVE SUMMARY






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 wouldn’t 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 Group’s 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






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-Ⅲ 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

Owner’s 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


Best Case







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.






SECTION 2

INTRODUCTION






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






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 Lixing’s 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 owner’s decision for maximize project feasibility and profitability.






SECTION 3

PROJECT OVERVIEW






3. PROJECT OVERVIEW 3.1. 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.

Lixing’s 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.






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.






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.






Following List of Land utilization table can provide the information of area occupation.

No Description Area (m2) % Remark

Land Occupied for project 244,200 Within the scope of enclosing wall

1 Storage tank site 121,600 49.8

1-1 Crude tank dike 56,100 23.0

1-2 Gas Oil / Kero / Mogas tank dike 13,400 5.5

1-3 Naphtha tank dike 13,400 5.5

1-4 PX & Benzene tank dike 12,300 5.0

1-5 MX and Toluene tank dike 12,300 5.0

1-6 Methanol tank dike 6,000 2.5

1-7 MTBE & Lube base Oil tank dike 8,100 3.3

2 Truck Loading Area 18,200 7.5

3 Utility & Offsite Facility Area 8,500 3.5

4 Corridor Land 104,000 39.3

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 specifications on green design of petrochemical industry - SH3094-1999 specifications on rainwater open drain for petrochemical complex - SH3084-1997 legend of transport design in the general drawing for petrochemical

complex - GB50160-2008 Code of fire protection design for petrochemical industry

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.






MA-PEC plans the terminal layout to cover the following minimum net volume in total available site area.

Para-Xylene Net 40,000m3 Benzene Net 10,000m3 Toluene Net 6,000m3 Mixed Xyelene Net 12,000m3 Future Aromatic Tanks Net 24,000m3

Crude Oil (Bunker-C) Net 440,000m3

Naphtha Net 40,000m3 Future Naphtha Tanks Net 40,000m3

Gas Oil / Kero / Mogas Net 40,000m3 Future Gas Oil / Kero / Mogas Net 40,000m3

Lube Base Oil Net 2,600m3 Future Lube Base Oil Net 2,600m3

Solvent Net 2,600m3 MTBE Net 5,000m3 Future Solvent / MTBE Net 10,000m3 Methanol Net 12,000m3 Future Methanol 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 ;






PHASE-1 : 25 tanks (Nominal Volume 650,583m3)

Para-Xylene Net 11,560m3 x 2 tanks Benzene Net 5,618m3 x 2 tanks Toluene Net 3,448m3 x 1 tanks Mixed Xylene Net 6,896m3 x 2 tanks Crude Oil (Bunker-C) Net 50,000m3 x 8 tanks Crude Oil (Bunker-C) Net 20,700m3 x 2 tanks Naphtha Net 13,500m3 x 2 tanks Lube Base Oil Net 1,300m3 x 2 tanks Solvent Net 1,300m3 x 2 tanks Methanol Net 6,160m3 x 2 tanks

Available Site Area : 224,165m2

Total Storage Nominal Volume : 650,583m3 Total Storage Net Volume : 537,516m3 (designed about 82% of Tank capa.)

PHASE- 2 (Future) : 26 tanks (Nominal Volume 255,769m3)

Para-Xylene Net 11,560m3 x 2 tanks Toluene Net 3,450m3 x 1 tank Toluene Net 8,200m3 x 1 tank Mixed Xylene Net 8,200m3 x 2 tanks Naphtha Net 13,500m3 x 4 tanks Gas Oil / Kero / Mogas Net 13,500m3 x 6 tanks Lube Base Oil Net 1,300m3 x 2 tanks Solvent Net 2,500m3 x 4 tanks MTBE Net 2,500m3 x 2 tanks Methanol Net 6,160m3 x 2 tanks

Available Site Area : 224,165m2

Total Storage Nominal Volume : 255,769m3 Total Storage Net Volume : 216,088m3 (designed about 84% of Tank capa.)






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 : Para-Xylene, Benzene Aromatics Products Dike-2 : Toluene, Mixed Xylene Oil Products Dike -1 : Naphtha Oil Products Dike-2 : Gas Oil / Kero / Mogas Crude Oil Products Dike : Crude Oil (Bunker-C) Lube Oil Products Dike : Lube based Oil Petrochemical Products Dike -1 : MTBE, Solvent Petrochemical Products Dike -2 : 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






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.






SECTION 4

OBJECTIVE OF THE FEASIBILITY STUDY






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

Para-Xylene Net 11,560m3 x 2 tanks Benzene Net 5,618m3 x 2 tanks Toluene Net 3,448m3 x 1 tanks Mixed Xylene Net 6,896m3 x 2 tanks Crude Oil (Bunker-C) Net 50,000m3 x 8 tanks Crude Oil (Bunker-C) Net 20,700m3 x 2 tanks Naphtha Net 13,500m3 x 2 tanks Lube Base Oil Net 1,300m3 x 2 tanks






Solvent Net 1,300m3 x 2 tanks Methanol Net 6,160m3 x 2 tanks

Utility & Off-Site Facility : 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 Net 11,560m3 x 2 tanks Toluene Net 3,450m3 x 1 tank Toluene Net 8,200m3 x 1 tank Mixed Xylene Net 8,200m3 x 2 tanks Naphtha Net 13,500m3 x 4 tanks Gas Oil / Kero / Mogas Net 13,500m3 x 6 tanks Lube Base Oil Net 1,300m3 x 2 tanks Solvent Net 2,500m3 x 4 tanks MTBE Net 2,500m3 x 2 tanks Methanol Net 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.






SECTION 5

BASIS OF FEASIBILITY STUDY






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 Lixing’s 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 Lixing’s project application report for Chinese government approval. For technical and economical evaluation of the tank terminal project, the following bases are applied.






Figure 5A. Project Layout Drawing (Phase-1)






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.






- 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.






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.






- 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

Service Q'ty Type

Nominal Volume Dimension

Conditions Shell

MaterialRemar

k Press Temp

(m3) ID x TL (mm) (kg/cm2g) (℃)

Para-Xylene 2 IFRT 13,612 28.4*21.5 0.015/ -0.005 80 CS

Benzene 2 IFRT 6,683 19.9*21.5 0.015/ -0.005 80 CS

Toluene 1 IFRT 4,107 15.6*21.5 0.015/-0.005 80 CS

Mixed Xylene 2 IFRT 8,243 22.1*21.5 0.015/-0.005 80 CS

Crude Oil (Bunker-C) 8 FRT 60,961 60.1*21.5 ATM 150 CS

Crude Oil (Bunker-C) 2 FRT 24,370 38.0*21.5 ATM 150 CS

Naphtha 2 IFRT 15,803 30.6*21.5 0.015/-0.005 80 CS






Lube base Oil 2 CRT 1,584 11.6*15.0 ATM 150 CS

Solvent 2 IFRT 1,584 11.6*15.0 0.015/-0.005 80 CS

Methanol 2 IFRT 7,515 21.1*21.5 0.015/-0.005 80 CS

Table 5.1B Phase-2 (Future) Storage Tank List by service purpose

Service Q'ty TypeNominal Volume Dimension

Conditions Shell

MaterialRemar

k Press Temp

(m3) ID x TL (mm) (kg/cm2g) (℃)

ParaXylene 2 IFRT 13,612 28.4*21.5 0.015 / -0.005 80 CS

Toluene 1 IFRT 4,107 15.6*21.5 0.015 / -0.005 80 CS

Toluene 1 IFRT 9,966 24.3*21.5 0.015 / -0.005 80 CS

Mixed Xylene 2 IFRT 8,243 24.3*21.5 0.015 / -0.005 80 CS

Naphtha 4 IFRT 15,803 30.6*21.5 0.015 / -0.005 80 CS

Gas Oil / Kero / Mogas 6 IFRT 15,803 30.6*21.5 0.015 / -0.005 80 CS

Lube base Oil 2 CRT 1,584 11.6*15.0 ATM 150 CS

Solvent 4 IFRT 3,052 15.1*17.0 0.015 / -0.005 80 CS

MTBE 2 IFRT 3,052 15.1*17.0 0.015 / -0.005 80 CS

Methanol 2 IFRT 7,515 21.1*21.5 0.015 / -0.005 80 CS

5.1.1.3. Utility and Offsite Facility Concept Lixing Tank Terminal shall construct following utility and offsite facility

- Electricity Substation (Lixing 15MW) - Monitoring Pond (Lixing 6,000m3) - Truck Loading Arm (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 (Lixing 50m3/hr) - LP Steam (Lixing 15Ton/hr) - IA/PA (Lixing 1,500Nm3/hr)






Lixing Tank Terminal plan to receive following utility from outside of terminal. - Utility Water - City Water from City Council - Nitrogen (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.






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






- 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;






- The operator station carries out data management, operation control, control intervention and man machine dialogue; - The management station obtains field data from the operator station, giving

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; - 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 valve - Security detection alarm - Pump monitoring and protection

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






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 guideline for petroleum fire system NFPA 11 low expansion foam NFPA 15 water spray fixed system NFPA 16 deluge foam NFPA 20 installation of centrifugal fire pumps NFPA 22 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.






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

Device 10KV 380V Lighting Sub Total

Note Required

(KW) Required

(KW) Required

(KW) Required

(KW)

Oil Tank 5600 130 5 5735

Naphtha Tank 2080 130 5 2215

Methanol Tank 230 2 232

MTBE / Lube Oil / Solvent 535 340 5 880

Light Oil Tank 725 65 5 795

Toluene / MX Tank 530 80 5 615

Benzene / PX Tank 720 115 5 840






Utility 300 300

Ancillary Facilities 300 300

Tank Brightening 72 11984

Other Load 1500 1500

Total 10190 3190 104 13484

Synchronizing Coefficient 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






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.






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

Steam Category Pressure at BL, Kg/cm2 (g) Temperature at BL, ℃

Norm Max Min Des Norm Max Min Des

HP steam 42.2 44.2 40.2 49 390 406 374 426

MP Steam 17.6 19.3 16.5 21.5 260 288 208 320

LP Steam 3.5 4.2 2.8 6 177 204 149 235

- Table 5.1D. Condensate

Steam Source Destination Pressure at Destination

BL Condensate Station (*) Kg/cm2 (g)

HP steam Flash Drum (OSBL) 17.6

MP Steam Flash Drum (OSBL) 3.5

LP Steam 0.2

- Table 5.1E. Circulating Cooling Water

Description Pressure at BL, Kg/cm2 (g) Temperature at BL, ℃


Supply 5.0 6.5 9.5 33 120

Return 3.4 9.5 47 120

Fouling Factor, m2hC/Kcal 0.0006

Heat Exchanger Metallurgy, Tubes KCS

- Table 5.1F. De-Mineralized Water



Supply 7 9 40 120






pH 6 ~ 8

Conductivity : micromhos/cm 0.2 Max

SiO2 : mg/l < 0.02

Total Fe : mg/l < 0.03

- Table 5.1G. Boiler Feed Water



Supply 63 76 116 114

pH 8.8 ~ 9.2

SiO2 : wt ppm 0.02

Total Fe : wt ppm 0.03

Cu2+ : wt ppm 0.005

Soluble Oxygen : wt ppm 0.015

Oil : wt ppm 1

Conductivity : micromhos/cm at 25℃ 0.2 max

Incremental Value :

Chlorine : wt ppm

- Table 5.1H. Electrical Power Motor Power, kW

Voltage, V Phase Frequency, Hz from to

> 110 6,000 3 50

0 110 380 3 50

- Table 5.1I. Air Parameter Instrument Air Plant Air

Pressure, Kg/cm2 (g)

Normal 7.5 7.5

Maximum 8.5 8.5

Minimum 7 7

Design 10 10

Temperature, ℃

Normal 40 40






Maximum 70 70

Minimum AMB. AMB.

Design 120 120

Dew point -40

Oil-free yes yes

Capacity Limitation

- Table 5.1J. Nitrogen

Parameter Nitrogen Category

Pressure, Kg/cm2 (g)

Normal 7.5

Maximum 8.5

Minimum 7

Design 20

Temperature, ℃

Normal 30

Maximum 45

Minimum 5

Design 120

Dew point

Composition, vol %

N2 99.5% minimum

O2 20 ppm maximum

CO 20 ppm maximum

CO2 20 ppm maximum

Other Carbon Compound 5 ppm maximum

Chloride 1 ppm maximum

H2O 5 ppm maximum

Hydrogen 20 ppm maximum

Noble Gas Remainder, ppm

Total 100%






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

Month Data Period Temperature ℃

Mean Max. Mean Mean Min.

JAN 1961 ~ 1990 2.6 -0.9 -3.7

FEB 1961 ~ 1990 3.8 0.2 -2.5

MAR 1961 ~ 1990 8.7 4.8 2.0

APR 1961 ~ 1990 14.4 10.4 7.5

MAY 1961 ~ 1990 19.7 15.8 12.9

JUNE 1961 ~ 1990 23.3 19.9 17.6

JULY 1961 ~ 1990 26.7 23.8 21.9

AUG 1961 ~ 1990 28.3 25.3 23.0

SEPT 1961 ~ 1990 24.9 21.5 18.6

OCT 1961 ~ 1990 19.7 16.1 13.2

NOV 1961 ~ 1990 12.4 9.0 6.0

DEC 1961 ~ 1990 5.3 2.0 -0.8

Location of weather station : - Longitude : 120.3 E - Latitude : 36.1 N - Altitude : 76m

Source : Hong Kong Observatory






Rainfall data corresponding to the site are presented in below tables in b)

b) Table 5.1L. Average Monthly Rainfall in Site

Data Period

Rainfall Amount (mm)

Days with Rain (at least 1.0mm of

rainfall)

Mean Daily Sunshine Duration

(Hours)

JAN 1961 ~ 1990 10.5 1.9 6.0

FEB 1961 ~ 1990 12.4 2.1 6.4

MAR 1961 ~ 1990 21.0 2.8 7.1

APR 1961 ~ 1990 36.4 4.6 7.4

MAY 1961 ~ 1990 50.9 4.9 7.9

JUNE 1961 ~ 1990 82.7 6.0 7.3

JULY 1961 ~ 1990 177.1 9.9 5.9

AUG 1961 ~ 1990 156.0 8.0 7.2

SEPT 1961 ~ 1990 90.2 5.7 7.3

OCT 1961 ~ 1990 46.5 4.2 7.1

NOV 1961 ~ 1990 26.6 3.2 6.3

DEC 1961 ~ 1990 9.7 2.2 5.9

c) Climatic Condition

- Weather Conditions : Marine Climate - Ambient Temperature :

Average daily maximum dry bulb temp. : 32℃ Average daily minimum temp. : -16.9℃ Maximum temperature on record : 38.9℃ Minimum temperature on record : -16.9℃ Blower design : 17℃

- Relative Humidity : Average monthly max. humidity : 92% (July) Average monthly min. humidity : 64% (November) Annual average humidity : 75%






- Barometric Pressure : Maximum : 1016.9 milli-bars Minimum : 997.2 milli-bars Annual Average : 1008.2 milli-bars

- Wind : Direction of prevailing wind :

Season Wind Direction Summer S & WN Fall SE Winter ES Spring SE

Average wind velocity record : 7.5 m/s (in winter) Maximum wind velocity record : 35.8 m/s (once of 100y) Moment Maximum Wind Speed : 46.9 m/s (once of 100y) Reference Wind Pressure : 0.6kN/m2 with10min.at10m in high Chinese Code (GB50009-2001) Ground Roughness : Category A (Sea Shore)

- Rain : Maximum rainfall recorded : 296.6 mm per day Average rainfall per year : 694.8 mm Design rainfall : 103.2 mm per hour Reference Snow Pressure : 0.2 kN / m2

- Earthquakes : Chinese Code (GB50011-2001) - Average Seismic Fortification Intensity : 6 group 2 - Design Basic Acceleration Ground Motion : 0.05g Chinese Code (SHJ39-91) for Piping - Seismic Factor : 0.09g UBC - Qingdao : zone 3

- Soil Profile Type : SE






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.






5.2.1. Truck Loading a) Truck loading shipment ratio of each product storage capacity is expected as

following. - Para-xylene 0% - Benzene 10% - Toluene 30% - Mixed Xylene 10% - Crude Oil (Bunker-C) 60% - Naphtha 10% - Gas Oil / Kero / Mogas 80% - Lube Based Oil 30% - Solvent (MEK/ACET/EA) 80% - MTBE 0% - Methanol 50%

b) The maximum loading rate is 140m3/hr per product c) 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) Twenty one (21) truck loading arms (Eight (8) loading arms for future) shall be reflected on the plot plan.

e) Truck loading control can be done either at the truck loading control room or in the main control building.

f) 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)






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.






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.






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.






SECTION 6

MARKET ANALYSIS






6. MARKET ANALYSIS 6.1. 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 China’s 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






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.






(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. MARKET RESEARCH 6.3.1. 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 China’s 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 Asia’s 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.






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.

China’s crude oil import came mainly from the Middle East, the need for more than

200,000DWT transport ship, and most of China’s 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 (干线航路) of Petroleum and chemical vessel. The port has






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 Lixing’s 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






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 2002 2003 2004 2005 2006

North-East

China

Nigeria 0 55 0 0 158

The Netherlands 21 186 1,333 1,669 1,849

Germany 0 0 8 0 36

Mexico 0 0 366 0 0

USA 836 2,164 1,025 1,983 966

Belgium 0 0 0 28 40

Argentina 0 0 0 0 59

England 42 89 163 149 150

Egypt 0 0 43 0 164

Colombia 0 0 33 0 0

Peru 0 0 0 0 26

Australia 0 0 544 668 443

South China Nigeria 42 0 0 0 0

USA 42 0 0 0 1,866

Shanghai

Nigeria 0 134 0 6,723 937

The Netherlands 0 7 0 0 0

Mexico 450 845 694 272 223

USA 332 278 69 127 164

Belgium 0 0 0 28 652

England 0 0 0 340 0

Colombia 0 0 0 0 46

Peru 0 0 0 0 598

Jiangsu Nigeria 63 55 163 56 728


Germany 0 0 3 2 3

Mexico 0 0 0 0 183

USA 1,013 1,312 404 19,753 361






Belgium 0 52 0 12 5

England 0 0 0 0 2

Egypt 0 0 130 0 2

Colombia 0 21 15 0 42

Peru 0 0 0 0 290

Yangtze

Inland

Nigeria 0 0 0 64 2


USA 433 498 402 129 195

Belgium 0 0 99 0 0

Cambodia 0 0 0 0 3

Peru 0 0 0 0 43 Source : KMI

Table 6B. Overall import volume via Chinese wharf.

Area Country 2002 2003 2004 2005 2006

North East

China

Germany 0 86 188 18 158

Mexico 1,163 0 3,636 13,109 10,005

USA 127,199 104,399 111,958 99,852 56,363

Belarus 1,409 5,621 19,492 3,737 9,736

Belgium 0 1,751 0 1,019 1,538

Canada 2,310 5,614 38,902 41,373 1,718

Poland 5,998 15,440 12,444 13,677 6,991

France 16 0 50 41 145

Guangdong

Germany 78 7 9 23 187

Mexico 0 12,249 11,974 11,371 20,838

USA 105,326 96,701 82,230 89,626 85,635

Belarus 0 0 0 1,312 1,198

Belgium 0 1,544 4 3,108 1,595

Algeria 0 0 0 0 4,661

England 0 7 0 0 0

Chile 0 21,951 14,472 20,965 60,967

Canada 52,979 98,026 104,956 62,657 23,363

Poland 2,481 1,430 6,356 14,882 14,887






France 212 114 61 190 146

Australia 0 0 0 32 20

Yangtze

southern area

Germany 5 0 0 0 1

Mexico 0 0 0 3,512 8,615

USA 6,421 6,710 3,482 2,698 2,215

Belarus 0 0 0 3,129 1,197

Belgium 191 2,406 0 0 0

Chile 0 0 1,514 0 0

Canada 36,645 66,766 68,939 51,820 55,366

Poland 241 400 0 0 1,561

Shanghai

Germany 0 29 11 753 625

Mexico 2,782 2,109 13,143 5,705 12,019

USA 93,802 98,055 71,769 86,482 59,077

Belarus 3,727 16,420 5,052 11,301 13,900

Belgium 0 13,032 16,059 9,187 18,863

Chile 0 0 4,106 801 0

Canada 168,849 171,627 210,159 165,218 89,740

Poland 1,991 5,349 1,222 13,732 11,862

France 241 16 67 116 423

Jiangsu

South Africa 0 0 0 290 0

Germany 5 4,441 2,523 3,677 1,255

Mexico 6,678 32,577 34,796 40,796 38,528

USA 31,850 64,229 50,283 82,994 47,115

Belarus 13,150 30,511 50,660 58,967 37,092

Belgium 1,425 36,965 43,112 18,788 15,942

Algeria 0 0 0 0 3,075

Chile 0 10,414 11,506 42,353 53,594

Canada 217,235 243,346 425,345 528,774 407,252

Poland 10,224 19,938 26,842 40,931 27,514

France 0 0 1,519 7 1,133

Yangtze Inland

USA 91,061 95,038 94,009 99,469 127,159

Germany 0 0 1 0 258

Mexico 885 4,115 0 8,652 18,640

Belarus 11,849 16,068 0 13,071 27,583

Belgium 736 14,238 8,967 5,859 5,867

Chile 0 9,881 2,143 7,129 6,573






Canada 70,102 122,786 160,566 0 228,187

Poland 37,379 31,182 26,952 26,914 22,577

China Inland

France 175 145 22 20 195

Germany 0 3 5 0 0

USA 0 12 0 19 6

Canada 4,320 0 0 0 18,605

France 0 0 18 0 0

Source : KMI Table 6C. China Chemical Volume Expectation

Unit : ton

Year 2007 2008 2009 2010 2011

Volume 657,357 733,611 818,710 913,680 1,019,667

Source : KMI

Table 6D. Overall import volume Estimation via Chinese wharf Unit : 1,000 ton

Year Capacity Production Demand Balance (Export)

Balance (Import)

Reference 2005 36,945 32,464 43,751 0 11,287

Prediction

2006 44,916 38,199 48,793 0 10,595

2007 51,622 42,957 54,297 0 11,340

2008 58,768 49,024 60,139 0 11,115

2009 66,742 56,504 68,713 50 12,259

2010 78,498 66,879 79,163 644 12,928

2011 83,124 70,772 84,391 489 14,108

Annual Increasing Rate (%) 06~11 13.1% 13.1% 11.6% 5.9%

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






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 (長江) area and Southern China (南方) area through mostly seaway vessel.

The companies who process daily over 3,000ton are ; Table 6E. Shandong Petrochemical capacity Trend

Company Capa (TPA)

Process (10,000TPA)

2005 yr 2006 yr 2010 yr

Sinopec Qingdao Refinery & Chemical 27,000 1,000

Shandong BinHua Group 8,000 200 230 300

Shandong JingBo Group 3,600 100 140 210

Shandong HuaXing Petro Chemical 6,000 110 140 170

Zhenhe Group 2,000 56 70 120

LiHuaYi Group 3,000 50 65 95

Shandong Kenli Petro Chemical 2,000 26 30 60

DongJing Hualion Petro Chemcial 1,000 25 30 60

ZhongHai Petro Chemical 3,000 20 28 40

SHIDA Refinery & Chemcial 3,000 70 80 120

Haike Petrochemical 1,000 30 40 70

Gifeng Petrochemical 600 8 12 20

Jincheng Petrochemical 1,000 25 30 45

Dongming Petrochemical 8,000 160 200 300

Zixian Petrochemical 800 20 35 40

WeiFang HongRu Pertochemical 2,000 80 90 180

Shanguang company 800 25 30 40

Shendong Hanguan Petrochemical 2,000 80 90 100

Jinan no.2 company 800 15 20 45

Linzi petrochemical 200 5 8 14

Changyi Petrochemical 2,000 60 80 110

Jinan Greatwall Petrochemical 800 15 25 35






Shenchi Petrochemical 800 25 30 40

DongYing Wanlong Petrochemical 1,000 15 30 45

Shandong HaiHua Group 1,500 48 60 80

Huifeng Petrochemical 1,000 20 30 40

Others 270 360 500

TOTAL 82,900 1,558 2,053 3,879

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 Company Name Storage Capacity (m2)

Income per ton (RMB)

Rental Cost per ton (RMB)

Shanghai Shanghai Orient Terminal Co., Ltd. 47,000 113 130

Ningbo Xinxing Liquid Chemical Store Co., Ltd. 29,000 41 30 40 30

Ningbo CNCCC-Ningbo Hanhwa Chemical Tanking & Transportation Co., Ltd. 24,000 49 30

Ningbo Ningbo Jinhailing Liquid Chemicals Storage & Transportation Co., Ltd. 19,750

59 30 72 30

※ Source : Growell Research 2007.






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 (莱州) and Longkougang (龙囗港). Hongxing projects shall target the niche market of this.






SECTION 7

PROJECT COST ESTIMATION






7. PROJECT COST ESTIMATION 7.1. INVESTMNET COST ESTIMATION Table 7.1A. Tank Terminal

Unit : RMB

Scope of Project Execution Estimated Cost Note

Engineering 19,450,000

Procurement 81,822,000

Construction 334,338,200

Others (Owner’s Project Management Cost) 102,030,035

SUM 537,640,235

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;






Figure 7.2A. Organization

SECRETARY(3)

ACCOUNT(4)

GENERAL AFFAIR(5)

SALES(4)

ADMIN.MANAGER (1)

PLANT MANAGER(1)

1 SHIFT (5)

1 SHIFT (5)

1 SHIFT (5)

ROTATING STATIONARY

ENGINEER(2)

ENGINEER(2)

OUT SOURCING

TRUCK LOADING

1 SHIFT (8)

1 SHIFT (8)

1 SHIFT (8)

TANK TERMINAL

MANAGER(1)

MANAGER(1)

OPERATIONMANAGER (1)

ENGINEER(4)

MAINTENANCEMANAGER (1)

INSTRUMENTELECTRIC

ENGINEER(2)

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 vendor’s 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.






Table 7.2A Detail Required Manpower for Day Operation

Assumed

manpower Note

Management 1

General Manager 3

Manager 6

Engineer 10

Day Worker 12

Maintenance Out sourcing with Maintenance Vendor

Operator 47 Wharf & T/T : 3shift (5people per shift) for 18hours / day Tank Terminal : 4 shift (8people per shift) for 24hours / day

Total 79

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 3.40 3.46 3.53 3.60 3.68 3.75 3.82 3.90 3.98 4.06 4.14 4.22 4.31 4.39

Maintenance 2.80 2.85 2.91 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55 3.62 3.69

Labour 7.83 8.06 8.31 8.56 8.81 9.08 9.35 9.63 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

Insurance 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

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






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 3.75 3.82 3.90 3.97 4.05 4.14 4.22 4.30 4.39 4.48 4.57 4.66 4.75 4.85 4.94

Maintenance 2.80 2.85 2.91 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55 3.62 3.69

Labour 7.83 8.06 8.31 8.56 8.81 9.08 9.35 9.63 9.92 10.22 10.52 10.84 11.16 11.50 11.84

Factory Cost 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

Insurance 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

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 4.16 4.24 4.33 4.42 4.50 4.59 4.69 4.78 4.88 4.97 5.07 5.17 5.28 5.38 5.49

Maintenance 2.80 2.85 2.91 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55 3.62 3.69

Labour 7.83 8.06 8.31 8.56 8.81 9.08 9.35 9.63 9.92 10.22 10.52 10.84 11.16 11.50 11.84

Factory Cost 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

Insurance 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

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






SECTION 8

ECONOMIC ANALYSIS






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 Ⅲ 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.






The probable case and best case are defined as in table 8A. Table 8A. Case Definition

Worst Case

Probable Case

Best Case Note

Crude Oil Tank 100% 100% 100%

In : other wharf Out : LX T/T 50% & other wharf in 2011yr LX T/T 25% & other wharf from 2012yr

Naphtha Tank 25% 65% 85% In : LX Wharf Out : LX T/T 10% & LX Wharf 90%

PX Tank 25% 70% 85% In : LX Wharf Out : LX T/T 0% & LX Wharf 100%

Benzene Tank 20% 40% 70% In : LX Wharf Out : LX T/T 10% & LX Wharf 90%

Toluene Tank 30% 50% 80% In : LX Wharf Out : LX T/T 25% & LX Wharf 75%

MX Tank 20% 65% 85% In : LX Wharf Out : LX T/T 10% & LX Wharf 90%

Methanol Tank 25% 55% 80% In : HX Wharf Out : LX T/T 50% & HX Wharf 50%

Solvent Tank 27% 50% 77% In : HX Wharf Out : LX T/T 80% & HX Wharf 20%

Lube B/O Tank 30% 50% 80% In : HX Wharf 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.






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 100% 100% 100%

Naphtha 25% 65% 85%

PX 25% 70% 85%

Benzene 20% 40% 70%

Toluene 30% 50% 80%

MX 20% 65% 85%

Methanol 25% 55% 80%

Solvent 27% 50% 77%

Lube Base Oil 30% 50% 80%

T/T handling Rate (%)

Crude 50% in 2011yr, 25% in 2012yr

Naphtha 10% 10% 10%

PX 0% 0% 0%

Benzene 10% 10% 10%

Toluene 25% 25% 25%

MX 10% 10% 10%

Methanol 50% 50% 50%

Solvent 80% 80% 80%

Lube Base Oil 30% 30% 30%

WACC 10% 10% 10%

PROJECT ECONOMICS

IRR (%) 11.39 13.51 14.73

NPV (MM RMB) 43.53 112.31 153.4

Payout Periods (years) 8.19 7.36 6.95

QINGDAO LIXING LOGISTICS Co., Ltd. MARCH 2010 (青岛丽星物流有限公司)


FEASIBILITY STUDY REPORT


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 Values in Revenue Analysis

Truck Loading Value – Crude Oil RMB 8 per Metric Ton

Truck Loading Value – Others RMB 16 per Metric Ton

Crude Tank RMB 14.5 per Metric Ton per Month

Naphtha Tank RMB 30 per Metric Ton per Month

PX Tank RMB 30 per Metric Ton per Month

Benzene Tank RMB 30 per Metric Ton per Month

Toluene Tank RMB 30 per Metric Ton per Month

MX Tank RMB 30 per Metric Ton per Month

Methanol Tank RMB 30 per Metric Ton per Month

Solvent Tank RMB 33 per Metric Ton per Month

Lube Base Oil Tank 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.

QINGDAO LIXING LOGISTICS Co., Ltd. OCOTBER 2009 (青岛丽星物流有限公司)


FEASIBILITY STUDY REPORT Rev.3


8.1.1. Tank Terminal Sales Revenue Estimation Table 8.1B Tank Terminal Sales Revenue Estimation in Worst Case Unit : MM RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Crude Tank 71.92 73.35 74.82 76.32 77.84 79.40 80.99 82.61 84.26 85.95 87.66 89.42 91.21 93.03 94.89

Naphtha Tank 1.85 1.88 1.92 1.96 2.00 2.04 2.08 2.12 2.16 2.21 2.25 2.29 2.34 2.39 2.44

PX Tank 1.87 1.91 1.95 1.99 2.03 2.07 2.11 2.15 2.19 2.24 2.28 2.33 2.38 2.42 2.47

Benzene Tank 0.75 0.76 0.78 0.79 0.81 0.83 0.84 0.86 0.88 0.90 0.91 0.93 0.95 0.97 0.99

Toluene Tank 0.34 0.34 0.35 0.36 0.36 0.37 0.38 0.39 0.39 0.40 0.41 0.42 0.43 0.44 0.44

MX Tank 0.90 0.92 0.94 0.95 0.97 0.99 1.01 1.03 1.05 1.07 1.10 1.12 1.14 1.16 1.19

Methanol Tank 0.91 0.93 0.95 0.97 0.99 1.01 1.03 1.05 1.07 1.09 1.11 1.13 1.16 1.18 1.20

Solvent Tank 0.26 0.27 0.27 0.28 0.28 0.29 0.29 0.30 0.30 0.31 0.32 0.32 0.33 0.34 0.34

Lube Base Oil Tank 0.27 0.28 0.28 0.29 0.30 0.30 0.31 0.31 0.32 0.33 0.33 0.34 0.35 0.35 0.36

Truck Loading (Crude) 26.45 13.49 13.76 14.04 14.32 14.60 14.89 15.19 15.50 15.81 16.12 16.44 16.77 17.11 17.45

Truck Loading (Naphtha) 0.13 0.13 0.14 0.14 0.14 0.14 0.15 0.15 0.15 0.16 0.16 0.16 0.17 0.17 0.17

Truck Loading (PX) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Truck Loading (Benzene) 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07

Truck Loading (Toluene) 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08

Truck Loading (MX) 0.06 0.06 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.08 0.08 0.08 0.08 0.08 0.08

Truck Loading (Methanol) 0.32 0.33 0.34 0.34 0.35 0.36 0.37 0.37 0.38 0.39 0.40 0.40 0.41 0.42 0.43

Truck Loading (Solvent) 0.13 0.14 0.14 0.14 0.15 0.15 0.15 0.15 0.16 0.16 0.16 0.17 0.17 0.17 0.18

Truck Loading (Lube B/O) 0.05 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07

Total (real value) 106.34 94.97 96.87 98.81 100.79 102.80 104.86 106.95 109.09 111.28 113.50 115.77 118.09 120.45 122.86





Table 8.1C Tank Terminal Sales Revenue Estimation in Probable Case Unit : MM RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Crude Tank 71.92 73.35 74.82 76.32 77.84 79.40 80.99 82.61 84.26 85.95 87.66 89.42 91.21 93.03 94.89

Naphtha Tank 4.80 4.89 4.99 5.09 5.19 5.30 5.40 5.51 5.62 5.73 5.85 5.97 6.09 6.21 6.33

PX Tank 5.24 5.35 5.46 5.56 5.68 5.79 5.91 6.02 6.14 6.27 6.39 6.52 6.65 6.78 6.92

Benzene Tank 1.50 1.53 1.56 1.59 1.62 1.65 1.69 1.72 1.76 1.79 1.83 1.86 1.90 1.94 1.98

Toluene Tank 0.56 0.57 0.58 0.60 0.61 0.62 0.63 0.65 0.66 0.67 0.68 0.70 0.71 0.73 0.74

MX Tank 2.92 2.98 3.04 3.10 3.16 3.23 3.29 3.36 3.42 3.49 3.56 3.63 3.71 3.78 3.85

Methanol Tank 2.01 2.05 2.09 2.13 2.17 2.22 2.26 2.31 2.35 2.40 2.45 2.50 2.55 2.60 2.65

Solvent Tank 0.48 0.49 0.50 0.51 0.52 0.53 0.54 0.55 0.56 0.58 0.59 0.60 0.61 0.62 0.64




Truck Loading (PX) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00



Truck Loading (MX) 0.21 0.21 0.22 0.22 0.23 0.23 0.23 0.24 0.24 0.25 0.25 0.26 0.26 0.27 0.27




Total (real value) 118.14 107.02 109.16 111.34 113.57 115.84 118.15 120.52 122.93 125.39 127.89 130.45 133.06 135.72 138.44





Table 8.1D Tank Terminal Sales Revenue Estimation in Best Case Unit : MM RMB 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Crude Tank 71.92 73.35 74.82 76.32 77.84 79.40 80.99 82.61 84.26 85.95 87.66 89.42 91.21 93.03 94.89

Naphtha Tank 6.27 6.40 6.53 6.66 6.79 6.93 7.07 7.21 7.35 7.50 7.65 7.80 7.96 8.12 8.28

PX Tank 6.37 6.49 6.62 6.76 6.89 7.03 7.17 7.31 7.46 7.61 7.76 7.92 8.08 8.24 8.40

Benzene Tank 2.62 2.67 2.73 2.78 2.84 2.89 2.95 3.01 3.07 3.13 3.20 3.26 3.33 3.39 3.46

Toluene Tank 0.90 0.92 0.94 0.95 0.97 0.99 1.01 1.03 1.05 1.07 1.10 1.12 1.14 1.16 1.19

MX Tank 3.82 3.90 3.97 4.05 4.14 4.22 4.30 4.39 4.48 4.57 4.66 4.75 4.85 4.94 5.04

Methanol Tank 2.92 2.98 3.04 3.10 3.16 3.22 3.29 3.35 3.42 3.49 3.56 3.63 3.70 3.78 3.85

Solvent Tank 0.74 0.76 0.77 0.79 0.80 0.82 0.84 0.85 0.87 0.89 0.91 0.92 0.94 0.96 0.98




Truck Loading (PX) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00



Truck Loading (MX) 0.27 0.28 0.28 0.29 0.29 0.30 0.31 0.31 0.32 0.32 0.33 0.34 0.34 0.35 0.36




Total (real value) 125.37 114.39 116.67 119.01 121.39 123.82 126.29 128.82 131.39 134.02 136.70 139.44 142.23 145.07 147.97





8.1.2. Sales Revenue Distribution

Figure 8.1A Sales Revenue Distribution in Worst Case

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Lube B/O T/T

Solvent T/T

MeOH T/T

MX T/T

Toluene T/T

BZ T/T

Naphtha T/T

CRUDE T/T

Lube B/O Tank

Solvent Tank

MeOH Tank

MX Tank

Toluene Tank

BZ Tank

PX Tank

Naphtha Tank

Crude Tank





Figure 8.1B Sales Revenue Distribution in Probable Case

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Lube B/O T/T

Solvent T/T

MeOH T/T

MX T/T

Toluene T/T

BZ T/T

Naphtha T/T

CRUDE T/T

Lube B/O Tank

Solvent Tank

MeOH Tank

MX Tank

Toluene Tank

BZ Tank

PX Tank

Naphtha Tank

Crude Tank





Figure 8.1C Sales Revenue Distribution in Best Case

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Lube B/O T/T

Solvent T/T

MeOH T/T

MX T/T

Toluene T/T

BZ T/T

Naphtha T/T

CRUDE T/T

Lube B/O Tank

Solvent Tank

MeOH Tank

MX Tank

Toluene Tank

BZ Tank

PX Tank

Naphtha Tank

Crude Tank




FEASIBILITY STUDY REPORT Rev.3OCTOBER 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-PEC’s 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.

QINGDAO LIXING LOGISTICS Co., Ltd. OCTOBER 2009 (青岛丽星物流有限责任公司)




Table 8.2A. Production Cost in Worst Case

Unit : MM RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Utilities 3.33 3.40 3.46 3.53 3.60 3.68 3.75 3.82 3.90 3.98 4.06 4.14 4.22 4.31 4.39

Maintenance 2.80 2.85 2.91 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55 3.62 3.69

Labor 7.83 8.06 8.31 8.56 8.81 9.08 9.35 9.63 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

Insurance 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

Operation 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

Depreciation 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26

Land Depreciation Cost 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70

Total Production Cost 50.99 51.34 51.71 52.09 52.47 52.87 53.28 53.70 54.13 54.57 55.02 55.49 55.96 56.45 56.96

Marketing Cost 0.53 0.47 0.48 0.49 0.50 0.51 0.52 0.53 0.55 0.56 0.57 0.58 0.59 0.60 0.61

COST OF PRODUCT 51.52 51.82 52.20 52.58 52.98 53.39 53.80 54.23 54.67 55.12 55.59 56.06 56.55 57.06 57.57





Table 8.2B. Production Cost in Probable Case

Unit : MM RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Utilities 3.75 3.82 3.90 3.97 4.05 4.14 4.22 4.30 4.39 4.48 4.57 4.66 4.75 4.85 4.94

Maintenance 2.80 2.85 2.91 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55 3.62 3.69

Labor 7.83 8.06 8.31 8.56 8.81 9.08 9.35 9.63 9.92 10.22 10.52 10.84 11.16 11.50 11.84

Factory Cost 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

Insurance 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

Operation 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

Depreciation 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26



Marketing Cost 0.59 0.54 0.55 0.56 0.57 0.58 0.59 0.60 0.61 0.63 0.64 0.65 0.67 0.68 0.69

COST OF PRODUCT 51.99 52.30 52.69 53.09 53.49 53.91 54.34 54.78 55.23 55.69 56.17 56.66 57.16 57.67 58.20





Table 8.2C. Production Cost in Best Case

Unit : MM RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Utilities 4.16 4.24 4.33 4.42 4.50 4.59 4.69 4.78 4.88 4.97 5.07 5.17 5.28 5.38 5.49

Maintenance 2.80 2.85 2.91 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55 3.62 3.69

Labor 7.83 8.06 8.31 8.56 8.81 9.08 9.35 9.63 9.92 10.22 10.52 10.84 11.16 11.50 11.84

Factory Cost 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

Insurance 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

Operation 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

Depreciation 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26 32.26



Marketing Cost 0.63 0.57 0.58 0.60 0.61 0.62 0.63 0.64 0.66 0.67 0.68 0.70 0.71 0.73 0.74

COST OF PRODUCT 52.45 52.76 53.16 53.57 53.98 54.41 54.85 55.30 55.76 56.23 56.72 57.22 57.73 58.26 58.79






8.3. PROFITABILITY Financial feasibility of the project is demonstrated by the project’s 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






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.






Table 8.3A. Economic Analysis Summary (Year 2011 base) Unit : MM RMB

Worst Case Probable Case Best Case Remark

Sales Revenue 102.21 113.56 120.50

Utilities 3.33 3.75 4.16

Maintenance 2.80 2.80 2.80

Labour 7.83 7.83 7.83

Insurance 1.08 1.08 1.08

Depreciation 32.26 32.26 32.26

Land Depreciation Cost 3.70 3.70 3.70

Market Cost 0.53 0.59 0.63

Total Cost 51.52 51.99 52.45

Gross Profit 50.69 61.57 68.05

Corporate Tax 7.60 9.23 10.21

Net Profit 43.09 52.33 57.85

IRR (%) 11.39 13.51 14.73

NPV (MM RMB) 43.53 112.31 153.40

Pay Back Period (Year) 8.19 7.36 6.95

QINGDAO LIXING LOGISTICS Co., Ltd. OCTOBER 2009 (青岛丽星物流有限公司)




Table 8.3B. Cash Flow Summary for Construction Period (Worst Case / Probable Case / Best Case)

Unit : MM RMB

2009 2010 Note

Total Cash Inflow 107.52 430.08

Inflow funds 107.52 430.08

Total equity capital 107.52 430.08

Inflow operation 0.00 0.00

Other Income 0.00 0.00

Total Cash Outflow 107.52 430.08

Increase in fixed assets 107.52 430.08

Increase in current assets 0.00 0.00

Operating Cost 0.00 0.00

Marketing Costs 0.00 0.00

Income (corporation) tax 0.00 0.00

Financial Costs 0.00 0.00

Loan Repayment 0.00 0.00

Surplus (Deficit) 0.00 0.00

Cumulative Cash Balance 0.00 0.00

Local Surplus (Deficit)

Local cumulative cash balance





Table 8.3C. Cash Flow Summary for Operation Period (Worst Case) Unit : RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Total Cash InFlow 106.34 94.97 96.87 98.81 100.79 102.80 104.86 106.95 109.09 111.28 113.50 115.77 118.09 120.45 122.86

Inflow funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sales revenue 106.34 94.97 96.87 98.81 100.79 102.80 104.86 106.95 109.09 111.28 113.50 115.77 118.09 120.45 122.86

Total Cash Out Flow 27.49 26.04 26.64 29.57 30.28 33.48 34.31 35.16 36.02 36.91 37.81 38.74 39.68 40.65 41.64

Operating costs 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

Marketing costs 0.53 0.47 0.48 0.49 0.50 0.51 0.52 0.53 0.55 0.56 0.57 0.58 0.59 0.60 0.61

Income (corporate) tax 8.22 6.47 6.70 9.25 9.56 12.35 12.76 13.18 13.61 14.04 14.48 14.93 15.38 15.85 16.32

Land Depreciation costs 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70

Surplus (deficit) 78.85 68.94 70.23 69.24 70.50 69.32 70.55 71.80 73.07 74.37 75.69 77.04 78.41 79.80 81.22

Cumulative Cash Balance 78.85 147.79 218.02 287.26 357.76 427.08 497.63 569.42 642.50 716.87 792.56 869.59 948.00 1,027.80 1,109.02

Local surplus (deficit) 78.85 68.94 70.23 69.24 70.50 69.32 70.55 71.80 73.07 74.37 75.69 77.04 78.41 79.80 81.22

Local Cumulative

Cash Balance 78.85 147.79 218.02 287.26 357.76 427.08 497.63 569.42 642.50 716.87 792.56 869.59 948.00 1,027.80 1,109.02





Figure 8.3A. Cash Flow Graph (Worst Case)

0

10

20

30

40

50

60

70

80

90

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Cash Flow (Worst Case)





Figure 8.3B. Cumulative cash flow (Worst Case)

0

200

400

600

800

1000

1200

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Cummulated Cash Flow (Worst Case)





Figure 8.3G. Cumulative Net Present Value (Worst Case)

-500

-400

-300

-200

-100

0

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NPV

(MM

RM

B)

Cumulative Net Present Value (Worst Case)





Table 8.3D. Cash Flow Summary for Operation Period (Probable Case) Unit : RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025


Inflow funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sales revenue 118.14 107.02 109.16 111.34 113.57 115.84 118.15 120.52 122.93 125.39 127.89 130.45 133.06 135.72 138.44


Operating costs 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

Marketing costs 0.59 0.54 0.55 0.56 0.57 0.58 0.59 0.60 0.61 0.63 0.64 0.65 0.67 0.68 0.69


Land Depreciation Costs 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70 3.70

Surplus (deficit) 88.48 78.76 80.25 78.86 80.31 78.70 80.12 81.56 83.03 84.53 86.05 87.60 89.18 90.79 92.43

Cumulative Cash Balance 88.48 167.24 247.50 326.36 406.67 485.37 565.49 647.05 730.08 814.60 900.66 988.26 1,077.44 1,168.24 1,260.67


Local Cumulative

Cash Balance 88.48 167.24 247.50 326.36 406.67 485.37 565.49 647.05 730.08 814.60 900.66 988.26 1,077.44 1,168.24 1,260.67





Figure 8.3C. Cash Flow Graph (Probable Case)

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Cash Flow (Probable Case)





Figure 8.3D. Cumulative cash flow (Probable Case)

-600

-400

-200

0

200

400

600

800

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Cummulated Cash Flow (Probable Case)





Figure 8.3G. Cumulative Net Present Value (Probable Case)

0

200

400

600

800

1000

1200

1400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NPV

(MM

RM

B)

Cumulative Net Present Value (Probable Case)





Table 8.3E. Cash Flow Summary for Operation Period (Best Case) Unit : RMB

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025


Inflow funds 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Sales revenue 125.37 114.39 116.67 119.01 121.39 123.82 126.29 128.82 131.39 134.02 136.70 139.44 142.23 145.07 147.97


Operating costs 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

Marketing costs 0.63 0.57 0.58 0.60 0.61 0.62 0.63 0.64 0.66 0.67 0.68 0.70 0.71 0.73 0.74



Surplus (deficit) 94.24 84.63 86.24 84.61 86.18 84.31 85.84 87.40 88.98 90.60 92.24 93.92 95.63 97.37 99.14

Cumulative Cash Balance 94.24 178.88 265.12 349.73 435.91 520.22 606.06 693.46 782.44 873.04 965.28 1,059.20 1,154.83 1,252.20 1,351.33


Local Cumulative

Cash Balance 94.24 178.88 265.12 349.73 435.91 520.22 606.06 693.46 782.44 873.04 965.28 1,059.20 1,154.83 1,252.20 1,351.33





Figure 8.3E. Cash Flow Graph (Best Case)

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Cash Flow (Best Case)





Figure 8.3F. Cumulative cash flow (Best Case)

-600

-400

-200

0

200

400

600

800

1000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

MM

RM

B

Cummulated Cash Flow (Best Case)





Figure 8.3G. Cumulative Net Present Value (Best Case)

0

200

400

600

800

1000

1200

1400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

NPV

(MM

RM

B)

Cumulative Net Present Value (Best Case)






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.





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.




MA-PEC Plant E&C Co., Ltd. . PAGE 89 / 159

Figure 8.4A Sensitivity Analysis for Worst Case.

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

‐20% ‐16% ‐12% ‐8% ‐4% 0% 4% 8% 12% 16% 20%

IRR(%

)

Variation (%)

SENSITIVITY ANALYSIS (WORST CASE)

Sales revenue Increase in fixed assets Operating costs





Figure 8.4B Sensitivity Analysis for Probable Case.

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

‐20% ‐16% ‐12% ‐8% ‐4% 0% 4% 8% 12% 16% 20%

IRR(%

)

Variation (%)

SENSITIVITY ANALYSIS (PROBABLE CASE)






Figure 8.4C Sensitivity Analysis for Best Case.

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

‐20% ‐16% ‐12% ‐8% ‐4% 0% 4% 8% 12% 16% 20%

IRR(%

)

Variation (%)

SENSITIVITY ANALYSIS (BEST CASE)






Figure 8.4D Sensitivity Analysis for Sales Revenue

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

‐20% ‐16% ‐12% ‐8% ‐4% 0% 4% 8% 12% 16% 20%

IRR(%

)

Variation (%)

SALES REVENUE

Worst Case Probable Case Best Case





6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

‐20% ‐16% ‐12% ‐8% ‐4% 0% 4% 8% 12% 16% 20%

IRR(%

)

Variation (%)

OPERATING COST

Worst Case Probable Case Best Case

Figure 8.4E Sensitivity Analysis for Operating Cost





MA-PEC Plant E&C Co., Ltd. PAGE 107 / 159 .

SECTION 9

CONCLUSION & RECOMMENDATION






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.






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


Probable Case


Best Case


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.





SECTION 10

SCHEDULE ESTIMATION






10. PROJECT SCHEDULE


















APPENDIX 1

CONCEPTUAL DESIGN BASIS





APPENDIX 1. CONCEPTUAL DESIGN BASIS

JOB NO. : 7A04

PROJECT NAME : LINGXING TANK TERMINAL

CLIENT : QINGDAO LIXING LOGISTICS Co., LTD.

LOCATION : QINGDAO, CHINA

UNIT : 100 units

REV DATE PRE'D CHK'D APP'D DESCRIPTION REV DATE PRE'D CHK'D APP'D DESCRIPTION

1 2009.05.26 PJK LNS BJG 4 2009.08.31 PJK LNS BJG Lube Base Oil : CRT

2 2009.06.22 PJK LNS BJG ADD TANKS/Equipment 5 2009.09.17 PJK LNS BJG PEP concept apply

3 2009.08.04 PJK LNS BJG 6 2009.10.08 PJK LNS BJG Pump Revisiion

3-1 2009.08.07 PJK LNS BJG Add Toluene in Phase-1

CONCEPTUAL DESIGN BASIS

MA-PEC PLANT ENGINEERING & CONSTRUCTION





1. Tankage Plan 9. Utility & Auxiliary Facilities

2. N2 Blanketing Tank Summary 10. Quick Line Sizing

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

CONTENTS

MA-PEC PLANT ENGINEERING & CONSTRUCTION





Lixing Tank Terminal Area (100 Area)

Phase 1 Phase 2Total

(OP+SP)

1) 100G-101A/B P-Xylene 2 2 (1+1) Centri. 1,000 40 0.844 700~1,000

2) 100G-111A/B Benzene 2 2 (1+1) Centri. 700 40 0.861 500~700

3) 100G-121A/B Toluene 2 2 (1+1) Centri. 500 40 0.850 500

4) 100G-131A/B Mixed Xyl 2 2 (1+1) Centri. 700 40 0.851 700

6) 100G-141A~J Crude Oil (Bunker C) 3 3 (2+2) Centri. 3,000 90 0.925 5,000~8,000

7) 100G-151A~C Naphtha 3 3 (2+1) Centri. 3,000 40 0.728 2,000~5,000

8) 100G-161A/B Gas Oil/Kero/Mogas 2 2 (1+1) Centri. 2,000 40 0.726~0.845 1,000~2,000 future

10) 100G-171A/B Lube Base Oil 2 2 (1+1) Gear 500 50 0.850 500

11) 100G-181A/B Solvent(MEK/Acet/EA) 2 2 (1+1) Centri. 500 40 0.780~0.885 500

12) 100G-191A/B MTBE 2 2 (1+1) Centri. 500 40 0.720 500 future

13) 100G-193A/B Methanol 2 2 (1+1) Centri. 500 40 0.781 500

20 4

Note : OP = Operating Pump / SP = Spare Pump

TRANSFER RATE DATA Marine Loading Pumps

Pumping

Temp.(℃)

Shipping Range(m3/hr)

RemarksItem No.Sp.gr at

P.T

DesignFlow rate

(m3/hr/ea)Marine Loading Pump Service for Type

Pump Qty






Phase 1 Phase 2Total

(OP+SP)

1) 100G-112A/B Benzene 2 2 (1+1) Centri. 140 40 0.861 140

2) 100G-122A/B Toluene 2 2 (1+1) Centri. 140 40 0.850 140

3) 100G-132A/B Mixed Xyl 2 2 (1+1) Centri. 140 40 0.851 140

4) 100G-142A/B Crude Oil (Bunker C) 6 6 (5+1) Gear 140 90 0.925 140

5) 100G-152A/B Naphtha 2 2 (1+1) Centri. 140 40 0.728 140

6) 100G-162A/B GO/Kero/Mogas 2 2 (1+1) Centri. 140 40 0.726~0.845 140 future

7) 100G-172A/B Lube Base Oil 2 2 (1+1) Gear 140 50 0.850 140

8) 100G-182A/B Solvent 2 2 (1+1) Centri. 140 40 0.780~0.885 140

9) 100G-192A/B MTBE 2 2 (1+1) Centri. 140 40 0.720 140 future

10) 100G-194A/B Methanol 2 2 (1+1) Centri. 140 40 0.781 140

20 4


TRANSFER RATE DATA T/T Loading Pump

PumpingTemp.(℃)

ShippingRange (m3/hr)

RemarksSp.gr at P.T

Item No. Truck Loading Pump Service for TypeDesign

Flow rate(m3/hr/ea)

Pump Qty





Phase 1 Phase 2 Total

1) 100D-101A~D PX 2 2 4 IFRT 13,612 28.40 * 21.5

2) 100D-111A/B Benzene 2 2 IFRT 6,683 19.90 * 21.5

3) 100D-121A/B Toluene 1 1 2 IFRT 4,107 15.60 * 21.5

4) 100D-121C Toluene (Future) 1 1 IFRT 9,966 24.30 * 21.5

5) 100D-131A/B Mixed Xyl 2 2 IFRT 8,243 22.10 * 21.5

6) 100D-131C/D Mixed Xyl (Future) 2 2 IFRT 9,966 24.30 * 21.5

7) 100D-141A~H Crude Oil (Bunker-C) 8 8 FRT 60,961 60.10 * 21.5

8) 100D-142A/B Crude Oil (Bunker-C) 2 2 FRT 24,370 38.00 * 21.5

9) 100D-151A~C Naphtha 2 4 6 IFRT 15,803 30.60 * 21.5

10) 100D-161A~F Gas Oil/Kero/Mogas 6 6 IFRT 15,803 30.60 * 21.5

Lube 11) 100D-171A~D Lube Base Oil 2 2 4 CRT 1,584 11.60 * 15.0

12) 100D-181A/B Solvent 2 2 IFRT 1,584 11.60 * 15.0

13) 100D-181C~F Solvent (Future) 4 4 IFRT 3,052 15.10 * 17.0

14) 100D-191A/B MTBE 2 2 IFRT 3,052 15.10 * 17.0

15) 100D-192A~D Methanol 2 2 4 IFRT 7,515 21.10 * 21.5

25 26 51Total

Scaling for tank plot1/6,000 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)

11.60 m = 1.9 mm circle (say 2.0 mm)

60.10 m = 10.0 mm circle

30.60 m = 5.1 mm circle (say 5.0 mm)

LIXING TANK LAYOUT SCALE SUMMARY

Petro. Chem


Group Item No. Service

30.60 m = 5.1 mm circle (say 5.0 mm)

TANK Q'ty

38.00 m = 6.3 mm circle (say 6.5 mm)

Dimension,ID(m) * TL(m)

15.10 m = 2.5 mm circle (say 2.5 mm)

24.30 m = 4.0 mm circle (say 4.0 mm)

15.10 m = 2.5 mm circle (say 2.5 mm)

21.10 m = 3.5 mm circle (say 3.5 mm)

Remarks

11.60 m = 1.9 mm circle (say 2.0 mm)

24.30 m = 4.0 mm circle (say 4.0 mm)

Aromatics

Crude

Oil Product

TypeNominalVolume

(m3)

22.10 m = 3.7 mm circle (say 4.0 mm)





Phase 1 Phase 2 Total

1) 100D-101A~D PX 2 2 4 25 0.844 2 for future

2) 100D-111A/B Benzene 2 2 -11 0.861

3) 100D-121A/B Toluene 1 1 2 4 0.850 1 for future

4) 100D-121C Toluene (Future) 1 1 4 0.850 1 for future

5) 100D-131A/B MX 2 2 24 0.851

6) 100D-131C/D MX (Future) 2 2 24 0.851 2 for future

7) 100D-141A~H Crude (Bunker-C) 8 8 65 0.925

8) 100D-142A/B Crude (Bunker-C) 2 2 65 0.925

9) 100D-151A~C Naphtha 2 4 6 38 0.728 4 for future

10) 100D-161A~F Gas Oil/Kero/Mogas 6 6 38/52/38 0.726~0.845 6 for future

Lube 11) 100D-171A~D Lube Base Oil 2 2 4 180 ~ 240 0.850 2 for future

12) 100D-181A/B Solvent (MEK/ACET/EA) 2 2 -9 / -18 / -4 0.780~0.885

13) 100D-181C~F Solvent (MEK/ACET/EA) (Future) 4 4 -9 / -18 / -4 0.780~0.885 4 for future

13) 100D-191A/B MTBE 2 2 -10 0.720 2 for future

14) 100D-192A~D Methanol 2 2 4 11 0.781 2 for future

25 26 51

Oil Product

Petro. Chem

Flash Point(Min.℃)


GroupQ'ty

Service

PHYSICAL PROPERTIES OF TERMINAL PRODUCT

RemarksSp.grat P.T

Item No.

Aromatics

Crude






Phase1 Phase2 Total Phase1 Phase2 Total Phase1 Phase2 Total

1) 100D-101A~D PX IFRT 13,612 10,000MT 2 2 4 27,224 27,224 54,448 23,120 23,120 46,240 28.40 * 21.5 11560

2) 100D-111A/B Benzene IFRT 6,683 5,000MT 2 2 13,366 13,366 11,236 11,236 19.90 * 21.5 5618

3) 100D-121A/B Toluene IFRT 4,107 3,000MT 1 1 2 4,107 4,107 8,214 3,448 3,448 6,896 15.60 * 21.5 3448

4) 100D-121C Toluene (Future) IFRT 9,966 8,200 1 1 9,966 9,966 8,200 8,200 24.30 * 21.5

5) 100D-131A/B Mixed Xylene IFRT 8,243 6,000MT 2 2 16,486 16,486 13,792 13,792 22.10 * 21.5 6896

6) 100D-131C/D Mixed Xylene (Future) IFRT 9,966 8,200 2 2 19,932 19,932 16,400 16,400 24.30 * 21.5

7) 100D-141A~H Crude Oil (Bunker-C) FRT 60,961 50,000 8 8 487,688 487,688 400,000 0 400,000 60.10 * 21.5

8) 100D-142A/B Crude Oil (Bunker-C) FRT 24,370 20,700 2 2 48,740 48,740 41,400 0 41,400 38.00 * 21.5

9) 100D-151A~F Naphtha IFRT 15,803 13,500 2 4 6 31,606 63,212 94,818 27,000 54,000 81,000 30.60 * 21.5

10) 100D-161A~F Gas Oil/Kero/Mogas IFRT 15,803 13,500 6 6 94,818 94,818 81,000 81,000 30.60 * 21.5

Lube 11) 100D-171A~D Lube Base Oil CRT 1,584 1,300 2 2 4 3,168 3,168 6,336 2,600 2,600 5,200 11.60 * 15.0

12) 100D-181A/B Solvent IFRT 1,584 1,300 2 2 3,168 3,168 2,600 0 2,600 11.60 * 15.0

13) 100D-181C~F Solvent (Future) IFRT 3,052 2,500 4 4 12,208 12,208 10,000 10,000 15.10 * 17.0

14) 100D-191A/B MTBE IFRT 3,052 2,500 2 2 6,104 6,104 5,000 5,000 15.10 * 17.0

15) 100D-192A~D Methanol IFRT 7,515 6,160 2 2 4 15,030 15,030 30,060 12,320 12,320 24,640 21.10 * 21.5

25 26 51 650,583 255,769 906,352 537,516 216,088 753,604

Design Considerations :

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.

Crude

Oil Product

Petro. Chem

GroupNet

VolumeTank Q'ty

Aromatics(*4)

NominalVolume

RemarksItem No. Service for TankType(*¹)

Lixing Tankage Plan


Tank Nominal Volume (m3) Tank NET Volume (m3)





Lixing Tank Terminal Area (100 Area)Dimension N2 Rate

Nominal Net Phase 1 Phase 2 Total ID (m) * TL (m) (Nm3/hr)

100D-101A~D PX 13,612 10,000MT 2 2 4 28.40 * 21.5 IFRT N2 Blanketing

100D-111A/B Benzene 6,683 5,000MT 2 2 19.90 * 21.5 IFRT N2 Blanketing

100D-121A/B Touene 4,107 3,000MT 1 1 2 15.60 * 21.5 IFRT N2 Blanketing

100D-121C Toluene (Future) 9,966 8,200 1 1 24.30 * 21.5 IFRT N2 Blanketing

100D-131A/B MX 8,243 6,000MT 2 2 22.10 * 21.5 IFRT N2 Blanketing

100D-131C/D MX (Future) 9,966 8,200 2 3 24.30 * 21.5 IFRT N2 Blanketing

Oil Product 100D-151A~C Naphtha 15,803 13,500 2 4 6 30.60 * 21.5 IFRT N2 Blanketing

100D-181A/B Solvent 1,584 1,300 2 2 11.60 * 15.0 IFRT N2 Blanketing

100D-181C~F Solvent (Future) 3,052 2,500 4 4 15.10 * 17.0 IFRT N2 Blanketing

100D-191A/B MTBE 3,052 2,500 2 2 15.10 * 17.0 IFRT N2 Blanketing

100D-192A~D Methanol 7,515 6,160 2 2 4 21.10 * 21.5 IFRT N2 Blanketing

13 18 32

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.

Pet. Chem

PCVSize

BVSize/Q'tyGroup Item No. Service

Capacity(M3) TankType Remarks

Aromatics

Q'ty

N2 Blanketing Tank Summary






Dimension

Nominal Net Phase 1 Phase 2 Total ID (m) * TL (m)

100D-101A~D PX 13,612 10,000MT 2 2 4 28.40 * 21.5 IFRT 0.45 1.8 2" heating coil

100D-111A/B Benzene 6,683 5,000MT 2 2 19.90 * 21.5 IFRT 0.25 0.5 2" heating coil

100D-121A/B Toluene 4,107 3,000MT 1 1 2 15.60 * 21.5 IFRT 2" heating coil (normally no use)

100D-121C Toluene (Future) 9,966 8,200 1 1 24.30 * 21.5 IFRT 2" heating coil (normally no use)

100D-131A/B MX 8,243 6,000MT 2 2 22.10 * 21.5 IFRT 2" heating coil (normally no use)

100D-131C/D MX (Future) 9,966 8,200 2 2 24.30 * 21.5 IFRT 2" heating coil (normally no use)

100D-141A~H Crude/B.C. 60,961 50,000 8 8 60.10 * 21.5 FRT 2.7 21.6 2" heating coil

100D-142A~B Crude/B.C. 24,370 20,700 2 2 38.00 * 21.5 FRT 1.2 2.4 2" heating coil

Lube 100D-171A~D Lube B/O 1,584 1,300 2 2 4 11.60 * 15.0 CRT 0.15 0.6 2"heating coil

Total 19 8 27 4.75 26.9

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 • Steam volumetric flow rate, V(m3/hr) = M / 2.18 • Temperature at BL ( ℃ ) = Norm 177 / Max 204 / Min 149 / Des 235 • 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.

Capacity(M3)TankType

Q'ty

2. Steam coil sizing Basis

Steam Rateper tank(ton/hr)

Steam Ratetotal

(ton/hr)

LP Steam Req'd Tank Summary

Remarks

Aromatics

Crude

Group Item No. Service





Phase1 Phase2 Total Phase1 Phase2 Total Press (kg/cm2g) Temp (℃)

1) 100D-101A~D PX IFRT 13,612 10,000MT 2 2 4 27,224 27,224 54,448 28.40 * 21.5 0.015(*²)/-0.005(*³) 80 CS 2 for future

2) 100D-111A/B Benzene IFRT 6,683 5,000MT 2 2 13,366 13,366 19.90 * 21.5 0.015/-0.005 80 CS

3) 100D-121A/B Toluene IFRT 4,107 3,000MT 1 1 2 8,214 8,214 15.60 * 21.5 0.015/-0.005 80 CS 1 for future

4) 100D-121C Toluene (Future) IFRT 9,966 8,200 1 1 9,966 9,966 24.30 * 21.5 0.015/-0.005 80 CS 1 for future

5) 100D-131A/B Mixed Xylene IFRT 8,243 6,000MT 2 2 16,486 16,486 22.10 * 21.5 0.015/-0.005 80 CS

6) 100D-131C/D Mixed Xylene (Future) IFRT 9,966 8,200 2 2 19,932 19,932 24.30 * 21.5 0.015/-0.005 80 CS 2 for future

7) 100D-141A~H Crude Oil (Bunker-C) FRT 60,961 50,000 8 8 487,688 487,688 60.10 * 21.5 ATM 150 CS

8) 100D-142A/B Crude Oil (Bunker-C) FRT 24,370 20,700 2 2 48,740 48,740 38.00 * 21.5 ATM 150 CS

9) 100D-151A~F Naphtha IFRT 15,803 13,500 2 4 6 31,606 63,212 94,818 30.60 * 21.5 0.015/-0.005 80 CS 4 for future

10) 100D-161A~F Gas Oil/Kero/Mogas IFRT 15,803 13,500 6 6 94,818 94,818 30.60 * 21.5 0.015/-0.005 80 CS 6 for future

Lube 11) 100D-171A~D Lube Base Oil CRT 1,584 1,300 2 2 4 3,168 3,168 6,336 11.60 * 15.0 ATM 150 CS 2 for future

12) 100D-181A/B Solvent IFRT 1,584 1,300 2 2 3,168 3,168 11.60 * 15.0 0.015/-0.005 80 CS

13) 100D-181C~F Solvent (Future) IFRT 3,052 2,500 4 4 12,208 12,208 15.10 * 17.0 0.015/-0.005 80 CS 4 for future

14) 100D-191A/B MTBE IFRT 3,052 2,500 2 2 6,104 6,104 15.10 * 17.0 0.015/-0.005 80 CS 2 for future

15) 100D-192A~D Methanol IFRT 7,515 6,160 2 2 4 15,030 15,030 30,060 21.10 * 21.5 0.015/-0.005 80 CS 2 for future

25 26 51 646,476 259,876 906,352

Design ConditionsItem No. Service for Tank

Type(*¹)

NominalVolume

(m3/tank)


Tank Q'ty

EQUIPMENT LISTTANKS

*4. Re

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)


Crude

Oil Product

Petro. Chem

Group

gardless of aromatic services, LP steam heating devices should be installed inside all aromatic tanks for interchangeability.

*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.

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.

Tank Nominal Volume (m3)NetVolume

(m3/tank)

Aromatics(*4)

ShellMaterial

Remarks






Materials

Phase 1 Phase2 Total(OP+SP)

Suction(kg/cm2g)

Discharge(kg/cm2g)

Casing/Impeller

1) 100G-101A/B P-Xylene 2 2 (1+1) Centri. 1,000 69.3 0.0 6 40 CS / CS 277

2) 100G-111A/B Benzene 2 2 (1+1) Centri. 700 67.8 0.0 6 40 CS / CS 195

3) 100G-121A/B Toluene 2 0 2 (1+1) Centri. 500 76.9 0.0 6.7 40 CS / CS 155

4) 100G-131A/B Mixed Xyl 2 2 (1+1) Centri. 700 76.9 0.0 6.7 40 CS / CS 218

5) 100G-141A~J Crude Oil (Bunker C) 3 3 (2+1) Centri. 3,000 97.7 0.0 8.8 90 CS / CS 1,122

6) 100G-151A~C Naphtha 2 2 (1+1) Centri. 2,000 91.7 0.0 6.7 40 CS / CS 573

7) 100G-161A/B Gas Oil/Jet/Kerosene/Mogas 2 2 (1+1) Centri. 2,000 70.6 0.0 6.0 40 CS / CS 513 future

8) 100G-171A/B Lube Base Oil 2 2 (1+1) Gear 500 98.8 0.0 8.4 50 CS / CS 195

9) 100G-181A/B Solvent(MEK/Acet/EA) 2 2 (1+1) Centri. 500 92.2 0.0 8.3 40 CS / CS 193

10) 100G-191A/B MTBE 2 2 (1+1) Centri. 500 113.7 0.0 8.4 40 CS / CS 193 future

11) 100G-193A/B Methanol 2 2 (1+1) Centri. 500 91.0 0.0 7.2 40 CS / CS 167

19 4


Diff.Head(m)

Operating Pressure PumpingTemp.(℃)

PowerEstimated

(kw)Remarks

EQUIPMENT LISTMARINE LOADING PUMP

Item No. Marine Loading Pump Service fo

Q'ty

TypeNormal

Flow rate(m3/hr)






Materials

Phase 1 Phase2 (OP+SP)

Suction(kg/cm2g)

Discharge(kg/cm2g)

asing/Impell

1) 100G-112A/B Benzene 2 2 (1+1) Centri. 140 61.0 0.0 5.4 40 CS / CS 39

2) 100G-122A/B Toluene 2 0 2 (1+1) Centri. 140 56.2 0.0 4.9 40 CS / CS 35

3) 100G-132A/B Mixed Xyl 2 2 (1+1) Centri. 140 56.2 0.0 4.9 40 CS / CS 35

4) 100G-142A/B Crude Oil (Bunker C) 6 6 (5+1) Gear 140 46.6 0.0 4.2 90 CS / CS 30

5) 100G-152A/B Naphtha 2 2 (1+1) Centri. 140 60.2 0.0 4.4 40 CS / CS 31

6) 100G-162A/B GO/Kero/Mogas 2 2 (1+1) Centri. 140 63.5 0.0 5.4 40 CS / CS 39 future

7) 100G-172A/B Lube Base Oil 2 2 (1+1) Gear 140 47.0 0.0 4.0 50 CS / CS 28

8) 100G-182A/B Solvent 2 2 (1+1) Centri. 140 44.4 0.0 4.0 40 CS / CS 28

9) 100G-192A/B MTBE 2 2 (1+1) Centri. 140 54.7 0.0 4.0 40 CS / CS 28 future

10) 100G-194A/B Methanol 2 2 (1+1) Centri. 140 56.8 0.0 4.5 40 CS / CS 32

20 4


PumpingTemp.(℃)

Truck Loading Pump Service for

Q'ty

TypeNormal

Flow rate(m3/hr)

Diff.Head(m)

Operating Pressure PowerEstimated

(kw)

EQUIPMENT LIST

Remarks

T/T LOADING PUMP

Item No.






Phase-1 Phase-2 Total

1) 100MJ-101A~D PX 2 2 4 CS 2 for future

2) 100MJ-111A/B Benzene 2 2 CS

3) 100MJ-121A~C Toluene 1 2 3 CS 2 for future

4) 100MJ-131A~D Mixed Xylene 2 2 4 CS 2 for future

5) 100MJ-141A~H Crude Oil (Bunker-C) 8 8 CS

6) 100MJ-142A/B Curde Oil (Bunker-C) 2 2 CS

7) 100MJ-151A~F Naphta 2 4 6 CS 4 for future

8) 100MJ-161A~F Gas Oil/Kero/Mogas Tank 6 6 CS 6 for future

9) 100MJ-191A~F MTBE Tank 2 2 CS 2 for future

10) 100MJ-192A~D Methanol Tank 2 2 4 CS 2 for future

Total 21 20 41

EQUIPMENT LISTJET MIXER

Fluid : GO/Kero/Mogas, DP : 3.5 kg/cm2g / DT : 80 ℃

Fluid : MTBE, DP : 3.5 kg/cm2g / DT : 80 ℃

Fluid : Crude Oil, DP : 3.5 kg/cm2g / DT : 80 ℃

Mat'l Remarks

Fluid : Naphtha, DP : 3.5 kg/cm2g / DT : 80 ℃

Description and Design Data

Fluid : P-Xylene, DP : 3.5 kg/cm2g / DT : 80 ℃

Fluid : Benzene, DP : 3.5 kg/cm2g / DT : 80 ℃

Fluid : Toluene, DP : 3.5 kg/cm2g / DT : 80 ℃

Fluid : Mixed Xyl, DP : 3.5 kg/cm2g / DT : 80 ℃

Item No. Jet Mixer Service forJet Mixer Q'ty

Fluid : Crude Oil, DP : 3.5 kg/cm2g / DT : 80 ℃

Fluid : Methanol, DP : 3.5 kg/cm2g / DT : 80 ℃






Phase-1 Phase-2 Total

1) 100MM-101A~H PX 4 4 8 CS normally no use

2) 100MM-111A~D Benzene 4 4 CS normally no use

3) 100MM-121A~F Toluene 2 4 6 CS normally no use

4) 100MM-131A~H Mixed Xyl. 4 4 8 CS

5) 100MM-141A~P Crude Oil 16 16 CS

6) 100MM-141A~D Crude Oil 4 4 CS

7) 100MM-151A~F Naphtha 4 8 12 CS 2 for future

8) 100MM-161A~L Gas Oil/Kero/Mogas 12 12 CS all for future

Total 38 32 70

EQUIPMENT LIST

Mixing for Homogenization, Motor Power : 37 kw








MECH. MIXER

Mat'l RemarksItem No. Mech. Mixer Service for Description and Design DataMech. Mixer Q'ty





Main Line Size& Loading Rate

TruckShipment Rate

DesignPress.

DesignTemp.

Phase-1 Phase-2 Total ( m3/hr/arm) (%) (kg/cm2 g) (℃)

1) 100ME-101 PX 4" 1 1 6" & 140 m3/hr 0% 9.3 80 Top CS

2) 100ME-102 Benzene 4" 1 1 6" & 140 m3/hr 10% 9.3 80 Top CS

3) 100ME-103 Toluene 4" 1 1 6" & 140 m3/hr 30% 9.3 80 Top CS

4) 100ME-104 Mixed Xyl 4" 1 1 6" & 140 m3/hr 10% 9.3 80 Top CS

Crude Oil 5) 100ME-105A~O Crude Oil & Bunker C 4" 12 2 14 6" & 140 m3/hr 60% 9.3 150 Top CS 2 for future

6) 100ME-106 Naphtha 4" 1 1 6" & 140 m3/hr 10% 9.3 80 Top CS

7) 100ME-107A~E Gas Oil/Kero/Mogas 4" 5 5 6" & 140 m3/hr 80% 9.3 80 Top CS 5 for future

Lube Oil 8) 100ME-108 Lube Base Oil 4" 1 1 6" & 140 m3/hr 30% 9.3 80 Top CS

9) 100ME-109 Solvent (MEK/ACET/EA) 4" 1 1 6" & 140 m3/hr 80% 9.3 80 Top CS

10) 100ME-110 MTBE 4" 1 1 6" & 140 m3/hr 0% 9.3 80 Top CS 1 for future

11) 100ME-111A/B Methanol 4" 2 2 6" & 140 m3/hr 50% 9.3 80 Top CS

Total 21 8 29

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.

EQUIPMENT LISTT/T LOADING ARM


3. T/T Vapor Recovery Unit (VRU) may be required at Loading Arm Area.

Size(inch)

Truck Loading Arm Service forItem No.Group RemarksLoading

TypeMat'l

T/T loading Qty (EA)

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 .

Aomatics

Oil Product

Petro. Chem.






1) 100G-301A/B Tankage No.1 Oily Water Pump 2 Sump pump, 22 m3/hr * 4.0 kg/cm2 g * kw CS OPTION

2) 100G-302A/B Tankage No.2 Oily Water Pump 2 Sump pump, 22 m3/hr * 4.0 kg/cm2 g * kw CS OPTION

3) 100G-303A/B Tankage No.1 Storm Water Pump 2 Sump pump, 55 m3/hr * 5.0 kg/cm2 g * kw CS OPTION

4) 100G-304A/B Tankage No.2 Storm Water Pump 2 Sump pump, 55 m3/hr * 5.0 kg/cm2 g * kw CS OPTION

5) 100G-305A/B Tankage No.1 Sanitary Drainage Pump 2 Sump pump, 10 m3/hr * 4.0 kg/cm2 g * kw CS OPTION



8) 100G-308A/B Storm Water Storage Tank Pump 2 Centrifugal, 24 m3/hr * 1.5 kg/cm2 g * kw CS

9) 100D-301 Storm Water Storage Tank 1 DRT, Nominal 850 m3, 9.5 m ID * 12.0 m TL CS

10) 100D-302 A/B Fire Water Tank 2 DRT, Nominal 6,000 m3, 18.90 m ID * 21.50 m TL CS

11) 100M-301 Tankage No.1 Waste Water Pit 1 Capacity : 20 m3 Rein. Conc.

12) 100M-302 Tankage No.2 Waste Water Pit 1 Capacity : 20 m3 Rein. Conc.

13) 100M-303 Tankage No.1 Fire Water Pit 1 Capacity : 50 m3 Rein. Conc. OPTION

14) 100M-304 Tankage No.2 Fire Water Pit 1 Capacity : 50 m3 Rein. Conc. OPTION

15) 100M-305 Tankage No.1 Sanitary Drainage Pit 1 Capacity : 20 m3 Rein. Conc. OPTION

16) 100M-306 Tankage No.2 Sanitary Drainage Pit 1 Capacity : 20 m3 Rein. Conc. OPTION

17) 100PK-301 WWT Package 1 Capacity : 60 m3/hr, total

EQUIPMENT LIST

RemarksDescription Mat'lItem No. Service

OFFSITE/MISCELLANEOUS

Q'ty




1. Consumption Summary for Design Purpose

Lixing Terminal (LX)

[ 100 Area ]

1) Electricity (Substation) Independently LX : 8MW

2)Waste Water Treatment(Oily Water / Storm Water)

WWT Package See Layout Dwg.HX WW will be transferred to LX WWT facility forfinal trearment.

3) Monitoring Pond Independently LX : 6,000m3

4) Fire Water Tank or Pond Independently See Layout Dwg.

5)Truck Loading Arm Area(w/Control Room)

Independently LX : 24 Arms

6) OCB/MCC Building Independently See Layout Dwg.

7) Utility Water (City Water) Tie-in LX : 30m3/hr From City Council

8) Cooling Water Tie-in LX : 15m3/hr From Lidong Plant

9) LP Steam Tie-in LX : 32Ton/hr From Lidong Plant

10) Nitrogen Tie-in LX : 800Nm3/hr From Air Liquid Company

11) IA/PA Tie-in LX : 1,100Nm3/hr Fron Lidong Plant

LX : Utility & Auxiliary Facilities

RemarksPreliminary Estimated

CapacityService






2. Consumption Estimation Basis for Design Purpose

2-1. Electricity

Lixing Area(100) Remarks

1) Pumps 4.6 MW

2) Tank Mixers 1.5 MW

3) Auxiliaries 0.3 MW Bldg. / WWT Pkg. / FW System

6.4 MW

1.25 MW

8 MW

2-2. Steam (LP Steam : 3.5 kg/cm2 g / 177 ℃ normal) from Lidong plant


1) Tank Heating Coil 27 Ton/hr PX/BZ/B-C/LB Tanks

2) Hose Stations 1.0 Ton/hr 5pt. (200kg/hr.pt)

28 Ton/hr

1.15

32 Ton/hr Tie-in : 16"(LX)

Sub-Total

Safety Factor

Total

LX : Utility & Auxiliary Facilities

Total

Safety Factor

Sub-Total

Main Users

Main Users





2-3. Nitrogen (N2 Supply Condition : 7.5 kg/cm2 g / 30 ℃ normal) from Lidong plant


1) Tank Blanketing 500 Nm3/hr

2) Hose Staions 300 Nm3/hr LX : 5pt. * (100 Nm3/hr ea) *60*, T/T Loading Arm Purge

800 Nm3/hr

1.00

800 Nm3/hr Tie-in : 1.5"

2-4. Compressed Air (Air Supply Condition : 7.5 kg/cm2 g / 40 ℃ normal) from Lidong plant


1) Instrument Air(IA) 800 Nm3/hr

2) Hose Staions(PA) 300 Nm3/hr LX : 5pt. * (100 Nm3/hr ea) * 60%

1,100 Nm3/hr

1.00

1,100 Nm3/hr Tie-in : 2"(LX)

Main Users

Main Users

Sub-Total

Safety Factor

Total

Sub-Total

Safety Factor

Total





2-5. Utility Water (City Water) from City Council


1) Sanitary 15 m3/hrT/T Gate House & Control Room / OCB / Main Gate House / WWT Bldg. /Warehouse & Main. Shop

2) Hose Staions 9 m3/hr LX : 5pt. * (3 m3/hr pt.) * 60%

24 m3/hr

1.25

30 m3/hr Tie-in : 3"(LX)

2-6 Cooling Water (if needs) from Lidong plant


1) API Pump Seal 11.7 m3/hr LX : 39 ea (0.5m3/hr ea)

11.7 m3/hr

1.25

15 m3/hr Tie-in : 2"(LX) Total

Sub-Total

Safety Factor

Total

Sub-Total

Safety Factor

Main Users

Main Users





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"



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)ⅰ) A = 0.785 * (3" * 0.0254)^2 = 0.00456 m2ⅱ) v =25 m/sec @ⅲ) 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





Process Flow Diagram (Para-Xylene)





Process Flow Diagram (Benzene)





Process Flow Diagram (Toluene)





Process Flow Diagram (Mixed Xylene)





Process Flow Diagram (Crude Oil)





Process Flow Diagram (Crude Oil)





Process Flow Diagram (Naphtha)





Process Flow Diagram (GAS OIL / KERO / MOGAS : future)





Process Flow Diagram (Lube Base Oil)





Process Flow Diagram (Solvent)





Process Flow Diagram (Methanol)





Process Flow Diagram (MTBE : future)





Process Flow Diagram (Truck Loading 1/2)





Process Flow Diagram (Truck Loading 2/2)





Process Flow Diagram (Oily Drainage System : optional)





Process Flow Diagram (Fire & Storm Water System : optional)





Process Flow Diagram (Sanitary Drainage : optional)





Process Flow Diagram (Storm & Waste Water Treatment Facility)





Process Flow Diagram (Marine Loading / Unloading)





PLOT PLAN


(青岛丽星物流有限责任公司)




APPENDIX 2

PROJECT COST ESTIMATION


(青岛丽星物流有限责任公司)




APPENDIX 2. PROJECT COST ESTIMATION

Tank Terminal Budgetary Cost

6.83

UNIT QTY UNIT PRICE AMOUNT (RMB) USD %

1. Engineering1.1 Basic Engineering (FS & Conceptual Design) LOT 1 3,750,000 549,048

1.2 Detail Engineering LOT 1 8,000,000 1,171,303

1.3 Geological Survey LOT 1 700,000 102,489

1.4 Field Audit LOT 1 1,500,000 219,619

1.5 Inspection LOT 1 1,000,000 146,413

1.6 Engineering Supervision LOT 1 4,500,000 658,858

- 19,450,000 2,847,731 4%

15%

(Tank 25EA : 650,583m3)

2. Equipment (Pump, Truck Loading Sys.) 128 34,862,000 5,104,246 6%

Marine Loading Pump Phase 1 (27) / Total (31) EA 27 14,000,000 2,049,780

Truck Loading Pump Phase 1 (18) / Total (22) EA 18 1,800,000 263,543

Truck Loading Arm Phase 1 (21) / Total (29) EA 21 3,000,000 439,239

Truck Scale Phase 1 (1) / Total (1) EA 1 450,000 65,886

Loading Shelter LOT 1 1,200,000 175,695

Mechanical & Jet Mixer Phase 1 (38&21) / Total (70&41) EA 59 2,350,000 344,070

WWT Package Phase 1 (1) / Total (1) EA 1 8,662,000 1,268,228

VRU System Phase 1 (1) / Total (1) EA 1 3,400,000 497,804

3. Piping Material LOT 1 28,800,000 4,216,691 5%

4. Electrical & Instrument Mat'l LOT 1 12,160,000 1,780,381 2%Sub Station Equipment LOT 1 5,160,000 755,490

Panel, DCS, Cable LOT 1 7,000,000 1,024,890

5. Procurement Service LOT 1 6,000,000 878,477

81,822,000 11,979,795

6. Construction

6.1 Site Preparation M2 201,600 10 2,016,000 295,168

6.2 Soil Improvement Work TT Area M2 20,000 100 2,000,000 292,826

6.3 VCS Pile Work (Tank Area) Dia. 1.3M * L=17M LM 160,000 180 28,800,000 4,216,691 5%

6.4 PHC Pile Work (Building & Structure) Dia. 400 * L=30M LM 75,000 150 11,250,000 1,647,145 2%

6.5 Civil Work 54,230,000 7,939,971 10%

Tank Foundation C30 Concrete M3 7,900 2,200 17,380,000 2,544,656 3%

Tank Dike C30 Concrete M3 2,800 2,200 6,160,000 901,903

Pipe Rack and Sleeper Foundation M3 2,500 900 2,250,000 329,429

Pump Foundation M3 700 900 630,000 92,240

Truck Loading Foundation & Paving M2 20,000 240 4,800,000 702,782

Road M2 22,000 180 3,960,000 579,795

Drainage & Ditch M 6,000 600 3,600,000 527,086

Monitoring Pond 60M*30M*3M=5,400M3 M3 5,400 1,000 5,400,000 790,630

Waste Water System & Pit 70M*50M M2 3,500 2,700 9,450,000 1,383,602 2%

Brick Fence & Gate M 1,000 600 600,000 87,848

6.6 Building Work 11,828,000 1,731,772 2%OCB & MCC 60M*30M*2F=3,600m2 M2 3,600 2,500 9,000,000 1,317,716 2%

TT Control Room 12M*10M=120m2 M2 120 2,500 300,000 43,924

Gate House 8M*8M M2 64 2,000 128,000 18,741

Sub Station 50M*20M=1,000m2 M2 1,000 2,400 2,400,000 351,391

LX Phase-1

2 + 3 + 4 + 5. Procurement Total

DESCRIPTIONBUDGET INDEXNote

1. Engineering Total

Budget by MA-PEC (090828)





6.83

UNIT QTY UNIT PRICE AMOUNT (RMB) USD %

6.7 Tank Construction(material + const.) TON 15,082 158,214,200 23,164,597 29%100D-101A~D (PX) 13,612M3 IFRT * (2+2)EA TON 604 14,700 8,878,800 1,299,971 2% Phase-1 : 2EA

100D-111A/B (Benzene) 6,683M3 IFRT * (2+0)EA TON 318 14,900 4,738,200 693,734 Phase-1 : 2EA

100D-121A/B (Toluene) 4,107M3 IFRT * (1+1)EA TON 112 13,300 1,489,600 218,097 Phase-1 : 1EA

100D-121C (Toluene) 9,966M3 IFRT * (0+1)EA TON - -

100D-131A/B (MX) 8,243M3 IFRT * (2+0)EA TON 364 12,400 4,513,600 660,849 Phase-1 : 2EA

100D-131C/D (MX) 9,966M3 IFRT * (0+2)EA TON - -

100D-141A~H (Crude Oil-Bunker C) 60,961M3 FRT * (8+0)EA TON 10,896 9,400 102,422,400 14,995,959 19% Phase-1 : 8EA

100D-142A/B (Crude Oil-Bunker C) 24,370M3 FRT * (2+0)EA TON 1,000 13,000 13,000,000 1,903,367 2% Phase-1 : 2EA

100D-151A/B/C (Naphtha) 15,803M3 IFRT * (2+4)EA TON 784 12,800 10,035,200 1,469,283 2% Phase-1 : 2EA

100D-161A~F (Gas Oil/Kero/Mogas) 15,803M3 IFRT * (0+6)EA TON - -

100D-171A~D (Lube Base Oil) 1,584M3 CRT * (2+2)EA TON 176 13,200 2,323,200 340,146 Phase-1 : 2EA

100D-181A/B (Solvent) 1,584M3 IFRT * (2+0)EA TON 124 17,900 2,219,600 324,978 Phase-1 : 2EA

100D-181C~F (Solvent) 3,052M3 IFRT * (0+4)EA TON - -

100D-191A/B (MTBE) 3,052M3 IFRT * (0+2)EA TON - -

100D-192A~D (Methanol) 7,515M3 IFRT * (2+2)EA TON 364 12,400 4,513,600 660,849 Phase-1 : 2EA

Fire Water Tank 4,000M3 * 2EA TON 340 12,000 4,080,000 597,365

6.8 Steel Structure TON 1,000 8,500 8,500,000 1,244,510 2%

6.9 Piping & Equipment Work LOT 1 9,000,000 1,317,716 2%

6.10 Electrical & Instrument LOT 1 5,000,000 732,064

6.11 Fire Fighting Foam Station, Alarm LOT 1 9,000,000 1,317,716 2%

6.12 Insulation Pipe Rack & Insulation LOT 1 3,000,000 439,239

6.13 Painting Pipe Rack & Insulation LOT 1 5,000,000 732,064

6.14 Fire Proofing Steel Structure LOT 1 1,500,000 219,619

6.15. Construction Supervision LOT 1 25,000,000 3,660,322 5%

6.16. Rail Station Pipe Line (QRC) LOT 1

- 334,338,200 48,951,420 62%

81%

19%

(Tank 25EA : 650,583m3)

435,610,200 63,778,946

7. OTHERS (Owner Cost)7.1 Commissioning LOT 1 3,000,000 439,239

7.2 Lixing Project Management LOT 1 8,000,000 1,171,303

7.3 Forwarding, Transportation and Tax LOT 1 1,000,000 146,413

7.4 Government Permit LOT 1 3,000,000 439,239

7.5 Contingency LOT 1 53,145,020 7,781,116 9.9%7.6 Interest (Annual 5% for 1.5year) LOT 1 33,885,015 4,961,203

102,030,035 14,938,512

537,640,235 78,717,458 100%

OPTION : METERING SYSTEM & SUMP PUMP & PIT 78,717,458

LX Phase-1

6. Construction Total

7. Others Total

TOTAL

DESCRIPTIONBUDGET INDEXNote

E + P + C COST Total

Budget by MA-PEC (090828)

Documents

China[1]