Mangaluru Integrated Gas Project

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1 Mangaluru Integrated Gas Project Proposed Terms of Regerence (ToR) submitted with Form I to Ministry of Environment, Forests & Climate Change (MoEF&CC) I. Objectives of EIA Studies The overall objectives of the EIA study will be as follows: Establish the prevailing baseline environmental and socioeconomic condition of the areas abutting the proposed LNG Handling Facility and its associated R-LNG Pipeline; Assess environmental, socioeconomic and occupational health impacts arising out of the construction and operation of the LNG Handling Facility and its associated R-LNG Pipeline; Identify residual impacts that may arise from the project and suggest suitable measures to minimize them; Recommend appropriate preventive and mitigation measures to minimize pollution, environmental and social disturbances during the life-cycle of the project; Formulate EMP that integrate mitigation measures with existing program of project proponent so that they can be implemented, monitored and suitable corrective action can be taken in case of deviations; Assess the risks associated with the project and suitably prepare a Disaster Management Plan. Prepare CRZ maps indicating the High Tide Level, Low Tide Level demarcated by an authorized agency on 1:4000 scale along with the recommendations of the KSCZMA. Prepare an Contingent Management Plan for Leakages and Accidents II. Project Description The overall objectives of the EIA study will be as follows: H-Energy Private Limited (HEPL), a company established with a vision to contribute to the economic growth of the country by offering world class, environmentally safe and sustainable energy solutions, intends to develop Liquefied Natural Gas (LNG) Handling Facilities at New Mangalore Port (NMP). HEPL has been authorised by the Petroleum and Natural Gas Regulatory Board (PNGRB) to lay, build, operate, and expand a 635 km long Natural Gas Pipeline from Jaigarh Port in Maharashtra to Mangaluru in Karnataka thereby enabling the supply of eco-friendly Natural Gas to customers located in coastal Maharashtra, Goa, and Karnataka. This project operates by the name of Jaigarh Mangalore Natural Gas Pipeline (JMPL). Keeping in mind the imminent demand for Natural Gas in Mangaluru, HEPL has conceptualised the Mangaluru Integrated Gas Project (MIGP) and proposes to set up an FSRU based LNG Storage and Regasification terminal of ~ 3.0 MMTPA capacity at Jetty # 9 within NMP. The MIGP proposes to receive LNG via LNG Shuttle Vessels and re-gasify it into R- LNG on board the FSRU moored at NMP. The R-LNG shall then be evacuated to various potential customers up to the Mangalore Special Economic Zone (MSEZ) via an ~ 15 km long Natural Gas pipeline (hereinafter referred to as the Project ).

2 The envisaged project is strategic in nature and when implemented, will benefit not only the various gas consuming industries in Mangaluru but will also benefit the common man by giving access to a cleaner burning fuel for domestic consumption in the future. The proposed Project forms a part of an integrated gas project envisaged in Mangaluru. The minimum facilities anticipated for the realization of LNG handling facilities, but not limited to shall be following: i. Marine Facilities: a. Unloading and mooring facilities b. Modification of existing Jetty, trestle and associated facilities ii. LNG Carrier Vessels: a. Shuttle Vessel with appropriate storage tanks for of transport of LNG from a suitable terminal to NMP b. FSRU with re-gasification facilities viz. Vaporizers, Pumps, Electrical, Instrumentation, Control & Monitoring system and other equipment / facilities. iii. Utilities: a. Power System b. Nitrogen System c. Instrument / Plant Air System d. Fire, Gas & Spill system e. Fire Water System iv. Associated Civil Works: a. Jetty Strengthening (if needed) b. Equipment Foundations c. Roads v. Construction of R-LNG Evacuation Pipeline: The Project essentially plans to: 1. Berth an FSRU of up to 50,000 m 3 capacity at Jetty # 9 within NMP with a maximum re-gasification capacity of 3 MMTPA. 2. A Shuttle Vessel of up to 50,000 m 3 capacity transporting LNG will be berthed alongside the FSRU.

3 Figure 1: Proposed Mooring Arrangement of FSRU and LNG Carrier at Jetty # 9 3. LNG from the Shuttle Vessel shall be transferred to the FSRU via Ship to Ship Transfer (STS) operations. 4. LNG will be re-gasified using vaporisers installed on board the FSRU. 5. This RLNG will be offloaded from the FSRU using Gas Unloading Arms installed onshore at Jetty # Additionally provision for a Liquid Unloading Arm capable of evacuating LNG shall also be created for future use. Figure 2: Route of Proposed Pipeline from Jetty # 9 to New Mangalore Port

4 7. From the interface point of the Unloading Arm on shore, R-LNG shall be supplied to end users in Mangalore and its vicinity through an ~ 18 OD x ~ 15 km long Natural Gas pipeline. 8. The R-LNG Pipeline will originate at its take-off point on Jetty # 9 and shall extend ~ 2 km with NMP territory. 9. The pipeline shall then enter an existing Pipe Rack which is owned and operated by Mangalore Special Economic Zone Limited (MSEZL) near Gate # 2 of NMP. 10. The pipeline shall then traverse ~ 15 km along the MSEZL s Elevated Pipe Rack which is in a designated pipeline corridor (for which EC has previously been granted by MoEF&CC) and shall deliver Natural Gas to customers up to the MSEZ. III. Baseline Studies As the project can be categorised as an LNG terminal, it falls under Schedule 6(a) of EIA Notification by MoEF&CC, GoI dated 14th November 2016 and its subsequent amendments (Crude and Refinery / Petrochemical Products passing through National Parks / Sanctuaries / Coral Reefs / Ecologically Sensitive Areas including LNG Terminals). However, as the LNG Handling facility shall be a Floating Storage Regasification Terminal (FSRU) berthed within New Mangalore Port, appropriate studies related to Schedule 7(e) of EIA Notification by MoEF&CC, GoI dated 14th November 2016 and its subsequent amendments (Ports and Harbours) are also proposed to be conducted and included in the EIA / EMP Report: a. Justification of the Project b. Understanding the Project Area i. Analysis of site selection along with details of alternative sites examined and merits / demerits ii. Route Map Indicating the Project Location iii. Project Location along with map of 1 km area (500 m on either side of centreline) iv. Site details with various industries, surface water bodies etc. v. Details of Process Description along with Process Flow Diagram vi. Details of associated facilities to be installed

5 Note: The proposed project location is within the boundary to New Mangalore Port Trust and the associated pipeline shall be laid entirely on the existing elevated pipe rack belonging to Mangalore SEZ Limited and therefore no land acquisition is envisaged. The proposed pipeline does not pass through any National Part / Forests / Wildlife Sanctuary and therefore approvals of the same are not being sought. c. Study Area i. Details of existing and proposed land use break-up along with details of land use around a 10 km radius of the project site along with maps based on satellite imagery and identification of critical areas. ii. Details of water bodies in the core zone of the proposed project (including seasonal ones within the corridor of impacts along with their status, volumetric capacity) and likely impacts on them due to the project. iii. Examination of road / rail / sea connectivity to the project and the impact on existing traffic network due to the proposed project activities. iv. Project Layout superimposed on the HTL / LTL map demarcated by an authorised agency on 1:4000 scale along with the recommendation of the Karnataka SCZMA. v. Details of Layout plan including details of existing and proposed infrastructure. vi. Details of handling of cargo, storage and transport along with spillage control measures. vii. Details of Rainwater Harvesting and Utilisation of Rain Water viii. Details of fishing activity and the impacts of the proposed project on fishing activities. ix. Details of water consumption and source of water supply, waste water generation, treatment of effluents and disposal. x. Estimation of total capital cost of project and recurring cost / annum for environmental pollution control measures. Note: The proposed project is planned at an existing Jetty within New Mangalore Port and shall utilise primarily existing infrastructure available along with some strengthening activities (if required). As a result, there is no

6 requirement for dredging, reclamation, breakwater extension etc. There are therefore no changes to the shoreline envisaged. The evacuation of R-LNG shall be via pipeline laid on the existing elevated pipe rack and therefore does not envisage any R&R activities. d. Primary Monitoring The following studies are proposed for Primary Monitoring Locations Locations Locations Meteorology One season Wind speed, Wind Direction, Rainfall, Temperature, Relative Humidity & Cloud Cover Adjacent to the project site Air Quality 24hrs / 8 hrs, 2 times a week for one season (excluding monsoon) PM 10, PM 2.5, SO 2, NOx, CO Sensitive receptors around the proposed site, considering micro-meteorological condition Surface Water Quality Grab sample once in the season ph, temperature, turbidity, total hardness, total alkalinity, Electrical conductivity chloride, sulphate, nitrate, fluoride, sodium, potassium, salinity, total nitrogen, total phosphorus, DO, BOD, COD, phenol, PCB, HC, heavy metals, total coliform and faecal coliform, SAR, boron, mercury, cadmium, lead, Hexavalent Chromium (Cr+6) and Total Chromium (Cr) Gurupur River stretch adjacent to project area Potable Water Quality Grab sample once in the season As per IS 10500: 2012 standards and including heavy metals Antimony (Sb),

7 Locations Locations Locations Locations Arsenic (As), Boron (B), Beryllium (Be), Cadmium (Cd), Copper (Cu), Lead (Pb), Mercury (Hg), Nickel (Ni), Zinc (Zn), Selenium (Se), Molybdenum (Mo), Hexavalent Chromium (Cr+6) and Total Chromium (Cr) From vicinity Soil Quality Grab sample once in the season Texture, ph, Electrical Conductivity, Cation Exchange Capacity, Porosity, Water Holding Capacity, Organic Carbon, Sodium Absorption Ratio (SAR), Nitrogen, Phosphorous, Potassium (NPK) Values, Copper, Zinc, mercury, cadmium, lead. One from the project site and four from neighboring locations Ambient Noise Once in the season over 24 Hours (daytime / night time) Equivalent sound level in db (A) Leq Sensitive receptors around the ML area Traffic Once during study period Heavy, medium and light vehicles Access and approach road to the project site e. Secondary Studies i. Details of hazardous waste generation, collection, segregation, recycling, reuse, treatment and disposal. ii. Details of Corrosion Management for Pipeline iii. Cold Water Dispersion Study iv. Details of proposed preventive measures for leakages and accidents Note: The proposed project location has been chosen after eliminating alternative options by giving a high weightage to environmental impact. The identified project location is an

8 existing jetty within New Mangalore Port. This Jetty currently handles LPG and other Hydrocarbons which are delivered in similarly sized vessels satisfying the draft restrictions and marine limits of the port. Moreover, bathymetry surveys are regularly conducted by New Mangalore Port. As a result, secondary studies such as bathymetry survey and Ship Tranquillity Study are not deemed necessary for this project. Furthermore, the proposed location for this project does not envisage any dredging activity, breakwater extension or reclamation. The FSRU and supply vessel shall be berthed at the existing Jetty # 9 which is a tranquil location within the breakwaters of New Mangalore Port therefore; no changes to the shoreline are envisaged as a result of this project. In view of this, Hydrodynamic Model Studies for current and sedimentation, wave propagation, disturbance and breakwater studies are not deemed necessary for this project. f. Ecological Survey The ecological profile of the area would be drawn up based on the review of secondary data and primary field surveys. Secondary data will be obtained from Forest Department and local people. Preliminary investigation and studies show that there is no ecologically sensitive area within 10km of the project site boundary. However, this will be further studied during the primary ecological surveys to be undertaken at the project area and surroundings as part of the EIA study and Ecological Features (Terrestrial and Aquatic) shall be studied for one Non monsoon Season. The primary and secondary data relating to flora, fauna and agricultural diversity of the area will be generated by visiting the site area and its surroundings. The baseline surveys will be carried out to determine the existing environmental conditions in order to facilitate an adequate assessment of the Project s impacts upon ecology and aids in further identification and development of appropriate mitigation measures. Efforts will also be made to find protected species in the area which can be of conservation importance. g. Socioeconomic Analysis Assessment of the socioeconomic profile forms an integral part of any EIA Study. The baseline socioeconomic scenario will focus on demographic structure, economic activity, education, literacy profile, infrastructure facilities of the villages located within the study area. Secondary data for this purpose will be utilized from Census of India, 2011.

9 Socioeconomic profiling will involve diagnosis of baseline status of the villages of the study area in relation to human environment with respect to: Socio-Cultural resources - which refers to demographic structure, total population, density, housing, sex ratio, literacy, employment level and cultural facilities Infrastructure resources - refers to educational facilities, health services, transportation, water supply, communication, other service etc. IV. Impact Assessment The EIA study will aim to identify, characterize and evaluate potential impacts arising out of the project and prioritize them so that they can be effectively addressed through Environment Management Plans and by adopting appropriate Project designing and planning. Impact Identification The preliminary identification of the potential impacts will be carried out based on the understanding of the project gained during the scoping exercise and also from the field visit, consultation with representatives of the project proponent and professional judgment. A preliminary understanding of the impacts from construction and operation of LNG Terminal are provided below: i. Air environment: Assessment of ground level concentration of pollutants from the construction and operation of LNG Terminal. Air Quality modelling will be undertaken to understand the additional emissions due to the proposed development of the LNG Terminal. The air quality contours shall be plotted on a location map showing the location of project site, habitation nearby, sensitive receptors, if any. ii. Water Environment: Impact on surface water quality and ground water quality will assessed due to surface runoff from construction sites and cold water discharge during operation phase. Proposed mitigation and control measures will be provided. iii. Soil environment-impact to the soil quality at the surrounding areas of the LNG Terminal due to deposition of dust.

10 iv. Local ecology- Impact to local ecology due to noise, lighting at the site. Impact on aquatic ecology due to cold water discharge v. Occupational Health: The imminent health hazards associated with operation of the LNG Terminal. This will be dealt in the risk section. vi. Socio-cultural impact: The proposed project is new projects; socio-cultural impacts are envisaged. The environmental and health aspects will be studied in detail in EIA study and relevant mitigation measures will be suggested. Impact Evaluation An environmental matrix will be developed to formally present an overview of the predicted impacts. The matrix structure will take into account the environmental issues as well as the concerns of the community. The first step in the elaboration of the matrix will consist of defining the main activities or aspects of the project that possibly can generate negative or positive impacts through extensive consultations with representatives of the project proponent. The second step will aim at establishing a list of environmental elements (biophysical and human) found in the project area. Potential interrelations between the impact sources and these elements will be established to evaluate the impacts. Environment Safeguards The EIA study would prepare guidelines for mitigating any adverse impacts identified due to the proposed project. The site specific mitigation plan will specifically address impacts that would be generated as a result of the proposed project. V. Risk Assessment and Disaster Management Plan Risk analysis will be carried out for the facilities proposed in the development plan in EIA studies. Potential hazards will be identified and consequence analysis will be conducted as part of EIA study. The Disaster Management Plan will be integrated with District Disaster Management Plan of Dakshina Kannada District.

11 VI. Environment Management Plan (EMP) The Environmental Management Plan (EMP) will recommend specific, structured and targeted management plans to mitigate the significant impacts and bring them to a level that would be acceptable to both the regulatory authorities and the community. The EMP would be laid down in a manner that these plans can be integrated with the proponent s existing environmental management measures. The EMP would also include recommendations those necessary for pollution prevention, control as well as conservation and compensatory measures. In addition, a systematic environmental monitoring plan for assessing the adequacy of the mitigation measures and for understanding changes in environmental quality due to the proposed project would also be part of the EMP. VII. Environmental Monitoring Strategy To measure the effectiveness of the implementation of the EMP a monitoring strategy (Plan) for activities during construction phase and also during the post construction phase will be prepared. The Plan will include the monitoring activities and corresponding schedules. VIII. EIA Reporting Reporting on all activities conducted during the project will be prepared, collated and submitted in the form of an EIA Report. The report will include supporting documents as necessary, a list of findings, impacts and proposed mitigation measures. Following would be the structure of the report as per the guideline set by the EIA 2006 Notification: Executive Summary Introduction Description of Project Description of Environment Impact Assessment Environmental Monitoring Program Alternative Analysis Additional Studies - Risk Assessment, Disaster Management Plan, CRZ Mapping and Oil spill contingency plan Project Benefits

12 Environmental Management Plan & Framework Summary and Conclusion Disclosure of Consultants The draft EIA report would be further finalized by incorporating comments and views obtained from different stakeholders during the Public Hearing and through letters / representations before submitting it to the appraisal committee. Apart from annexures to the report, there would also be notes and proceedings of the public hearing, list of references and other relevant documents, photographs etc.