ADGAS Sustainability Report 2010
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Transcript of ADGAS Sustainability Report 2010
Sustainability Report 2010
If you have any comments on this sustainability report, please contact:
Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS)PO Box: 3500, Abu DhabiUnited Arab EmiratesTel: +971 2 6065677/6065539/6065547Fax: +971 2 6065500Email : [email protected]
Reader’s FeedbackAs an initiative to save paper, ADGAS welcomes your comments on this Sustainability report electronically by accessing ADGAS website (www.adgas.com) and clicking this icon:
ADGAS employees can access the survey by clicking the same icon on the intranet and through the internet.
Alternatively, you can use your Smartphone with a QR reader app to scan this code and fi ll in the reader’s feedback online.
ADGAS 2010ADGAS 2010Sustainability ReportSustainability Report
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Table of contents
4 | CEO’s Message 6 | ADGAS Profile 9 | Our Core Values 9 | Our Vision and Mission 10 | Our Strategy 12 | Board Members 14 | 2010 Key Achievements 15 | 2011 Goals & Priorities 15 | 5 Years Strategic Goals 16 | GRI Application Level and IPIECA/API 18 | Memberships 18 | Stakeholder’s Engagement 20 | ADGAS and Sustainability 22 | Our Definition of Sustainability 24 | Sustainability Wheel 25 | Our Journey Towards Sustainability26 | Society 28 | Internal Community 32 | External Community 34 | Health and Safety44 | Environment 52 | Economy 63 | Report Parameters 64 | GRI Reporting Index 66 | IPIECA/API Reporting Index67 | Abbreviations
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Our employees are key assets and enablers for our sustainability program implementation.
mployees arOur emrs for our senablersm implemeprogram
CEO’s Message
I am pleased to introduce to you ADGAS second Sustainability Report. In this report, we look back at 2010 ADGAS performance in the sustainability three pillars: Economy, Environment and Society and our efforts to ensure a sustainable balance among them and their implications on ADGAS and stakeholders.
Under ADGAS Sustainability vision of “Sustaining Tomorrow...Today”, ADGAS is utilizing best technologies to reduce its impact on environment and developing its human capability thereby contributing positively to the local society and respecting international Sustainability standards.
2010 was a remarkable year for ADGAS with record achievements in the plant HSE and production performance. 2010 also saw the commissioning of the Offshore Associated Gas (OAG) facilities on Das Island and the exporting of Natural Gas to the local network.
ADGAS feels proud to be involved in securing these gas supplies and looks forward to participate more in the National Energy requirements through the commissioning of the Integrated Gas Development facilities in 2013.
With this new role, ADGAS is positively contributing to the preservation of the local ecosystem through providing a clean source of energy fitting with low carbon theme of the 21st century.
We are committed to our Shareholders and ADNOC group Sustainability charter and we will be taking Sustainability further in the coming years with the aim of being a pioneer in this field. ADGAS considers Abu Dhabi natural resources conservation a priority and ensures that the ecological system of the Emirate is intact.
Creating value to our Shareholders sets as one of our sustainability principles. We are embarking on
many projects that look at the company’s long term growth and facilities integrity.
Sustainability for ADGAS is about forward-thinking and participation of all the divisions in this prestigious commitment through sustainability education and awareness.
Our employees are key assets and enablers for our sustainability program implementation. We spare no efforts in making sure that all employees’ welfare, health and safety are protected and the working environment encourages productivity and development.
I would like to extend my thanks to all of those involved in this report data collection and writing and I hope you will find it informative and useful.
Fahim KazimChief Executive Officer
5
ADGAS PROFILE
ADGAS pioneered liquefi ed natural gas
production in the Gulf region, having originally
been established in 1973 to make effi cient use of
gases associated with crude oil production, which
were until then being fl ared. The company is now
a leading producer of clean energy, supplying
global, regional, and domestic markets.
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SUSTAINABILITY
ADGAS 2010 SUSTAINABILITY REPOR
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The Company is the pioneer Liquefied Natural
Gas (LNG) producer in the Gulf region. It was
formed to put an end to flaring that wastefully
burnt gas extracted during the processing
of crude oil. To efficiently utilize this natural
resource, ADGAS produces clean energy for
sale on the international market, benefiting
the UAE and its people.
ADGAS’s success is largely due to its
shareholders’ high level of support. Current
best practice and state-of-the-art technology
employed by ADGAS have been made possible
as a result of access to the collective knowledge,
experience and involvement of the shareholders:
ADNOC, Mitsui & Co., BP and Total.
ADGAS has been closely associated with
the Tokyo Electric Power Company (TEPCO)
for over 34 years, during which time many
joint expansion projects were completed,
new plant control systems introduced, and
many more integrity and reliability projects
commissioned to ensure continuous
production to meet contractual commitments
and customer requirements.
In addition, ADGAS has progressively
diversified the sale of its products (LNG, LPG,
Paraffinic Naphtha, and Sulphur) in the global
energy marketplace through term contractual
arrangements, as well as spot deals to
different Energy and Petrochemical producers
in Middle East, Asia and Europe.
70% - ADNOC
15% - Mitsui & Co, Ltd
10% - BP
5% - Total
ADGAS
Shareholders
In 2010, ADGAS became the operator of the
Offshore Associated Gas (OAG) facilities and
117KM Subsea line which transfer natural
gas from the offshore fields to GASCO
Habshan Gas plant and later as sales gas
to industrial customers in Abu Dhabi and
Northern Emirates.
ADGAS works closely with its business
partners ADMA-OPCO (for the supply of
feed gases), NGSCO (shipping partner)
and GASCO (for the natural gas export to
onshore), together ensuring the efficient, safe
and reliable production and supply to clients.
The Company’s business locations are:
Das Island – location of its process trains,
storage and shipping facilities, and plant support
functions: Operations, Maintenance, General
Technical Services, Engineering, Projects,
Integrity and Quality. ADGAS Operations are only
in the United Arab Emirates.
Abu Dhabi – headquarters building, hosting
ADGAS’ general management and all
administrative, financial and support services.
Tokyo – l iaison office to serve our
principal customer (TEPCO).
Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) was established in 1973 upon the directive of the late Sheikh Zayed Bin Sultan Al Nahyan, founder of the United Arab Emirates, continued by His Highness Sheikh Khalifa Bin Zayed Al Nahyan, UAE President.
Our Core Values
1. Health, Safety & Environment:
Being committed to protecting the health, safety & environment in all that we do.
2. Ethical Conduct:
Strict adherence to our codes of ethical conduct.
3. Business Excellence and Quality:
Striving for the best by setting and reaching challenging targets to rank amongst the world’s best in customer, people and society satisfaction.
4. Learning & Continuous Improvement:
Continuously getting better in all that we do, as individuals and as teams.
5. Commitment:
Honoring all our commitments as company to achieve our corporate goals and to align personal goals and assume responsibility to deliver on
our commitments.
Our Vision and Mission
ADGAS long-term vision
“We will play a key role in the LNG and natural gas industry, creating wealth and value, implementing the National Energy Strategy and serving our valued customers and community in a socially responsible manner.”
ADGAS mission statement
“We will achieve our vision through the safe and efficient production, marketing, sale and delivery of LNG, LPG and natural gases, P.Naphtha and sulphur; building on our ADGAS history, solid partnerships and human capital.
We will strive to sustain our recognized international reputation for reliability, integrity and efficiency and to continually improve HSE and business performance. We will attract, develop and retain competent and dedicated staff.”
2010 Snapshots
Striving for the best by setting and reaching challenging targets to rank amongst the world’s best in customer, people and society satisfaction.
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8.23 MMT
7.98 MMT
1,590
70%
9.2 MMSCFD
7% above target
Trips Reports competition by Ministry of Education & Runner-up in ADNOC
HSE award in innovation category
146% increase compared to 2009
Production
Sales
Employees
Emiratization
Flaring
Awards
Community Contributions
Net Profi t
SUSTAINABILITY
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Our Strategy
ADGAS Strategic themes
As a member of ADNOC group of companies, ADGAS prides itself to be a valuable contributor to the local economy and society. To sustain our role, we utilize all possible means to keep our strategic vision and mission in line with changing environment and challenges. ADGAS strategy map consists of 4 strategic themes with sustainability as an integral focus for each theme:
National Energy Strategy
The National Energy Strategy is concerned with maximizing the value of the national energy resources, by ensuring that ADGAS operates in the most efficient and reliable manner with minimal wastage, and optimum sales value.
Operational Excellence
Operational Excellence stresses the need to continually improve the way we manage our production assets, seek more cost effective ways in the whole value chain, and reduce environmental impact. ADGAS will exploit every opportunity to optimize its production quantities by improving plant availability and reliability, reducing opportunity losses, and maintaining production levels through improved asset integrity.
Health, Safety, Environment, Integrity and Reliability
ADGAS has an excellent record on health and safety, and strives to further improve its environmental record, despite the complexity and ageing technology of its production assets. ADGAS will further identify innovative and effective engineering solutions for long term assurance of its assets.
People
People theme is recognized as an essential part in developing and executing organizational strategy by effectively utilizing employee talent & ability and increasing employee satisfaction. Moreover, it plays a vital role in increasing the awareness of the company’s various activities to reach out to the community.
GovernanceAt the top of ADGAS Governance structure is the Supreme Petroleum Council (SPC) and ADNOC who set the overall group policies and strategic direction and serve as the vital Government link in maintaining oversight over ADGAS’s activities in line with the overall strategies and policies of the UAE.
ADGAS Shareholders provide robust oversight role in the management of ADGAS through the Board of Directors, Board Advisory Committee (BAC), Technical Shareholders’ Committee (TSC), Finance Committee (FINCO) and the audit Committee.
• Board Advisory Committee (BAC): with 8 members, it enables adequate preparation for Board meetings, to review matters of common concern to the Shareholders of the Company and to make recommendations to the Board of Directors in order to facilitate the passing of appropriate resolutions by the Board.
• Technical Shareholders’ Committee (TSC): with 8 members, it provides a forum for Shareholders and ADGAS specialists to meet and discuss progress on ADGAS Capital Projects, and any other significant technical issues.
• Finance Committee (FINCO): with 8 members, it provides a forum for shareholders and ADGAS specialist to meet and discuss progress of any significant financial issues.
• Audit Committee: with 4 members, it assists the board in overseeing the Effectiveness of the Company’s internal control and risk management systems and ensures compliance with legal and regulatory requirements and Code of Ethics.
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Corporate Strategy Map
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The Board of Directors consists of 8 members and is chaired by H.E. Yousef Omair bin Yousef (ADNOC CEO & Secretary General of the SPC).
ADGAS board meets twice a year to discuss the company Year-to-Date environmental, economical and social performance and subjects related to the organization’s employees, projects and strategy. The Shareholders’ participation
in the various board committees supports their vital role of transferring best practices, both through technology transfers as well as contemporary business processes.
Executive Management team (The ADGAS leadership team) is under the overall stewardship of ADGAS Chief Executive officer (CEO) Mr. Fahim Kazim who is supported by Management Committees at two levels:
General Management Members (GMM) Comprising the CEO, SVP Administration), SVP (Commercial), SVP (Technical), VP (LNG Plant) and Strategy & Corporate Development Manager.
Management Team Members (MTM) Comprising GMM together with Managers of all ADGAS Divisions and certain Departments that report directly to the CEO, or SVPs. The Organization of the MTM is depicted in the following diagram.
Abu Dhabi National Oil Company
Abu Dhabi National Oil Company
BP
Abu Dhabi National Oil Company
Mitsui & Co. Ltd.
Total
Abu Dhabi National Oil Company
Mitsui & Co. Ltd.
Mr. Awaidah Murshed A. Al Murar
Dr. Saif Sultan Al Nasseri
Mr. Ali Khalifa Al Shamsi
H. E. Yousef Omair Bin Yousef
Mr. Jeremy Pearson
Mr. Takatoshi Hayakawa
Mr. Jean-Luc Guiziou
Mr. Shuichi Kawano
Board Members as in 2010
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SUPREME PETROLEUM COUNCIL (SPC)
ADNOC BOARD ADVISORY COMMITTEEBOARD AUDIT COMMITTEE
FINANCE SUB-COMMITTEEBOARD OF DIRECTORS
TECHNICAL SUB-COMMITTEEGENERAL MANAGEMENTADNOC GROUP OF COMPANIES
Organization of the Management Team Members
Industry Structure, Board of Directors and Advisory Committees
14 ADGAS 2010 SUSTAINABILITY REPORT14
2010 Key Achievements
ADGAS organized the “2010 Key Achievements Workshop” on January 16, 2011. The workshop was attended by ADGAS divisions’ managers and departments’ heads and senior staff, with the aim of reviewing and evaluating the main achievements of each division during 2010.
The following achievements have won the approval and recognition of participants, listed according to the number of votes each has won:
Operations
Engineering
Finance
Information Technology
Marketing
Maintenance
Integrity & Quality
Projects
Integrity & Quality
Maintenance
Flaring Reduction By changing control strategy and re-engineering APC
OAG Performance Test Run Completion
Successful conclusion of TEPCO Price Settlement
Record production, high reliability, minimum trips, fl aring & emissions
Knowledge Transfer Program – Best Practices Sharing
UAE Nationals Integration
Flaring and Emission Reduction Initiatives
Reduction of Hydrocarbon Piping Leaks
FD Fans Performance Improvement, thru In-Situ Rotor Balancing Technique
IT Infrastructure Improvements
321
7
5
8
6
910
2011 Goals & Priorities
• Further reduction in fl aring and emissions
• Sustainable operations of the OAG facilities and gas supplies to Abu Dhabi
• Increased shareholders returns
• Excellent HSE record
• Zero interruptions to ADMA-OPCO operations and oil production
• Higher LNG plant Reliability and minimum outages
• Excellent progress of the IGD project
• 2010 Corporate survey outcomes action plans implementation
• Development and retention of UAE nationals
• Knowledge management piloting and implementation
• “Duty of Care” to all ADGAS employees
• Enhanced internal communication
• Reducing Shutdown Duration and Work Scope, by reviewing and challenging current practices, to optimize resources and reduce cost.
• Adopting the best operating practices for improving its operations and better systemization, thereby reducing plant trips and improving recovery time.
• Reducing opportunity losses and increasing production, by identifying reasons for losses, and developing and implementing innovative solutions to address the losses.
• Developing and implementing an integrated planning function to align the various parties to focus and improve the utilization of resources.
• Enhancing operation fl exibility and effi ciency by increasing utilization of assets and improving maintenance practices by implementing SRCM.
• Excelling at contracting and purchasing processes by adopting good procurement techniques and procedures that assure an optimal inventory level without risk to operation and deploying an optimized integrated schemes program.
5 Years Strategic Goals
National Energy Strategy
• Enhancing the sales strategy to optimize revenues.
• Ensuring plant fl exibility by de-coupling ADGAS operations from ADMA-OPCO to minimize disruptions to up-stream activities.
• Supplying gas effi ciently to on-shore through the OAG and IGD facilities, providing Abu Dhabi with gas and exploiting opportunities to enhance ADGAS operations.
• Exploring power generation options to ensure effective and effi cient power generation for future off-shore requirements.
Operational Excellence
• Ensuring integrity of critical equipments through full compliance of routine maintenance.
• Optimizing inventory value.
• Effectively implementing Assets Integrity and Reliability Management System (AIRMS).
• Optimizing Risk Based Inspection (RBI) to ensure effective inspection regime.
• Formalizing a corporate risk management process by aligning the different related processes to be managed in the most effi cient manner.
Supplying gas effi ciently to on-shore through the OAG and IGD facilities, providing Abu Dhabi with gas and exploiting opportunities to enhance ADGAS operations.
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Since 2002,the symbol of ADGAS
logo “the double wave” represents the new wave
of progress. It is shown as an environmentally
friendly wave.
Health, Safety, Environment and Plant Integrity & Reliability
• Reducing health & safety risks
• Excelling at contracting & purchasing processes
• Exploring and implementing effective solutions to ensure Integrity and Reliability
• Minimizing environmental impact
• Driving cross-functional effectiveness & integrated planning
• Ensuring effective risk management
People
• Developing Talent Management solutions
• Attract High Caliber Talent
• Talent Development
• Talent Retention
• Providing Customer Service Excellence
• Enhancing People Engagement
• Improving Duty of Care
Common Strategic Objectives
• Enhancing cross-organizational alignment and teamwork to ensure all the company is working towards the same goals.
• Implementing an effective communication strategy to enhance the timely communication of strategy and strategic performance across the business to better help employees understand how they contribute to the achievement of ADGAS goals.
• Retaining knowledge through effective systems and encouragement of knowledge management transfer processes.
• Implementing decision support processes and systems to ensure the appropriateness of the information for decision making.
• Encouraging a company culture of responsibility, accountability and work ownership and improving team accountability by cascading the Balanced Scorecard process through all business areas.
• Improving the Performance Appraisal system to ensure clarity between responsibility, achievement and performance.
17
that the required set and number of disclosures for that Application Level have been addressed in the reporting and that the GRI Content Index demonstrates a valid representation of the required disclosures, as described in the GRI G3 Guidelines.
Application Levels do not provide an opinion on the sustainability performance
of the reporter nor the quality of the information in the report.
Statement GRI Application Level Check
GRI hereby states that Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) has presented its report “ADGAS 2010 Sustainability Report” to GRl’s Report Services which have concluded that the report fulfills the requirement of Application Level C.
GRI Application Levels communicate the extent to which the content of the G3 Guidelines has been used in the submitted sustainability reporting. The Check confirms
The Global Reporting Initiative (GRI) is a network-based organization that has pioneered the development of the world’s most widely used sustain ability reporting
framework and is committed to its continuous improvement and application worldwide. The GRI Guidelines set out the principles and indicators that organizations
can use to measure and report their economic, environmental, and social performance. www.globalreporting.org
Disclaimer: Where the relevant sustain ability reporting includes external links, including to audio visual material, this statement only concerns material submitted
to GRI at the time of the Check on 9 May 2011. GRI explicitly excludes the statement being applied to any later changes to such material.
GRI Application Level and IPIECA/API
This report uses the leading international guidelines for sustainability reporting, namely the Global Reporting Initiative (GRI), and the International Petroleum Industry Environmental Conservation Association/American Petroleum Institute (IPIECA/API) reporting guidance.
ADGAS self-declares this report to meet GRI Application Level C. The GRI index can be found on page 64, and the IPIECA/API index on page 66.
GRI checked this report against the criteria for the GRI application Level C, and the GRI has qualified it as Application Level C.
SUSTAINABILITY
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STAKEHOLDER ENGAGEMENT METHOD STAKEHOLDER’S PRIORITIES ADGAS RESPONSE
Shareholders • Shareholders meetings • Financial returns
• Maintain reliable and safe operations
• Preserve reputation as reliable LNG and gas exporter
• Participate in local economic & social development
• Board meetings
• Routine reporting
• Strict HSEIR practices
• Internal auditing
• Quality performance & operations
• Maximizing profi t
Local Society • Website
• Social events participation
• Through employees’ families
• Community contribution
• Joint research initiative
• Engagement with government
• Participate in ADNOC sustainability initiative
• Minimum environmental impact
• Employment opportunities
• Safe operations
• National HR development
• Continuous community engagement
• Provide clean energy sources
• Respect Human rights
• Contributions
• Assistance to educational institutes
• Participation in social events
Memberships
ADGAS works toward being more involved in the society through its professional membership and representation in prestigious institutions and organizations including:
International Gas Union (IGU): The objective of IGU is to promote the technical and economic progress of the gas industry. The members of IGU are associations and entities of the gas industries in 73 countries. It cooperates with many global energy organizations.
Stakeholders’ Engagement
Stakeholders are defined as any party that can affect or be affected by the actions of the business as a whole. We believe that continuous engagement with our stakeholders helps us to direct our efforts more effectively in achieving our key sustainability objectives. Stakeholders’ expectations are meticulously analyzed to put in place plans and programs to address them.
The following table lists ADGAS key stakeholders, methods of engagement, stakeholders’ priorities and ADGAS response. This is a preliminary analysis that is still under finalization:
ADGAS is a member of ADNOC group of companies which is a member of Abu Dhabi Sustainability Group (ADSG)
Stakeholders’ Engagement
STAKEHOLDER ENGAGEMENT METHOD STAKEHOLDER’S PRIORITIES ADGAS RESPONSE
Employees
• Regular meetings
• Website & portal
• Moubadara scheme
• Performance appraisal
• Corporate survey
• ADGAS news
• Satisfactory job, pay & benefi ts
• Safe & healthy working environment
• Continuous career development
• Competitive salaries & rewards
• Health & safety incentives
• Development programs
• Long service awards
• Equal opportunities
Government/Regulators
• Through ADNOC/SPC • Management of natural resources
• Contributing to quality of life
• Financial returns
• Developing national human resources
• Compliance with government regulations
• Ensuring compliance with government regulations
• Commitment toward Emiratization
• Open & transparent communication to ADNOC/government
• Maximizing profi t
• Routine HSE & Sustainability reporting
Customers
• Ongoing visits and communication
• Tokyo Liaison Offi ce (TLO)
• Regular yearly meetingsw
• Reliable liquids & gas supplies
• Quality products
• HSEIR Reputable gas & liquids supplier
• Regular dialogue with customers
• Customer satisfaction surveys
• Producing quality products
• Reliable gas-supply to mainland
• On-time products loading
• Providing excellent logistics and services
Das Island community
• Das administration team
• Through Das employees
• Social events participation
• Minimum environmental impact
• Safe operations
• Enhanced living conditions
• Safe & healthy working environment
• Initiatives to improve the social life and well-being of Das employees.
Suppliers/contractors
• Bidding/tendering
• Website
• Day-to-day liaison
• Prequalifi cation meetings
• Fair contract bidding/awarding
• On-time payment
• Good working conditions
• Fair bedding & contracts awarding
Industry groups
• Regular meetings/workshops
• Regular daily communication
• Shared initiatives
• Reporting
• Exchange Industry best practices
• Develop consensus for common issues
• Support and aid each other
• Achieve upstream/downstream positive impact
• Participate in conferences/workshops to enhance reputation & acquire industry best practices
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ADGAS & SUSTAINABILITY
The Company’s commitment to sustainability stems
from our belief in its importance for the long-term
success of our business and the wellbeing of the
coming generations. Sustainability is embedded
right across our business and enjoys the
commitment and support of the entire ADGAS
management team and employees.
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SUSTAINABILITY
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Our commitment to sustainability is also evident in our five-year business plan, which includes objectives that promote sustainability. These objectives cascade down to all business units and employees through the Balanced Scorecard Performance Management System, and also our Performance Appraisal Management System.
We measure and manage our sustainability performance against these objectives and the internationally recognized Global Reporting Initiative (GRI) criteria and IPECIA/API. Day-to-day operations closely follow the documented HSE practices, which are in line with ADNOC’s Code of Practice (CoP) and the ADGAS HSE management framework.
Major hazards and business risks associated with production assets are managed through a management framework called AIRMS (Asset Integrity and Reliability Management System). To make sustainability a daily business, our employees receive training on safety and environmental issues, and are given the
opportunity to participate in activities in the community through several partnerships and initiatives.
Our Environment Management System (EMS) gained ISO-14001 accreditation in 1994, and is audited and re-certified every three years.
Going forward, ADGAS is working to consolidate its approach to sustainability in the development of an integrated policy, model and implementation strategy that will take all the elements of our sustainability function into account. Our Definition of Sustainability
The ADGAS definition of sustainability includes its social, environmental and economic dimensions:
Society: harnessing ADGAS people’s expertise, creativity, and skills so that the Company performs successfully. It is also about our relationships with customers, business partners and the community.
Environment: we hold the natural world in trust for future generations. Environmental stewardship is integral to ADGAS corporate culture.
Economy: business cannot exist without creating shareholder value. Identifying and mitigating risks is a fundamental aspect of fulfilling this objective.
Sustainability management is the integrated management of social, environmental and economic performance with the goal of creating value for all stakeholders.
All ADGAS sustainability issues are incorporated into the ADNOC sustainability framework, which is based on the Global Reporting Initiative (GRI) and IPECIA/API. ADGAS is continuously engaged in enhancing its approach to sustainability, with new initiatives and performance measures.
“We are a registered Organizational Stakeholder of the Global Reporting Initiative (GRI) and support the mission of the GRI to develop globally accepted sustainabil ity reporting guidelines through a global, multi-stakeholder process.”
The Company’s commitment to sustainability stems from our belief in its importance for the long-term success of our business and the wellbeing of the coming generations. Sustainability is embedded right across our business and enjoys the commitment and support of the entire ADGAS management team and employees.
Our 10 preliminary Sustainability principles are:
Economy
ValueADGAS grants shareholders maximum ROI, assets protection and returns for local business partners. All information provided to shareholders is transparent to enable them to make the right business decisions
RisksADGAS strives to minimize/mitigate corporate risks that can pose financial and environmental impact and employees and social dangers
GovernanceADGAS manages its resources effectively with all systems focusing on the stakeholders interests and have ethical standards and practices in dealing with them
Customers ADGAS respects the customers’ needs and rights and strives to deliver reliable optimum quality products
Environment
Energy Efficiency ADGAS runs its facilities efficiently thus reducing impact on environment and society and increasing shareholders values
Environmental Impact ADGAS strives to protect the environment and promote sustainable development within its processes, products and other activities
Society
Health ADGAS ensures that the health of its employees is maintained with best standards and practices guaranteeing their welfare
Safety ADGAS strives to make its employees work in a safe working environment and reduce risks to ALARP levels
Our People ADGAS engages in HR management practices that promote personal and professional employee development, engagement, and empowerment
CommunityADGAS fosters a mutually beneficial relationship between itself and community (Abu Dhabi & Das Island) in which it is sensitive to culture, context, and needs of the community
ECONOMY
Customers
Suppliers
Natural Resources
Offshore Associated Gas (OAG) Projects
Risk Management/Risk Assessment
AIRMS
Strategic Projects
ENVIRONMENT
Environmental management System
Environmental Baseline & Impact Assessment Study
Flaring & Emissions
Monitoring of Stack Emissions and Ambient Air Quality
Environmental Projects
Energy Effi ciency and Monitoring
Materials
Water
Waste Disposal
Transportation
SOCIETY
Internal Community
Health & Safety
ADGAS & its Community
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24 ADGAS 2010 SUSTAINABILITY REPORT
To help us focus our sustainability efforts on issues particular to ADGAS operations, we are currently working on a sustainability Model that lists ADGAS sustainability principles in the three Sustainability dimensions: Economy, Environment and Society.
Sustainability Wheel
2010ADGAS issued its fi rst annual Sustainability Report
2010ADGAS commissioned the Offshore Associated Gas facilities and started supplying natural Gas to onshore
2010ADGAS celebrated the achievement of 20 million man-hours without lost time injuries (LTIs)
2010ADGAS won the ADNOC HSE, awarded as runner-up in the sustainability category
2009ADGAS won the ADNOC HSE, awarded as runner-up in the innovation category
2009ADGAS received the Dubai Quality Award
2009ADGAS launched the ‘Save Water’ campaign
2008ADGAS launched a ‘paperless day’ campaign in June
2007ADNOC HSE award: runner-up in the environment category
2007ADGAS partnered with MASDAR in Clean Development Mechanism (CDM) projects
2007ADGAS celebrated its fi rst-time achievement of 30 million man-hours without lost time injuries (LTIs)
2007ADGAS conducted its fi rst Corporate Employee Survey
2007ADGAS signed the OAG construction contract to provide gas to onshore facilities
2005ADGAS started implementation of ADNOC CoP
2004ADGAS awarded ISO 14001 certifi cation
2004ADGAS implemented the Competency Assurance Management System
1990ADGAS and TEPCO signed a new extended (25 years) sales agreement
1991ADGAS joined the International Safety Rating System (ISRS)
1994Train 3 commissioned, doubling ADGAS’ production capacity
1997HSEMS implementation with its new framework based on eight elements
1977The late Sheikh Zayed Bin Sultan Al-Nahyan offi cially inaugurated the ADGAS LNG Plant on 3 October
Our journey towards Sustainability
25
SOCIETY
27
ADGAS strives to provide a safe and healthy working
environment free from any discrimination and in
which human rights are respected. We had no cases
of discrimination in 2010. We provide competitive
packages in line with ADNOC guidelines with 1:1
basic salary ratio for male and female and ensure
that all our employees have equal training and
development opportunities.
SOCIETY
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ADGAS 2010 SUSTAINABILITY REPOR
T
Internal CommunityADGAS Employees
ADGAS employees are a precious asset and important driver of the company’s success. Creating a working environment where an employee can fl ourish and develop is one of the senior management top priorities. We aim at attracting top talents and results-oriented employees who will assist us in keeping our competitive advantage. In 2010, ADGAS total workforce was 1,590 (1,397 employees and 193 supervised contractors) with an increase of 6% since 2009. This number includes the employees on Das Island, Abu Dhabi HQ and Tokyo Liaison offi ce. 80% of the total workforce is on Das Island.
ADGAS strives to provide a safe and healthy working environment free from any discrimination and in which human rights are respected. We had no cases of discrimination in 2010. We provide a competitive package in line with ADNOC guidelines with 1:1 basic salary ratio for male and female and ensure that all our employees have equal training and development opportunities.
As part of ADNOC group, any signifi cant operational changes are announced in advance to employees and normally any signifi cant effects are minimized to ensure the wellbeing and prosperity of the employees.
The KPIs to manage and measure our human resources strategy include Emiratization, UAE nationals’ integration, people development, organizational capability, and employee engagement measures.
ADGAS 2010 attrition rate was within the industry norm. Our initiatives in improving social welfare and work-life balance in coordination with ADMA-OPCO on Das Island reduced resignations of both nationals and expatriates
to within the industry average and helped partially by the economic downturn. Continuous efforts are made to improve the standard of accommodation, recreational facilities and catering in coordination with ADMA-OPCO on Das Island. The social and welfare committees at Abu Dhabi headquarter and Das; Island have played a positive role in assisting employees to maintain a healthy work-life balance.
The quality of benefi ts for full-time staff is a key factor in staff retention, and a positive refl ection of ADGAS’ signifi cant investment in human resources. These benefi ts include life insurance, healthcare, disability and invalidity coverage, maternity leave, and retirement provision.
In order to minimize the psychological impact of serious illness if faced by an ADGAS employee, ADGAS also provides education and training, counseling, prevention, and risk control programs and treatment.
Emiratization Recruiting and developing national talents is one of ADGAS strategic objectives and social sustainability principles. Mr. Abdullah Al Dhaheri (Human Resources Division Manager) explains how ADGAS achieved the Emiratization milestones of 70% in 2010 and the plan to
sustain this good performance:
Why Emiratization is important to ADGAS?
ADGAS sees Emiratization as a social commitment to the UAE and the government. Creating jobs to the UAE nationals is important to the nationals’ families’ stability and society prosperity. ADGAS considers His Highness Sheikh Khalifa Bin Zayed Al Nahyan, president of the UAE, guidance’s on recruiting and
ADGAS’ societal responsibilities
extend to its internal and external
community – from the welfare
and development of employees to
supporting the needs of the wider
society within which the company
operates. Numerous initiatives
contribute to creating benefits
through education, health, and
humanitarian efforts.
Permanent employees
Fixed-term employees
Temporary employees
ADGAS
Employees
348
193
1049
29
CATEGORY (%)
Male 4.3
Female 0.4
<30 years old 0.9
Between 30-50 years old 1.9
>50 years old 1.9
CATEGORY MEMBERS IN GOVERNANCE BODIES (%) STAFF MEMBERS (%)
UAE nationals 82% 70%
Arab expatriates 9% 11%
Western expatriates 9% 2%
Asian expatriates 0.0% 16.5%
Other 0.0% 0.5%
CATEGORY (%)
Male 93
Female 7
<30 years old 26
Between 30-50 years old 50
>50 years old 24
4.7 | 2010
7.2 | 2008
3.3 | 2006
2.5 | 2009
5.3 | 2007
4.3 | 2005
TURNOVER RATE (%)
70 | 2010
62.9 | 2008
54.1 | 2006
66.3 | 2009
58.8 | 2007
51.6 | 2005
EMIRATIZATION (%)
ADGAS Employees
Members in Governance Bodies and Staff Members Percentage
2010 Turnover Rate
SOCIETY
30
ADGAS 2010 SUSTAINABILITY REPOR
T
developing UAE nationals as one of its utmost important commitment. The achievement of 70% Emiratization is part of the Sustainability principles and we are working hard to achieve more in the next years and create a national talents pool that will serve ADGAS and the
country.
How did ADGAS achieve this result?
ADGAS followed up the shareholders guidance and directions through the pre-set Emiratization KPI and created an action plan on how to achieve the target.
The action plan included the creation of an intake plan with the coordination of ADGAS line managers. The intake plan fulfi llment required great effort by HR and the ADNOC National Recruitment Committee (NRC). ADGAS also took part in many recruitment fairs and campaigns under the NRC umbrella. In the Learning & Development side, CAMS and CAS systems contributed to Emiratization through a structured development path for the new national intake and good-performance recognition system.
ADGAS also employs innovative methods in the nationals’ recruitment strategy and utilizes all
possible venues.
What challenges ADGAS faced while striving for this achievement?
ADGAS faced fi erce competition with other organizations in the country which benchmarked itself with ADNOC and its group of companies. Other challenges included providing proper training and development of the new national intake and assigning dedicated coaches and
mentors.
What is HR future plans to ensure the development of the national workforce?
In coordination with ADNOC and its group of companies, ADGAS will keep reviewing the CAMS and CAS systems to enhance their effectiveness and share learned lessons to prevent any future shortfalls. ADGAS will keep progressing with its nationals’ development strategy, setting up corporate priorities and milestones through a continuous improvement process.
Training and Development ADGAS employees enjoy an extensive training and capacity-building strategy that starts from the employee’s fi rst days in the company until retirement. We conduct a range of training courses based on training requirements and development plans for soft skills such as power reading, report writing, technical, IT, and vendor-specifi c courses. We also conduct retirement planning courses, with two sessions held in 2010 involving 27 participants.
Management Succession Planning (MSP) is regularly undertaken by the company to assess and evaluate the career path of employees at senior levels while defi ning the best-fi t capabilities to suit the company.
ADGAS also uses the Competence Assurance Management System (CAMS) for the development of its new UAE national graduates.
In 2010, 100% of our employees underwent formal appraisal and review. Our appraisal system which is based on competencies provides a framework for managers to monitor and improve performance of their staff to reach optimum results.
Knowledge Management Knowledge management (KM) is about building organizational intelligence by enabling people to improve the way they work in capturing, sharing, and using knowledge. It involves using the ideas and experience of employees to improve the organization’s performance. Building on what works well leads to better practice, strategy and policy.
Continuing the initiation process from 2009, during 2010 ADGAS started a phased approach of defi ning & implementing Knowledge Management Framework and started a pilot project within the Maintenance Division.
72,22250 Average training hours per employee in 2010
36,41429 Average training hours per employee in 2009
Total Training Hours
Knowledge Movement in an Organization
31
32
82% of ADGAS management body are Nationals
December 2010 saw evidence of ADGAS’ continuing commitment
to the development of its management population with
the running of the Management Development program on
Sir Bani Yas Island.
32
Management Development Program (MDP) December 2010 saw evidence of ADGAS’ continuing commitment to the development of its management population with the running of the Management Development program on Sir Bani Yas Island.
The 2010 program focus was “Supporting Others to Get the Job Done” with the clear objective of moving managers away from direct problem solving and towards developing, coaching and empowering their teams to become self suffi cient in the long term. In response to this, a large scale, 3 days event was designed and run between 12th and 14th December, involving new levels of challenging Activity Based Learning and Development designed to bring out the genuine behaviors from managers and then allow new strategies to be considered.
Employee Tarahum FundTo help its employees meet the demands of life and also encourage savings for future, ADGAS established the TARAHUM FUND in 2005. The Fund is open to all employees to become members by making a monthly contribution ranging between 3 & 5% of their gross salary. These contributions are used to provide interest free loans to the members recoverable in 24 monthly installments. By the end of 2010, the fund has a total contribution of nearly 4 Million AED with total granted loans reaching 2.2 Million AED.
Social & Recreational CommitteeIn 2010, ADGAS Social and Recreational Committee (ASRC), in corporation with ADGAS’ Baynounah Club, organized over 70 functions and activities for ADGAS staff and their families. The various specialized committees working under the wider ASRC’s umbrella developed an extensive program of events during 2010, ranging from adventure events to foreign language courses and from handcraft and tailoring workshops to trips to foreign countries. Every single month, the ASRC has a few activities that cater for all tastes and inclinations at minimal or no charge.
On Das Island, social and recreational activities abound as the Company made a point of constructing numerous well equipped facilities, all free of charge for all employees.
228 | 2010
114 | 2009
Moubadara SchemeSince 2008, ADGAS suggestion scheme “Moubadara” has been a tool to enhance communication within ADGAS. It allows ADGAS management to get continuous fl ow of suggestions and ideas which can have great impact on the business and the development of the company. Numbers of Moubadara suggestions were received through this scheme are:
33
ADGAS Family ADGAS realizes the time-honoured fact that loyal, motivated employees constitute the cornerstone of corporate success. It treats its employees as members of one family, providing all possible services and conveniences that make life and work easier for them.
Apart from learning and development programs, ADGAS offers its employees and their families’ endless opportunities to engage in a wide range of social and recreational activities around the year to enrich their life and maintain their well-being.
CC&PR DepartmentAn important event organized by the CC&PR Department was the annual ceremony to honour those employees who have spent a considerable time in ADGAS. The Long Service Award Ceremony is intended to honour and recognize the efforts and commitment of those who spent 10, 15, 20, 25, 30 or 35 years in the Company, and to present them as role models for young employees.
The CC&PR Department also coordinated the subsidized Hajj and Umra trips for Muslim employees and their families who wish to perform this religious duty, negotiating with service providers to ensure maximum convenience for participants.
ADGAS continued, in 2010, to demonstrate its responsibility towards its own workforce and its community at large; organizing functions including ADGAS’ annual Family Day, where employees and their families spent an exciting day in the open air, with plenty of games, competitions, prizes and fun, bringing more joy and social interaction to the internal life of the Company.
These functions materialized its own vision that stresses the importance of its role as a socially responsible organization.
Corporate Survey ADGAS considers its employees’ viewpoints as drivers for improvement. In 2007, ADGAS started the practice of conducting a corporate survey to gauge the employees’ perceptions on many organizational aspects and concerns. The exercise was proven important and a second survey was decided to be conducted in 2010. Dr. Abdulhameed Al Hosani (Head of Corporate Quality and Change Management) highlighted the corporate survey importance to ADGAS.
When did ADGAS start this exercise and what were the objectives?
The fi rst employee opinion survey on a corporate level (corporate survey) was launched in 2007. The main objectives were to establish the following:
1. Create a two-way communication channel between senior management and employees
2. Build an environment of trust and transparency
3. Improve both employees’ work and life and ADGAS processes and policies
4. Enhance employee’s effectiveness through better engagement and enablement
How can you gauge the employees’ response to the 2010 corporate survey?
The employee response to the second survey in 2010 was excellent with a response rate of 82%. This great result demonstrates the level of commitment and involvement ADGAS employees have, in addition to the wealth of opinion and feedback made available to decision makers in the organization.
What value it added to ADGAS and its employees?
Corporate survey can add vital feedback to senior management on many issues to allow them to gauge their performance, the organization work environment, measure on employees’ engagement and enablement, level of satisfaction of HR services, and many more. The 2010 survey was compared to the one conducted in 2007 and was also benchmarked with Middle Eastern and Global results.
What were the 2010 survey main highlights?
In 2010 survey 18 dimensions were measured covering areas such as HR services, employee engagement, communication effectiveness, management effectiveness, pay& benefi ts, to name a few. Also, in 2010 survey, a new dimension was added, employee enablement, which in combination with employee engagement measurements makeup an outcome called employee effectiveness in the organization.
Series of actions have been developed by different divisions to address issues raised by employees and an implementation plan with timeline has been set. Pulse surveys in June and December of 2011 will follow to measure 3 main KPIs extracted from the Corporate Survey to gauge progress. These 3 KPIs are: employee engagement, communication effectiveness, and managerial effectiveness.
34
Health and Safety
HSEMS Implementation and MonitoringThe ADGAS HSE Management System,
which was developed and launched in 2004, has seen its implementation improving steadily. The system complies fully with all the ADNOC expectations and this is demonstrated by the close out of all previously identifi ed gaps and weakness in 2010. Out of 64 recommendations raised by the External Audit team, 56 were effectively closed, representing 88% completion.
Furthermore, the HSEMS Steering Group Committee chaired by the ADGAS CEO, have held regular meetings with Program Champions to review the progress and achievements for each program and hence improve further the implementation of ADNOC HSEMS expectations. The fi gure shows the 2010 HSEMS compliance for each Element as well as the overall compliance.
This shows a better improvement than 2009 due mainly to a more pro-active way of handling Contractors and an increase visibility of management on sites.
Awards and Achievements In 2010 ADGAS and its Contractors have accomplished the following extraordinary HSE achievements.
• A paper on “CO2 Emission Reduction by minimization of Flaring and Improvement of Boiler Stability & Effi ciency” was presented among fourteen other papers in the 2009 ADNOC HSE Award, was awarded Runner up prize in the Innovation Category.
• On the 25th October 2010, ADGAS and Contractors have achieved its set target of 20 Million Man-hours without LTI.
34
Safety PerformanceAt the end of December 2010, ADGAS and its Contractors achieved 21.3 Million man-hours without LTI, since the last LTI which occurred on 10th March 2009.
The lessons learned from the 2008 fatal accident were demonstrated by the closure of 76 actions out of 78 (representing 97%) and this clearly has shown the commitment of ADGAS Managements towards continuous improvement and better HSE performance.
In addition to the above, the contractor for the major project (OAG) has achieved an unprecedented record of 14.2 Million Man-hours without LTI since the last LTI recorded in March 2008.
Advanced Safety Audits (ASA)
In 2010, a total of 1874 advanced safety audits were conducted which is less than 2009 due to the deferment of Train 1 overhaul. In order to align individual behaviour to safe working practices, the key theme emphasised during behavioural safety audit was the family value concept and what role an individual plays toward his family wellbeing by working safely.
HSE Training
Following the fi nalization of the fatal accident report and the HSEMS external audit report, several recommendations identifi ed the need to improve HSE training by developing and conducting the following additional HSE training topics:
• Confi ned Space Entry.
• Breathing Apparatus standbys.
• An introduction to hazard identifi cation for PTW nominees.
• H2S E- learning.
1874 | 2010
2010
2006
2008
2004
2009
2005
2007
2003
6503898
4872381
6162860
5182498
6454164
5952552
5082437
6553665
Total Courses Total Attendees
1721 | 2008
1182 | 2006
2065 | 2009
1212 | 2007
833 | 2005
527 | 2004
ASA’S VS YEAR
HSE TRAINING
A numbers of sessions were arranged for both senior and junior staff to attend the above courses as well as other HSE Training courses in line with the 2005 ADGAS Safety case recommendations and the 2008 fatal accident recommendations.
In continuation to implement the Incident Command system (ICS) for Das Island, several training sessions at different levels and for different ICS positions were also delivered in order to fully comply with ADNOC Code of Practice CoP V5-05. In addition to the above ICS courses, several workshops & desktop exercises were also held to allow hands on experience for all emergency response personnel.
In 2010, HSE Department has conducted a total of 650 HSE courses attended by 3898 employees (both ADGAS & Contractors) covering a wide range of HSE topics.
35
SOCIETY
36
ADGAS 2010 SUSTAINABILITY REPOR
T
Departmental HSE Performance Measurements
The 2010 HSE performance measurement for the Departments has shown a substantial improvement in comparison to 2009 and to the targets set for each department. This is in line with ADGAS Policy to improve HSE at all levels and in all disciplines. The performance indicators included in this measurement scheme are: Number of near-miss reported, HSE Workplace meetings, Planned General Inspections, Management Safety Tours, Advanced Safety Audits, HSE Trainings attended against committed schedule and HSE Toolbox talks provided to site workforce.
Near-Miss Reporting
During 2010 ADGAS has captured all near-misses including the Process Safety ones and introduced and measured 2 Process Safety KPI’s (PSIR & PSSR).
In 2010, HSE Department recorded a total of 3485 Near-miss reports which is less than 2009 due to the deferment of Train 1 overhaul. The ADGAS 2010 HSE KPI related to Near-misses reporting per established position surpassed its stretched target by more than 50%.
Despite the fact that the number of Near-misses reported in 2010 is slightly less than in 2009, the increased safety attitude & behavior of both ADGAS Employees and contractors has resulted in an increase reporting of Near-misses per employee.
HSE Audits
ADGAS 5 year rolling HSE Audit plan covers not only the ADGAS critical operations, facilities and systems but also include its contractors HSE management system.
These audits are essential because they provide ADGAS Management with feedback on the adequacy, effectiveness and implementation of the HSE System in place. Some of the planned HSE audits are conducted by external safety auditors to allow a third party view of the effectiveness of the HSE systems in place. The following are some of the audits provided in 2010:
• Bi Monthly audits of site contractors.
• Four joint audits conducted by ADGAS and ADMA OPCO staff for the following Contractors: Descon, Target, ADCC and Intergulf.
• Turnaround Audit conducted to ensure HSE preparedness for Train1 Turnaround.
• HSEMS Audit for a Subcontractor for IGD Project was conducted by DNV.
• 17 Audits conducted at Contractor sites as part of the HSE Pre-qualifi cation.
• Joint ADGAS & ADMA-OPCO HSE Campaign covering all Das Contractor was launched on 20th January 2010 for three months.
• Joint ADGAS & ADMA-OPCO Audit team formed & conducted Housekeeping Audits of all Das Contractor Yard on a weekly basis for three months from February 2010 to April 2010.
Emergency PreparednessThe ADGAS Emergency Response Plan is now part of the Das Facility Response Plan.
In 2010 several emergency exercises and evacuation drills were conducted jointly with ADMA-OPCO to test the capability of both companies Emergency Response teams, the personnel awareness of the Emergency and Evacuation procedures and the readiness and effective response of the Das Fire Services.
In addition to the above exercises and drills, 4 real emergencies occurred respectively on 16th May, 20th August, 17th October & 10th November 2010 resulting in the full deployment of both ADGAS and ADMA-OPCO Emergency Teams.
Furthermore, on monthly basis, evacuation drills are conducted for all ADGAS & Contractors Das buildings. In addition to that, a full evacuation exercise was conducted for the ADGAS/ADMA-OPCO HQ Building in Abu Dhabi on the 3rd May 2010.
“On monthly basis, evacuation drills are conducted for all ADGAS & Contractors Das buildings, a full evacuation was conducted on the 3rd May 2010.”
37
DEPARTMENTS/DIVISIONS RANK
Operations 1st
General Technical Services (Das) 2nd
Maintenance 3rd
Administration - Das 4th
Corrosion & Inspection 5th
Engineering Support 6th
Materials Operations 7th
Product & Quality 8th
DATE EMERGENCY/DRILL SCENARIO
2nd January 2010 Fire / Explosion situation at ADGAS Substation No.6
5th March 2010 Aircraft crash accident at Das Airport
17th April 2010 Gas leak at the ADMA-OPCO CTU Scrubber
8th May 2010 Total power outage at Das-Island
4th September 2010 Gas leak at the OAG site
13th November 2010 OAG Feed gas compressor failure
3485 | 2010
3564 | 2008
1251 | 2006
3900 | 2009
1787 | 2007
1091 | 2005
754 | 2003
824 | 2004
415 | 2002
NUMBER OF NEAR MISS RECEIVED
Emergency Preparedness
HSE Performance Measurements
HSE in ProjectsFor every project and major plant modifi cation, a project specifi c HSE plan is developed by the relevant contractor which identifi es all the HSE studies and activities that need to be carried out at each stage of the project, in line with the approved project HSE requirements.
The following on-going projects were managed by ADGAS during the year 2010:
• Offshore Associated Gas (OAG)
• Integrated Gas Development (IGD)
• Flare Handling & Emission Reduction (FHER)
• Permanent Training Centre (PTC)
• STOREX Control System Upgrade (CSU)
• New Paraphinic Naphtha Tanks
Products Safety and ResponsibilityADGAS aims at satisfying its customers through producing the best natural gas liquids products. The products specifi cations go through an intensive lab analysis before they are shipped. Strict HSE and Quality control measures are taken throughout the production stages to ensure products quality and customers’ Health & Safety criteria. In 2010, we had no record of any non-compliance incident in our products.
Occupational HealthADGAS has intensifi ed its efforts to provide Occupational Health care service in a constant endeavour to provide a healthy workplace to its employees.
In 2010, there were seven cases of occupational illness mainly from heat stress for contractor staff. There were no identifi ed cases of reportable occupational illnesses for the direct ADGAS staff. This has been credited largely due to the various awareness & training campaigns involving every level of the workforce.
Occupational Health SurveillanceA system has been developed for occupational health data monitoring of ADGAS employees in collaboration with Das Clinic. This is in line with ADNOC-COP requirement to establish a system of health surveillance in order to assess the impact of occupational health hazards on employee health. The health data is collected considering similarly exposed group of employees, to evaluate the adverse effect of an occupational health hazard on the affected organs of the human body considering the pre & periodic employment health records and other relevant examinations.
Workplace MonitoringWorkplace monitoring has been conducted in a planned manner based on the major health hazards as identifi ed in the Occupational Health Risk Assessment. The monitoring program mainly focused on the chemical [welding fumes, isocyanate based paints and Benzene, Toluene, Ethyl benzene & Xylene (BTEX)] & physical hazards (heat, noise & radiation).
Welding Fumes
The Fabrication & Welding area is a sub-section of the General Technical Services Department
(GTSD) workshop and is responsible for construction & re-building of any metal based items on the plant like pipe works, vessels and structures. Two surveys were conducted to analyze the contaminants in the welding fumes & the suspended particulates for the welders. The sampling focused on the fume contaminants & the total particulate matters concentrations in the ambient air of the workplace. All the sample results were within the permissible exposure limits.
Isocyanate based paints
The Blasting & Painting workshop is responsible for preparation and painting of all new & corroded pipe work and other assets on the Production Plant. Workplace monitoring was conducted for evaluating the airborne concentrations of Isocyanate during the spray painting operations for the painters. The result indicated the level of isocyanates to be well within the permissible limits.
Benzene, Toluene, Ethyl Benzene, Xylene (BTEX)
The Product Quality Department carries out regular testing, verifi cation & approval of all incoming raw materials, outgoing products and process streams for ADGAS and ADMA operations on Das Island. Workplace monitoring was performed to estimate the concentration of BTEX in the workplace along with biological monitoring for urinary metabolites amongst the product analysts performing sampling and testing functions. The monitoring yielded negligible concentrations of BTEX in the workplace & the biological samples.
“A project specifi c HSE plan is developed by the relevant contractor
which identifi es all the HSE studies and activities that need to be
carried out at each stage of the project”
38
39
HSE STUDIES \ PROJECTS OAG IGD FHER PTC SCSU NEW PARAPHINIC NAPHTHA TANKS
Hazard Identifi cation (HAZID)
HSE Plan
Hazards & Operability Study (HAZOP)
HSE Impact Assessment (HSEIA)
HSE Requirements
Safety Integrity Level (SIL)
Project HSE Review (PHSER)
Quantifi ed Risk Assessment (QRA)
HSE studies conducted in 2010 for on-going ADGAS projects.
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Thermal Environment
Welding Fumes
Isocyanate Paints
BTEX
Noise
YES NO
Development of product concept
Research and Development (R&D)
Certifi cation
Manufacturing and production
Marketing and promotion
Storage distribution and supply
Use and service
Disposal, reuse or recycling
0 | JAN
0 | MAY
0 | SEP
0 | FEB
0 | JUN
0 | OCT
0 | MAR
5 | JUL
0 | NOV
0 | APR
2 | AUG
0 | DEC
OCCUPATIONAL ILLNESS CASES - 2010Life Cycle Assessment- Health and Safety
Occupational Hygiene Monitoring Schedule - 2010
4040
Thermal Environment
A bimonthly monitoring of thermal environmental condition was carried out to estimate the Thermal Work Limit (TWL) as advocated by Health Authority of Abu Dhabi (HAAD) as an index of evaluating thermal load for outdoor work in gulf conditions. This enabled the estimation of maximum safe work rate for working in heat with the prescribed work-rest cycles for the workers.
Noise
Personal noise dosemetry was conducted for employees in Utility (Maintenance) to quantify the noise dose from exposures while performing routine activities in the plant. The collected data showed a substantially high level of noise in reference to the threshold limit. The impact on hearing acuity is being checked from the medical records to analyze the effect of noise on the human ear as well as the effectiveness of the current Personal Protection equipments such as ear plugs and muffs in reducing noise to safe working level.
Naturally Occurring Radioactive Material (NORM)
A thorough survey was initiated to assess the presence of NORM sources in the plant operations in line with the ADNOC-COP requirements. The survey considered the sludge samples from several plants in Train 2 & 3. The results showed that the NORM levels for all the solid waste samples are well within the ADNOC exemption limits. This NORM analysis acts as a baseline assessment and will be followed by a survey during the upcoming Train-1 Overhaul in 2011.
CAPE | 06
ALMELEHY | 06
IMECO | 16
HHI | 04
FIRE SERVICE | 03
METITO | 09
ADGAS | 07
ADMA | 35
CLEANCO | 07
ADT | 01
GRANITE | 08
HYUNDAI | 04
IRSHAD | 10
TARGET | 02
TECHNIP | 01
INTERGULF | 12
GINORSE | 02
DFIS | 01
ADCC | 06
GOGAS | 01
WOONGJIN | 02
HEAT STRESS AWARENESS CAMPAIGN - 2010
Attending company Number of people
41
SOCIETY
42
ADGAS 2010 SUSTAINABILITY REPOR
T
Training & AwarenessADGAS organized numerous awareness presentations for adverse thermal environmental conditions encountered in the summer months. The program was attended by key personnel from ADGAS & its contract companies. An awareness video on heat stress was also incorporated in the company portal to emphasize the seriousness of heat stress and its health implications.
Several health spotlights were circulated throughout the year covering the most signifi cant workplace hazards like noise, heat and offi ce ergonomics. The spotlights also focused on lifestyle issues like smoking and obesity. Numerous posters related to occupational health hazards and fi rst-aid was distributed amongst the various departments to enhance the general awareness of the employees.
Assistance ProgramsADGAS concern for its employees reaches their families too. We ran several campaigns throughout the year about road safety, heat stress, fi res at home and others. We encouraged all the employees to deliver these massages to their families and friend. ADGAS medical coordinators are available to give medical advices to the employees and their families.
ADGAS and its CommunityIf we search for a keyword that best describes the values of ADGAS, that keyword would be “responsibility”.
In its established policies and everyday activities that target its internal workforce or its external stakeholders and community, ADGAS acts as a responsible employer and a responsible citizen.
We have been blessed by the unconditional support extended to us by the leadership, since the early 1970s, when the late Sheikh Zayed Bin Sultan Al Nahyan laid ADGAS foundation stone as an environmental and economically feasible enterprise. Therefore, we try to pay back what we have long received; knowing that what you give will always get back to you in more than one way.
We realize that we work within a community to which we are accountable. The issues and concerns of this community are at the core of our business, and we continuously work to address them in the best way we can.
The following are just samples of how we approach our responsibilities towards our local community:
Educational Support
ADGAS knows that its future success depends on having enough technical expertise in the local market. With a globally recognized shortage of engineering and technical expertise that is vital for the oil and gas industry, ADGAS goes out of its way to motivate young students towards following technical and engineering disciplines. To this end, ADGAS sponsors various academic functions in the local academic institutions. In 2010, ADGAS sponsored the Higher Colleges of Technology (HCT’s) Abu Dhabi Industrial Award that aims at recognizing and honouring academic excellence, especially in the engineering discipline. It has also sponsored and contributed to other functions within the HCT and ADNOC’s Petroleum Institute (PI) and those organized by the Society of Petroleum Engineers (SPE).
To acquaint young UAE students with the gas industry and the available future careers in this sector, ADGAS regularly organizes student trips to its facilities on Das Island, followed by competitions for the best reports written by students on such trips.
In certain cases, like employment exhibitions, ADGAS organizes shows and presentations in campus to acquaint students with the rewarding careers in ADGAS and in the oil & gas sector at large.
Health Awareness
ADGAS shares its community’s concerns about the health issues faced by the population. In the UAE’s opulent society, diseases like diabetes, high blood pressure and heart problems are common, and national campaigns are launched to combat such diseases.
ADGAS was closely involved in sponsoring these campaigns, encouraging healthy lifestyles, participating in walking events, organizing specialized presentations and lectures, issuing various health-related messages for both internal and external audiences and organizing blood donation campaigns. The Company’s organ (ADGAS News) has regularly featured articles and stories that address health issues.
Humanitarian Issues
As a socially responsible organization, ADGAS has always been committed to the concept of “giving back” to society. In 2010, it took the initiative by organizing special events for children of special needs, donating heavily to help their institutions provide a better service for this challenged group of people. It has also sponsored some Red Crescent campaigns and Civil Defense initiatives.
National Events
To further establish its role as an active and responsible citizen, ADGAS got also involved, in 2010, in sponsoring national events that aim to promote local heritage and traditions like Al Dhafra Date Festival and Abu Dhabi Camel Festival.
ELEMENT \ COMPANY ADGAS CONTRACTORS ADGAS + CONTRACTORS
Number of Man-Hours worked 1,825,000 9,175,000 11,000,000
Fatalities 00 00 00
Lost Time Injury 00 00 00
No of Accidents 12 03 15
Restricted Workday Cases (RWDC) 00 03 03
Medical Treatment Case (MTC) 01 01 02
Lost Time Injury Frequency Rate (LTIFR) 00 00 00
Absentee (hours) 4,866 144 5,010
Vehicle Accident 02 01 03
ADGAS & Contractors 2010 HSE Performance
EDUCATION/TRAINING COUNSELLING PREVENTION/RISK CONTROL TREATMENT
Program recipients Yes No Yes No Yes No Yes No
Workers
Workers’ families
Community members
Assistance Programs
43
“In 2010, ADGAS took the initiative by organizing special events for children of special needs, donating heavily to help their institutions provide a better service for this challenged group of people.”
ENVIRONMEN
T
Comprehensive environmental protection policies and processes typify all ADGAS’ operations
Projects address diverse environmental concerns, such as reducing impact,
conserving natural resources, and minimizing emissions and total carbon footprint.
Opportunities for further improvement are constantly under review.
45
ENVIRONMENT
46
ADGAS 2010 SUSTAINABILITY REPOR
T
Environmental Management SystemADGAS continues to maintain its status of ISO 14001 certifi cation from Lloyd’s Register of Quality Assurance through successful surveillance audit as per revised standard ISO-14001:2004. Four internal and two external Audits of ISO 14001 were completed as per the plan. In 2010 only one minor observation was reported by external auditor.
Environmental Baseline and Impact Assessment Study In accordance with the requirements of ADNOC COP, a joint ADMA/ADGAS Environmental Baseline Study (EBS) of Das Island and separate Environmental Impact Assessments (EIA) of ADGAS existing facilities and operations were completed. ADMA, the job offi cer of the project awarded the job to M/s. Blue Sea Environmental consultant. The fi eld work started in 2009, and the project was completed in Quarter 1 of 2010. EBS determined the current status of the “Das Island” marine, terrestrial and atmospheric environments.
In the EIA, the impacts of existing ADGAS Das Island facilities and operations on various environmental aspects were evaluated. EIA included a detailed analysis of potential environmental impacts of different ADGAS operations on environmental components, like air quality, ambient noise, seawater quality and marine fl ora and fauna. Best practices were identifi ed to minimize potential environmental impacts and improve environmental performance of existing ADGAS Das Island facilities and operations.
Flaring and EmissionsADGAS produces a clean source of energy which produces less carbon dioxide. ADGAS is striving to reduce its operational impact on environment and is planning to drastically reduce its emissions and fl aring by 33% in 2015 from its 2010 levels.
ADGAS average fl aring during 2010 was 9.2 mmscfd against a target of 13.0. The major contributors to this success goes to implementation of fuel gas process control in Train 3 and plant effi ciency enhancement which lead to a reduction in the fl aring due to plant trips and reduced Green House emissions by 272,314 Tonnes of CO2 equivalent and the deferment of Train 1 overhaul.
Monitoring of Stack Emissions and Ambient Air QualityADGAS is routinely monitoring stack emissions sources (boilers and gas turbines), and ambient air quality on Das Island twice a year by using chemical analytical methods. Ambient air quality was evaluated in six different locations for Respirable Particulate Matter, Total Suspended Particulates, Sulphur Di Oxide, Oxides of Nitrogen and Hydrogen Sulphide. Respirable Particulate Matter and Total Suspended Particulates are above limits in four locations.
Environmental Projects ADGAS is actively pursuing several projects for the improvement of its environmental performances. Amongst these, fl aring reduction schemes are being top most priority. Ongoing environmental projects are listed below:
Flaring Reduction Schemes (Package 1)To align with the shareholders commitment, ADGAS set itself an aggressive plan for accelerated implementation of three fl aring
ADGAS places the environment and its protection at the top of its agenda. As part of its ongoing commitment, ADGAS invests significantly in environmental protection schemes, such as flaring and emissions reduction, to minimize the environmental impact of its operations and conserve natural resources.
Waste Disposal (5,082,490)
Emissions Treatment (50,506,823)
Prevention (179,441)
Environmental Management Cost (7,842,335)
Environmental Protection
Expenditures (AED)
reductions scheme. After the implementation of all the schemes in this package; Flaring is expected to be brought down to a level of 4.3 MMSCFD. 2 of the schemes are planned for implementation in 2011 bringing fl aring to 5-6 MMSCFD and the third scheme is intended for
implementation in the coming 5 years.
Emission Reduction Schemes (Package 2 & 3)Two separate engineering packages that aim to reduce CO2 and non-CO2 emissions from ADGAS sources.
Package 2: Energy Effi ciency Improvement/CO2 Reduction Schemes
Comprising three schemes, this package is based on improving thermal effi ciency of the existing boilers and gas turbines. The implementation of these schemes is expected to lead to an annual reduction of approximately 350KTons of CO2.
Package 3: SRU Reliability and Integrity Improvement Schemes/SOx reduction.
The nine schemes in this package are focused on improving the reliability of the Sulphur Recovery Units, while one will replace sour fuel gas with sweet gas to run the gas turbines. It is expected that these schemes will result in a total
reduction of SOx of approximately 44 KTon.
Effl uent Treatment Plant
ADGAS had engaged a consultant to recommend measures to meet the UAE federal regulations for discharging its effl uents to sea. Several site visits had been made and samples collected for analysis. Treatment process has been fi nalized and FEED work has been completed.
9.2 | 2010
SOx | 57,261
Indirect Green House Gas Emissions | 1,016
14.5 | 2008
Methane | 4,364
21.4 | 2006
ODS & CFC-11 | 0
16.5 | 2009
VOC | 2,580
Other Indirect Green House Gas Emissions | 3,373
NOx | 4,544
Direct Green House Gas Emissions | 4,904,299
15.6 | 2007
PM | 117
22.7 | 2005
Gas Flaring (MMSCFD)
Annual Emissions (Tonnes)
Tonnes of CO2 equivalent
47
“ADGAS is actively pursuing several projects for the improvement of its environmental performances. Amongst these, fl aring reduction schemes are being top most priority.”
ENVIRONMENT
48
ADGAS 2010 SUSTAINABILITY REPOR
T
Energy Efficiency and Monitoring Following a high level energy study by ADNOC, ADGAS has engaged a consultant to carry out detail study on energy optimization and framed a list of short term and long term recommendations. Accordingly a road map has already been circulated for evaluation by various departments.
In addition to the above an Energy awareness presentations were conducted to further emphasize the role of individuals in conserving energy.
ADGAS has also completed in-house study about its performance on energy usage. Specifi c energy consumption (SEC) data for individual trains have been evaluated and procedures have been developed for monitoring of boilers and Gas turbine effi ciencies.
Further, an initiative has been put in place to engage a team of energy specialists to make a detail energy study for ADGAS trains.
ADGAS doesn’t generate or consume energy through renewable sources.
MaterialsADGAS tracks the consumption of raw materials, semi-manufactured goods and direct materials internally to monitor material effi ciency and the cost of material fl ows. Due to the nature of ADGAS operations, no input materials are recycled.
2010 Total materials consumed
10,883,707 Total weight (tonnes)
Environmental Protection and Waste Reduction initiative With a clear focus on saving precious natural resources, in support of sustainability,
an Environmental Protection and Waste Reduction initiative was launched in the form
of 3 key focused promotional schemes during 2010.
a. ‘Save Water’ Campaign involved installation of water saving devices in the
headquarters building, residential accommodation and Das Island.
b. ‘Energy Saving Bulbs’ were distributed to all employees for use in their homes in
Abu Dhabi – this helped save energy.
c. An incentive scheme for reduction in utilities’ consumption was launched to
encourage employees and families to optimize consumption of electricity and
water at homes. The Incentive Scheme, coupled with ‘Save Water and Electricity’
campaign, resulted in achieving utilities reduction by 5 to 39% during 2010.
61,310,000 GJ 2010 total direct energy consumption
21,990 GJ 2010 total indirect energy consumption
300,000 GJ 2010 total energy saved
49
“An Environmental Protection and Waste Reduction initiative was launched during 2010. The Incentive Scheme, coupled with ‘Save Water and Electricity’ campaign, resulted in achieving utilities reduction by 5 to 39%.”
“ADGAS is increasing its focus on water saving through campaigns to rationalize water consumption, and also through the installation of water-saving devices in its offi ces and employees’ homes.”
Waste Disposal 793 tons of hazardous materials were sent to BeAAT for disposal during 2010. Waste generation and disposal continue to be tracked and monitored.
Concentrations for all solid waste samples were well within the ADNOC exemption limits. There are no specifi ed guidelines in ADNOC CoOP on Liquid samples for NORM. However, ADGAS carried out liquid sample analysis to have basic information about the nature of NORM parameters that may persist in the samples. Results will be further validated with a more detailed analysis with an expanded scope in 2011.
TransportationADGAS recognizes the signifi cant environmental impacts of transportation systems, from global warming to local smog and noise. The statistics available from transportation data outlined below provides a baseline for optimization in the future. As this is a new indicator and not all data was available, relevant assumptions were used in our calculations.
CASE STUDY:Paperless Day Campaign
ADGAS celebrated the paperless day on 03/06/2010. In order to commemorate the day and to demonstrate ADGAS commitment, printers and copiers across all ADGAS offi ces were switched off, regulating to absolute minimum. This initiative was intended to encourage reduction in use of paper. The effective campaign resulted in achieving a signifi cant reduction by 56% or 1.9 tons in paper wastes (equals saving of 38 trees) compared to 3.4 tons of paper wastes generated in 2009. EAD’s report announced that ADGAS helped reduce carbon emission by 798 kg, following the ‘paperless’ day.
WaterADGAS understands the overall scale of potential impacts and risks associated with excessive water usage. Huge amounts of seawater are harnessed in the cooling of the LNG plant and to produce potable water.
ADGAS is increasing its focus on water saving through campaigns to rationalize water consumption, and also through the installation of water-saving devices in its offi ces and employees’ homes.
ADGAS had withdrawn 1,087,613,658 m3 of sea water for the LNG plant equipment cooling and desalination and 15,902 m3 of municipal water.. Due to ADGAS operations nature, we do not recycle or reuse water.
ADGAS ensures that the water discharged back to the sea is free of any hydrocarbon by using Low pressure steam injected to disperse tracing hydrocarbon vapor carry over. The 2010 total discharged water was 1,038,354,484 m3.
50
Waste Disposal
Transportation
ABU DHABI DAS ISLAND
Paper | 1,600 KGs
Metal | 400 KGs
Pastic | 1,400 KGs
To BeAAT(Haz) | 793 Tons
Musafah(N.Haz.) | 0 Tons
Recycle | 483 Tons
Municipal | 467 Tons
WASTE DISPOSAL METHOD HAZARDOUS WASTE DISPOSED (TONNES) NON-HAZARDOUS WASTE DISPOSED (TONNES)
Composting 0 0
Reuse 0 0
Recycling 0 483.034
Recovery 0 0
Incineration 0 0
Landfi ll 0 0
Deep well injection 0 0
On-site storage 0 0
Other (specify) 794.22 – Sent to Takreer BeAAT 1107.4
VEHICLES PLANES (DAS ISLAND) VESSELS (DAS ISLAND)
Distance travelled (km) 7,921,670 372,320 20,700
Energy use (GJ) 25,923 22,860 -
Emissions of NOx (tonnes) 2.0 1.0 -
Emissions of CO2 (tonnes) 1,671 1,631 -
Total spills (m3) 0 0 0
51
ECONOMY
Das Island Future Projects
53
5454
TEPCO’s Futtsu Thermal Power Station
ADGAS has a strategic objective of creating wealth to its shareholders and maximizing its revenue from Operations. ADGAS has a dedicated marketing division that markets ADGAS products and optimizes its selling conditions with current and potential customers.
As an ADNOC group company, ADGAS is a key contributor to the wealth of Abu Dhabi and the nation. ADGAS LNG, LPG, Paraffi nic Naphtha and Sulphur sales have generated vast revenues over the past 30 years, maximizing shareholders’ returns. Additionally, ADGAS is set to play a key role in Abu Dhabi’s vision of 2030, supplying natural gas from offshore to onshore facilities to meet the increasing local demand. Great examples of this shift are the recently commissioned Offshore Associated Gas project (OAG) and the Integrated Gas Development (IGD) projects, which will supply in total 1 billion standard cubic feet per day of natural gas.
CustomersProviding our customers with quality products has helped us create longstanding strong relationships, among the most notable being our relationship with our main customer, Tokyo Electrical Power Company (TEPCO), which dates back to ADGAS’ beginnings in the early 1970s.
Tokyo Electric Power Company (TEPCO)
ADGAS Marketing, Sales and Production coordinate production schedules to meet agreed customer contract requirements. ADGAS’ exceptional commitment to these schedules is evident in the high-level management participation in managing the relationship with our main customer. Our commitment to TEPCO includes a permanent offi ce, Tokyo Liaison Offi ce (TLO), and personnel at their location to ensure accurate and timely communication, which in turn ensures that TEPCO’s requirements are addressed on an immediate basis.
Other Customers
Although TEPCO is our primary customer, ADGAS applies the same diligence and quality to other customers to ensure maximum satisfaction. The marketing team schedules semi-annual customer visits to better understand evolving customer needs and gauge perceptions that will allow us to enhance customer satisfaction. These routine visits are supplemented by meetings on the sidelines of major regional and global industry conferences and seminars. The overall excellent perception of ADGAS in the eyes of its customers is essentially the outcome of sound management of customer relationships.
ADGAS regularly conducts customer surveys designed to measure customer perceptions on a fi ve-point scoring system covering image, satisfaction levels, products and services, support and services, and loyalty. 2010 customers’ satisfaction was 100% and zero cases of breaching of customer privacy and losses of customer data.
Suppliers
By supporting local business in Abu Dhabi & UAE in general in the supply chain, ADGAS indirectly attracts additional investment to the local economy.
ADGAS follows ADNOC guidelines and procedures and implements a strict procedure in evaluating and selecting bidders. The evaluation is governed by the supplier HSE-prequalifi cation, price, delivery time, specifi cations and performance. In line with ADNOC guidelines, ADGAS deals with foreign suppliers through local sponsors, which are entitled to a percentage of the foreign supplier contract, thus ensuring that some of this money is spent locally. In 2010, ADGAS spent 85.2% of the procurement budget on local suppliers.
Natural Resources ADGAS believes in conserving the country’s natural resources. The natural gas supplied from the upstream company ADMA-OPCO is the main natural resource consumed by ADGAS. We utilize high quantities of this natural gas in producing Liquefi ed Natural Gas (LNG) and other by-products, and in generating power and steam to keep our LNG plant operating. We make sure that our operations are effi cient to capture all incoming natural gases from ADMA and enhance throughput by minimizing wastage through fl aring and reducing opportunity losses.
55
ECONOMY
56
ADGAS 2010 SUSTAINABILITY REPOR
T
Offshore Associated Gas (OAG) Project In 2010, ADGAS started playing an additional major role in the natural gas supply to the onshore network through exporting the gas from the offshore fi elds. This new role in addition to the existing natural gas and sulphur products export adds to the company strong infl uence in the National Energy Strategy and its importance to the minimum interruption of the UAE Offshore oil production. Mr. Bader Al Mohammadi (Senior Vice President (Technical)) sheds light on the added importance of the OAG to ADGAS and the country’s economy, environment and society:
How will the OAG contribute to the national economy and its sustainable development?
With the increasing demand of energy in the growing and developing local economy, OAG is providing a new source of gas to the onshore network linking the onshore and offshore gas fields and processing networks.
This is a great achievement as both offshore & onshore large reserves are now integrated giving more flexibility and solutions during contingencies. OAG and the coming IGD facilities (project under construction) is now a key economic contributor to Abu Dhabi vision 2030 which depends on the oil & gas sector to provide the growth that will be necessary to achieve the Emirate’s agenda of economic diversification. Another key advantage for OAG is that it provides ADGAS with additional gas processing capacity that will give ADMA-OPCO more freedom to produce any quantities of oil. Before that, ADMA’s production used to suffer whenever there was a major shutdown in ADGAS trains, as ADNOC’s strict policy prohibits flaring associated gas into the air.
OAG supplies the onshore network with around 200 MMSCFD which constitutes around 20% of ADGAS production. The supplied quantity is going to increase to 1000 MMSCFD with the planned commissioning of the IGD project in Quarter 3 of 2013. Such supply provides clean source of energy to the onshore power generation facilities. OAG also creates a downstream advantage to our sister company GASCO by improving its facilities and, operational fl exibility.
What are the OAG positive impacts on the environment and society?
Besides the provision of clean source of energy to the onshore power generation facilities, OAG is contributing positively to environment and society through minimizing the natural gas
fl aring and emissions to atmosphere that will occur if ADGAS facilities are shutdown. This follows ADNOC strict guidelines on fl aring and emissions.
How can the OAG enhance the LNG plant value creation?
OAG gives ADGAS LNG plant more fl exibility in optimizing the Turnaround duration thus increasing availability and revenue. It also, gives a chance to explore new customers with varying LNG specifi cation thus leading to increasing ADGAS marketing portfolio.
How else OAG played an active role in creating a value for the society and ADGAS employees?
The project contributed to the social sustainability through creating jobs and developing ADGAS experience in the gas compression operations and maintenance. It enhanced ADGAS employees’ project management skills which is an asset for any future projects. Our employees were also exposed to other companies experience and knowledge nationally and internationally.
The project execution and commissioning sharpened our existing coordination and decision making skills as we are now dealing with new downstream stakeholders. The OAG was a great chance for UAE nationals to develop their technical and administration skills and sharpen their talents. ADGAS is proud to have the new experience of maintaining and operating one of the longest dense phase gas pipelines in the world.
OAG Snapshots
April 2010 Commissioning date
Dec 2010 Full capacity production
2,500 Peak Manpower involved
57
Risk Management/Risk Assessment Risk management is about achieving an appropriate balance between realizing opportunities for gains while minimizing adverse impacts. It is an integral part of good management practice and an essential element of good corporate governance. To be most effective, it has been a constant endeavor to embed risk management as part of the ADGAS’ culture, practices and business processes, rather than be viewed or practiced as a separate activity. With the implementation of an Enterprise Risk management (ERM) Framework in ADGAS, a one consistent framework for managing all risks across ADGAS and its divisions exists.
ADGAS’ ERM framework comprises of:
• An Enterprise Risk Management policy statement expressing a clear mandate;
• An overarching set of Standards that set the performance requirements for risk management;
• Supporting Guidelines that provide a consistent, generic tool kit of best practice methods to satisfy the requirements of the Standards;
• A consistent process for risk analysis and setting priorities;
• A consistent vocabulary for risk management;
• A risk management information system with appropriate functionality to support and drive consistency, is currently under implementation
The core set of risk management processes is consistent with ISO 31000:2009.
Risk Register
ADGAS’ corporate risk register contains a set of 33 key ‘headline’ risks. Of these risks, 19 have negative impacts and 14 represent potential opportunities with positive consequences for the company, as summarized in the Summary Risk Register Table. Each headline risk has been developed from a group of more detailed risks.
Risk Treatment
Treatment workshops are regularly held in order to:
• Examine selected corporate risks in detail;
• Review existing controls and their effectiveness
• Identify options for improvement, and their associated benefi ts and costs;
• Agree actions for improvement.
A number of additional controls or improvement initiatives are agreed as an outcome to the risk treatment workshops. Actions for improvement were drawn up and followed up for active implementation. The level of the risk will be reviewed and will be scaled down only when it is conclusively established that the actions are implemented and are working effectively. This is a continuous process.
58
“ADGAS’ corporate risk register contains a set of 33 key ‘headline’
risks. Of these risks, 19 have negative impacts and 14 represent potential opportunities with positive
consequences for the company”
58
59
ERM Process
Summary Risk RegisterConsequences
Insignificant Minor Moderate Major Catastrophic
Likelihood E D C B A
A: Almost Certain
B: Likely1xO1xR
3xO7xR
C: Possible 1xO4xO1xR
2xO3xR
2xO2xR
D: Unlikely 3xR
E: Rare
Key: Low Medium High Extreme
59
60
ADGAS Asset Integrity & Reliability Management Systems (AIRMS)ADGAS is implementing the “Asset Integrity & Reliability Management Systems” with the continuing goal of improvements in integrity assurance through better-defi ned processes, procedures and records, and a reduction in errors and, consequently opportunity losses. Greater awareness of the fundamental role of integrity to safety and performance by all employees is fundamental to AIRMS implementation and sustainability. This process enhances the overall sustainability of ADGAS’ performance through higher reliability of the systems, fewer losses due to equipment failures, lower overall emissions from fl aring and more effi cient energy use from stable operations. The structural hierarchy of these objectives with the policies of ADGAS is shown in this fi gure:
Specifi c efforts to attain this goal in 2010 were improved training and frequency of training for AIRMS awareness. Workshops with ADGAS departments were held to explain and develop the HSE-CES Performance Standards. An improved training course and a much greater extent of coverage for RCA investigation training were initiated. Better liaisons between L&D and Production to track all training for a better assessment of needs and results were established.
The management’s commitment and presence was evident through two Steering Committee meetings and four Element Champion/Process Owner meetings. Better focus by the Element Champions on specifi c defi ciencies in related processes was noticed in 2010.
Our challenge in 2011 is to improve the ability of AIRMS to provide leading indicators that are acted upon by the responsible individuals. That will include enhancing the timeliness and transparency of information, improving the general awareness of AIRMS’ goal and the engagement of all employees in recognizing the fundamental relationship of their job knowledge and performance to integrity, reliability and their own safety. The management must remain (or increase) visibly promoting the actions required by AIRMS through personal/team discussions, accurate performance appraisals and feedback, and allocation of resources to accomplish the objectives.
Strategic Projects ADGAS plays an important role in contributing to the national energy strategy. The ultimate outcome of National Energy Strategy (NES) theme in ADGAS Strategy map is to optimally utilize the natural resources to maximize value to the country and shareholders. Keeping this in mind, ADGAS looks at its future obligations and business continuity opportunities very seriously and started to embark on theses strategic projects:
Integrated Gas Development (IGD)
The Das Island IGD facility, which is planned to be commissioned in the third quarter of 2013, will enable an additional 880 mmscfd of HP Gas from Umm Shaif to Habshan through Das Island. The produced gas will be initially processed in the ADMA-OPCO facilities at Umm Shaif and then sent to the IGD facilities on Das Island. There, the gas will be conditioned for export to Habshan through the new 30” (OAG) pipeline. At Habshan, the gas will be further processed in the OAG facilities and new trains for optimum production of lean gas, which will be sent to the gas header, and NGL, then to storage. The NGL will then be sent to GASCO Ruwais for further fractionation.
Trains 1 & 2 Replacement Options
For ADGAS business continuity, feasibility study was undertaken whether to rejuvenate the existing Trains 1 and 2 or replace them with a new single Train. Both options were found technically feasible but replacement train is economically better besides other advantages of safety and environment. The project is under PRE-FEED study.
“The Das island IGD facility, which is planned to be commissioned in the
third quarter of 2013, will enable an additional 880 mmscfd of HP
Gas from Umm Shaif to Habshan through Das Island.”
60
The AIRMS Pyramid
61
6262
Report ParametersProcess for Defi ning Report Content
Determining our Priority Issues: We have undertaken a systematic process to identify ADGAS’s priority sustainability issues. We have applied each of the principles for defi ning report content. Our process has resulted in the identifi cation of sustainability issues across the stages of our development process and in our corporate functions that will drive our sustainability strategy. We report on the relevant issues for each stage and for our internal cross-cutting functions in this report. These issues are all deemed essential to business success and are not prioritized. Prioritization within each issue is defi ned in the form of a selected group of Key Performance Indicators (KPIs) and related targets that we have determined as the best means of achieving progress towards sustainability.
Materiality: We think that we have covered all topics (and included associated indicators) that refl ect the organization’s signifi cant economic, environmental, and social impacts, or that would substantively infl uence the assessments and decisions of stakeholders. This includes main issues raised by stakeholders, issues reported on by our peers, standards and guidelines including the GRI G3 Reporting Guidelines.
Stakeholder inclusiveness: We considered and believe we have identifi ed all of our key stakeholders and have outlined how we engage them, our understanding of their interests and expectations, and how we have responded.
Sustainability context: We considered our sustainability context, taking into account global trends towards sustainability, but also considering regional and local contexts in which we operate. In some cases we point out the different priorities among these contexts, and how we try to best address these issues from multiple perspectives.
Ensuring Quality in Our Sustainability Reporting
Balance: We believe this report presents both the positive aspects of our performance and areas requiring signifi cant improvement.
Comparability: Wherever possible we have provided 2005 to 2010 year-on-year data (end: Dec 31 each year), and have attempted to follow the GRI Indicator Protocols in order to facilitate comparison of our report against industry peers and other companies.
Accuracy: We have aimed for maximum accuracy. Where estimations or other limitations to the data are involved, this is identifi ed.
Clarity: Sustainability is a relatively new concept in our region and we have made an effort to provide introductory information where useful to facilitate reader understanding of the report content.
Re-Statements & Changes: Compared to our 2009 Sustainability Report, this report does not have any re-statement or signifi cant changes in its scope, boundaries or measurements methods
Assurance: This report is not assured by a third party.
Reporting Boundaries
Limitations: Energy calculations were made based on the most appropriate assumptions and knowledge. The exact calculation of some parameters like emissions and plant-related KPIs are also based on certain technical assumptions. Some data did not directly exist in our systems and relevant efforts were made to get the most practical fi gures.
Data measurement techniques: all the data in this report are accurate as much as possible. No estimations or extrapolations were made to cover for any missing data gap.
63
64 ADGAS 2010 SUSTAINABILITY REPORT
GRI Reporting Index
GRI PAGE(S)
1.1 p. 5
1.2 p. 8-1, 14-15, 21-24
GRI PAGE(S)
3.1 p. 15
3.2 p. 15
3.3 p. 15
3.4 p. 2
3.5 p. 63
3.6 p. 63
3.7 p. 63
3.8 p. 63
3.9 p. 63
3.10 No re-statement
3.11 p. 63
3.12 p. 64
3.13 p. 63
GRI PAGE(S)
EC1 Proprietary information
EC2 Not applicable
EC3 Not applicable
EC4 ADGAS does not receive any fi nancial assistance from the government.
EC5 UAE does not have minimum wage policy
EC6 p. 55
EC7 p. 28-30
EC8 Not applicable
EC9 p. 28-33
GRI PAGE(S)
4.1 p. 10-13
4.2 p. 12
4.3 p. 10-12
4.4 p. 12
4.5 Proprietary information
4.6 Proprietary information
4.7 Proprietary information
4.8 p. 9-11, 22-23
4.9 p. 10-13
4.10 p. 10-13
4.11 Does not exist
4.12 p. 22-23
4.13 p. 18
4.14 p. 18-19
4.15 p. 18-19
4.16 p. 18-19
4.17 p. 18-19
GRI PAGE(S)
EN1 p. 48
EN2 p. 48
EN3 p. 49
EN4 p. 49
EN5 p. 49
EN6 p. 46-49
EN7 Not applicable
EN8 p. 50
EN9 ADGAS Operations Doesn't affect any signifi cant water source
EN10 p. 50
EN11 ADGAS does not operate near protected areasEN12
EN13
EN14
EN15
EN16 p. 47
EN17 p. 47
EN18 p. 47
EN19 p. 47
EN20 p. 47
EN21 p. 50
EN22 p. 51
EN23 p. 51
EN24 No data available
EN25 No data available
EN26 ADGAS produces natural gas products that are shipped in tankers
EN27
EN28 No fi nes or sanctions were imposed on ADGAS
EN29 p. 51
EN30 p. 46
GRI PAGE(S)
2.1 p. 8
2.2 p. 8
2.3 p. 12-13
2.4 p. 8
2.5 p. 8
2.6 p. 12-13
2.7 p. 8
2.8 Proprietary information
2.9 p. 8
2.10 p. 9
1. Strategy & Analysis
3. Report Parameters
5. Economic
4. Governance, Commitments & Engagement 6. Environmental
2. Organizational Profi le
GRI PAGE(S)
LA1 p. 29
LA2 p. 29
LA3 p. 28
LA4 No policy exists covering collective bargaining agreements
LA5 Minimum time period is stipulated in writing in each individual's contract
LA6 Not available
LA7 p. 43
LA8 p. 43
LA9 trade unions do not exist in UAE
LA10 p. 30
LA11 p. 30
LA12 p. 30
LA13 p. 29
LA14 p. 28
HR1 Not available
HR2 Not available
HR3 ADGAS educates all employees about their rights
HR4 p. 28
HR5 Employees unions do not exist in the UAE. ADGAS engages its employees through other tools. See page 19.
HR6 Child labour is against the UAE and ADNOC policies.
HR7 ADGAS adheres to the nationals and internationals workers rights legislations. ADGAS has an overtime policy and prevents any compulsory labour.
HR8 Zero training in 2010
HR9 Zero case in 2010
GRI PAGE(S)
SO1 Not available
SO2 Not available
SO3 Not available
SO4 ADGAS did not have any cases of corruption in 2010.
SO5 ADGAS did not provide any fi nancial support for any political party
SO6 ADGAS did not provide any fi nancial support for any political party
SO7 Zero case in 2010
SO8 Zero case in 2010
PR1 p. 39
PR2 ADGAS is not aware on any voluntary or regulatory non compliance issues related to products or services
PR3 p. 55
PR4 Zero case
PR5 p. 55
PR6 p. 55
PR7 Zero case
PR8 p. 55
PR9 No fi nes or monetary sanctions
7. Social
ADGAS sustainability journey continued in 2010 with excellent performance in the sustainability three pillars: Society, Environment and Economy. This is ADGAS second Sustainability report which is a follow-up report to our baseline 2009 Sustainability Report. This report is intended for our employees, customers, shareholders, and the wider community. We hope you wil l f ind it informative and insightful.This report sheds light on 2010 sustainability performance and includes some important historical achievements and data in addition to ADGAS future goals.
We appreciate the contributions of everyone who provided data and comments on our last report. This made it possible for us to create an enhanced report and broadened our knowledge in sustainability reporting best practices.
ADGAS produces this report annually as a printed version for concerned parties and makes it available on www.adgas.com and the employees’ intranet.
We welcome your feedback on this report. Please send your general comments on [email protected] and fi ll in the electronic feedback-form as described at the end of this report.
65
IPIECA/API Reporting Index
ENVIRONMENTAL PERFORMANCE INDICATORS SOCIAL & ECONOMIC INDICATORS
E1 Greenhouse gas emissions p. 47 SE1Local community impacts and engagement
p. 18-19
E2 Energy use p. 49 SE2 Indigenous peoples p. 22
E3 Alternative energy sources p. 49 SE3 Involuntary resettlement N/A
E4 Flared gas p. 47 SE4 Social investment All the report
E5Biodiversity and ecosystems services
- SE5 Local content practices All the report
E6 Fresh water p. 50 SE6 Local hiring practices p. 28-30
E7 Other air emissions p. 47, 51 SE7Local procurement and suppliers development
p. 55
E8 Spills to the environment p. 51 SE8 Human rights due diligence p. 27-28, 38-41
E9 Discharges to water p. 50 SE9 Human rights and suppliers -
E10 Waste p. 50-51 SE10 Security and human rights p. 34-37
HEALTH AND SAFETY PERFORMANCE INDICATORS SE11 Preventing corruption -
HS1 Workforce participation p. 34-41 SE12Preventing corruption involving business partners
-
HS2 Workforce health p. 38-39 SE13Transparency of payments to host government
-
HS3Occupational injury and illness incidents
p. 43 SE14 Public advocacy and lobbying N/A
HS4 Product stewardship p. 38 SE15 Workforce diversity and inclusion p. 29
HS5 Process safety p. 34-37 SE16 Workforce engagement p. 29-33
SE17Workforce training and development
p. 30
SE18Non-retaliation and grievance systems
p. 28
IPIECA/API IPIECA/APIPage(s) Page(s)
66