Hindustan LNG Limited
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English - Executive Summary (Submitted for Public Consultation Process as per EIA notification 2006 & Amendments thereof) Project Proposal Proposed LNG, LPG import facilities & Handling Facilities with Captive Jetty & Breakwaters at T. Challapalli Village. E. Godavari District,AP Proposal No: IA/AP/MIS/64642/2017 File No: 10-32/2017-IA-III Proponent Hindustan LNG Limited Consultant Bhagavathi Ana Labs Pvt. Limited (A Bureau Veritas Group Company) 7-2-C14, Industrial Estate, Sanath Nagar, Hyderabad- 500018 NABET/EIA/1619/SA080 dated Jan 11th 2019 BALPL Document No: IND.BH.41.16.0310/HSR January , 2019 Executive Summary For Proposed LNG & LPG Import Facilities With Captive Jetty and Breakwaters at T. Challapalli (V), Uppalaguptam Mandal, East Godavari District, Andhra Pradesh by M/s Hindustan LNG Ltd. EXECUTIVE SUMMARY EXECUTIVE SUMMARY E.1 Introduction M/s Hindustan LNG Limited (HLNG) a registered company in Hyderabad, India is desirous of supplying natural gas. HLNG intends to import LNG and LPG import facilities with Captive Jetty & Breakwaters at T.Challapalli village, Uppalaguptam Mandal, East Godavari District, Andhra Pradesh. (a) LNG import & handling facility with Capacity of 11 MMTPA (Phase I - 5.5 MMTPA, Phase II - 5.5 MMTPA) and Floating Storage Unit (FSU), Land based Storage Tanks (240000 m³ each in 2 stages) to store the LNG and Truck Loading Terminal (12 Bay) to store and transport the LNG, re-gasify and deliver Natural Gas to Gas Authority of India Limited (GAIL); and (b) LPG import & handling facility with capacity of 4 MMTPA (Phase I - 2.0 MMTPA, Phase II - 2.0 MMTPA) with Onshore Storage Tanks and transport facility. E.1.1 Classification of Project as per EIA Notification The proposed setting of the LNG & LPG Import and handling facilities with Captive Jetty & Breakwaters At T. Challapalli Village By Hindustan LNG Limited attracts the provisions of Environmental Impact Assessment (EIA) Notification, 2006 (as amended thereof) and Coastal Regulation Zone (CRZ) Notification, 2011 (as amended thereof) in view of construction activities, dredging, widening/deepening of channels, etc. The proposed project is categorized as under. 6(a) Oil & gas transportation pipeline (crude and refinery / petrochemical products), passing through national parks /sanctuaries/coral reefs/ecologically sensitive areas including LNG Terminal. 7(e) Captive Jetty with breakwaters and 4 berths. The project also consists of Floating Storage Unit (FSU) of 5 Million Tons Per Annum (MTPA). With all the above components, the proposed integrated project is classified as Category “A”. E.1.2 CRZ Status of the Project As per Coastal Regulation Zone Notification 2011, the proposed project can be classified as Regulated Permissible activity under clause 4 Sub clause 4 (i) (a). Clearance shall be given for any such activity within the CRZ only if it requires waterfront and foreshore facilities. As per the CRZ demarcation study conducted by Institute of Remote Sensing (IRS), Anna University, Chennai in line with Coastal Regulation Zone Act 2011, the proposed project falls in CRZ – 1B, CRZ - III, CRZ - IVA, CRZ – IVB zones. E.2 Importance and Need of the Proposed Project The forecasts of total domestic demand for gas (with the exception of the conservative IEP estimate), when compared with likely domestic supply of 150 MMSCMD, indicate a Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR 2 Executive Summary For Proposed LNG & LPG Import Facilities With Captive Jetty and Breakwaters at T. Challapalli (V), Uppalaguptam Mandal, East Godavari District, Andhra Pradesh by M/s Hindustan LNG Ltd. EXECUTIVE SUMMARY supply shortfall of at least 100 MMSCMD in the short term. Policy makers have pursued two options for meeting shortfalls in gas LNG imports and transnational pipelines. Gas consumption in India is driven by five sectors: fertilizer (34% of total gas demand in fiscal year 2015-16), electric power (23%), refining (11%), city gas distribution, including transport (11%), and petrochemical (8%) industries. In 2016, after five years of consecutive declines, gas consumption increased to 55 bcm (Billion Cubic Meter), boosted by sales to city gas distribution mainly. The country faces a widening gap between indigenous gas production and demand, which is met by increasing Liquefied Natural Gas (LNG) imports. LNG imports surged by 34% over 2015 to 25 bcm (Billion Cubic Meter) in 2016, making India the fourth largest importer in the world. E.2.2 Advantages of LNG Regasified Liquefied Natural Gas (LNG) is having considerable advantage in terms of environmental benefits when compared to fossil fuel like Methylated spirit, High speed diesel, and furnace oil etc. There are many advantages of using LNG. Few of them are listed below: It makes it possible to use natural gas in areas where natural gas is not available via the national delivery network or distribution system; It is an economic source of energy when compared to black products (fuel oil and diesel) and LPG; It is suitable for consumer purposes such as process, steam recovery, heating and cooking in sectors like tourism, steel, paper and ceramic; It expands 600 times to reach its gaseous state (1 unit of LNG = 600 units of natural gas) - large amount of natural gas can be stored and transported at low pressure; Because it is a clean fuel, it contributes to improve product quality and reduces maintenance costs; 60–90% less smog-producing pollutants and 30–40% less greenhouse gas emissions; and Less expensive than gasoline. E.2.3 Brief Description of the Project HLNG intends to setup LNG & LPG handling terminal to import and store liquefied LNG and LPG. Further, HLNG intends to use pipeline and Road Tankers for regular transfer of regasified LNG and LPG from terminal to various customers/ end users. The Regasified LNG will be supplied to Konaseema Gas Power Limited of 445 & 820 MW capacity located in Ravulapalem, near Rajahmundry, East Godavari District, Andhra Pradesh and also to the following gas based power generation plants located in the State of Andhra Pradesh: GMR Vemagiri Power Corporation Limited, 388 MW NG/ RLNG Combined Cycle Power Plant (CCPP), Rajahmundry, A.P. GVK’s Power Private Limited, 445 MW Jegurupadu Combined Cycle Power Plant (CCPP), East Godavari Dist., A.P. GVK Gauthami Power Limited, (464 MW CCPP), Pedapuram, East Godavari Dist., A.P. Lanco Kondapalli Power Ltd., Stage-II (368 MW CCPP), Kondapalli, Krishna Dist., A.P. Liquefied Natural Gas (LNG) is the environmental friendly fuel with a very high efficiency and most preferred fuel. The latest trends in the advanced countries are that, all the Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR 3 Executive Summary For Proposed LNG & LPG Import Facilities With Captive Jetty and Breakwaters at T. Challapalli (V), Uppalaguptam Mandal, East Godavari District, Andhra Pradesh by M/s Hindustan LNG Ltd. EXECUTIVE SUMMARY transport vehicles are directly having LNG combustion facilities replacing diesel and petrol. HLNG propose to market LNG to all the bulk Consumers. The Government of India (GOI) wants to provide LPG connections to the BPL households to ensure the universal coverage of cooking gas in the country to empower women and protect their health. As per the statistical survey of the GOI, the consumer base BPL using the LPG is estimated as about 1.5 Crores. As on date, there is no LPG facility in the eastern part of India. This facility proposed by HLNG will support the GOI initiatives of LPG supply to BPL households as well as to others. E.3 Cost of the Project Estimated project cost along with analysis in terms of economic viability of the project is (approx.) Rs.2800 Crores (Rupees Two thousand and Eight hundred Crores only). E.4 Environmental Setting The study area map of 10-km radius around the proposed site is given in FigureE1. The environmental setting of the proposed plant site is as follows: Captive Jetty will be located in the water front of Bay of Bengal whereas the on-shore terminal is located at an elevation of 2 to 6 m above Mean Sea Level (MSL); The geographical co-ordinates of the proposed integrated plant range between 160 27' 57.95" N 820 05' 14.37" E; Present land use at the proposed on-shore terminal site is D-Patta lands owned by GoAP; Amalapuram to Bendamurlanka Road (SH # 294) is at 8-km and Narsapuram - Pamarru Road (NH # 216) is at 16-KM from the proposed plant boundary; Kotipalli Railway station located at a distance of 27-km, N; The nearest airport to the project site is located at Rajahmundry at a distance of about 60-km, NW; Vanateyam Godavari river is flowing at a distance of 10.5-km in the West from the project site; Nearest city is Kakinada (70-km, NE) and nearest town is Amalapuram (14-km, NW); No forest blocks, Hills & Valleys, Tourist Places, Archeologically Important Places exists within 10-km radius; No ESA, Biosphere Reserves, Protected areas as per wildlife protected act 1972 existing within the 10-km radius of proposed project site; The project area falls under Seismic Zone-III as per Indian Standards, IS: 1893 (Part- 1) 2002; and ONGC Refinery (13-km, W), Cairn Energy Ltd’s crude processing facility (3.6-km, NE) and Ravva/ KG basin (adjacent) are the industries exists in the vicinity E.5 Resource Requirement Resources are the means to achieve the project deliverables and its objectives. The primary resource is obviously people with applicable skills and competencies. The other main grouping of resources are Land, Power, Raw Material and Water Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR 4 Executive Summary For Proposed LNG & LPG Import Facilities With Captive Jetty and Breakwaters at T.