FUEL STATIONS DEVELOPMENT PROCESS

1 FUEL STATIONS DEVELOPMENT PROCESS: TURNKEY PROCESS

An illustration of a general filling station process from initial developments up to operations of

the facility is seen below. Elements of this process are further discussed in succeeding sections.

1.1 DEVELOPMENT
1.1.1 ENVIRONMENTAL IMPACT ASSESSMENT

Approved EIA including all necessary specialist studies are required for license applications and
funding purposes of filling stations.

Generally, for petroleum storage between 80 m3 and 500 m3, a Basic Assessment process will
be required for environmental authorization in terms of Activity 14 of Listing Notice 1 (GN No.
984 of the National Environmental Management Act (Act 107 of 1998). Typically, fuel station
storage volumes range between 60 m3 and 120 m3 underground storage, depending on the size
of the facility, available area and grades of products to be stored.

Sometimes a waste management license application under the National Environmental

Management Waste Act (NEM:WA) (Act 28 of 2008) are relevant, depending on the daily
throughput capacity for treatment of effluent, wastewater or sewage.
A General Authorization (GA) or a full Water Use License Application (WULA) might also be
required depending on the type of water source and amount of water to be used.

General Specialist Studies required as part of the EIA process include:

 Traffic Impact Assessment

 Socio-Economic Impact Assessment
 Storm Water Management Plan
 Waste Management Plan
 Contamination Risk Assessment
 Geotechnical Study
 Phase 1 Heritage Screening
1.1.2 TOWN PLANNING

Town planning activities typically include:

 Consolidation and re-zoning of the property (if required – depending on the type of
facility and current zoning);
 Civil Service Reports for bulk contributions (i.e. roads, stormwater, water supply and
sanitation);
 Site development plans.

A land-use zoning certificate issued by a competent authority, authorising retailing from the site
is required for the licensing applications. The Title Deed of a property will be required to scope
the required town planning activities.

1.1.3 LEGAL REQUIREMENTS

In terms of the legal requirements for developing filling stations, a Letter of Intent to supply
fuel and/or signed lease agreement from an oil company for at least 10 years is generally a
requirement for funders prior to reaching financial close. This depends on the business case and
project structuring proposed by the client and terms of the envisioned funders for the sites.

EPCM has an in-house legal department capable of assisting with required contractual
agreements (i.e. develop/review of lease agreements, develop/review of supply agreements,
facilitation during negotiations, etc.) should there be any opportunity for this requirement.

1.1.4 LICENSING
Site-, retail- and/or construction licensing is required to be approved prior to breaking ground
with any construction activities. Type of licensing depends on operations to be installed
(wholesale, retail, etc.).

EPCM assists our clients with the following tasks:

 License applications on behalf of the client at the relevant regulatory authority;

 Assistance with preparing all documentation required for licence applications;
 Obtaining approval from the government for required licensing of desired facility
operations.
1.1.5 FINANCE

For commercial property finance, various finance options are available. Considering debt
finance, the following processes are normally involved with raising finance:

 Preparation of information memorandum for investor reference purposes;

 Introduction of information to relevant investors identified based on project nature,
project returns and type of project funding required;
 Discussions between project sponsors and prospective financiers regarding the project.

Assistance with the communication of the feasibility/concept study, financial modelling and
information memorandum to potential financiers can be provided to clients by our financial
team.

1.2 DESIGN
1.2.1 CODES AND STANDARDS
RELATED STANDARDS & PUBLICATIONS

SANS 1398 Road tank vehicles for petroleum-based flammable liquids

SANS 299 Leaded petrol

SANS 10089-3 The petroleum industry Part 3: The installation, modification, and

decommissioning of underground storage tanks, pumps/dispensers and pipework at service
stations and consumer installations

SANS 5172 Resistance to petrol of paint and varnish films

SANS 10089-2 The petroleum industry Part 2: Electrical and other installations in the
distribution and marketing sector
SANS 1598 Unleaded petrol

SANS 1668 Fibre-reinforced plastics (FRP) tanks for buried (underground) storage for petroleum
products

SANS 29001 Petroleum, petrochemical and natural gas industries – Sector-specific quality

management systems – Requirements for product and service supply organizations

SANS 1398 Road tank vehicles for petroleum-based flammable liquids

NFPA 10 Standard for Portable Fire Extinguishers

NFPA 12 Standard on Carbon Dioxide Extinguishing Systems

NFPA 15 Standard for Water Spray Fixed Systems for Fire Protection

NFPA 20 Standard for the Installation of Stationary Pumps for Fire Protection

NFPA 30A Code for Motor Fuel Dispensing Facilities

NFPA 77 Recommended Practice on Static Electricity

API Spec 12D Specifications for Field Welded Tanks for Storage of Production Liquids

API Std 620 Design and Construction of Large, Welded, Low-Pressure Storage Tanks

API Std 2000 Venting Atmospheric and Low-pressure Storage Tanks

API Std 2610 Design, Construction, Operation, Maintenance, and Inspection of Terminal & Tank
Facilities

API RP 1615 Installation of Underground Petroleum Storage Systems

API RP 1632 Cathodic Protection of Underground Petroleum Storage Tanks and Piping Systems

API RP 1637 Using the API Colour-Symbol System to Mark Equipment and Vehicles for Product
Identification at Gasoline Dispensing Facilities and Distribution Terminals

API RP 2003 Protection Against Ignitions Arising Out of Static, Lightning and Stray Currents

NLPA Std 631 Entry, Cleaning, Interior Inspection, Repair and Lining of Underground Storage
Tanks

NACE RP 0169 Control of External Corrosion on Underground or Submerged Metallic Piping

Systems

NACE RP 0285 Corrosion Control of Underground Storage Tank Systems by Cathodic Protection

 UL Std 58 Standards for Steel Underground Tanks for Flammable and Combustible Liquids

UL Std 567 Standard for Emergency Breakaway Fittings, Swivel Connectors and Pipe Connection
Fittings for Petroleum Products and LP-Gas

UL Std 842 Standard for Valves for Flammable Fluids

UL Std 1746 Standard for External Corrosion Protection Systems for Steel Underground Storage
Tanks

STI P3 Specification and Manual for External Corrosion Protection of Underground Steel Storage
Tanks
1.2.2 FEASIBILITY / CONCEPT STUDIES

As a first step in developing a filling station, a business case needs to be developed in order to
establish whether the project will economically be viable. To set the basis for the project, a
feasibility/concept study needs to be conducted in order to establish whether there is a market
to serve in the surrounding areas, identify the infrastructure requirements to meet the market
demand, determine the project cost estimates and conduct a financial analysis to determine
whether the facility will be able to deliver fuel on a cost-competitive basis. Most important will
be to determine if the desired return on investments could be reached.

This study typically forms the basis for succeeding phases of the project development phase
and is a key requirement in illustrating the business plan for funding purposes. Key deliverables
generally included in the feasibility/concept study:

 Market assessment;
 Infrastructure assessment;
 Capital and operating cost estimates;
 Project implementation schedule;
 Results from financial modelling and investment structuring.
1.2.3 ARCHITECTURAL DESIGNS

The general approach in executing Architectural Designs for filling stations is described below. A
complete visual walk-through of the entire space can be provided to clients in concluding the
Architectural Designs. Below tasks describe the general methodology for the architectural
designs of the filling station.

Design: briefing & structure phase

This phase lays down the foundation block for the entire project, most of the major decisions
are made in this phase. Typical tasks to be performed in this phase include:

 Concept direction board (concept pictures with details of building & interiors) – using
client’s concepts & ideas in a final ‘look & feel’ board;
 Forecourt and canopy area concept – mood concept pictures;
 Restrooms concept – mood concept pictures;
 Shop/kiosk internal concept – mood pictures & interesting details;
 Restaurant (if need be) concept – mood and interesting details;
 Finishes sample board and specification for Quantity Surveyor to quantify;
 Space planning using the company organogram to define areas & departments;
 Furniture (interior) and pumping bay layout in accordance with the defined space
planning;
Specification phase: all hard finishes
 All celling layouts with a detailed lighting plan;
 Complete wall finishes schedule of the entire building;
 Complete floor finishes schedule of the entire building and outside areas;
 Complete tiling layout in all tiled areas: kitchen/restaurant, restrooms etc;
 Complete Sanitary schedule;
 Lighting specification schedule;
 Electrical specification schedule;
 Signage specification schedule;
 Working drawings of all shop fitted items and other built-in pieces, ex. vanities,
cupboards and other cabinetry;
 Details & specifications of feature areas – ground floor entrance, reception, open-plan
areas, canteen and restrooms;
 3D renderings of key areas for presentation.
Interior design: All details on soft furnishing and general features
 All restaurant/kiosk furniture: counter, ergonomically correct seating and shop layout;
 All soft furnishings: Occasional seating, rugs, artwork, signage, accessories;
 Detailed quotation break-down of every area.
1.2.4 ENGINEERING DESIGNS

As part of the engineering designs, the following deliverables are generally included:
  Process Schematic for hydrocarbon process
 Process Flow Diagrams (PFDs)
 Piping & Instrumentation Diagrams (P&IDs)
 The overall layout-, site layout- and location drawings;
 Material Safety Datasheets (MSDs);
 Hazardous area classification drawings;
 Major equipment data sheets and specifications;
 Pipe routing layouts;
 Single line diagrams;
 Earthing drawings;
 Cathodic protection system drawings;
 Power consumption list;
 Electrical and instrumentation datasheets;
 Cable route diagrams;
 Fire detection and -protection designs;
 3D Model (underground and aboveground); and
 Detailed Civil Drawings.

What separates our proposed design approach is our abilities to apply innovative smart 4D build
information modelling (BIM) that ensure efficient construction, progress tracking and improved
communication between the office and construction teams. The team has strategically decided
to apply this technology as an additional service offering for clients to improve building
efficiencies, shorten construction programs and serve as an effective project management tool.
How 4D is applied during our design executions:

 The site is intellectually modelled by creating a 3D model in Autodesk Plant 3D based on

the engineering designs;
 The 3D model is then integrated into Navisworks;
 The approved detailed construction schedule completed in MS Project is then imported
into the same Navisworks model;
 Using Navisworks, the schedule then intelligently connects with each 3D component of
the filling station;
  A 4D simulation video is produced based on the schedule integrated with the 3D plant
model.
1.3 PROCUREMENT, CONSTRUCTION & COMMISSIONING

Procurement can only start once funding is in place. Construction can only start once the EIA,
building plans and licensing applications have been approved.

1.3.1 4D BIM MODELLING

Applying 4D to the construction phase is beneficial to our clients and EPCM. The actual versus
planned construction progress are tracked using a 4D simulation video. The 4D simulation video
is generally used during toolbox talks on site during construction. This allows improved
communication between the office-based engineering- and onsite construction teams. The
office-based team is able to follow the onsite progress in reality based on the internet.

Another advantage of applying 4D modelling is to identify any construction issues early on

during the project to plan accordingly and prevent schedule delays. This also allows the
draughting and engineering teams to easier make design changes and update designs during
construction when required.

1.3.2 CONSTRUCTION WORKS

General construction works for a filling station along with its activities are described below.

Civil & Earthworks

 Preliminary work consists of site establishment and site clearance;
 Clear and grub of site, excavate and compact where necessary;
 Backfill to be procured and filled where needed;
 Extension to the existing building to be erected;
 Parking and dispensing areas will be prepared and constructed (brick paving for parking
and concrete slabs for dispensing area);
 Construction of new pylon sign (including all signage);
 Canopy remedial work; and
 Landscaping.
 All necessary excavation and compaction of new entrances and exits to the retail site;
 All applicable backfilling where needed; and
  Brick surfacing, shoulder slopes and curbing (details to be confirmed).
Electrical Works
 All new cabling and DB board;
 Building lighting and power connections;
 Lightning and earthing protection;
 Perimeter lighting; and
 All lighting within the building and dispensing area.
Mechanical Works
 Supply and Installation of all new piping (filler lines, vent lines, delivery lines);
 Supply and Installation of 3 new, 3 product 6 hose dispensers;
 Supply and Installation of STP’s;
 Supply and Installation of all applicable valves and fittings; and
 Supply and Installation of Automatic Tank Gauging.
Forecourt & Kiosk Building
 External Shop & Forecourt Signage;
 Kiosk Graphics;
 Internal Shop Signage;
 Ground Water Monitoring Wells;
 Internal Equipment and Furniture;
 Shop IT Systems & POS;
 HVAC and Refrigeration;
 Shopfitting & shop equipment;
 BRG glasses & doors; and
 Site Generator.
Fire Protection System
 Firefighting equipment to be included in accordance with client requirements, as well as
best practice engineering codes and standards.

EPCM provide procurement, construction and commissioning of the filling stations as this is our
core business and main objective for a turnkey filling station project. A detailed procurement,
construction and commissioning methodology are provided to clients prior to construction.

1.4 TRAINING OF OPERATORS

EPCM provide training courses for filling station operators to various major oil companies. A
detailed training program is provided to clients.
1.5 MAINTENANCE

EPCM can provide filling station maintenance services. Tank cleaning, tank inspections, CP
system inspections, building maintenance, canopy maintenance, signage upgrades, etc. can be
provided by EPCM. A proposal can be provided once more detail regarding the filling stations
are available.

2FUEL STATIONS DEVELOPMENT PROCESS: TIMELINES

Indicative timelines are provided below for the EPC components of a filling station. A detailed
project schedule is provided to clients upon project commencement.

Task Approximate timeline

Feasibility Report 3 weeks

Building plans / architectural

designs / site development plans 8 weeks

Engineering designs 6 weeks

Once a financial close has been reached, 3 – 4 months are

Procurement, construction and required for the construction period depending on the scope
commissioning of work.
3FUEL STATIONS DEVELOPMENT PROCESS: QUALITY MANAGEMENT & HSE
COMPLIANCE

EPCM is ISO 9001:2015 and 14001:2015 accredited and also operates under 45001 Operational
Health and Safety Management System.

Engineering, procurement and construction are carried out in accordance with EPCM’s quality
management plan, the client’s specifications and international best practice. The QMP & HSE
plan that are complied with is available upon request.