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DECLERATION

“Thereby declare that this report is the result of my own work except for quotation
and summaries which have been duly acknowledge”

NUR AININA BINTI NAZMI NURUL ADZWIN BINTI NOORDIN


2014456536 2014420954

SITI SOLEHAH BINTI OMAR MUHAMMAD NOR ASYRAF BIN


2015834112 MUHAMAD
2015636532

DENNIS RODY ANAK HO KOK


SUNTING@SUNTING
2015694896

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SUPERVISOR’S CERTIFICATION

“Thereby declare that I have read this thesis and in my own opinion this project
report is sufficient in terms of scope and quality for the award of the Bachelor in
Chemical Engineering (Hons).”

Signature : ………………………………….
Name : Siti Fatimah Abdul Halim
Date : ………………………………….

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TABLE OF CONTENTS

TITLE PAGE
DECLERATION i
SUPERVISOR’S CERTIFICATION ii
TABLE OF CONTENTS iii
LIST OF TABLES iv
LIST OF FIGURES v
LIST OF ABBREVATIONS/NOMENCULTURE vi
EXECUTIVE SUMMARY vii

SITE LOCATION 1
3.1 Introduction 1
3.2 Selection Criteria 1
3.2.1 Criteria for Site Location 2
3.2.2 Marketing Area 2
3.2.3 Raw Material Supply 2
3.2.4 Transport Facility 2
3.2.5 Labour Availability 2
3.2.6 Utilities Supply 3
3.2.7 Land Availability and Price 3
3.2.8 Climate 3
3.2.9 Environment Impact and Effluent Discharged 3
3.2.10 Political and Strategic Consideration 4
3.2.11 Local Community Consideration 4
3.3 Proposed Site Location Map and Scoring Method 4
3.4 Conclusion 13
LIST OF REFERENCES 15
APPENDICES 17

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LIST OF TABLES

PAGE
Table 3.3-a Comparison Site Location ........................................................................8
Table 3.3-b Concept of screening ............................................................................12
Table 3.3-c Concept of Scoring ...............................................................................12

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LIST OF FIGURES

PAGE
Figure 3.3-1 Gebeng Industrial Estate Pahang ...........................................................5
Figure 3.3-2 Pasir Gudang Johor................................................................................5
Figure 3.3-3 Kerteh Terengganu.................................................................................6
Figure 3.3-4 Tanjung Industrial Park Klang Selangor ..................................................6
Figure 3.3-5 Tanjung Kidurong Bintulu .......................................................................7
Figure 3.4-1 Primary Buffer Zone to Nearest Residential and Commercial Area .......14
Figure 3.4-2 Primary Buffer Zone to Nearest Hospital ..............................................14

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LIST OF ABBREVATIONS/NOMENCULTURE

Abbreviations
DOE Department of Environment
ECER East Coast Economic Region
MAMPU Malaysian Administrative Modernisation and Management
Planning Unit
O-xylene Ortho Xylene
PAN Phthalic Anhydride
SCORE Sarawak Corridor Renewable Energy
SDC Sabah Development Corridor

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EXECUTIVE SUMMARY

This project is to design a production of phthalic anhydride (PA) using o-xylene


and the treatment plant for pollutant that will be removing from the production process
which is carbon dioxide (CO2). The process selection is heavily influenced by general
cost, product yield, manufacturability and sustainability, by-product produced,
environmental impact and lastly, safety. In comparison to the other five process
production, catalytic vapor-phase oxidation of o-Xylene has been selected based on
scoring techniques. Because of its high process yield, it is chosen as the most effective
process with high profitability at a low manufacturing cost. The major concern of the
project is to reduce and treat the pollutant product from the production of phthalic
anhydride process and at the same to achieve the requirement by Malaysia
Department of Environment (DOE) in Environmental Quality Act 1974 (Clean Air).
Hazard Identification, Risk Assessment and Risk Control (HIRARC) are an integration
tool that can help identify, assess or measure and to control hazard and risk of any
workplace and its activities. It is important to know the hazard of chemicals used in this
process in order to eliminate, reduce or control the possibility for any accidents to occur.
Then, the other objective of this project is to produce the phthalic anhydride to fulfil the
public need as raw material to produce their product. Phthalic Anhydride is one of
importance material that used as raw material in manufacture of phthalate plasticizers,
the main product being dioctyl phthalate (DOP) which is used as a plasticizer in
polyvinyl chloride (PVC) industry. The other objective of this design project is to
produce 100, 000 tonnes per annum of phthalic anhydride to meet the increasing
market demand, thus being in line with another phthalic anhydride producer in Malaysia
and Asia. The site location for this production is the Gebeng Industrial Park, Pahang
which is selected due to consideration of several factors. The factors include the
strategic location, land price, facilities, transportation and environmental aspects. In
designing the production plant, environmental and safety is highly priority
consideration. Malaysia rules and regulations are taken into account in designing the
process and the whole plant. In this production of phthalic anhydride, the proposed
plant uses continuous process that the inputs and outputs flow continuously throughout
the process

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SITE LOCATION

3.1 Introduction

Site Selection and reasonable chemical plant location is a crucial to


continuously operate a plant. The perfect selection of site location will affect company
profit, construction cost and minimize problem occur during construction or operation.
Malaysian Government has set up several areas designated for chemical industries.
Among the areas is Gebeng Pahang, Pasir Gudang Johor, Kerteh Terengganu,
Tanjung Industrial Park Klang Selangor and Tanjung Kidurong Bintulu. The following
Criteria should be taken into consideration:
1) Land Price and availability
2) Raw Material availability
3) Electricity and Water Resources
4) Climate
5) Availability of labour and services
6) Transport facilities
7) Local community consideration
8) Safety environmental aspect

3.2 Selection Criteria

Phthalic anhydride is essential in production of poly esters resin and use in the
making of solvent-based coating for architectural, machinery, furniture, fixture
applications, detergents, fire retardants, herbicides and insecticides. To produce
100,000 tonne/annum production of phthalic anhydride the location need to be in the
industrial area processing crude petroleum due to the availability of its raw material.
The choice of final site location is based on the comparison of the advantages and
disadvantages of all location. There are five location which are considered for Phthalic
Anhydride Plant that is Gebeng Industrial Estate (Pahang), Pasir Gudang(Johor),
Kertih(Terengganu), Tanjung Industrial Park(Selangor) and Tanjung Kidurong
(Bintulu).

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3.2.1 Criteria for Site Location

The factor to be taken as the criteria of selection of location is marketing area,


raw material supply, transport facility, labour availability, land availability, effluent
disposal facility, local community consideration, climate, political strategic, and utilities.

3.2.2 Marketing Area

The first major criteria in considerable in set up a plant is the availability of raw
material supply. Raw material to produce PAN is o-xylene that can be obtain from
petroleum industries via cracking process. The cost of transportation can be reduced
by obtaining the raw material from plant nearby. The site is located near port area to
easily transport its raw material and product.

3.2.3 Raw Material Supply

Raw material supply is one of the important aspect to be consider, the usage
of the raw material is a must to produce PAN. Mainly the raw material supply will be
related to the transportation cost hence the distance between the plant and supplier
need to be reachable and easy to access.

3.2.4 Transport Facility

The plant should be accessible to three major transport facility such as airport,
port, and high road network. Road transportation is the commonly used to transport
raw material and product. For import and export from overseas, water transportation is
convenient in term of quantity of product and raw material that can be transported to
respective location. Air transportation utilized in term of time, it is the fastest way to
export and export product and raw material.

3.2.5 Labour Availability

Labour is one of the important aspect to operate and build plant. Skilled
construction worker usually be brought from oversea, it is better if labour is local
community. Highly trained professional from local university and oversea need to be
hired to operate the plant smoothly. Local community need to be given a working
opportunity to create a good relationship between company and local resident.

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3.2.6 Utilities Supply

Production of chemical product requires a large quantity of water for cooling


and heating process. The consumption of electrical and water supply use in a large
scale to ensure the production smoothly operated. Water intake can be dwell from
nearby river or supplied from local authorities. Electrical power is needed in all area of
the plant to operate the production plant until its treatment unit as well as office usage.
Both utilities are the back bone to operate the plant continuously.

3.2.7 Land Availability and Price

The cost of land influences the startup capital sufficient, suitable land must be
available for proposed plant and for its future expansion. The land should ideally flat,
well drained and have suitable load bearing characteristic. The full site inspection and
evaluation should be made to determine the need for piling or special foundation.

3.2.8 Climate

Climate play an important aspect in construct plant site because adverse


climatic condition can hinder a major disadvantage such as destruction of plant,
accident and high in maintenance cost. The temperature difference needed special
improvement to plant equipment by insulation, type of material for piping, stronger
structure is needed at location with a strong wind potential that possibly create cyclone
and hurricane or a bad geology structure such as location with earthquake potential.

3.2.9 Environment Impact and Effluent Discharged

All industrial processing plant produce waste and full consideration must be
given to difficulties in term of waste handling cost. The plant site should have special
waste treatment system such as water treatment or special place to store the waste
effluent before being treated by contractor. Based on the standard and procedure of
Department of Environment, water discharge from plant must be treated first before
being released to drain or river. The untreated discharged water can harm aquatic life,
environment and human as it may contain trace of metal and harmful chemical. Thus,
Site location for the plant must have a proper waste effluent treatment plant.

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3.2.10 Political and Strategic Consideration

Tax concessions, capital grants and other inducement are essential


requirements by states government for new investment to preferred location. The
availability of such grants can be the overriding consideration in site location.

3.2.11 Local Community Consideration

The proposed location for the plant must be acceptable by local community to
consider their safety. The local community need to be informed about the process of
the plant to ensure they get an overview of the safety and potential risk living near the
facilities. On the new site local community must be able to provide adequate facilities
for plant personnel and worker such as school, bank, house, and recreational area.

3.3 Proposed Site Location Map and Scoring Method

The Proposed site location is based on the area that has designated by federal
government to operate chemical plant:
A) Gebeng Industrial Estate,Pahang
B) Pasir Gudang, Johor
C) Kerteh, Terenggganu
D) Tanjung Industrial Park Klang, Selangor
E) Tanjung Kidurong Bintulu, Sarawak.

Location of the proposed location is shown by figure below and comparison for criteria
selection shown in Table 3.3.1.

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Figure 3.3-1 Gebeng Industrial Estate Pahang[1]

Figure 3.3-2 Pasir Gudang Johor[2]

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Figure 3.3-3 Kerteh Terengganu[3]

Figure 3.3-4 Tanjung Industrial Park Klang Selangor[4]

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Figure 3.3-5 Tanjung Kidurong Bintulu[5]

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Table 3.3-a Comparison Site Location
Selection Gebeng Industrial Estate, Pasir Gudang, Johor Kerteh, Terengganu Tanjung Industrial Park Tanjung Kidurong
Pahang Klang, Selangor Bintulu, Sarawak
Location 15.5 km from Kuantan Port 6.3 km from Pasir Gudang port 5.3 km from Kerteh Port (Google 5.2 km from Port Klang 5.2 Km from Bintulu
(Google Map 2017) (Google Map 2017) Map 2017) (Google Map 2017) Port
(Google Map 2017)
Raw Material BASF Petronas Chemical Sdn. LOTTE Chemical TITAN Sdn. Petronas Gas Berhad BASF Petronas Petronas MLNG
Bhd. Bhd. Chemical Sdn. Bhd. BIntulu

Land Price RM 5 – RM21 per square feet RM25 – RM250 Per square feet RM 2- RM 70 Per square Feet [6] RM 50 - RM150 Per RM 40 – RM100 Per
[6] [6] feet [6] square feet [6]
Transport Road
Jalan Kuantan-Kemaman Jalan Pekeliling Jalan Kemaman-Dungun Jalan Telok Gong Jalan Kidurong

Gebeng Bypass Jalan Pasir Gudang Jalan Batu Puteh Lebuhraya Pulau Indah Jalan Costal Bintulu-
Miri
Lebuh Raya Johor Baharu-Pasir Jalan Canang Emas
Gudang Jalan Tun Openg
Jalan Jala
Airport
Sultan Ahmad Shah Airport Senai International Airport Kerteh Airport Kuala Lumpur Bintulu Airport
International Airport

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Port
Kuantan Port Johor Port Kertih Port Klang Port Bintulu Port

Tanjung langsat port


Labour Universities
Universiti Malaysia Pahang MARA University of Technology MARA University of Technology University Of Selangor University Putra
Pasir Gudang Terengganu Malaysia Bintulu
MARA University of Pahang SEGi University Kolej Vokasional
Univensiti Kuala Lumpur Politeknik Malaysia Kampus Bintulu
International Islamic University Malaysian Institute Of Industrial Sultan Mizan Zainal Abidin Sunway University
Kuantan Technology Kolej Kemahiran
Kolej Kemahiran Tinggi MARA University Malaya MARA Bintulu
Universiti Teknologi Malaysia Kemaman
UiTM Shah Alam UiTM Kota
Politeknik Malaysia Kampus Samarahan
Ibrahim Sultan University Islam
Antarabangsa Curtin Collage
Malaysia
Swinburn Collage

Local
Resident around Gebeng Resident around Pasir Gudang Resident around Kerteh and Resident around Klang Resident around
Dungun Tanjung Kidurong
Immigrant
Bangladesh,Indonesia,Thailand,Nepal,Vietnam,Myanmar

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Environment Waste Management Company
management Kuantan Municipal Council Pasir Gudang Municipal Council Kuala Terengganu City Council Klang Municipal Bintulu Development
Kualiti Alam Sdn. Bhd. Kualiti Alam Sdn. Bhd. Kualiti Alam Sdn. Bhd. Council Authority
Kualiti Alam Sdn. Bhd.
Environment All Selection Location can be considered as a safe zone to build plant because the location is state to be suitable for industrial sector and consist of safety
Safety facility such as emergency response provided.
Utilities Water Supply

Pengurusan Air Pahang Berhad [7] Syarikat Air Johor Ranhill Sdn. Syarikat Air Terengganu Sdn. Syarikat Bekalan Air Jabatan Bekalan
Bhd[8] Bhd.[9] Selangor Sdn. Air Luar Bandar
Industrial/Commercial Bhd[10] Bintulu[11]
Industrial use in the approved Industrial/Commercial Industrial/Commercial
industrial zones 0 - 35 m3 (RM2.80) 0 - 35 m3 (RM2.07) Industrial (RM 1.15) Industrial
0 - 227 m3(RM0.92) More than 35 m3 More than 35 m3 (RM 2.28) Minimum charge (RM 0 - 23 m3 (min
(RM 3.30) Minimum charge 50.00) charge) (RM
More than 227m3 (RM0.84) Minimum charge (RM36.00) 24.20)
Minimum charge (RM30.00) (RM30.00) More than 23 m3
(RM 1.21)
Electricity
Peninsular Malaysia Tenaga Nasional Berhad [12]
Tariff D - Low Voltage Industrial Tariff
For overall monthly consumption between
0-200 kWh per month:
For all kWh sen/kWh 39.60
The Minimum Monthly Charge is RM 7.20

For overall monthly consumption more than

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200 kWh per month:
For all kWh (from 1kWh and above) sen/kWh 44.10
The Minimum Monthly Charge is RM 7.20

New Structure
For the first 200 kWh (1 -200 kWh) per month sen/kWh 38.00
For the next kWh (201 kWh onwards) per month sen/kWh 44.10
The Minimum Monthly Charge is RM 7.20
Sarawak Sarawak Energy Sdn. Bhd.[13]

Tariff I1 - Industrial
1st 100 kWh (RM 24.00)
For the next 2900 units per month (RM 25.00)
For each additional units per month (RM 26.00)
Minimum charge per month: RM10

Tariff I2 - Industrial Demand


All units (RM21.70)
For each kW of maximum demand per month: RM16
Minimum charge per month: RM16 per kW x billing demand

Tariff I3
Peak period (0700-2400 hours) (RM22.90)
Off-Peak period (0000-0700 hours) (RM 13.90)
For each kW of maximum demand per month during peak period: RM20
Minimum monthly charges: RM20 per kW x billing demand

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Table 3.3-b Concept of screening
Criterion Alternative
Gebeng Pasir Kerteh, Tanjung Tanjung
Industrial Gudang, Terengganu Industrial Kidurong
Estate, Johor Park Bintulu,
Pahang Klang, Sarawak
Selangor
Location - 0 0 0 0
Waste 0 0 0 0 0
management
Land Price + - - - -
Transportation - 0 0 0 0
Water Supply + - - 0 0
Electricity 0 0 0 0
Supply
Labour 0 0 0 0 0
Environment 0 - 0 - 0
Aspect
Total Score 0 -3 -2 -2 -1
Rank 1 5 3 4 2
Remarks : + better than, 0 same as, - worse than

Table 3.3-c Concept of Scoring


Criterion Alternative
Weight (%) Gebeng Industrial Tanjung Kidurong
Estate Pahang Bintulu
Location 10 4 4
Land Price 25 5 3
Waste 10 3 3
Management
Transportation 10 3 4
Utilities( Water and 15 4 3
Electrical Supply)
Labor 10 3 3
Environment 20 3 3
Aspect
Total Score 3.75 3.20
Rank 1 2

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3.4 Conclusion

The comparison been made through between five locations shown in Table 3.1-
a, this selection is based on Malaysian Administrative Modernisation and Management
Planning Unit(MAMPU) under the Economic Transformation Programme which
involving gazette area under project of East Coast Economic Region (ECER) for
Kelantan, Pahang and Terengganu, Iskandar Malaysia for Johor, Sarawak Corridor
Renewable Energy (SCORE) for Sarawak and Sabah Development Corridor (SDC) for
Sabah [14]. The evaluation of screening and scoring method the best location to set
up Phthalic anhydride plant is Gebeng Industrial Estate Pahang. It is due to the
availability of raw material from BASF Petronas Chemical Sdn. Bhd. that located about
6.8km [15] from proposed location the cost of transportation is far more convenient and
efficient.
Based on Table 3.1 all the location has sufficient facilities, strategic location
area, utilities availability, and high labour availability. Based on the comparison from
Table 3.1 land price for Gebeng Industrial Estate is RM 5-RM20 Per Feet that is
cheaper compare to Pasir Gudang RM 25 - RM250 Per Feet, Kerteh RM2 - RM 20 Per
Feet, Tanjung Industrial Park Klang RM 50 - RM150 Per Square Feet and Tanjung
Kidurong RM 40 – RM 100 which is far more expansive. In term of water rate tariff is
cheaper with only RM0.84 for water more than 227 m3 compare to Tanjung Kidurong
Bintulu RM1.12 for water more than 23 m3. The location proposed have a potential
costumer such as Polyplastic Asia Pacific Sdn. Bhd. and TORAY BASF PBT Resin
Sdn. Bhd. in their production of polymer based product.
In term of environmental, Gabeng Industrial Estate has been gazetted for the
chemical industries as stated in East Cost Economic Region (ECER), the safety aspect
such as residential buffer zone and emergency response force to be considered. As
Shown in figure 3.6 below, the primary buffer zone to the nearest buffer zone are is
about 12.1 km to residential and commercial area and 35.7 km to the nearest hospital
as shown in figure 3.7 below. The distance has comply with the guideline by
Department Of Environment (DOE) that stated primary buffer zone should not be less
1km[16].

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Figure 3.4-1 Primary Buffer Zone to Nearest Residential and Commercial Area[17]

Figure 3.4-2 Primary Buffer Zone to Nearest Hospital[18]

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LIST OF REFERENCES

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https://www.google.com/maps/place/Gebeng,+26080+Balok,+Pahang/@4.003
1241,103.3823436,3654m/data=!3m1!1e3!4m5!3m4!1s0x31c89897bdaa8479:
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2017).
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(2017).
[8] SAJ Ranhill Sdn Bhd, Tarif Air – Syarikat Air Johor, 4/11/2017. (2017) 1.
http://saj.com.my/tarif-air/?lang=ms (accessed November 4, 2017).
[9] SYARIKAT AIR TERENGGANU, SATUWATER - Jadual Kod Tarif, 1/3/1997.
(1997) 1. http://www.satuwater.com.my/index.php/jadual-kod-tarif (accessed
November 4, 2017).
[10] Syabas, Water Tariff: Syarikat Bekalan Air Selangor Sdn. Bhd. (1-800-88-5252),

3-15
4/11/2017. (2015) 1. http://www.syabas.com.my/consumer/water-bill-water-
tariff (accessed November 4, 2017).
[11] SARAWAK RURAL WATER SUPPLY DEPARTMENT, Official Website for
Jabatan Bekalan Air Luar Bandar (JBALB) Sarawak, 4/11/2017. (2017) 1.
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b=page&id=121&menu_id=0&sub_id=157 (accessed November 4, 2017).
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[14] Performance Management & Delivery Unit, Oil, Gas and Energy, Econ.
Transform. Program. (2013) 1–3.
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Oil,_Gas_and_Energy.aspx (accessed November 4, 2017).
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Chemicals Sdn. Bhd. (451307-K) - Google Maps, (n.d.).
https://www.google.com/maps/dir/4.0137591,103.3808154/BASF+Petronas+C
hemicals+Sdn.+Bhd.+(451307-
K),+1%2F11,+Gebeng,+Pahang/@4.0016642,103.3487483,6303m/data=!3m2
!1e3!4b1!4m8!4m7!1m0!1m5!1m1!1s0x31c89821cf91d53f:0x6499bdd4dc7bbc
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Industry and Residential Areas, Minist. Nat. Resour. Environ. Malaysia. (2012).
[17] Google Map, Gebeng Bypass, 26100 Balok, Pahang to 45, Jln Kuantan -
Kemaman, 26080 Kuantan, Pahang - Google Maps, (n.d.).
https://www.google.com/maps/dir/4.013646,103.3800108/4.0251134,103.3999
512/@4.0147728,103.3778736,3142m/data=!3m1!1e3 (accessed November 4,
2017).
[18] Google Map, Gebeng Bypass, 26100 Balok, Pahang to Hospital Tengku
Ampuan Afzan Kuantan - Google Maps, (n.d.).
https://www.google.com/maps/dir/4.013646,103.3800108/Hospital+Tengku+A
mpuan+Afzan+Kuantan,+Jalan+Tanah+Putih,+Kuantan,+Pahang/@3.908463
7,103.2388576,29251m/data=!3m2!1e3!4b1!4m8!4m7!1m0!1m5!1m1!1s0x31c
8b07870b33c15:0x552246d772783423!2m2!1d103.3216346!2d3 (accessed
November 4, 2017).

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APPENDICES

Water Tariff
MIDA
Electrical Tariff

3-17

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