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HENGYUAN REFINING COMPANY BERHAD I 31

• A shift engagement with the site’s frontliners conducted In spite of the above, the FY2020 EII index increased from
by Product Quality focal points to share key learnings, FY2019’s 110.9 to 116.9. This was due to lower refinery
relevant EQP concepts and how frontliners play a role in throughput due to the COVID-19 situation. Additionally, there
enabling the work process. were reliability incidents which resulted in sub-optimal fuel
• Maintenance of an on-site register of product quality risks usages. On-going efforts are being implemented to ensure
and their controls. This allows identification and appropriate the refinery achieves the future EII target as planned.
management of product quality assurance barriers which For more details on our Energy Management initiatives,
enable product quality risks to be mitigated accordingly. please refer to page 40 of our Sustainability Report 2020.
• Operationalising a monthly health check framework in
identifying improvement gaps and actions for closure.
No major findings were identified for assessment in hSSE & Compliance
FY2020.
HRC is committed to provide a secure and respectful working
STRATEgIC DIRECTION 3 environment for the well-being of our employees and business
Sustain hRC’s Laboratory’s Operational Excellence partners while respecting our neighbors and contributing to
the community at large. We embrace Quality, Health, Safety,
During the year, a high level of performance in lab testing Security and Environment and Social Performance (QHSSE & SP)
was achieved by HRC’s laboratory through the lab testing as a core commitment in all our business activities. We strive for
assurance programme, monthly monitoring and close personal safety, process safety, security, compliance as well as
collaborations with the operations team. This was to assure focus on protecting the environment, health of our stakeholders
the quality of lab testing in HRC meets or surpasses industry and business sustainability.
standards.
During the year, we recorded three (3) Total Recordable Cases
As a result of these sustained efforts, there were no product (TRC) in FY2020, with one Lost Time Injury (LTI), one Restricted
quality incidents in FY2020. All products were delivered to Work Case (RWC) and one Medical Treatment Case (MTC).
customers as per the expected specification. HRC met all We also recorded one Spill with Tier 2 response and three (3)
product quality targets. API Process Safety events with one API Tier 1 and two API Tier

For more details on our product quality, please refer to page 19 2 Events.
of our Sustainability Report 2020. In terms of safety performance, throughout the year, HRC
achieved safe execution of major projects with zero major
STRATEgIC DIRECTION 4 incidents at our Euro 4M, Euro 5 Gasoil and H2GEN project
Initiate Energy Improvement masterplan sites. However, one LTI was recorded in FY2020 due to an
accident during caustic unloading at the Effluent Treatment
The year saw the initiation of HRC’s long-term energy Plant (ETP). This incident has reset our LTI Free Manhours from
masterplan towards driving our energy performance our previous record of 10.1 million.
into the Second or First Quartile of Solomon Associates’
benchmarking standard for refineries energy performance. Following each incident, a Causal Learning investigation
protocol was conducted to uncover the root causes, and
We target a combined Energy Intensity Index (EII) reduction recommendations were translated into action items in reports
of 14.5 pts by 2027; and aimed for the annual EII target distributed to all concerned parties.
of 110.4.
Notwithstanding these incidents, we are confident that
As part of the Masterplan, initiatives launched towards
enhancing energy efficiency during the year under review we remain well anchored in good QHSSE fundamentals,
included improving furnace efficiencies by optimising having won top tier recognition from the prestigious
excess oxygen in flue gas, reducing fuel usage via utilising Prime Minister Hibiscus Award and Joint State Award for
improved process control and automation, continually Negeri Sembilan, which is a solid testament to our QHSSE
optimising overall refinery fuel supply and demand balance performance within the oil and gas industry in 2020.
to ensure the most optimal energy mix.