Environmental & Social Review Summary
Project Number
24902
Company Name
PETRONET LNG LIMITED
Date ESRS Disclosed
Apr 4, 2007
Country
India
Region
South Asia
Last Updated Date
Nov 12, 2022
Environmental Category
B - Limited
Status
Completed
Previous Events
Approved : May 31, 2007
Signed : Jun 23, 2007
Invested : Jun 25, 2010
Sector
Natural Gas Distribution
Industry
Metals and Mining
Department
Regional Industry - INF Asia & Pac
Project Description
Petronet LNG Limited (PLL, or the company) was established in 1998 to import liquefied natural gas (LNG), build and operate the related terminals and regasification facilities, and sell natural gas to distribution companies to meet India’s rapidly-growing energy needs. PLL currently has one 5 MMTPA operational LNG terminal and regasification facility (the Terminal) at Dahej, Gujarat, India, which was commissioned in April 2004. Regasified LNG (RLNG) from the Terminal is sold to Gas Authority of India Limited (GAIL), Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) (the Offtakers), which is then sold by the Offtakers to end-consumers (mainly comprising power producers, fertilizer manufacturers and industrial units) in the region. The Terminal is connected to two main high pressure gas transmission networks currently in operation, the Hazira-Bijapur-Jagdishpur (HBJ) gas pipeline owned by GAIL and the Gujarat Gas Grid owned by Gujarat State Petronet Limited (GSPL) and connected via GAIL pipeline near PLL terminal. The work related to direct connection of GSPL line with PLL’s facility is underway. RLNG is transported through these networks under gas transportation agreements entered into between the Offtakers and network owners.
PLL plans to:
- construct an additional regasification line, with its associated LNG storage tanks and if required a second jetty, to expand the capacity of the existing terminal at Dahej from the present 5 MMTPA to 10 MMTPA; and
- construct a greenfield 2.5 MMTPA LNG terminal (with provision for capacity expansion to 5 MMTPA) within Cochin Port area, at Kochi, in Kerala, both in India.
The project involves:
- at Dahej, installation of additional facilities within the existing terminal premises including 2 x 160,000 m3 gross capacity LNG storage tanks;
- 8 shell and tube vaporizers (STVs);
- 2 submerged combustion vaporizers (SCVs);
- 2 x 7.6 MW (ISO RATING) gas turbine generators (GTGs); and
- possibly a 5th 160,000 m3 gross capacity LNG storage tank and a second jetty (including a second LNG unloading system) if required, with doubling of the LNG tanker calls at the Dahej terminal from the present 80 tankers per year to 160 tankers per year; and
- at Kochi, construction of: LNG unloading jetty;
- dredging of the basin;
- LNG unloading facilities including arms, pipelines and trestle for the pipeline; 2 x 155,000 m3 LNG storage tanks with provision for 3rd tank;
- LNG re-gasification system (2.5 mtpa capacity);
- plant utilities including 3 x 8 MW open cycle gas turbine, 6-7 MW grid electricity system, fresh water system, domestic and process waste water treatment system, compressed air, nitrogen and fire fighting system.
The principal associated facility, on account of the project, is the proposed RLNG transmission line from the LNG terminal to Coimbatore and Mangalore in Tamil Nadu and Karnataka, respectively, which will be laid, operated and maintained by GAIL.
The company has approached IFC for a corporate loan to fund its expansion program.
PLL plans to:
- construct an additional regasification line, with its associated LNG storage tanks and if required a second jetty, to expand the capacity of the existing terminal at Dahej from the present 5 MMTPA to 10 MMTPA; and
- construct a greenfield 2.5 MMTPA LNG terminal (with provision for capacity expansion to 5 MMTPA) within Cochin Port area, at Kochi, in Kerala, both in India.
The project involves:
- at Dahej, installation of additional facilities within the existing terminal premises including 2 x 160,000 m3 gross capacity LNG storage tanks;
- 8 shell and tube vaporizers (STVs);
- 2 submerged combustion vaporizers (SCVs);
- 2 x 7.6 MW (ISO RATING) gas turbine generators (GTGs); and
- possibly a 5th 160,000 m3 gross capacity LNG storage tank and a second jetty (including a second LNG unloading system) if required, with doubling of the LNG tanker calls at the Dahej terminal from the present 80 tankers per year to 160 tankers per year; and
- at Kochi, construction of: LNG unloading jetty;
- dredging of the basin;
- LNG unloading facilities including arms, pipelines and trestle for the pipeline; 2 x 155,000 m3 LNG storage tanks with provision for 3rd tank;
- LNG re-gasification system (2.5 mtpa capacity);
- plant utilities including 3 x 8 MW open cycle gas turbine, 6-7 MW grid electricity system, fresh water system, domestic and process waste water treatment system, compressed air, nitrogen and fire fighting system.
The principal associated facility, on account of the project, is the proposed RLNG transmission line from the LNG terminal to Coimbatore and Mangalore in Tamil Nadu and Karnataka, respectively, which will be laid, operated and maintained by GAIL.
The company has approached IFC for a corporate loan to fund its expansion program.
Overview of IFC's Scope of Review
Petronet LNG Limited (PLL) has approached IFC for a corporate investment to support its LNG terminal expansion program. PLL proposes to:
- expand the capacity of its existing LNG terminal at Dahej, in Gujarat, from the present 5 million tons per annum (MMTPA) to 10 MMTPA. PLL’s LNG terminal at Dahej was conceptualized as a 5 MMTPA terminal (which was commissioned in April 2004) with provision for capacity expansion to 10 MMTPA; and
- set up a new Greenfield 2.5 MMTPA LNG terminal (with provision for capacity expansion to 5 MMTPA) at Kochi, in Kerala, both in India.
Review of this project consisted of appraising technical, environmental and social information submitted by the company. The appraisal team also interviewed Petronet’s corporate and plant level operations, environment, occupational health, safety, human resources and community relations professionals. The appraisal included a site visit to the company’s existing terminal at Dahej and to the greenfield LNG terminal site at Kochi.
PLL had carried out Comprehensive Environmental Impact Assessments (CEIAs) both for terrestrial and marine impacts for the Kochi Terminal and Dahej Expansion in July 1999 and in July 2000, respectively. The Ministry of Environment and Forests (MoEF), Government of India (GoI), prior to awarding clearance for the Dahej LNG terminal capacity expansion to 10 MMTPA, required PLL to update the CEIAs (both terrestrial and marine for Dahej terminal expansion), which was completed in April 2005. Both the original and the updated CEIAs were reviewed. Further, regulatory approval documents, EPC contract documents, HR manual and management system manuals, were also reviewed.
The following potential environment, health and safety and social aspects of the project were analyzed:
- environment and social assessment and corporate environmental, social, and health and safety management systems;
- community consultation, disclosure and engagement;
- labor and working conditions including management of occupational health and safety;
- pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes;
- biodiversity conservation including management of marine impacts;
- management of community environment, health and safety impacts during construction and operation; and
- land acquisition and involuntary resettlement on account of the project.
- expand the capacity of its existing LNG terminal at Dahej, in Gujarat, from the present 5 million tons per annum (MMTPA) to 10 MMTPA. PLL’s LNG terminal at Dahej was conceptualized as a 5 MMTPA terminal (which was commissioned in April 2004) with provision for capacity expansion to 10 MMTPA; and
- set up a new Greenfield 2.5 MMTPA LNG terminal (with provision for capacity expansion to 5 MMTPA) at Kochi, in Kerala, both in India.
Review of this project consisted of appraising technical, environmental and social information submitted by the company. The appraisal team also interviewed Petronet’s corporate and plant level operations, environment, occupational health, safety, human resources and community relations professionals. The appraisal included a site visit to the company’s existing terminal at Dahej and to the greenfield LNG terminal site at Kochi.
PLL had carried out Comprehensive Environmental Impact Assessments (CEIAs) both for terrestrial and marine impacts for the Kochi Terminal and Dahej Expansion in July 1999 and in July 2000, respectively. The Ministry of Environment and Forests (MoEF), Government of India (GoI), prior to awarding clearance for the Dahej LNG terminal capacity expansion to 10 MMTPA, required PLL to update the CEIAs (both terrestrial and marine for Dahej terminal expansion), which was completed in April 2005. Both the original and the updated CEIAs were reviewed. Further, regulatory approval documents, EPC contract documents, HR manual and management system manuals, were also reviewed.
The following potential environment, health and safety and social aspects of the project were analyzed:
- environment and social assessment and corporate environmental, social, and health and safety management systems;
- community consultation, disclosure and engagement;
- labor and working conditions including management of occupational health and safety;
- pollution prevention and abatement (including management of resources including energy, water, hazardous and other materials;
- management of emissions, discharges, hazardous and other wastes;
- biodiversity conservation including management of marine impacts;
- management of community environment, health and safety impacts during construction and operation; and
- land acquisition and involuntary resettlement on account of the project.
E & S Project Categorization and Applicable Standard
Environmental and Social Mitigation Measures
Stakeholder Engagement
Related SII
