Environmental Monitoring Report Project No. 38164-013 Annual Report Jan-Dec 2015 2622-BAN: Natural Gas Access Improvement Project, Part B: Safety and Supply Efficiency Improvement in Titas Gas Field Prepared by Bangladesh Gas Fields Company Limited for People’s Republic of Bangladesh This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Bangladesh Gas Fields Company Limited Environmental Monitoring Report PART B: SAFETY AND SUPPLY EFFICIENCY IMPROVEMENT IN TITAS GAS FIELD DRILLING OF 4 NEW WELLS AND INSTALLATION OF PROCESS PLANTS AT TITAS GAS FIELD Prepared by : Bangladesh Gas Fields Company Limited (BGFCL) for the Asian Development Bank. April, 2016 C:\Users\max\AppData\Local\Temp\PDF24\1140462809_1043086800_5\EMR_BGFCL_Jan-Dec 2015.docx Environmental Monitoring Report Bangladesh Gas Fields Company Limited (BGFCL) TABLE OF CONTENTS Executive Summary 3 Chapter 1 Project Background 4 1.1 Basic information 4 1.2 Objective 4 1.3 Project Implementation 4 1.4 Project Location 4 1.5 Major Components of the Project 5 1.6 Environmental Category 5 1.7 Physical Progress of Progress Activity 5 1.8 Reporting Period 5 1.9 Compliance with National Environmental Laws 7 1.10 Compliance with ADB’s Safeguard policy Statement 7 1.11 Environmental Clearance 7 1.12 Key Findings in IEE 7 1.13 Environmental Management Plan 8 Chapter 2 Environmental Monitoring 9 2.1 Environmental Measures 9 2.2 Monitoring Results 9 2.3 Enhancement Measurement 9 2.4 Mitigation Measures 12 Chapter 3 Results of Environmental Monitoring and Compliance Measures 13 3.1 Major Environmental Activities of the Project 13 3.2 Assessment of Impact on Water, Air, Noise, Construction Waste and 13 Camp Management 3.3 Safety Assurance of the Project Site 14 3.4 Compliance Measures 14 3.5 Gob Guidelines for Air and Noise Quality 14 3.6 Progress of Work 16 Chapter 4 Recommendation and Conclusion 17 Annex -1 2 Environmental Monitoring Report Bangladesh Gas Fields Company Limited (BGFCL) Annual Environmental Monitoring Report January – December, 2015 For Drilling of 4 New Wells (23-26) and Installation of Two Process Plants at Titas Gas Field Project Executive Summary Bangladesh Gas Fields Company Ltd. (BGFCL) is executing this project “Gas Seepage Control and Appraisal & Development of Titas Gas Field'' being financed by Asian Development Bank (ADB) and local currency being financed from Government of Bangladesh (GOB) & BGFCL funds. A project has been taken named Drilling of 4 new wells (23-26) and installation of two process plants at Titas Gas Field. Of them two package have been planned under the financial assistance of ADB named 'Natural Gas Access Improvement Project, Part-B: Safety & Supply Efficiency Improvement in Titas Gas Field' with a view to enhance the capacity for gas production as well as to meet the gas demand of Bangladesh. BGFCL as executing agency (EA) of the project has signed two turnkey contracts with M/s SINOPEC International Petroleum Services Corporation, China and Consortium of Zicom Equipment Pte. Ltd. & SINOPEC Petroleum Engineering Corporation for drilling of 4 wells and installation of two gas processing plants at Titas Gas Field respectively. BGFCL has carried out Environmental Assessment and obtained Environmental Clearance Certificate (ECC) from DoE. Accordingly, Health, Safety and Environmental (HSE) issues and implementation of EMP were included in the contracts with the contractors to attract compliance with these issues. Simultaneously, BGFCL and its contractors working in the field are regularly monitoring the implementation of EMP, HSE issues, provided with guidelines for safety and Environmental Parameters. As for now, task need to be considered in priority are to establish an institutional mechanism to manage and monitor the EMP. The objective of the environmental management and monitoring is to record environmental impacts resulting from the project activities and to ensure implementation of the “mitigation measures” identified earlier in order to reduce adverse impacts and enhance positive impacts from specific project activities. Besides, it would also address any unexpected or unforeseen environmental impacts that may arise during construction and operation phases of the project. 3 Environmental Monitoring Report Bangladesh Gas Fields Company Limited (BGFCL) Chapter 1: Project Background 1.1 Basic Information Bangladesh Gas Fields Company Ltd. (BGFCL) is one of the largest state-owned natural gas producer of the of the country. It is a company of Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) under Ministry of Power, Energy and Mineral Resources. BGFCL operate Titas, Habigonj, Narsingdi, Bakhrabad and Meghna Gas Field. Natural gas is a significant source of commercial and domestic energy in Bangladesh. The government emphasizes on the expansion of gas production capacity for augmenting power generation in the country for promoting extensive industrialization. Country's demand for natural gas is increasing day by day. Current energy policy and the development plans are focused to reduce import of petroleum products and thereby reduce the pressure on the foreign exchange through exploration, production and marketing of natural gas. Accordingly the main objective of the project is to sustain/increase the current production of natural gas from its existing gas fields i.e. Titas Gas Field. Natural gas is an intrinsically clean fuel compared with most alternatives. A project has been taken named “Gas Seepage Control and Appraisal & Development of Titas Gas Field''. Of them Drilling of 4 new wells (23-26) and installation of two process plants at Titas Gas Field has been planned under the financial assistance of ADB named 'Natural Gas Access Improvement Project, Part-B: Safety & Supply Efficiency Improvement in Titas Gas Field' with a view to enhance the capacity for power generation as well as to meet the gas demand of Bangladesh. BGFCL is the executing agency of the this program. 1.2 Objective: The main objective of the project is to establish a sustainable gas production to meet the demand for gas of the country. BGFCL has taken up this project in consideration of the present situation and the future higher gas demand of the domestic, commercial and industrial consumers of the country. The objective of the environmental management and monitoring is to record environmental impacts resulting from the project activities. Besides, it would also address any unexpected or unforeseen environmental impacts that may arise during construction and operation phase of the project. 1.3 Project Implementation: Two international tender was called for engagement of contractors to implement this project in two separate packages. Under the project, a contract has been signed with the successful bidder on December' 2014 for drilling of 4 wells (23-26) at Titas Gas Field. Another contract for installation of gas processing plants has also been signed on December’ 2014 with the successful bidder. Based on approved design gas processing plant will be manufactured and fabricated in contractor’s country. 1.4 Project Location The project area is administratively located in the district of Brahmanbaria. Drilling of 2 new development wells (Titas-23 and 24) and installation of 1 process plant has been planned at the southern part of Sarail upazila and other 2 new wells (Titas-25 and 26) and 1 process plant at the mauza Chhatian, Jangalisar & Malihata of Sadar upazila under district Brahmanbaria. The location of the drilling wells and process plant has been shown in the district map (Map 1). 4 Environmental Monitoring Report Bangladesh Gas Fields Company Limited (BGFCL) 1.5 Major Components of the Project I. Drilling of 4 (four) New Wells (Well Nos. 23-26); and II. Installation of 2 (two) Gas Processing Plants (each capacity 75 MMCFD) at Titas Gas Field with related civil works. The following environmental impact may occur due to project construction and operational activities: - Emission of greenhouse gas due to combustion of fuel from vehicles, generators, equipment and field camp during drilling and process plant construction/installation. - Contamination of surface water by discharge of liquid waste during drilling operation from rig and gas processing plant. - Contamination of soil by generating solid waste from drilling activities, process plant construction/installation and field camp. - Noise and vibration by movement of vehicles, electricity generation and operation of drilling rig. - Health hazard due to welding and equipment installation/operational activities. 1.6 Environmental Category The Safety and Supply Efficiency Improvement of Titas Gas Field Project has been classified by ADB as a Category B project. As per the ADB’s “B” categorization an Initial Environmental Examination (IEE) is sufficient to meet the environmental requirements. An IEE report with Environmental Management Plan (EMP) was prepared and submitted to ADB. 1.7 Physical Progress of Project Activity Drilling of Titas – 25 has been started on 17 December’ 2015 and installation work of 2 nos gas processing plant are going on.