Caltex Refinery Commitment to Operational Excellence

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• Caltex Refinery Commitment to Operational
  Excellence
• A Presentation to the
• Environmental Affairs and Tourism
• Parliamentary Portfolio Committee
• By
• Steve Woodruff
• Caltex Refinery General Manager
• 23 August 2005

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Safety Moment
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Focus on injury prevention
Historical Learning Look-back
Forward-Looking Predictive Preventative
To prevent injuries, we must focus below the line
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• An overview of the Caltex Refinery

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Caltex refinery then and now
1966 Refinery started up (30 000
bpsd). 1970 More units added (50 000
bpsd). 1975 Capacity increase (58 000
bpsd). 1977 Debottleneck (62 000
bpsd). 1978 North refinery built (110 000
bpsd).
1990 Instrument modernisation project. 1992 Octa
ne enhancement project. 1995 Unleaded petrol
project. 1996 Jet fuel project. 1998 New steam
boiler. 2000 Tailgas treating unit. 2002 Sulphur
pastillation project. 2005 Clean fuels
project. PMG note Graphics not included
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Chevron corporate vision

• Vision for Operational Excellence
• To be recognised and admired by industry and the
  communities in which we operate as world-class in
  safety, health, environment, reliability and
  efficiency.

Dave OReillyChairman and CEOChevron Corporation
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Caltex refinery mission2005 2007
0 0 84.5 100 PMG note Graphics not
included
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Refinery mission
0 Injuries 0 Incidents 84.5 Plant
utilisation 100 Engagement with employees
and external stakeholders
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• Our journey to world class environmental
  performance started 10 years ago

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More than R450 million invested in environmental
improvements
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• Progressive reduction in air emissions

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A 79 reduction in sulphur dioxide emissions
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Refinery Burner Fuel Reduction of Sulphur
Dioxide Emissions

• R 30 million
• Control sulphur in burner fuel below 2 wt
  sulphur
• Minimise Fuel Oil firing
• Maximum Gas firing
• Gas is low in sulphur content
• Sulphur in burner fuel part of crude selection

• Future Plans
• Work towards 100 gas firing

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Sulphur Recovery Units Reduction of Sulphur
Dioxide Emissions

• R 71 Million
• Tailgas Treating Unit installed in 2000

• Future Plans
• Continuous improvement in reliability and
  efficiency of unit

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2005 - Our Journey continues
Sources of sulphur dioxide

• Measurement
• Modeling
• Control
• Work with DEAT, City of Cape Town to meet
  requirements of new AQA

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An 80 reduction in particulate matter (dust)
emissions

• R 40 Million
• Installation of Electrostatic Precipitators in
  1996/1997

• Future Plans
• Continuous improvement in reliability and
  efficiency of units

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Reduction in volatile organic compound emissions

• R8 million
• Installed tank seals on all floating roof tanks
  at the refinery

• Future Plans
• Fenceline monitoring to collect baseline
  information on VOC emissions from the refinery
  2005 2006
• Complete a R70 million upgrade of effluent plant
  2005 2007

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Effluent plant upgrade (R70 million)

• Implementing new effluent project to improve
  quality of used water going out to sea. Project
  will reduce VOCs from effluent plant.
• Have had a number of meetings with kitesurfers to
  resolve issues, develop plans and build trust.
• Project work in progress to bring effluent
  treatment facilities in line with world class
  equalisation secondary treatment (Phase 3 4
  of project)
• New effluent license issued Oct 2004. CalRef
  currently within permit specs although upgrade to
  be carried out to meet 2007 requirementsPMG
  note Graphics not included

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Guiding Principles of Refinery Air Emission
Reduction Plan

• Focus on SO2, VOCs, NOx, H2S, particulates, black
  smoke (opacity), flare
• Alignment with Chevron vision for operational
  excellence
• Alignment with new Air Quality Act
• Evaluate options for improved measurement and
  reduction of air emission
• Focus on technology investment and improving
  reliability
• Continue to involve stakeholders

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• Community Air Quality Monitoring

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Daily Average, Ground level SO2 as monitored in
Bothasig, Goodwood, Table View and Killarney
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• We are focusing on plant reliability to eliminate
  incidents

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Incidents
Date Incident Description
26 February 2003 Black smoke from refinery stacks
04 July 2004 Pressure safety valve lifted causing crude oil spray
10 January 2005 25 minute black smoke flare
13 January 2005 Pressure safety valve lifted causing some diesel spray
04 February 2005 Fire
14 March 2005 Three minute black smoke flare
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Strong reliability focus is our key strategy for
eliminating incidents

• Reliability focus will improve environmental
  performance
• Visible leadership and accountability
• Preventative maintenance
• Training and development
• Reinforce procedure compliance and pre-task
  planning
• Shutdown effectivenessPMG note Graphics not
  included

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• Major projects in 2005

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Water Recycling Project(R30 million)

• Joint venture between Caltex Improchem to
  purify sewerage water for Potsdam refinery
  boilers using reverse osmosis
• Conservation Incentive Saving drinking water
  for 6000 households
• PMG note Graphics not included

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Clean Fuels Project(R200 million)

• Project to produce lower sulphur diesel (0.05
  wt) by end 2005 according to new government
  specifications
• PMG note Graphics not included

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Community Involvement
Partnering with environmental groups and air
quality authorities to implement fenceline air
(VOC) monitoring.

• Introducing neighbours to the refinery.
• PMG note Graphics not included

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• Thank You