Energy and Environment

We believe that sustainability is a shared responsibility, the best delivered while joining hands with all the stakeholders in our value chain. For us, commitment to sustainability means that- we are mindful of the effect that we have on natural resources and the environment. We make conscious efforts to minimize our environmental footprint and reduce the impact through achieving operational excellence. Our continuous efforts include designing initiatives and mitigation measures that can positively influence the environment around us. Being stewards of environmental responsibility, our key focus areas are represented in upcoming section.

To minimize the impact of LHC, polymer production, gas flaring and venting, gas transmission, waste water production, we have adopted multiple standards and operating practices. We are working to define a reliable and inclusive approach that prevents and manages direct and indirect environmental impacts that arise out of our operations and business activities. It is our constant endeavour to go above and beyond the legal requirements to make this possible.

Through a thorough review of our operations and existing controls, we find opportunities to improve and introduce changes to our strategy. We take this as a high priority. We assess our impact across the value chain and implement stringent standards for ourselves while periodically reviewing and identifying areas for improvement. This is the core component of GAIL’s environment management agenda.

Biodiversity Management

Increased oil and gas exploration, development, production, and transmission activities can affect the natural and social environments including impacts on biodiversity. Hence, we ensure to undertake proactive measures to protect and conserve biodiversity. This is achieved through thorough risk and impact assessments before the establishment of new plants and pipeline systems. With sound operational activities, we make certain that no harm is caused to the local habitats and biodiversity.

We understand that determining the inherent risks of operating in an ecologically sensitive area can be diffi cult. Hence, we have devised the Environment Management Plan (EMP) that assists and guides our team to implement various initiatives in the green-belt and other biodiversity-rich areas at GAIL sites. We conduct a biodiversity risk assessment and monitoring during the implementation of any projects near any GAIL operation sites. 6 GAIL sites were considered for biodiversity assessment which is collectively 594 hectares of land.

To preserve biodiversity-rich areas, GAIL has identifi ed green-belt areas to maintain ecological balance in sensitive areas. These green-belt areas at GAIL sites consist of diverse and indigenous fl ora and fauna including several water reservoirs with varieties of aquatic species. Being conscious of our responsibility in preserving and maintaining the green belt areas, we work hand in hand with the local management to undertake biodiversity assessments periodically to identify areas of immediate action.

As a part of our eff orts to safeguarding biodiversity, we have ensured that there are no protected habitats within 10 km of any operating site of GAIL. The pipelines that are laid in the green cover areas have a lifespan of 25-30 years. A bare minimum area is used for this purpose. Once the pipeline is laid, necessary actions are taken to restore/reclaim theforest area and it is generally untouched until the requirement of maintenance arises. To limit the negative impact of the pipelines on the environment, we utilize less than one-third of the RoU for the pipelines passing through the forest area.

Energy Management

In the reporting year, we have taken multiple initiatives to increase energy efficiency through effective management processes including the adoption/deployment of efficient technologies, best practices, educational training and climate change adaptation and mitigation measures. Our highly efficient Integrated Energy Management System aids us in monitoring energy consumption, conducting energy audits and implementing energy efficiency measures.

Emission Management

To fulfil our commitment towards environmental protection, with our business in the clean energy domain, we support the Government of India in achieving the Paris Agreement for Climate Change targets. As a responsible corporate citizen, we understand our role in taking individual-level actions to achieve a low-carbon economy by controllingemissions arising out of our operations. The key impactful areas from an emission point of view within the gas transmission, liquid hydrocarbon, natural gas processing and polymer production are primarily air emissions and greenhouse gas emissions.

To ensure effective emission control, we monitor and regulate emissions in line with the Greenhouse Gas Reporting Standards by World Business Council for Sustainable Development (WBCSD), ISO 14064- 2006 and American Petroleum Institute (API), a compendium of GHG emissions methodologies for oil and natural gas industry –2009. To further strengthen emission control, we undertake various initiatives to reduce and monitor GHG Emissions. Our emission management initiatives are categorized into core areas.

Reducing Methane Emissions

Methane that is one of the components of the Natural gas has a higher global warming potential and a lower emission rate during burning. During natural gas transmission, particularly between the pumping and storage operations and between the storage station and the end-user, some amount of gas escapes into the atmosphere, thus reducing the amount that is sold by operators to the market. For a natural gas marketing and distribution company like GAIL, it is prudent to manage emission rates due to environmental and economic impact. We continuously strive to reduce leakage during transmission with the assistance of our industry peers to establish effective strategies to detect and reduce potential leaks

Reducing production related GHG Emissions

By improving the efficiency of our production processes, we reduce production related GHG emissions. Through flaring, open venting, and combustion of fossil fuels, direct emission can be formed at operational sites. On the other side, electricity purchased for operational purposes including manufacturing and transmission can also lead to the production of indirect emissions. We follow certain practices to reduce the production related GHG emissions such as:

• Constantly evaluating and taking up energy conservation measures.
• Energy generation from renewable sources like solar power plants .
• Reduction of vehicular emission by increasing transportation of gas through the pipeline network.

Reducing Other Air Emissions

At GAIL, emission management is carried out through the cloud-based monitoring system connected to our emission analyzers. It is then linked to the Central Pollution Control Board (CPCB) and State Pollution Control Board (SPCB) websites. With consistent efforts, we have significantly managed to reduce our emissions from GAIL plants, offices, pipeline installations, townships, and training centres pan India.

Ozone Depleting Substances (ODS), which are prohibited by our internal policies, are a common component in household electronics such as refrigerators, air conditioning systems, etc. They are characterized by their long atmospheric lifetimes, during which they act as precursors to deplete the stratospheric ozone layer. Additionally, ODSs are also strong greenhouse gases. To reduce scope 3 emissions, we encourage our team to conduct video conferencing than business travel. Highlights of the reduction in other emissions during the reporting period:

• Flaring reduction at GAIL Vijaipur
  • We are depressurizing a lean Gas Compressor (LGC) A/B/C barrel through fuel gas Knock Out Drum (18-VV-116) to reduce flaring at the Vijaipur Plant. The Low Pressure (LP) and High Pressure (HP) compressor barrels go to settle out to a pressure of 19.5 and 49 kg/cm2 respectively, during lean gas compressor tripping. LGC depressurization of LP and HP barrel, up to 10 kg/cm2 is necessary before restarting, which is the normal suction pressure of the lean gas compressor. An interconnection line was laid to stop the natural gas flaring from the high-pressure discharge line. A reduction in flaring during the lean gas compressor A/B/C tripping was noted after the successful implementation of the GPU Vijaipur scheme
• As per SMPV (U) Rule, 1981 as required by Petroleum and Explosive Safety Organization (PESO), an inspection of the recovery of hydrocarbon vapour is to be conducted for C2- C3 Sphere A, B and C at GPU Vijaipur – C2-C3 Sphere A, B, and C of capacity 1500 M3. This inspection is carried out once in five years for each sphere. The hydrocarbon vapour in the sphere should be depressurized, inertized, and purged before the statutory inspection. To make this ready for inspection in the current system, the hydrocarbon vapours in the spheres were depressurized to flare. With the usage of this process of recovery of hydrocarbon vapour to the system, we have started utilizing the saved gas as fuel by significantly decreasing the natural gas flaring

Water Management

Water is an essential commodity. We, at GAIL, understands the effect of the scarcity of water in our society. Hence, over these years, we have set-up systems and explored technological advancements that are having a quantifiable impact on conserving water through innovation.

We are mindful of the way we utilize water during our operations. We have pledged to use natural resources effectively and efficiently. With this in mind, we are encouraging innovative approaches to conserve water at our sites through various water conservation initiatives such as rainwater harvesting, fresh-water consumption minimization, monitoring and management of waste-water discharge, wastewater treatment and recycling based on our Environmental policy, national, local, and regional guidelines.

Water Management Initiatives at GAIL Sites

Vjaipur

• Through innovative methods, we have managed to conserve a significant amount of water. By are further utilizing the treated ETP water, stormwater and drain water at the site to the lawns of SS – 12 in the C2/C3 plant area, we have successfully saved around 100,000 L/day. To supply water for irrigation of lawn area near SS12, one pump of 20 HP has been commissioned for draining stormwater.
• At Vijaipur plant, ETP water, DM Plant water, stormwater and drain water pipeline are reutilized further via the installation of a header. It is estimated that a cost-saving of INR 50 lakh including a freshwater saving of 300,000 lL/day can be achieved through this initiative.

Mansarampura

• Augmentation of Rainwater harvesting system at GAIL Mansarampura resulted in increased groundwater recharge with approximately 9,666 cubic meters being charged in the ground per year. The reported expenditure for this initiative is INR 2.4 lakh.
• Rainwater harvesting project at all SVs under IPS Mansarampura is under progress

Vizag

• A drip irrigation system project was taken up by GAIL Vizag Civil Department for the entire green-belt of DT-Vizag.
• To replace the old water network at DT-Vizag which had underground leakages, a new HDPE pipeline was laid.
• A damaged pipeline at DT-Vizag was replaced by a new HDPE pipeline from municipality tank. A total of INR 3,479,868 was spent on this initiative.

Bengaluru (PL)

• A drip irrigation and water harvesting system in pipeline SV-14, 15 and 17 were installed. We incurred a total expenditure of INR 6,000- for drip irrigation and INR 1.5 lakh for water harvesting. Benefits include green belt development, less water consumption for the green belt, increase in the groundwater level in the installations.

Dibiyapur

• Water meters have been installed for regular monitoring of water consumption at the site
• Rainwater harvesting project at Dibiyapur compressor will be undertaken during FY 20-21
• Renovation of the sewage treatment plant is under progress at GAIL Vihar colony. The treated water from the STP will be utilized for horticulture purpose.

Gandhar

• Water sprinkler system for horticulture management was installed, the awarded cost of which is INR 36.93 lakh. The sprinkler system will help optimize the use of water consumption and will also enhance wastewater utilization capacity.
• GAIL Gandhar has also created a rainwater harvesting pond within the premises for the collection of natural run-offs and recharging of groundwater.

Abu road

• The initiative has been taken forthe installation of level indicator and valves with auto close to reduce the wastage of water from the overhead tank of buildings
• Rainwater harvesting has been implemented at all remote stations under Abu road jurisdiction

Vaghodia

• An in-house modification was made in Fire Water Pump House (FWPH) to reduce the running hours and frequent start-stop of jockey pumps (energy savings of 1,452 units per day and financial savings of INR 42 lakh annually)
• Treated wastewater is recycled to be used for the makeup of firewater storage. No wastewater is discharged outside plant premise.
• RejectwaterfromcentralizedROplantinstalled at the plant during 2019-20 is being utilized in FW makeup and horticulture purposes

Chhainsa

• A water body measuring 100m x 50m x7m is being constructed for harvesting rainwater. It is also used as firewater, plant water and also used for horticulture purposes. The estimated cost of construction is INR 72 lakh. The project is expected to commence in FY 20-21
• Rainwater harvesting pits were renovated to increase water penetration. Micro-irrigation system has been made the functional and additional deployment of micro-irrigation systems are also planned in FY 20-21. Sensorbased taps have been installed to reduce water wastage in bathrooms and kitchens. There is currently zero water discharge from the plant as water discharged is being used for irrigation

Pata

• Phytoremediation of wastewater on an experimental basis using vetiver grass
• Laying of treated wastewater pipeline network for horticulture purpose was completed for 6 km
• Rainwater harvesting systems are put in place at major buildings of GAIL Pata
• Finalization of feasibility report for zero liquid discharge was achieved and an interim report of the project was received from CSIR-NEERI on 29th January 2020.

Khera

• To optimize water consumption, a rainwater harvesting project was completed at Khera Compressor station and colony

Waste Management

We believe that waste should primarily be minimized, and products should be reused as they are, or their materials should be recycled. With this intent, we undertake strategic initiatives to reduce waste during our operations and processes. The waste generated during these activities is broadly divided into Hazardous and non-hazardous waste.

As a part of our waste management process, we aim to minimize both hazardous and non-hazardous waste. We follow the 3R process of Reducing, Reusing, and Recycling of the non-hazardous waste generated at GAIL sites.

Waste Management Initiatives at GAIL

Mansarampura

• Produced manure generated from biodegradable waste is being utilized for horticulture maintenance of Mansarampura/ Sanganer plants and Jaipur Head Quarters .
• Separate dustbins for dry and wet wastes have been placed at prominent locations inside the plan area and disposed of separately

Dibiyapur

• A disposal action was taken by the unit to sell E-waste (generated during the year) to the state-authorized vendors through M/s MSTC in line with disposal of E-waste (Management) Rules,2016
• Separate collection of biodegradable and non-biodegradable household waste has been arranged. Additionally, separate dustbins for biodegradable and non-biodegradable waste have also been procured for installation at strategic public locations in GAIL Vihar colony
• An organic waste decomposing machine has been procured to convert biodegradable waste to fertilizers and is being used
• Disposable PET bottles have been reused to create sample vertical gardens at the compressor station; usage of copper/steel/ glass water bottles instead of PET bottles has been encouraged and implemented at the compressor station

Gandhar

• Disposal of O&M scrap at GAIL Gandhar, slop oil, biomedical waste, e-waste, etc. are being carried out periodically as per regulatory requirement
• Separate dustbins have been placed at both township and plant for segregation of dry and wet waste; employees, family members and contractual workers are being made continuously aware of the importance of segregation of waste during various Swacch Bharat programmes

Vaghodia

• Hazardous waste is segregated and stored in dedicated storage space. Later they are disposed of through approved recyclers. Plastic waste, bio-medical waste and e-waste are segregated and given to third-party recycler
• GAIL Vaghodia has also launched a Paper Recycling Project, whereby wastepaper from various departments are being collected, shredded, weighed and exchanged with a local vendor for the fresh white paper rim.
• Fortnight awareness campaign on Swachh Bharat Abhiyan was carried out twice in FY 19- 20. Various awareness activities are carried during this campaign like awareness in nearby schools, awareness programmes for contract and GAIL employees, etc.

Vizag

• Several awareness initiatives such as street plays were conducted and distribution of dustbins, garbage trolleys and sanitary kits were provided to local communities
• Save Paper Save Trees initiative was taken up to minimize the usage of newspapers at dining halls. The saved newspapers are further recycled.

Vijaipur

• Informative pamphlets were prepared and distributed to all complex people to create awareness about the use of single-use plastics materials. As a part of this initiative, cotton jute bags were distributed to reduce the use of single-use plastic
• Creative ways such as reusing plastic bottles as flowerpots were also encouraged at the Vijaipur site

Chhainsa

• An Organic waste composting was installed for converting kitchen, garden and food waste into manure. Organic manure is a non-polluting substitute for chemical fertilizers and is used to enhance horticulture inside the station. It has also been used as an example for the contract labourers of the nearby villages to convert the organic waste hygienically and sustainably to manure.

Pata

• As a part of this initiative, we have set-up a dedicated contract at GAIL Pata Plant and Gaon township premises for the collection and segregation of canteen and domestic wastes. After proper segregation, the wet waste is composed in an Organic Waste Converter (OWC) Plant installed at Plant and township premises. Dry waste is disposed of at an earmarked location.
• Also, regular maintenance and cleaning of the stormwater drain are carried out. Additionally, horticulture waste is disposed at an earmarked location and it is also being used for composting purpose

Khera

• Additionally, GAIL Khera Compressor Station organized a total of 2 Fortnights of Swachh Bharat Campaign during the year 2019-20 in which various activities like distribution of Sanitary Napkins, Dustbins (for segregation of dry and wet wastes), other health and cleanliness programmes, etc. were organised along with the cooperation and support of local authorities.
• The programs were organised both in rural and urban areas considering the site of the township and the plant. At all GAIL sites, various awareness programmes and activities are conducted for local communities and schools for the promotion of cleanliness and personal hygiene as per GoI guidelines on Swachh Bharat Abhiyan.

Contributions to Research & Development

Business During the Pandemic

As COVID-19 creates further economic uncertainty and loss, managing risks associated with operations is imperative for business continuity. The current situation has become critical in managing the GAIL LNG portfolio given its complex logistics and huge financial implication. The problem has multiplied with the resultant inventory problem in the gas pipeline, storage tanks of LPG/LNG, and petrochemicals.

LPG transmission and production have not been affected significantly during this period. GAIL Pata maintained the production of petrochemicals during the initial phase of the outbreak. But, due to the low availability of supporting logistics and consequent increase in polymer product inventory, we had to suspend production until the situation turns for the better. Production will be restored partially to keep up with the demand and at a later stage, it will be resumed fully.

GAIL has already re-started works on all its projects of national importance such as the Jagdishpur - Haldia & Bokaro - Dhamra natural gas pipeline (popularly known as ‘Pradhan Mantri Urja Ganga’), Kochi - Kottanad - Bengaluru - Mangaluru pipeline, Barauni - Guwahati pipeline, etc. Work on all these projects is being carried out by in-situ workers while ensuring social distancing.

Solar Potential Assessment of all O&M sites of GAIL

GAIL has carried out a pre-feasibility and technocommercial study to assess the potential for the installation of solar power plants at its sites across India. The objective of this project is in alignment with the Government of India’s aspirational target of achieving 175 GW of renewable energy (RE) installed capacity by 2022. The pre-feasibility study was conducted to assess the solar resource availability at the identified buildings at GAIL sites. As the study has been completed, the installation of roof-top solar plants has already begun at feasible locations. The installation will be conducted in a phased manner. Additionally, a project to implement 1.8 MW solar energy plant at Vijaipur site has also been approved and the work is under progress.

GAIL’s contribution to Start-Up India

GAIL’s Start-Up initiative ‘Pankh’ was launched to build a strong eco-system for nurturing innovation and the spirit of entrepreneurship. We have set aside a corpus fund of INR 50 crore to invest in StartUps. Additionally, we are also providing mentorship for start-Ups, operating in our core areas. GAIL has signed investment agreements worth INR 22 crore with 9 Start-Ups in FY 19-20.