Bangchak Refinery Will Not Be Relocated Despite Fire

[webfact]

Refinery will not be relocated despite fire

WATCHARAPONG THONGRUNG,

THANATPHONG KHONGSAI,

SUPHACHAI PHETTHAWEE

THE NATION

BANGKOK: -- Energy Minister Arak Chonlatanon ruled out any plans to relocate Bangchak Petroleum's refinery complex from Bangkok's densely populated Phra Khanong district, despite the fact that its distillation unit caught fire early yesterday, the second such incident in two years.

"Relocation could cost as much as Bt80 billion to Bt90 billion," he said.

It is believed that a spark set fire to Bangchak's third crude-distillation unit at around 7.20am yesterday, with authorities ordering a week's closure of the complex and a month-long suspension of the distillation unit. No casualties were reported.

A similar blaze occurred at around the same time in the morning on January 14 last year.

Arak held an urgent news conference yesterday to assure consumers that oil supply would not be disrupted even though the 30-day suspension of Bangchak's refinery complex would cut output by 80,000 barrels a day. He explained that six refineries in Thailand were churning out at least a million barrels a day, and Bangchak's daily capacity of 90,900 barrels only accounted for 9.9 per cent of the total.

"At this ratio, the missing barrels would not have a serious impact on overall output, as Thailand's actual refining capacity is 1.1 million barrels [per day]. Moreover, we have sufficient reserves, which can accommodate a shortfall," he told reporters.

Meanwhile, the Public Health Ministry said people living in a 4-kilometre radius might have to be evacuated if the level of toxic sulphur dioxide in the air went beyond the 5-parts-per-million safety standard, and 100 families in a 1-kilometre radius had already been advised to prepare to evacuate. However, as of press time, no evacuation orders were issued.

Four schools nearby, namely Phra Khanong Pittayalai School, Pipattana School, Poonsin School and Bopit Wittaya School, suspended classes and sent their 4,300 students home.

Deputy Public Health Minister Surawit Khonsomboon said officials were monitoring the impact the smoke may have had on residents in the area, especially those living in tall buildings. He also said the thick black smoke posed three threats.

First, hydrocarbon and other solvents in oil vapour could irritate the respiratory tract and might also contain carcinogens.

Second, soot could cause cancer after prolonged exposure as well as obstruct breathing and irritate the skin, and last, people might be exposed to three harmful gases, namely sulphur dioxide, carbon monoxide and nitrogen oxide.

If air in a 4km radius of the site were found to have more than 5ppm of sulphur dioxide, people would need to be evacuated, he said, as he encouraged people living in high-rises to keep their windows closed, cover their noses or move out temporarily.

Pollution Control Department chief Wichien Jungrungrueng has sent two teams to the accident site to collect air and water samples to check for contamination.

At the news conference yesterday, the energy minister also outlined the three measures taken to cope with the situation.

The first measure is to get Bangchak to release its petrol reserves, which will last for 16 days; diesel reserves, which should be enough for nine days; and bunker oil for 24 days.

Second, other refineries such as Thai Oil's and IRPC's will be ordered to boost their output by 35,000 barrels daily. And last, retailers that rely on Bangchak, such as PTT, Chevron and ICP Chemicals, will be allowed to use up their current reserves.

The minister also promised that the oil supply would not be disrupted.

Meanwhile, Bangchak Petroleum said it did not expect to suffer financially from yesterday's blaze because its insurer was ready to cope with the claims.

In its report to the Stock

Exchange of Thailand, Bangchak said the refinery was fully insured and that it also had a business-continuity insurance policy. It also does not expect an impact on the retail oil business from the refinery's suspension.

Separately, Dhipaya Insurance president Somporn Suebthawilkul said Bangchak's assets - refineries, stocks and machinery - were insured for Bt23.5 billion, while it had a Bt1.5-billion coverage for business disruption and third-party claims.

"Dhipaya is the sole insurer of Bangchak, but this incident will not dent our financial position as this policy has been mostly reinsured by foreign insurers," Somporn said.

Officials from the insurance company will inspect the site and should come up with a final figure on damages within a month.

-- The Nation 2012-07-05

related topic:

Blast At Bangkok Oil Refinery Triggers Huge Blaze

http://www.thaivisa....ers-huge-blaze/

[jaltsc]

"Energy Minister Arak Chonlatanon ruled out any plans to relocate Bangchak Petroleum's refinery complex from Bangkok's densely populated Phra Khanong district...Arak held an urgent news conference yesterday to assure consumers that oil supply would not be disrupted even though the 30-day suspension of Bangchak's refinery complex would cut output by 80,000 barrels a day...Meanwhile, the Public Health Ministry said people living in a 4-kilometre radius might have to be evacuated if the level of toxic sulphur dioxide in the air went beyond the 5-parts-per-million safety standard, and 100 families in a 1-kilometre radius had already been advised to prepare to evacuate."

Arak Chonlatanon is such a humanitarian!!! At no point did he state he was concerned about the welfare of the people whose lives and health were affected by the toxic smoke and chemical output resulting from the fire. All he seems to be concerned about is that the oil keeps flowing. He should be ashamed of himself, but of course, people who reach high levels in the petroleum/energy, pharmaceutical, armaments, etc. industries have neither shame nor conscience.

[rotary]

Really needs to be moved in my opinion.

[tom21]

they should not off allowed schools and houses to be built so close

[PhilipCook]

While it will eventually be moved or scrapped, the cost to do it keeps rising, but they would rather kick the issue down the road. This is PTT, lets not pretend they are either poor or not controlled by the government. If there was the political will to move it, the wheels would be in motion. Look at the case where the mayor of Seoul pushed forward his plan to bring a dead creek back to life in the heart of the city. Its now enjoyed by everyone and enhances the charm of the city. Mark my words, eventually there will be someone here who champions this move for the good of the city.

[QED]

Ummm, the refinery has been there nearly 50 years, when there was no housing nearby. If dipshits choose to move there because it is cheap rent then that is their problem, IMHO.

Why move it? Cheaper to knock down the nearby slums and create an exclusion zone.

[RBOP]

No EIA required 50 years ago and they just did a major upgrade increasing production capacity. Wonder if they did an EIA/HIA for that? I expect that lawyer guy that shut down Maptaphut will be all over this refinery very shortly.

[RBOP]

Actually people have been living in that area for 1,000 years dating back to when it was the Khmer Empire. The Thai public school across the street was established in 2507 (the same year Bangchak was established). They would not build a school if the area didn’t have any people living there.

Bangchak's insurance company was quoted yesterday in the business section of the Bangkok Post they need to move or buy up 100m exclusion zone.

[dressedingreen]

I understood a small part of it WAS relocated in the first few seconds.

Just saying!

DIG

[Wombat6]

There are Zoning laws in most modern Countries and companies not complying need to relocate to the appropriate Zoning. Some government assistance may be required for this to happen. It is only common sense that you do not have hazardous industries in the middle of a population area where one disaster could inflict thousands of casualties. Do it before it happens.