1. Introduction

1.1 At present aviation fuel is delivered to the Hong Kong International Airport via an existing temporary Aviation Fuel Receiving Facility sited off Sha Chau. This facility is located within the Lung Kwu Chau and Sha Chau Marine Park. The facility does not have the capacity to meet the forecast demand for aviation fuel during the operational lifetime of the airport. In addition, the Airport Authority Hong Kong has a commitment to have a permanent facility, whereupon the existing facility would cease to be used routinely and would be kept for emergency back-up only.

1.2 A preferred location for the strategically important permanent facility has been identified on existing reclaimed land at Tuen Mun Area 38, see Figure 1.

1.3 The project is deemed to be a designated project under the terms of the Environmental Impact Assessment Ordinance and, as such, an Environmental Impact Assessment has been undertaken to support an application for an Environmental Permit. The key issues, findings and conclusions are presented in this Executive Summary.

2. Site Selection and Comparison of Alternatives

2.1 The search for a suitable site for the permanent facility and related comparative assessment has taken place over a 10 year period in full consultation with the regulatory authorities.

2.2 A number of potential sites including Sham Shui Kok, Sham Wat, Bluff Point, Kau Yi Chau, East of Sokos, Tsing Yi and those near the airport and in the Tuen Mun area, have been considered. The proposed location at Tuen Mun Area 38 is considered to be the environmentally most preferred of all these sites. This site is in a heavily industrialised setting, adjacent to Castle Peak Power Station and Shui Wing Steel Mill. It compares favourably with the above sites, most of which are more ecologically sensitive because of the associated required reclamation. Siting the facility in Tuen Mun Area 38 avoids the need for land reclamation.

2.3 Aviation fuel would be transported from the proposed jetty via a tank farm at Tuen Mun Area 38 to the airport by means of twin subsea pipelines. Alternative routings for this pipeline have been compared. The options include one in which construction of a pipeline ties into the Aviation Fuel Receiving Facility at Sha Chau, in order to make use of the existing twin subsea pipelines from Sha Chau to the airport. Another option comprises a longer route involving a completely new pipeline running directly between Tuen Mun Area 38 and the airport. The environmentally preferred choice has been determined to be that which ties into the facility at Sha Chau.

2.4 The requirements for dredging and pipelaying are substantially reduced if continued use is made of the existing pipelines, whose lifespan is sufficient to meet the need for the airport’s anticipated operational life. Disturbance to dolphins during construction would also be lessened and there are benefits for operational aspects. Usage of this pipeline will eliminate the need for routine offloading of aviation fuel at the back up facility at Sha Chau (to flush the pipeline and maintain the aviation fuel in an acceptable state). However, about 400m of twin pipelines will need to be constructed within the Marine Park.

3. Description of the Project

3.1 The permanent facility at Tuen Mun Area 38 will consist of the following major elements:

¨ a jetty to accommodate aviation fuel tankers;

¨ a tank farm for storage of aviation fuel;

¨ on-site operational facilities including offices;

¨ twin sub-sea pipelines to transfer the aviation fuel to the airport.

3.2 The planning, design and construction of the project is programmed to take about 4 years, with the commissioning date targetted for the end of 2005. The PAFF and its surrounding area is shown in Figure 2.

3.3 Approximately 6.7 ha of land are required to house the aviation fuel tank farm and associated facilities taking up a small part of Tuen Mun Area 38. The proposed site is zoned for industrial use. The closest residential development Lung Kwu Tan is located approximately 2 km away, and comprises low-rise village type housing. The nearest major population centre is the Melody Garden Estate in Tuen Mun, some 3 kilometres distant.

3.4 The tank farm will initially house four storage tanks each providing a storage capacity of 35,000m³. Thereafter additional tanks would need to be constructed to provide an ultimate design capacity of about 400,000m³. The tank farm will be provided with bundwalls and contained drainage.

3.5 Other tank farm facilities include an office building for administrative and security control, leak detection instrumentation, fire fighting and emergency spill equipment, workshops and basic infrastructure including roads, telecommunications, drains, power supply and lighting.

3.6 Aviation fuel will be offloaded at a twin berth jetty sited approximately 200m offshore in about 17m of water. The jetty will be constructed on tubular piles. Tankers with capacity ranging from 10,000 to 80,000 dwt are expected to berth at the jetty typically twice per week initially, rising to three to four times per week over the life of the facility. Aviation fuel will run to shore through submarine pipes protected by sand fill and rock armour which would not protrude above the existing seabed.

3.7 Defensive fenders will be provided on the shore side of the jetty to protect against possible collision from small craft straying into the area. Coupling points on the vessels would be provided with slop trays to catch minor spills of aviation fuel during coupling and de-coupling.

3.8 Aviation fuel will be delivered to the airport site by means of buried 500mm diameter twin sub-sea pipelines which will connect to the existing facility at Sha Chau. The length of the twin subsea pipelines will be about 4.8km. The pipelines will be installed in a dredged trench and protected with sandfill and rock armour not protruding above the existing seabed.

4. Key Issues

4.1 There are a number of important environmental issues associated with the project. These have all been thoroughly addressed in this EIA and those that require special mitigation measures and controls are highlighted below.

4.2 The proposed pipeline requires dredging and other marine works, a very small portion of which will be within the marine park. Sediment released to the water column could have an adverse impact on the natural marine ecology, fisheries and other users of the sea including leisure and industrial activities. Ecological receivers of particular concern include fish, dolphins and sensitive flora such as corals.

4.3 Some aspects of the marine construction works, most notably percussive piling work for the jetty, may affect marine mammals which are known to be sensitive to such noise.

4.4 The proposed pipeline crosses a seabed which may have a rich maritime history. Care is required to avoid works encroachment on any hitherto unidentified historical relics of cultural heritage value.

4.5 It has been identified in this EIA that routine operations at the facility will not pose particular concern. With careful design and management, no significant adverse impacts are expected. Nevertheless, handling bulk quantities of aviation fuel presents concerns associated with any accident or incident which could have an impact including that on human life. Hazard to life and the possible impact of aviation fuel spills on the marine environment were therefore identified as some of the most important issues considered in this EIA.

5. Approach to Assessment

5.1 The study scope and assessment requirements were defined in detail in the study brief issued by EPD under the Environmental Impact Assessment Ordinance. In addition, the assessment has followed the guidelines issued by EPD within the EIAO Technical Memorandum.

5.2 The assessment approach was based on the following process:

¨ scoping key environmental media that could potentially be affected by the project;

¨ identifying regulatory requirements

¨ characterising the existing environment;

¨ identifying sensitive receivers and key environmental issues;

¨ assessment of the likely extent of adverse impacts;

¨ identification of mitigation and monitoring measures; and

¨ conclusions on acceptability of any residual impacts.

5.3 Assessments of the extent of adverse impacts of particular concern have been addressed quantitatively as far as practicable. These calculations have been undertaken by means of mathematical modelling for air quality, odour, water quality, oil spill dispersion and fire heat flux, using methodologies agreed with EPD.

6. EIA Findings

Air and Noise

6.1 With the implementation of standard good working site practices to control dust emissions, no adverse impacts on air quality are expected during construction. There will be low level fugitive emissions of aviation fuel vapours during operations. Concentrations of vapour reaching open air will be low and projections show that they will be unlikely to impact on air quality. Odours from aviation fuel vapours would be barely detectable at the site boundary and would not significantly affect the surrounding environment.

6.2 There are no airborne noise sensitive receivers in the vicinity of the site which is in a heavy industrial setting and thus airborne noise is not identified as a key issue for this project. Nevertheless, good practice mitigation measures have been recommended to keep noise levels to a practical minimum.

Water Quality, Marine Ecology and Fisheries

6.3 The project will involve dredging, pipelaying and backfilling in open waters. The dredged sediment is not expected to be contaminated and thus leaching of potentially toxic substances is not an issue. Similarly dredging would not result in appreciable nutrient enrichment of marine waters. Sediment plume modelling demonstrates that sediment released to the water column is likely to settle rapidly and is unlikely to affect compliance with the statutory Water Quality Objectives for key water quality parameters such as suspended sediment and dissolved oxygen. With the implementation of a range of recommended mitigation measures no sensitive flora and fauna are expected to be impacted as of result of disturbances to water quality or deposition of suspended sediment.

6.4 Site works will be controlled to prevent erosive losses during ground works and discharge of polluted effluents such that no adverse impact of water quality would be expected.

6.5 Construction of the pipeline would result in temporary loss of seabed habitat. However this is essentially insignificant within the context of the large amount of adjacent heterogeneous benthic habitat. Recolonisation is expected to be reasonably rapid thereby returning the habitat and prey items important for fish. Fish of the type found in the study area are tolerant to temporary elevations of suspended sediment concentrations and overall it is considered that the impact of the project on fisheries resources is likely to be insignificant.

6.6 The study area is frequented by marine mammals, particularly the Chinese White Dolphin. This species is very mobile and would be likely to avoid areas subjected to general water quality and marine traffic disturbance during activities such as dredging and pipelaying. The project necessitates percussive piling during construction of the jetty. This could generate intense noise which, if unmitigated, could potentially harm dolphins approaching within 500m of the percussive piling.

6.7 For this reason, a comprehensive set of mitigation measures have been identified to keep noise to levels that would not harm dolphins. These levels are specified within this EIA. Mitigation measures identified for the purpose of achieving these levels include use of a jacket around the pile through the entire depth of the water column and a noise attenuating bubble curtain within the jacket. The percussive piling system itself will be designed and operated so as to minimise disturbance and will be acoustically decoupled from the piling barge, as far as this is practicable. Piling will not be permitted during the peak calving season to protect young calves which may be particularly vulnerable. A dolphin exclusion zone will be established within a 500m radius of the piling works. This zone will be monitored during piling by a trained observer. Piling will only proceed when the area is clear of dolphins.

6.8 Additionally, spot acoustic monitoring will be undertaken to identify submerged dolphins and verify the efficacy of the surface surveillance work. Piling intensity will be gradually ramped up over a period of 2–3 minutes of initially light hammer taps of increasing intensity and piling events will be scheduled for specific daily time windows. These measures will alert dolphins to the commencement of piling activities and allow them to safely vacate the area before the full hammer force is used. With these measures in place it is considered that although the dolphins would experience some nuisance and may temporarily vacate the works site no harmful impacts on dolphins health are expected.

6.9 In addition to these measures during piling, an exclusion zone will be implemented during dredging activities in the Marine Park and pre and post construction phase dolphin abundance monitoring will be undertaken.

6.10 Routine operations at the site would not result in discharge of polluting effluents. The potential for minor losses and spills will be mitigated through design of plant and provision of containment facilities such that no residual impacts on water quality or biota are expected.

Spills and Hazards

6.11 The likelihood of a large oil spill as a result of events such as tanker collision or grounding, failure of supply pipeline or jetty based equipment is quantified as being very low and within acceptable bounds. Nevertheless the consequences of such an event, however unlikely, are potentially severe. These have therefore been evaluated by means of mathematical hydrodynamic and water quality models to assess the likely spread of a series of credible worst case spill incidents.

6.12 Aviation fuel is relatively volatile and subject to decay through a number of natural processes including evaporation, emulsification, sedimentation and biodegradation. The modelling studies indicate that slicks, from events including grounding of the largest tankers expected to use the facility, would dissipate before reaching any sensitive receivers of concern such as beaches, vulnerable habitat or other sites of ecological concern. Nevertheless, comprehensive contingency plans will be drawn up to specify the method by which to contain and remediate any spilled oil and provide quick and effective response in the event of an emergency.

6.13 A consequential risk analysis has been carried out to assess quantitatively societal risks and individual risks to life associated with predicted worst case events at the tank farm, jetty and marine approach and in case of rupture of the submarine pipeline. The risk from hazards at the tank farm, including catastrophic tank failure and fire, are calculated to lie within the recognised acceptable range as defined in the EIAO Technical Memorandum (EIAO-TM). Risks from the submarine pipeline are extremely low mainly because the risk of rupture is extremely low and because emulsification would occur as aviation fuel surfaces. The latter would render ignition extremely difficult.

6.14 Hazards such as groundings and strikings at the jetty or involving approaching aviation fuel tankers have also been examined. Aviation fuel on the sea surface would have a relatively high flashpoint and probably be difficult to ignite. Nevertheless worst case modelling, assuming surface fires, has been undertaken. The maximum individual risk is also deemed to be acceptable using EIAO Technical Memorandum criteria. Further, the societal risk lies in the acceptable region of Annex 4 of the EIAO – TM. Neverthless, the design of the facility will meet best practice and, as such, a number of operational measures will be incorporated.

Landscape, Visual and Cultural Heritage

6.15 The project site is located in a heavily industrialised neighbourhood and the proposed facility is thus compatible with adjacent land uses. There would be some minor impacts within this local context during the early phases of construction. This would subsequently be compensated such that the net result may even be considered beneficial. A number of mitigation measures are identified to facilitate sympathetic design and landscaping.

6.16 The high quality landscape of the natural setting of Castle Peak behind the site would remain unaffected. The development will not significantly impact on the local landscape or important view sightlines. However, a comprehensive range of planting proposals including the use of the 1.5m perimeter landscaped bund and a 4m landscaped mound in future tank expansion areas will ensure that the tanks are screened from key visual receivers.

6.17 There are no declared monuments in or close to the site and there will be no impacts on any aspect of terrestrial cultural heritage. The archaeological status of the proposed pipeline routing is not known. The rich maritime history of the general study area suggests a high archaeological potential. It is therefore recommended that the exact pipeline route, which is still subject to detailed design within the broadly identified route corridor, should be investigated by a qualified marine archaeologist prior to commencement of construction works, to confirm the absence of shipwrecks or other seabed historical artefacts. This should comprise a geophysical survey supplemented by a dive survey, if necessary, to investigate any anomalous findings.

Waste Management

6.18 Waste management issues have been assessed in line with the principles of the waste management hierarchy promoted by EPD. In order of priority these involve :

¨ Avoidance;

¨ Minimisation;

¨ Reuse and Recycling;

¨ Treatment; and

¨ Disposal.

6.19 Numerous recommendations on good practice and mitigation measures have been recommended to put these principles into effect.

6.20 The largest waste stream by volume will be dredged mud which will be disposed of offshore at a disposal site administered by the Civil Engineering Department. Review of available sediment quality data gives reason to believe that the sediments are not contaminated. Nevertheless, the sediments will be fully characterised in line requirements of the Dumping at Sea Ordinance and EPD’s Sediment Quality Assessment Framework in due course in support of applications for any necessary Dumping Permits.

6.21 Construction and demolition waste arising from excavation and site formation works will be re-used on site to form a landscape mound for planting. Other waste streams are relatively low in volume. Types and quantities of all residual wastes expected to arise during construction and operation have been identified, quantified and suitable disposal sites identified.

6.22 Measures have been identified to ensure safe handling of chemicals used on site and to minimise arisings of chemical waste. Similarly measures are recommended to ensure safe handling and disposal of all chemical wastes.

6.23 Measures for safe disposal of sewage and other effluents including storm drainage in both the construction and operational phases are recommended.

7. Mitigation and Monitoring

7.1 The EIA process has facilitated integration of environmental considerations into the fundamental design process for the project. The principal mitigation measures identified are those achieved through siting and plant design. In addition, a number of specific construction and operational phase measures have been identified to minimise potential adverse environmental impacts. The most notable of these have been discussed above. A complete listing of all recommendations and in-built mitigation measures are detailed in the form of an Implementation Schedule. These measures will be implemented by AA (the project proponent) through its Franchisee, and enforced by EPD by means of the regulatory empowerment of the Environmental Impact Assessment Ordinance.

7.2 A monitoring and audit programme will be implemented by the proponent to confirm that all recommended mitigation measures have been implemented or amended, if subsequently found necessary. A design audit is recommended to identify measures which are to be integrated into the design. These items will include:

¨ land/marine spill response plan;

¨ pipeline leak detection and automatic shut-down system;

¨ pipeline rock armour protection;

¨ tank high level shut-down;

¨ tank bunding;

¨ tank leak drainage isolation and containment system;

¨ on-site fire fighting equipment;

¨ jetty protection;

¨ aviation fuel delivery shut-down valves;

¨ dolphin acoustic monitoring;

¨ dolphin exclusion zones;

¨ dolphin abundance monitoring;

¨ underwater noise monitoring during piling;

¨ piling acoustic decoupling methods;

¨ bubble jacket design; and

¨ landscape design drawings.

7.3 During the construction phase, ambient water quality will be monitored when marine construction works are taking place within 1000m of the Lung Kwu Chau and Sha Chau Marine Park. Measurements of suspended solids, turbidity and dissolved oxygen shall be taken on a routine basis to enable any deteriorating water quality to be readily detected and timely action to be taken to rectify the situation.

7.4 Regular site audits will be carried out to confirm that good working practice is adhered to at all times and the mitigation measures identified in the Implementation Schedule are being followed.

8. Overall Conclusions

8.1 The proposed Permanent Aviation Fuel Facility site at Tuen Mun Area 38 and route for the connecting pipeline to tie in with the existing twin subsea pipelines from Sha Chau to HKIA represents the best available environmental option which meets the fundamental requirements of the facility.

8.2 Implementation of a comprehensive list of mitigation measures as specified in the Implementation Schedule is recommended along with the environmental management regime detailed in the Environmental Monitoring and Audit Manual.

8.3 With the adoption of these mitigation measures, the project will not result in any unacceptable residual environmental impacts. The project will fully comply with all environmental regulations and standards prevailing in Hong Kong.