Contents Topic Page No. Environmental and Sustainability Initiatives under Oil & Gas Sector Environmental and Sustainability Initiatives by various organisations in the Indian Oil & Gas Sector Oil & Natural Gas Corporation (ONGC) Oil India Limited (OIL) GAIL (India) Limited Indian Oil Corporation Limited (IndianOil) Hindustan Petroleum Corporation Limited (HPCL) Bharat Petroleum Corporation Limited (BPCL) Chennai Petroleum Limited (CPCL) Numaligarh Refinery Limited (NRL) Mangalore Refinery & Petrochemicals Limited (MRPL) Bharat Oman Refineries Ltd.(BORL) Balmer Lawrie Petroleum Conservation Research Association (PCRA) Initiatives by various organisations in the Indian Oil & Gas Sector towards mitigation of Climate Change Oil & Natural Gas Corporation (ONGC) Oil India Limited (OIL) GAIL (India) Limited Indian Oil Corporation Limited (IndianOil) Hindustan Petroleum Corporation Limited (HPCL) Bharat Petroleum Corporation Limited (BPCL) Chennai Petroleum Limited (CPCL) Mangalore Refinery & Petrochemicals Limited (MRPL) Bharat Oman Refineries Ltd.(BORL) Balmer Lawrie 3 Introduction covering J&K (except Leh/Kargil), Punjab, Haryana, Himachal Pradesh, Uttarakhand, Delhi and bordering lobal climate change has had observable effects districts, and parts of Rajasthan and Western UP have Gon the environment. Glaciers have shrunk, ice on been covered. From 1st April, 2016, all of Goa, Kerala, rivers and lakes is breaking up earlier, plant and animal Karnataka, Telangana, Odisha and the Union Territories ranges have shifted and trees are flowering sooner. of Daman & Diu, Dadra Nagar Haveli and Andaman Scientists predict that with rapid climate change, one- & Nicobar will be covered. Part of Maharashtra fourth of Earth’s species could be headed for extinction (Mumbai, Thane and Pune districts) will be covered. by 2050. Part of Gujarat (Surat, Valsad, Dang and Tapi districts) Climate change has brought about possibly permanent will also be covered. From 1st April, 2017, rest of the alterations to our planet’s geological, biological and cities will be covered. ecological systems. The Intergovernmental Panel on It has also been decided that BS-V fuel quality and Climate Change (IPCC) contended in 2003 that “there emission norms will be implemented in the entire is new and stronger evidence that most of the warming country from 2019 and BS-VI emission norms for four- observed over the last 50 years is attributable to human wheelers shall be implemented from 2023. activities”. These changes have led to the emergence of large-scale environmental hazards to human health, Bio-Fuel Policy: Ethanol-Blended such as extreme weather, ozone depletion, increased danger of wildland fires, loss of biodiversity, stresses Petrol and Bio-diesel Programmes to food-producing systems and the global spread of n July 2013, it was decided that the Oil Marketing infectious diseases. ICompanies (OMCs) will procure ethanol only from Globally, climate change is a key issue for the Oil & domestic sources to Gas sector. The oil and achieve the mandatory gas sector is in the centre requirement of 5% ethanol of the changes that will blending in those parts be required to reduce the Environmental of the country where carbon intensity of the sufficient quantity of global economy. Growth in and Sustainability ethanol is available. In the global economy over other parts of the country, the past century has been Initiatives blending of ethanol may tied to increased use of in Oil & Gas Sector be increased progressively, energy, and emissions of depending upon the greenhouse gases (GHGs) availability of ethanol, to have closely mirrored reach the 5% mandatory economic expansion as level. a result. Energy-related activities contribute 70% of global GHG emissions; In order to improve the availability of ethanol, the oil and gas together represent 60% of those energy- Government has decided to fix the delivered price of related emissions through their extraction, processing ethanol in the range of Rs.48.50/litre to 49.50/litre, and subsequent combustion. depending upon the distance of the distillery from the Under the aegis of the Ministry of Petroleum & Natural storage depot/installation of the OMCs. Gas, Government of India, the Indian Oil & gas industry As regards the policy for purchase of Bio-Diesel, it has has proactively taken a series of committed actions to been decided that OMCs would purchase bio-diesel address this issue and mitigate climate change. Some meeting the prescribed BIS standard at a uniform of the initiatives are listed below. price, as may be decided by them from time to time, for blending with High Speed Diesel to the extent Auto Fuel Vision and Policy of 5%, at 20 identified purchase centres across the country. OMCs have reviewed the procurement price S-III auto fuel (MS/HSD) has been extended to all of bio-diesel at various purchase centres and, with Bthe cities of India from 1st April, 2010. BS-IV auto effect from 7th November ,2014, the declared price of fuel was introduced in 13 identified cities on 1st April, bio-diesel is Rs.41/litre. 2010 and is now extended to 50 more cities. It will be extended in the entire country by 1st April, 2017 in Moreover, it has been decided to allow the direct phases. sale of bio-diesel (B100) to all consumers by private manufacturers, their authorised dealers and joint As per Auto Fuel Vision and Policy 2025, with effect from 1st April, 2015, the whole of Northern India ventures of OMCs authorised by MoPNG. 4 NG & PNG 83%. At the same time, gas production has increased from about 17,998 million cubic metres during 1990- n the year 2007, the Government of India has 91 to 33,656 million cubic metres during 2014-15, an Iestablished the Petroleum & Natural Gas Regulatory increase of 187%. Board (PNGRB) under the PNGRB Act, 2006. Under the For minimising wastage in gas transmission networks, Act, PNGRB grants authorisation to various entities for the operational parameters of gas network for developing City Gas Distribution (CGD) networks in major global natural gas companies were studied specified Geographical Areas (GA) of the country. and benchmarking done accordingly. At present, the The CGD networks supply gas to four distinct segments, margin of wastage targeted is in the range of +/-0.3%, viz., Compressed Natural Gas (CNG) predominantly and strict monitoring is being carried out. used as auto-fuel and Piped Natural Gas (PNG) used By downstream companies in domestic, commercial and industrial segments. Downstream companies like Indian Oil Corporation At present, only authorised CGD entities under the Ltd, Bharat Petroleum Corporation Ltd, Hindustan PNGRB Act, 2006 can set up CNG stations in their Petroleum Corporation Ltd, Chennai Petroleum Limited respective Geographical Areas. (CPCL), Mangalore Refinery and Petrochemicals Ltd. PNGRB has, so far, held five rounds of bidding for (MRPL), Numaligarh Refinery Ltd. (NRL), etc. are awarding authorisation to develop CGD networks. progressively using solar energy for operating their With these bidding rounds, there are now 58 Gas fuel stations. So far, 2,140 fuel stations have been which have been covered under CGD network in 15 converted to operate on solar energy. The target is to States and UTs of the country. PNGRB has planned to increase their number to 7,200 by 31st March, 2017. commence the 6th round of CGD bidding, almost all The expenditure incurred on solarisation of one fuel Gas in the country having existing natural gas pipeline station ranges from Rs.10 lakh to Rs.25 lakh. These connectivity would be covered. companies are also developing a model to provide soft India has 1,009 CNG stations catering to approximately loans to the dealers to fund this investment. 23 lakh vehicles. The Government has placed CNG All Indian refineries are certified for Environmental (for transport sector) along with PNG (for domestic Management Systems conforming to ISO-14001 sector) on top priority in gas allocation. At present, the standard and are audited periodically for compliance. entire requirement of CGD entities for PNG (domestic They fully comply with the statutory stipulations sector) and CNG (transport sector) is being met mandated for the refining sector in the following through domestic gas at uniform base price based on environmental legislation, pollution control acts and the preceding six months’ consumption data. Further, notifications issued by the Central Pollution Control MoPNG has allowed GAIL to supply 10% additional Board and the respective State Pollution Control domestic gas in order to meet the daily fluctuation of Boards, including the following: PNG & CNG demand. • The Water (Prevention & Control of Pollution) Act Steps taken for Mitigation of Carbon 1974 • The Water (Prevention & Control of Pollution) Cess Emissions & Climate Change Act 1977 By upstream companies • The Air (Prevention & Control of Pollution) Act 1981 atural gas generates 40% less CO2 as compared • The Environment (Protection) Act 1986 Nto coal, and about 30% less compared to heavy oil. Hence, there has been greater emphasis on use • The Hazardous Waste (Management & Handling) of natural gas as a cleaner fuel in transportation and Act 1989 industry sectors, besides domestic sector as cooking • The Manufacture, Storage and Import of Hazardous fuel. Chemicals Rules 1989 In the upstream sector, wastage of gas takes place • The Noise Pollution (Regulation & Control) Rules primarily due to (a) gas flared during production- 2000. testing in a well; and (b) technical flaring of gas done