1 Fuel Stations Development Process: Turnkey Process

Below is an illustration of a general filling station process from initial developments to facility operations. Elements of this process are further discussed in succeeding sections.

fuel stations development process

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) is relevant, depending on the daily throughput capacity for treating effluent, wastewater, or sewage.

Depending on the type of water source and the amount of water to be used, a general authorization (GA) or a full Water Use License Application (WULA) might also be required.

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

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

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

1.1.4 Licensing

Site, retail, and/or construction licensing must be approved prior to breaking ground with any construction activities. The type of licensing depends on the 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

Various finance options are available for commercial property finance. 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.

Our financial team can assist clients with communicating the feasibility/concept study, financial modelling, and information memorandum to potential financiers.

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 to establish whether the project will be economically viable. To set the basis for the project, a feasibility/concept study needs to be conducted 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. The most important will be determining if the desired return on investments can 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 to executing Architectural Designs for filling stations is described below. When concluding the architectural designs, clients can be provided with a complete visual walk-through of the entire space. The tasks below 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 following the defined space planning;

Specification phase: all hard finishes

  • All ceiling 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 breakdown 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)
  • Detailed Civil Drawings

What separates our proposed design approach is our ability to apply innovative smart 4D build information modelling (BIM) that ensures 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, and 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. A 4D simulation video tracks actual versus planned construction progress. The 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 can follow the onsite progress in reality using the Internet.

Another advantage of applying 4D modelling is that it allows you to identify any construction issues early on during the project, plan accordingly, and prevent schedule delays. This also allows the drafting and engineering teams to make design changes and update designs more easily during construction when required.

1.3.2 Construction Works

General construction works for a filling station; 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 is 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
  • Landscaping
  • All necessary excavation and compaction of new entrances and exits to the retail site.
  • All applicable backfilling where needed
  • 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
  • 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 STPs
  • Supply and Installation of all applicable valves and fittings
  • 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
  • Site Generator

Fire Protection System

  • Firefighting equipment is to be included in accordance with client requirements, as well as best practice engineering codes and standards.

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

1.4 Training of Operators

EPCM provides training courses for filling station operators at 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 details regarding the filling stations are available.

2Fuel Stations Development Process: Timelines

Indicative timelines for the EPC components of a filling station are provided below. 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
Procurement, construction and commissioning Once a financial close has been reached, 3 – 4 months are required for the construction period, depending on the scope 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 practices. The QMP and HSE plans that were complied with are available upon request.

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