Hindustan LNG Limited

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

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

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

E.5.1 Land Requirement and Status The total land requirement for the proposed LNG terminal is 298.53 Acres. The present land use of the land is D-Patta Government land and is in the process of allocation to HLNG by converting it into industrial land use by Govt. of Andhra Pradesh.

E.5.2 Power Requirement

During construction, power will be drawn from State Electricity Board and temporary DG sets. During operation phase, energy requirement will be 3 MW and shall be met through captive gas engines using boil off gas.

E.5.3 Water Requirement

It is estimated that the water requirement during the construction stage will be 200 KLD and approximately 70 KLD during the operation stage of FSU. During operation stage of the FSU, it is envisaged that about 50 people will be deployed at the terminal. About 70 liters of water is consumed per person per day; as such, only about 3.5 KLD is being used for domestic consumption. Remaining water will be used for ship supply and miscellaneous use. LNG regasification and LPG handling do not require any water.

E.5.4 Manpower Requirement

The construction phase of the LNG terminal would generate the employment for nearly 500 managerial, skilled and unskilled workers, and during operation phase, it is envisaged that 50 people will be deployed at the terminal.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR 5

Draft EIA 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

Figure E-1: Project Location - Topo map 10 km Radius

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR 6

Draft EIA 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

E.6 Waste Management & Handling

Waste management or waste disposal are all the activities and actions required to manage waste from its inception to its final disposal. This includes amongst other things collection, transport, treatment and disposal of waste together with monitoring and regulation. It also encompasses the legal and regulatory framework that relates to waste management encompassing guidance on recycling.

E.6.1 Solid Waste Management

The cargo to be handled at proposed FSU will be LNG and is only handled/transported through pipelines. As such, cargo operations are not envisaged to generate solid waste. Use of the facilities at the berth may however lead to small amounts of solid waste generation. The total solid waste generated is envisaged to be about 2.5 kg/day. Adequate facilities for collection and conveyance of municipal wastes will be provided. The solid waste collected from the ships berthing at FSU terminal will be collected appropriately, transported by small boats to land side regularly, and disposed from the docks to appropriate locations identified by APPCB.

E.6.2 Wastewater Management

There will be no industrial effluent being generated from this project. Sewage generated from domestic sources will be treated in Skid mounted STP. In case any open spillage from tank the same will be treated by oil water separator (OWS).

E.6.3 Hazardous Waste Management The hazardous waste comprising empty barrels, spent oils / lubricants, pipeline, pigging wastes etc. shall be managed as per the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.

Table ES 1 – Solid Waste and Hazardous Waste

Solid Waste Source Quantity per Month Mode of Transport & Type Disposal MSW Garbage, rubbish 2.5 kg Collected in bins and disposed from unpacking, (0.01 kg/capita/day) in consent with Municipal discarded materials, Authorities; Strictly no disposal plastic materials in sea water. Hazardous Used/ spent oils 0.5 Collected, stored and reused waste

E.7 Baseline Environmental Status

The baseline environmental quality has been assessed through field studies within the impact zone for various components of the environment, viz. air, noise, water, land and socio‐economic. Baseline environmental monitoring was carried in Post Monsoon from October 2017 to December 2017 within 10-km radius area surrounding captive jetty and on-shore terminal for LNG & LPG import, storage and handling facility area as core zone.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

E.7.1 Air Environment

Metrological data was collected by installing weather station and major parameters recorded like temperature, relative humidity, rainfall, wind speed and predominant wind direction.

Ambient Air Quality monitoring (AAQM) has been estimated at 8 locations during the study period and AAQM locations were selected based on the local meteorology. The AAQ within 10-km radius is given in the Table ES 2.The AAQ is in general conforming to the limits. Table ES 2 – Air Quality Sl. No. Parameter Ranges in Post monsoon 2017 Limits as per G.S.R826 (E), dated 16.11.2009 3 1 PM2.5 µɡ/m 18.8 – 22.2 60 3 2 PM10 µɡ/m 44.0 – 57.5 100 3 3 SO2 µɡ/m 7.9 – 14.0 80 3 4 NOX µɡ/m 9.0 – 16.0 80

E.7.2 Water Environment

Physico-chemical Parameters of groundwater and surface water are analyzed and compared with the standards for assessing the baseline status of water environment and identification of impacts due to proposed developmental activities. In order to assess the water quality, standard methods (IS Standards10500-2012) were followed for sample collection, preservation and analysis in the laboratory.

Table ES 3 - Groundwater Quality

Limits as per IS:10500 Ranges in Post Sl. No Parameter Units Acceptable Permissible Monsoon 2017 Limits Limits 1 pH - 6.5-8.5 No Relaxation 7.37 – 8.13 2 Electrical µs/cm - - 1040 – 25200 conductivity 3 TDS mg/l 500 2000 676 – 16380 4 Chloride mg/l 250 1000 125.0 – 7964.0 5 Fluoride mg/l 1 1.5 0.2 – 0.8 6 Sodium mg/l - - 145.3 – 3284 7 Nitrate mg/l 45 No Relaxation 0.4 – 46.4

Table ES 4 - Surface Water Quality

Limits as per IS:10500 Ranges in Post Sl.No Parameter Units Permissible Acceptable Limits Monsoon 2017 Limits 1 pH - 6.5-8.5 No Relaxation 7.38 – 7.91 2 Electrical µs/cm - - 492 – 39420 conductivity 3 TDS mg/l 500 2000 319.8 – 25623 4 Chloride mg/l 250 1000 48.5 – 11512 5 Fluoride mg/l 1 1.5 0.1 – 0.6 6 Sodium mg/l - - 46 – 5893 7 Nitrate mg/l - - 0.6 – 0.8

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

E.7.3 Soil Characteristics

Seven soil samples were collected from 30 cm depth using an auger and homogenized after quartering in line with IS: 2720 and Methods of Soil Analysis, Part-1, 2nd edition, 1986 of (American Society for Agronomy and Soil Science Society of America). The homogenized samples were analyzed for physical and chemical characteristics. The available nitrogen in the soil is ranging from 0.73 Kg/Ha – 3.92 Kg/Ha, available Phosphorous is ranging from 5 kg/Ha – 2909 Kg/ha, available Potassium from 230.3 kg/ha - 1803 kg/ha, organic carbon from 0.13 - 3.14 %, and organic matter from 2 – 5.42 %.

E.7.4 Noise Levels

The noise level monitoring at nine selected locations on 24 hourly basis was conducted once during the study period. The results are compared with the standards notified by MoEF&CC in 2000 and found to be well within the standards. The noise levels in the study area ranging from 39.5 dB to 64.3 dB in daytime and 31.8 dB to 55.8 dB at night time.

E.7.5 Socio Economic Environment

Socioeconomic survey was carried out to know the infrastructural activities amenities available within 10 km radius of plant. The information regarding facilities available and the opinion of the people was sought by floating questionnaires and interaction with the people so that the impact due to the project wrt social aspects could be evaluated and actions / measures could be taken up for the benefit of the people (economically and wrt quality of life) and the project.

E.7.6 Land Use Land Cover

The land use and land cover analysis has been carried out within 10 Km radius around the project site, using satellite imagery IRS Resources at 2A, Path 103 row, 61 sub scene B, image dated on 20th January 2017. From the classified image, it could be found that almost half (54.14%) of the study area is covered by sea, Agricultural land: 24.72 %, built- up area: 2.39 %, wetlands: 1.02%, wastelands 0.15 % and others 17.67%. In the landward study area land-use is marked by rural area, intensive agriculture activities with majority of double cropping paddy fields as well as coconut, banana, Coastline areas have mix of mangroves, aquaculture ponds and saltpans. The project area is marked with the presence to major industries i.e. ONGC and Cairn Energy Ltd.

E.8 Impact Assessment

The proposed project will have impact on Ambient Air Quality, Water resources and water quality, Noise, Ecology, and Socio Economic Environment in surrounding area due to the generation, handling and disposal of stack emissions, liquid effluents and solid wastes during construction and operation phase and various related industrial activities.

The impacts and mitigation measures at Construction Phase & Operation Phase is outlined below. The proposed manufacturing plant may have adverse impact on surrounding environment in a number of ways in absence of mitigation measures. Therefore, mitigation measures and environmental management plan have been suggested for environmental components likely to be affected. The detailed impact

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

assessment at the time of construction and operations and its mitigation measures is given in Table ES 5.

E.9 Analysis of Alternatives In regards with alternatives, following are the main constraints/factors that are considered for any development activity.

 The choice or alternatives for any additional operations is always confined within the Port Water Limits or immediately adjacent to it. This choice is always the best choice to meet the requirements as well as to reduce cost and improve safety.  All additional facilities such as berths, land reclamation, etc. are considered due to possible business expansion needs and alternatives models and technological considerations or technological up gradation including changing environmental and other legal compliances.

E.9.1 Site Selection The selected site T.Challapalli in East Godavari District is selected based on the various factors such as;  Proximity to coastline  Proximity to customers  Bathymetry and water depth  Safety to neighboring areas  Topography  Proximity to shipping routes  Capital Expenditure  Operational Cost

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Table ES 5 – Impact Assessment Construction and Operation Phase Construction Phase Operational Phase Attribute Anticipated Mitigation Measures Proposed Anticipated Impacts Mitigation Measures Proposed Impacts Transportation of Existing roads shall be used for the Discharges from ships on The quantity of sewage generation would be very less. construction material construction material transportation; the port the land The FSU unit will be fitted with septic tank or will have an operational inland water transport equivalent. The ships and barges shall comply with network, material transportation will also be MARPOL convention 73/78. No waste/wastewater carried out using the waterways (via barges, shall be discharged directly on land hence; no etc.). significant impact on land is envisaged. Land Acquisition There will be no private land procurement for Shoreline changes – The shoreline/coastline changes such as the project; hence there will be no direct Erosion/accretion erosion/accretion is usually expected due to the Project Affected Areas (PAPs), Project development of marine structures such as Affected Families due to this project (PAFs). breakwaters, groynes, jetties, wharfs, etc. The proposed FSU development consists of marine terminal inclusive of berthing and mooring facilities for FSU, LNG carrier, offloading & transfer of LNG from Land FSU to onshore Re-gas terminal, and pipeline for gas send-out. The transportation transfer of RLNG will be through from the FSU onto the land-based tanks, so the subsea export is not proposed for the project. It is concluded that the project will not interfere with the sediment transport or cause shoreline changes – erosion/accretion. Changes in land Since the present project is an offshore and Water quality due to cargo The proposed LNG terminal will be received from the pattern onshore development and located within area LNG operation offshore and the regasification will be done on the land under the jurisdiction of Government of based through FSU. The Offshore FSU will have bilge Andhra Pradesh, impact is not expected on water (oily water) management facility. Hence, during this account. normal operations, there are no liquid effluents except the sanitary water (sewage) is envisaged at Offshore FSU Impacts due to Vessels involved in construction and other Wastewater Discharges The discharges will meet the requirements of the wastewater construction equipment are a possible cause Marine Environment Protection Committee (MEPC159 generation of oil spill, garbage discharge, etc. However, (55)) and General Standards for discharge of mitigation measures have been recommended Environment Pollutants GSR 422(E); The Water as part of the Environmental Management Environmental (Protection) Rules, 1986. Plan to ameliorate even the marginal impacts Impacts on existing As the facility is proposed in offshore and due water resources to easy availability of seawater, the heating medium for regasification, firefighting and

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Construction Phase Operational Phase Attribute Anticipated Mitigation Measures Proposed Anticipated Impacts Mitigation Measures Proposed Impacts fresh water supply on board will be met from seawater. As such, impacts on existing water resources are not anticipated due to development of the proposed FSU based import terminal. Littoral The offshore marine structures will be pile Aqueous discharges sufficient reception facilities will be provided to receive Drift/Sediment supported which will allow transmission and the residues and oily mixtures generated from ship Transport transport of sediment, which in any case is not operations according to provisions of the International significant at approximately 15 m depth. Since Convention for the Prevention of Pollution from Ships, Marine sediment transport remains unchanged with 1973/78 (MARPOL). In addition, reception facilities for Environment the introduction of pile supported structures, it garbage, waste oil and bilge water from the ships shall is concluded that proposed development of also be provided. the marine structures will not interfere with the alongshore sediment transport. Turbulence – DO levels in bottom sediments, which are Wastewater from sanitary The toilet facility will be provided at the berth to the Changes in DO usually low, would increase during trenching system Toilet facility will be provided inside the terminal and levels activity. Changes in DO levels are likely to not on berth. Toilet facility will be used by the workers result in localized and short-term impacts on on the shift duty. The quantity of sewage generation marine ecology. would be very less. Removal of Benthic To mitigate impacts on marine ecology, Due to LNG (Cargo) Spills Spills are not anticipated to occur during normal Communities measures such as selection of trenching during Handling operations, as the cargo LNG will be handled by associated with equipment, environmental monitoring and specialized loading arms (Marine Transfer Arms). In Bottom Sediments: regulating activities based on monitoring the event of accidental spill of LNG during transfer from results will be adopted. / to the ships, LNG is automatically evaporated in the atmosphere and leaves insignificant impact on the marine water quality, sediment quality and ecology. LNG spill and gas detection system will be provided. Changes in seabed A post construction/implementation survey of Oil spills during fueling: In the event of accidental oil spills during fueling of port profile the sub seabed pipeline is suggested in the crafts/service barges and accidental spillage of oil from Environmental Management Plan to mitigate LNGC or FSU offshore terminal, the marine water the impacts. During the survey, stretches that quality in the harbor basin will be impacted. To may become unstable due to adverse weather minimize the impacts on marine water quality, the spills conditions will be stabilized along with will be recovered. restoration of the altered seabed profile if any, which are unlikely.

It will be ensured that barges / workboats have

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Construction Phase Operational Phase Attribute Anticipated Mitigation Measures Proposed Anticipated Impacts Mitigation Measures Proposed Impacts slop tanks for collection of liquid / solid waste generated on board. Discharge of wastes into sea will be prohibited.

Trenching activity will be regulated during rough sea conditions. Impact due to Cold The temperature of used seawater will be around 5 - Seawater Discharge 100C below the ambient sea water temperature. The volume and salinity of sea water will remain same as that of the intake water. The environmental impact, both long-term and short-term, of this cold water emission needs to be considered for the area where it is supposed to operate. As such, no major impact is anticipated as the quantity of discharge will be very less Ships shall conduct ballast water exchange at least 200 nautical miles from the nearest land and in water at least 200 m in depth prior to calling at a port.

Ships shall carry out ballast water exchange with an efficiency of at least 95% volumetric exchange.

Master and crew of the vessel shall be familiar with the essential shipboard procedures relating to ballast water.

Each ship shall have on board a ballast water record book which may be an electronic recording system. Port officers may inspect the ballast water record book and ask for relevant copies of record book. Air Transportation of Movement of material will be mostly during Power generators Due to the high efficiency and the clean fuel used in a construction non-peak hours (4:00 PM to 8:00 PM) and dual fuel engine in gas mode, the exhaust gas materials regulated during peak hours (6:00 AM to 10:00 emissions when running on gas are extremely low. In AM). Mobile equipment such as intermittently the proposed offshore LNG FSU sufficient availability used machines and transport vehicles will be of gas in the form of BoG and from storage ensures either switched off or throttled down to a that most of the time the generators will be running minimum. with Natural Gas as Fuel.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Construction Phase Operational Phase Attribute Anticipated Mitigation Measures Proposed Anticipated Impacts Mitigation Measures Proposed Impacts On-site vehicle speeds will be controlled to reduce excessive dust suspension in air and dispersion by traffic. Construction equipment and transport vehicles will be periodically washed to remove accumulated dirt. LNG Unloading Potential sources of emissions of vessels (LNGC) are Operations from the Main Engine (ME) and Auxiliary Engines (AE) and others such as boilers, emergency diesel engines and waste incinerators. (Emissions from others are relatively very small and can be considered negligible) MEs will be used primarily for ship propulsion. Emergency emissions In emergency situations due to fire/etc., the vapor will be released to the atmosphere through an elevated flare or cold vent system (on topside), including a knock-out drum, for safe disposal. The Flare system will be designed according to international standard. During Normal operation there is no flaring envisaged. It is proposed to install Emergency Diesel Generator Set also. As all these emissions are expected only during emergency situation. Fugitive Emissions The valve ratings shall be in accordance with ASME standards, and be fire-safe with metallic or soft seals. Insulation suitable for cryogenic service shall be specified for all lines 0°C and below. In addition, insulation may be required for some non-cryogenic services. Fugitive emissions may be controlled by adopting appropriate control and precautionary measures. Noise Construction During construction, noise levels will be Operation Activities Noise attenuation will be practiced for noisy equipment Activities maintained below threshold levels stipulated by employing suitable techniques such as acoustic by Central Pollution Control Board (CPCB) by controls, insulation and vibration dampers. The selecting appropriate equipment, machinery attenuation devices will be properly maintained. and using enclosures. Procurement of machinery / construction equipment will be Rotation of personnel will be adopted to minimize the done in accordance with specifications exposure to high noise levels. conforming to source noise levels less than 85 dB (A). Periodic maintenance of the equipment to be used will be carried out. Worn out parts will be replaced and

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Construction Phase Operational Phase Attribute Anticipated Mitigation Measures Proposed Anticipated Impacts Mitigation Measures Proposed Impacts All haul roads (for truck transport and other rotating parts will be lubricated to minimize noise vehicles) within the boundary and outside will emissions. be maintained properly to avoid excessive noise levels from Engine acceleration and Ambient noise levels will be monitored at regular deceleration. intervals during operation phase of the project.

Noise levels will be monitored at regular Labelling equipment at a prominent location to indicate intervals during construction phase of the the approximate level of noise it generates in operation project. will also be done. Where the reading is less than 85 dB, then the equipment should be labelled using the Periodic maintenance of the equipment to be green colored label with no specific noise exposure used in the developmental works will be precautions required for usage of less than 8 hours. carried out. Worn out parts will be replaced Where the reading is equal to or greater than 85 dB, and rotating parts will be lubricated to then the equipment should be labelled using the red minimize noise emissions. colored label and the operator should wear hearing protectors. In addition, those persons working within 5 Personnel exposed to noise levels beyond m of the equipment should also wear hearing threshold limits will be provided with personal protectors or take other appropriate control measures protective equipment (PPE) like earplugs, to protect against noise. muffs, etc. especially construction personnel involved in pile driving operations. Rotation of personnel will also be adopted.

Noise attenuation will be practiced for noisy equipment by employing suitable techniques such as acoustic controls, insulation and vibration dampers. The attenuation devices will be properly maintained throughout the construction period. Solid waste Construction and Construction waste will be properly A local authorized waste recycler will be employed to & Hazardous other waste segregated and utilized remove general residual waste from the site, waste separately from construction waste and hazardous management Construction waste which can be re-cycled will wastes, on regular basis to minimize odor, pest and be given to Appropriate agency. litter impacts.

The burning of refuse at construction sites will be General residual waste generated on-site will prohibited. be collected in waste skips and separated

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Construction Phase Operational Phase Attribute Anticipated Mitigation Measures Proposed Anticipated Impacts Mitigation Measures Proposed Impacts from construction waste. If removal of waste materials at the end of the working day is not possible, the materials should be covered Hazardous materials such as lubricants, with tarpaulin or similar. paints, compressed gases, and varnishes etc., will be stored as per the prescribed/approved Hazardous wastes will be disposed at nearest safety norms. Treatment, Storage and Disposal Facility (TSDF) through approved APPCB vendors. Hazardous The construction site will be secured by materials will be stored as per prescribed safety norms fencing with controlled/limited entry points. in locations with restricted entry and with fire-fighting facilities. Socio R&R Issues The proposed project has no settlements at Public Health and Safety The proposed activity consists of handling/storage of cultural the project area, and the nearest habitation is LNG and re-gasified gas. Suitable safety/mitigation impact located 5 Km away from the FSU location. measures and procedures will be followed by HLNG Hence the proposed activity is not envisaged and developer while carrying out these activities to to bring any significant or additional negative minimize any potential adverse impacts. impacts on the activities of other users. The impact on nearby settlements during HLNG has in place an Oil Spill Response Plan, an construction phase will be due to air pollution integrated fire protection System, and a Disaster and noise generating activities. However, the Management Plan. All these will help minimize/avoid activities are limited to the construction phase the probability of occurrence of emergency situations and will cease upon completion of the and mitigate the impacts construction. Hence, this impact is considered to be negligible and therefore can be classified as insignificant.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

E.9.2 Technology Selection The three sources of thermal energy typically used to warm LNG from a liquid to a gaseous state are ambient air, natural gas (heat from combustion), and seawater. The basic types of vaporization systems that utilize these sources of thermal energy include:

 Intermediate Fluid Vaporizers  Ambient Air Vaporizers  Open Rack Vaporizers  Shell and Tube vaporizers  Submerged Combustion Vaporizers The final technology to be adopted for proposed FSU will be selected by the PPP developer after further analysis.

E.10 Environmental Monitoring Program

Environmental monitoring program is a vital process of any management plan of the development project. This helps in signaling the potential problems resulting from the proposed project and will allow for prompt implementation of effective corrective measures. The environmental monitoring will be required for the construction and operational phases. The Environmental Monitoring Program has been framed for the proposed Captive jetty, and for the operations involving on the land based for LNG and LPG. Recognized agencies are engaged for carrying out the above stated monitoring works. A centralized environmental monitoring cell has been established for monitoring of important and crucial environmental parameters which are of immense importance to assess the status of environment during LNG Terminal operation.

E.11 Additional Studies (RA&DMP)

In additional studies, Risk Analysis followed by DMP from installation of storage tanks for storage capacity plant has been prepared, which will help in identifying the vulnerable points and to promote towards preparedness to counter any mishap. For meeting the emergencies caused by major accidents, planning response strategies are termed as Disaster Management Plans (DMPs). Risk analysis and disaster management plant have been prepared and incorporated in EIA Report. Risk Assessment output is provided below.

E.11.1 Risk Assessment

Composition of LNG is 90% Methane, 7% Ethane, 2% Propane and 1% Higher Hydrocarbons. LNG cannot catch fire unless until there is the right mix of LNG Vapor in the air. (5-15%) and a source if ignition. As auto ignition temperature is 595oC, it will not catch fire on its own. The storage tanks used for LNG are Double containment tanks. The risk due to LPG is 0.1 LEL i.e 1600ppm is reaching the maximum distance of 7-Kms The occurrence of this is very rare and unlikely. The fatal radiation due to fire accident will be within the 0.7-km and there is no habitation within 0.7 km.

The LNG and LPG Ships failure probability per annum of ship docked for unloading in the HLNG Premises will be only for two days in a month. So the frequency of accident will be very less and unlikely due to the safety measures to be implemented during operation phase.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

Nearby Habitation is Nakka Rameswaram Hamlet at a distance of 1 km from the tank farm. The connection of the loading arms to the manifold of the ship shall be automated. This will help in disconnecting the vessel quickly. Hence loading arms with Quick-connect-Disconnect facility shall be used.

E.12 Project Benefits

The proposed LNG terminal has benefits depending on the market potential and energy security and also the induced development to the project area. The broad benefits is given below;

 Safe, cost effective and environment friendly as compared to other fuels;  Combustion of re-gasified LNG emits negligible or no Sulphur dioxide, thereby will lead to clean burning;  Because of its clean burning, it doesn’t leave behind any unpleasant soot, ash, or odors;  It is reliable as the pipeline system can’t be easily damaged by weather or affected by weather conditions, in comparison to oil;  In case of minor spillage LNG will evaporate and disperse quickly, leaving no residue behind and therefore requiring no environmental clean-up;  Reduction in carbon emissions and increases conservation of coal resource can be achieved.  Promote opportunities for further industrial growth in the region. It will indirectly assist in the creation more employment to the local population. This in turn will lead to employment generation and meeting the occupational requirements of the local population.  The proposed facility will add to the revenue of both the State and Central Government in the form of various taxes and duties. It will help to spur additional industrial and commercial growth that would benefit from the availability of Natural Gas and lower energy prices, as it is comparatively cheaper than alternative fuels/feedstock's e.g. Naphtha, Furnace Oil, LSHS, Light Diesel Oil, LPG.  Project development will attract investments in the region and thereby contribute to economic growth.

E.13 Overall Conclusion of the Proposed Project The proposed Project is Environmentally, Technically and economically feasible with respect to the following attributes;  LNG plays an important role for the diversification of gas supplies and for the establishment of a global market; both factors are beneficial for the security of supply;

 The LNG market is already very dynamic and is becoming more as the number of market participants, projects and operations increases. Low transport costs in relation to prices and spare shipping capacity are much contributing to the globalization of LNG trade;

 Since it has been liquefied, LNG does not include H2O, CO2 or incondensable agents. Therefore, LNG has better energy qualities corresponding to a Gross Calorific Power (GCV) of approximately 10,000 kcal/m3.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR

Draft EIA 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

 The comparison of LNG based power plants and that of other fossil fuel (coal and LSHS/ Naphtha) based thermal power plants with respect to fuel efficiency and emissions of conventional pollutants indicate that the LNG based plants do not generate conventional

pollutants (SPM & SO2) except NOx.

 Apart from fulfilling the immediate shortage of natural gas (cleaner fuel) for power generation, the RLNG supply will also contribute indirectly to food security of the region, state/ nation by enhancing fertilizer manufacturing capability with a cleaner feedstock.

 The proposed project will provide availability of additional quantum of natural gas to meet industrial, automobile and domestic energy requirements. This will have a direct positive effect on the development of Andhra Pradesh state income generation base. Natural gas supply will partially replace fuel-oil based energy production which will also have an indirect positive impact on the environment by reducing the emission of air pollutants that result from combustion of oil.

 The project proponent will develop plans to upgrade skills amongst the local community to improve their employability prospects. As a matter of policy, the project proponent will aim to maximize employment of local personnel meeting the required skill set during construction and operation phases.

 The project proponent is committed to improve the community services like sanitation, road development, drinking water etc. through development activities that are channelized under Corporate Social Responsibility.

Concluding Remarks

Thus it can be concluded on a positive note that after the implementation of the mitigation measures, Environmental Management and Monitoring Plans as enumerated above the normal operation of Hindustan LNG Limited will have no significant impact on environment and the project will be benefitted to local people with an economic growth in state/ country level.

E.14 No Project Scenario

In the absence of proposed project, the existing electricity / power shortage will adversely impact economic development of the state. The requirement of fuel or feedstock for power, fertilizer and other industries would likely remain unfulfilled. In case the power requirement is met through other fossil fuels, viz. coal, diesel etc., this would cause adverse impacts on the environment as discussed in earlier sections. Compared to a “No Project Scenario”, this project is expected to deliver significant higher value to the society in an environmentally sustainable manner with the implementation of proposed EMP and risk mitigation measures.

Bhagavathi Ana Labs Pvt. Ltd. (a Bureau Veritas Group Company) Project Reference : IND.BH.41.16.0310/HSR