CONTENTS. Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT

Transcription

1 HEALTH SAFETY ENVIRONMENT 2001 REPORT

2 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT CONTENTS CONTENTS Snam Rete Gas 2 Health, safety and environmental policy 4 Snam Rete Gas and the environment 5 Occupational health and safety 8 Health, safety and environmental management 11 Organisation 11 Improvement objectives 11 Training 12 Research and development 12 Audits 13 Legislation 13 Reporting methods 14 UNI EN ISO certification 15 Results 17 Energy consumption 17 Atmospheric emissions 17 Waste 22 Water consumption and waste water 22 Noise emissions 23 Environmental restoration 24 Pipeline monitoring 24 Substitution of ozone-depleting substances 24 Injury statistics 25 HSE expenditure 26 GNL Italia 28 Verification of the report 30 Data cards (Performance indicators) Note on methods Snam Rete Gas s Health Safety Environment Report for 2001 has been prepared using the guidelines recommended by the Environmental Reports Forum, promoted by the Eni Enrico Mattei Foundation. The report illustrates all the activities performed in Italy in connection with natural gas transmission and dispatching and LNG re-gasification. These activities were performed in the first six months by Snam SpA (Snam) and in the last six months by Snam Rete Gas SpA (Snam Rete Gas).

3 LETTER FROM THE CHAIRMAN 2001 was an important year for Snam Rete Gas. Since becoming operative on 1 July, following the transfer of natural gas transmission and LNG re-gasification activities from Snam, we have dealt successfully both with the new regulated market situation and with the stock exchange listing of our shares. Good financial and operating results have been achieved and high standards have been maintained in terms of health, safety and environmental protection according to our policy of sustainable development. With this HSE report, we are continuing Snam s tradition of providing annual information about the health, safety and environmental aspects of our activities, the aim being to encourage an open and constructive dialogue with all our stakeholders. For us, the report is also a management tool because it enables us to verify the progress made and identify areas where there may be room for improvement. The actions taken, the investments made, the application of new technologies and the continuous improvement in procedures made it possible for us to achieve tangible results in 2001 with a significant improvement in the environmental indicators for energy consumption and atmospheric emissions. In recognition of our commitment to the environment, ISO certification of the environmental management systems in place at compressor stations and the LNG re-gasification terminal was maintained following inspections by the certification body. The report illustrates the actions undertaken and the results achieved, with particular reference to: restoring land after laying new pipes; inspecting gas pipelines; monitoring geologically unstable areas; curbing energy consumption and atmospheric emissions; eliminating ozone-depleting substances in fire-extinguishing systems; reducing noise emissions; training personnel; taking preventive action and providing health surveillance for employees. The natural gas transmission and LNG re-gasification services offered by Snam Rete Gas provide a source of energy which has a low environmental impact and makes an important contribution towards meeting Italy s energy needs. This makes it possible to increase energy efficiency, reduce atmospheric emissions and improve the quality of the environment. In 2001, the use of natural gas transmitted by our network in Italy, as an alternative to coal and petroleum products, prevented the emission into the atmosphere of 59 million tonnes of carbon dioxide. The satisfactory financial results achieved, together with the results illustrated in this report, bear witness to Snam Rete Gas s commitment to ensuring that economic development and the protection of health, safety and the environment are fully compatible and this success acts as an incentive to do even better in the future. Chairman Salvatore Russo LETTER FROM THE CHAIRMAN Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 1

4 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT SNAM RETE GAS Snam Rete Gas belongs to the Eni Group and is responsible for natural gas transmission and dispatching activities. In addition, it is currently the only provider of LNG (liquefied natural gas) re-gasification services in Italy. On 1 July 2001, all the activities formerly carried out by Snam in connection with natural gas transmission and dispatching and LNG re-gasification were transferred to Snam Rete Gas. On 1 November 2001, the LNG re-gasification activities were transferred to a new company GNL Italia SpA (GNL Italia) controlled 100% by Snam Rete Gas. SNAM RETE GAS At the end of 2001, Snam Rete Gas employees numbered 2,973, including 119 working for GNL Italia. In order to assess performance on health, safety and environmental issues compared with previous years, the data provided in this report cover the period and refer to activities carried out in Italy concerning natural gas transmission, LNG re-gasification and gas compression for storage purposes. These activities were carried out by Snam until 30 June 2001 and by Snam Rete Gas from 1 July In 2001, Snam Rete Gas also managed 9 compressor stations on behalf of Snam and Stoccaggi Gas Italia. These stations pump gas into storage fields. During the 2001 financial period, which from the operating point of view involved only the last six months, Snam Rete Gas earned consolidated net income totalling o 183 million, whilst operating profit amounted to o 448 million. Natural gas consumption in Italy in 2001 totalled approximately 71.2 billion cubic metres, an increase of 0.7% compared with The volume of gas transmitted in 2001, comprising gas sent into the transmission network from imports and Italian production fields, totalled 69.6 billion cubic metres, a reduction of 5% compared with Key economic and operating data 2 Operating data (last 6 months) (million o) 2001 Total revenue 932 Operating profit 448 Consolidated net income 183 Snam Rete Gas employees at (no.) Total 2,973

5 Volume of natural gas transmitted Length of pipeline network 10 6 m 3 75,000 km 35,000 60,000 45,000 30,000 15, In 2001, the volume of natural gas compressed by the stations managed by Snam Rete Gas and sent to storage fields amounted to approximately 6.2 billion cubic metres, a reduction of 35% compared with The LNG re-gasification terminal sent approximately 3.6 billion cubic metres of gas into the transmission system, in line with the previous year. 28,000 21,000 14,000 7, The length of the pipeline network increased from 29,131 kilometres in 2000 to 29,607 kilometres in The average distance travelled by the gas in the pipeline network from the entry point to the final delivery point decreased from 503 kilometres in 2000 to 442 kilometres in SNAM RETE GAS TRANSMISSION SYSTEM SNAM RETE GAS Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT IMPORTS FROM NORTHERN EUROPE MASERA TRANSMISSION NETWORK MALBORGHETTO IMPORTS FROM RUSSIA REGIONAL CENTRES ISTRANA RIMINI LNG TERMINAL TERRANUOVA B. GALLESE National Network Regional Network Compressor Stations IMPORTS FROM ALGERIA MELIZZANO MONTESANO TARSIA MESSINA ENNA North-west North North-east Centre-west Centre-east South-west South-east Sicily The Snam Rete Gas transmission system consists of a network of more than 29,600 kilometres of pipeline extending over most of Italy, with pipes ranging from 100 to 1,200 millimetres in diameter operating at pressures of between 5 and 75 bar. It has 11 compressor stations (10 in operation and 1 under construction) and 560 pressure reduction plants. System management is controlled by the Dispatching Centre at San Donato Milanese in collaboration with operating units throughout Italy. The transmission system is managed by 8 regional centres which, by means of 74 local operating units, are in charge of the operation, maintenance and supervision of the whole system. These units are responsible for ensuring that the network functions in compliance with specific technical standards and with current legislation and regulations, guaranteeing the required level of service, safety and environmental protection. 3

6 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT HEALTH, SAFETY AND ENVIRONMENTAL POLICY HEALTH, SAFETY AND ENVIRONMENTAL POLICY In a policy of sustainable development, the health and safety of employees and third parties, and the protection of the environment, are prime and constant objectives for Snam Rete Gas, whose commitment is to bring about a continuous improvement in all its activities. The principles underlying Snam Rete Gas s HSE policy are to: use natural resources in a sustainable manner and prevent pollution; manage activities in compliance with the provisions of law, rules, regulations and company procedures containing integrations and improvements; aim for technological excellence to ensure levels of safety, environmental protection and energy efficiency in line with the best international business practices; locate, design, construct, manage and decommission plants and conduct activities with proper regard for working and natural environments, adopting a preventive approach in order to protect the health and safety of employees and third parties; identify the health, safety and environmental hazards arising from ongoing and new activities, assess the associated risks and take steps to prevent and manage them; establish procedures, alongside the preventive measures, in order to identify and respond to emergencies and control the consequences of any accidents; train and inform employees, raise their awareness and involve them, so that they take part actively and responsibly in the implementation of principles and the achievement of objectives; carry out, at different levels, environmental monitoring and periodic revisions and updates of procedures, using audit and reporting systems which make it possible to assess performance and review objectives and programmes; inform employees, trade unions, the authorities and the general public about prevention programmes and the results achieved, maintaining a climate of cooperation with local, national and international authorities and associations; employ the services of qualified suppliers and contractors who can contribute to continuous improvement in health, safety and environmental standards; promote research and technological innovation to improve environmental performance and safety standards in the company s activities; make available adequate resources to implement this policy. The HSE policy was approved by the Chairman of Snam Rete Gas on 18 December

7 SNAM RETE GAS AND THE ENVIRONMENT Concern for the environment is shown in every stage of Snam Rete Gas s activities. The criteria and procedures used for the location, design, construction, management and decommissioning of plants and for the conduct of activities comply with high environmental protection and safety standards. The most significant environmental issues associated with Snam Rete Gas s activities concern the temporary disturbance of land when new transmission infrastructure is being constructed and the atmospheric emissions from the gas turbines used in compressor stations. A gas pipeline route is chosen from a number of alternatives in the light of environmental impact, transmission safety and technical-economic feasibility. Specifically, the aim is to avoid or disturb as little as possible areas of special natural or cultural interest, archaeological areas, geologically unstable areas and inhabited areas or those where new housing is planned. In the construction phase, trenches are excavated for the pipe-laying operations using technologies that interfere as little as possible with the surroundings. Once the pipes have been laid, the land is restored very carefully so that it is returned to its original condition. When plants and pipelines are in operation, they are subjected to regular checks and maintenance to ensure high safety standards. The integrity of pipelines is also checked by running devices known as intelligent pigs through them, enabling possible faults to be detected. Special attention is paid to the transmission route which is inspected regularly with motor vehicles, helicopters and on foot, so as to detect potentially dangerous situations caused, for example, by work being carried out by third parties in the vicinity of the pipeline. Similarly, any movements that could cause landslides at specific points of the route are kept under control. By using natural gas as its principal fuel, Snam Rete Gas is able to reduce atmospheric emissions of sulphur oxides, particulate, carbon monoxide and volatile organic compounds to a minimum. To limit emissions of nitrogen oxides from gas turbines, low-emission burner systems are used in compressor stations. To curb energy consumption, high-efficiency gas turbines are installed and software programs are used to optimise gas transmission. The transmission of natural gas provides a source of energy with a low environmental impact to millions of homes, as well as to industries and electricity generators, and this means that energy efficiency is enhanced, atmospheric emissions are reduced and the quality of the environment is improved. SNAM RETE GAS AND THE ENVIRONMENT Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 5

8 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT SNAM RETE GAS AND THE ENVIRONMENT PRO-ENVIRONMENT TECHNOLOGIES Microtunnelling Extending the pipeline network means that numerous natural and man-made obstacles have to be crossed. Where possible, this is done using advanced technologies such as horizontal drilling and microtunnelling. Microtunnelling consists in drilling a tunnel with a shielded mill driven into the ground by a hydraulic system commanded by an operator using an electronic directional control device. Microtunnelling and horizontal drilling make it possible to avoid open trenches and most of the reinstatement work required after traditional digging methods. Land reinstatement The aim of reinstatement operations is to restore land affected by pipe-laying to its original condition and use, in the shortest possible time, by reconstructing the plant cover and protecting surface soil from any kind of erosion. Steps are taken to channel surface water into natural valleys, protect ground water (springs, wells, aquifers), consolidate the banks and beds of all waterways involved and restore the landscape. Reforestation and grassing is subject to prior assessment and agreements with the relevant forestry authorities. These operations are preceded by a study concerning the weather conditions in the area, the characteristics of the land concerned and its plant cover. Internal inspection of pipelines To guarantee an efficient and safe transmission service and limit natural gas emissions, network maintenance and monitoring is high on the list of preventive actions. It is now common practice to inspect the internal surface of a pipeline while it is still in service, using state-of-the-art technologies. These include devices known as intelligent pigs which travel inside the pipeline, propelled by the difference between upstream and downstream gas pressure, measuring and recording information about its characteristics and condition. Considerable technological progress has been made in this sector and Snam Rete Gas now uses intelligent pigs on a systematic basis. They are efficient and reliable devices which can locate, identify and establish the magnitude of any defects in a pipeline, without having to interrupt the flow of gas. In this way it is possible to check pipelines on a regular basis and analyse their condition over time, so as to ensure transmission safety and safeguard the environment. Monitoring unstable areas The pipeline network crosses all Italian regions, with the exception of Sardinia, involving vast areas of hills and mountains in the Apennines and the Alps. It is not possible, therefore, to avoid laying sections of pipeline in some of the potentially unstable areas that exist in much of Italy. As a consequence, if pipeline maintenance is to be carried out correctly, it is indispensable to know which sections are located in areas with geological risks and the characteristics of these areas, so as to be able to take suitable measures to ensure operating safety. A record is kept of the unstable areas and periodic geological controls are carried out. In the most unstable areas, pipelines are kept under constant control with suitable instruments that provide the information needed to operate the lines with due regard for the environment and safety. Remote monitoring and diagnostics Snam Rete Gas is implementing a remote monitoring and diagnostics project for compressor stations, the aim being to develop an ICT (information communication technology) system that can transmit automatically technical and operating data regarding the performance of the machinery installed at these stations. With this system, abnormal situations and/or reduced efficiency will be recorded in real time and measures to restore optimum operating conditions will be facilitated with a consequent reduction in energy consumption and atmospheric emissions. It will also be possible to plan pro-active maintenance which reduces the risk of emergency shut-downs and damage to the compressor units. 6

9 THE ENVIRONMENTAL BENEFITS OF NATURAL GAS Natural gas can make a major contribution to improving the quality of the environment because it can be transmitted in underground pipelines, because of its inherent chemical-physical properties and because it can be used in high-efficiency low-emission technologies, not only in fixed installations but also as a vehicle fuel. To supply the energy equivalent of 190 million cubic Fuel transport (energy transported 6.6 * 10 6 GJ per day) metres of natural gas per day the average quantity transmitted in Snam Rete Gas s underground pipeline network in 2001 a large number of road tankers (for petroleum products) and railway wagons (for coal) would have to be used, as shown in the table below, causing problems due to the lack of adequate transport infrastructure and the high environmental impacts involved. Fuel Quantity Means of transport Natural gas 190 * 10 6 m 3 /day 1 underground network Petroleum products 160,500 t/day 4,340 road tankers per day SNAM RETE GAS AND THE ENVIRONMENT Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT Coal 251,600 t/day 4,930 railway wagons per day The emissions of sulphur compounds, particulate, aromatic hydrocarbons and harmful metal compounds produced by natural gas combustion are negligible. Nitrogen oxide emissions, too, are generally lower than those produced by thousand tonnes the combustion of other liquid fuels and coal. The carbon dioxide produced -1,020 by natural gas combustion is 25-30% less than that produced by petroleum -151 products and 40-50% less than coal, for the same energy input. Emissions per unit of energy output can be further reduced by using natural gas in high-efficiency applications and technologies. The environmental benefits of natural gas over other fossil fuels are even greater if we consider that it has a lower Estimate of emissions avoided in Italy in 2001 thanks to the use of natural gas Carbon dioxide Nitrogen oxides environmental impact during the production stage and that its underground storage in depleted fields and its supply direct to the end -59, Sulphur oxides Particulate user in underground pipes eliminate the environmental impacts connected with the storage and transport of coal and petroleum products. In 2001, the use of natural gas in Italy as an alternative to coal and petroleum products in power stations, in industrial plants and in the residential/commercial and automotive sectors prevented the emission into the atmosphere of approximately 59 million tonnes of carbon dioxide, 1.02 million tonnes of sulphur oxides, 151,000 tonnes of nitrogen oxides and 68,000 tonnes of particulate. 7

10 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT OCCUPATIONAL HEALTH AND SAFETY OCCUPATIONAL HEALTH AND SAFETY For Snam Rete Gas, 2001 was characterised by major organisational changes which involved the corporate prevention and protection service as regards both management aspects and compliance with current legislation. As soon as the new companies Snam Rete Gas and GNL Italia were formed, work began to update the health and safety documents as required by law. For Snam Rete Gas, as required by Legislative Decree 626/94, 13 production units have been identified (5 for the head office at San Donato Milanese and 8 for the regional centres) and the relevant assignors of work have been defined for each unit. Assignors of work, executives and supervisors are assisted by a corporate prevention and protection service, consisting of 15 technical experts (one at each regional centre and seven at head office), which works in conjunction with units specialised in industrial hygiene and safety matters relating to contractors. For GNL Italia, an ad hoc prevention and protection service has been set up. Having reorganised corporate structures, and with the participation of the employees concerned (unit heads, prevention and protection service, workers safety officers, occupational physician), the health and safety documents required by Legislative Decree 626/94 were updated. In addition, the coordinated health and safety documents required by Legislative Decree 624/96 were prepared for the 9 compressor stations which are used for storage operations and which have been transferred to the new company Stoccaggi Gas Italia. Assessment of occupational hazards continued and this included verifying the suitability of personal safety devices and general-purpose safety equipment. This activity involved comparing samples from different suppliers and seeking the opinion of the actual users, the aim being to improve the quality and comfort of the equipment. At the same time, work went ahead to update the criteria used for the distribution of personal safety 8

11 devices and work clothes, the relevant technical specifications and the software for the management of procurement activities and subsequent consignments to all personnel concerned. As regards training activities, special training was provided for new workers safety officers as required by law. Employees in charge of emergency response attended training courses on fire prevention, fire fighting and first aid, held by specialised external organisations. With regard to initiatives to keep employees informed, the prevention and protection service continued to organise meetings to raise awareness of risks, as well as training programmes for each job position based on the specific tasks involved. In particular, as regards the driving risk, a targeted initiative started in 2001 and will end in the first few months of The aim is to make employees who drive company vehicles more aware of the most important rules of conduct that need to be followed to ensure safe driving, also taking into consideration the behaviour of other road-users. Still on the subject of information, special attention is paid to internal communication by constantly updating the Health & Safety site on the company intranet. This site can be accessed by all users and makes it possible to disseminate and file, in real time, information on legislation and corporate procedures and regulations, as well as safety information sheets on dangerous substances used. OCCUPATIONAL HEALTH AND SAFETY Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT SAFETY REGULATIONS AND RULES OF CONDUCT FOR VISITORS When Snam Rete Gas was formed, the location of all its San Donato Milanese offices was optimised. This has made it necessary to reorganise and update measures relating to fire prevention, fire fighting, emergency response, evacuation and first aid for the new workplaces. To this end, the relevant contingency plans have been revised, new operational structures have been created and awareness initiatives have been organised for employees with regard to fire prevention regulations and what to do in an emergency. To provide more incisive and effective information for people visiting the new offices, the prevention and protection service has prepared a leaflet containing the main safety regulations and rules of conduct in an emergency. A plan of the buildings is also provided showing the escape routes leading to assembly points. The leaflet is available at the main reception desk, in Italian and English, and is given to visitors when they sign in. 9

12 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT OCCUPATIONAL HEALTH AND SAFETY Regarding fire prevention, emergency response and evacuation of employees from workplaces, 112 contingency plans are in place, operated by dedicated structures involving 476 suitably trained employees. Periodic fire-drills were organised in 2001 as required by law. Fire-protection systems and equipment were subjected to maintenance and checks at regular intervals, in accordance with current legislation, and warning signs and notices in workplaces were updated. Another activity in 2001 consisted in updating the lists of dangerous substances used by operating units, in order to assess whether these substances could pose any health risks for the employees concerned. When monitoring work environments, particular attention was paid to the periodic control of the levels of noise emitted by plant and equipment, so as to verify the personal exposure levels of employees. In compliance with Law 422 of 29 December 2000, the company repeated its periodic survey involving visual display unit operators. Each terminal operator filled in a questionnaire detailing, in particular, the number of hours of VDU use per week and any comments about problems concerning the workstation and work environment (space, furnishings, lighting, etc.). With the latest survey, the lists of terminal operators were updated and, in collaboration with an occupational physician, the relevant health surveillance programme was put in place according to a protocol established by the physician. In addition, for new terminal operators, a specific training course is organised. Regarding health surveillance of employees, agreements have been reached with occupational physicians who, depending on the risks, have drawn up protocols of specific tests. For employees included in these health surveillance programmes, 381 medical examinations were carried out in 2001, along with 1,423 tests comprising 951 laboratory analyses and 472 scans. As regards the safety aspects of contract work performed by third parties, contractors were duly informed about the hazards that exist and the preventive action and contingency measures in place in company offices and facilities where they are working, the aim being to encourage coordination and cooperation. Contractors are subject to qualification procedures, from the safety point of view, before they tender and are assessed at the end of the contract. The 120-hour training courses continued for Coordinators for safety matters at the project preparations stage and the project execution stage, as required by current regulations. 10

13 HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT ORGANISATION Snam Rete Gas has an HSE Committee whose duties are (i) to define HSE policy and the guidelines to be used to prepare the corporate plan and operating programmes for its implementation, and (ii) to monitor the progress and results of the initiatives approved. For activities involving the preparation and monitoring of improvement plans and programmes relating to industrial hygiene and safety, environmental protection and management and audit systems, there is a dedicated Health, Safety, Environment and Quality unit. The HSE management system implemented by Snam Rete Gas is based on in-house organisational regulations which establish departmental and individual responsibilities and the procedures to be followed in the planning, construction, operating and decommissioning stages pertaining to all company activities, the aim being to ensure compliance with the law and with corporate HSE policy. In the Snam Rete Gas organisational structure, unit managers are required to take responsibility for the health, safety and environmental aspects of the activities lying within their province. To optimise HSE management, the company is implementing some specific management systems. In particular, the environmental management systems operating at gas compressor stations and the LNG re-gasification terminal have achieved UNI ENI ISO certification and the management system regarding the health and safety of employees has been developed in compliance with the BS 8800 standard and Eni guidelines. IMPROVEMENT OBJECTIVES In its activities, and with the objective of continuously improving its performance in terms of health, safety and environmental protection, Snam Rete Gas is operating in order to: reduce energy consumption by installing high-efficiency gas turbines and using advanced software systems to optimise gas transmission programmes in terms of operating and energy efficiency; reduce atmospheric emissions of natural gas and nitrogen oxides by using low-emission technologies and devices, where technically and economically feasible; use advanced technologies to limit disturbance to the land when laying pipelines and, once these have been laid, to return it to its original condition with careful restoration operations; monitor the structural integrity of pipelines with various systems to ensure high safety standards; replace the ozone-depleting substances used in fire-extinguishing systems; HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 11

14 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT promote research and development activities aimed at reducing environmental impact and improving safety conditions; ensure the safety of employees by carefully assessing occupational hazards, introducing improvements and implementing management and operating procedures, as well as safety plans; safeguard the health of employees by means of specific health surveillance programmes. TRAINING The company constantly organises training and follow-up courses to inform and instruct operating personnel about the risks connected with its activities. In particular, the training courses regarding health, safety and environmental issues are aimed at instructing employees and raising their awareness so that they operate responsibly and with insight. Courses were organised on: safety for operators, safety at construction sites, risk assessment, first aid, fire fighting, legislative updates, internal ecoauditing qualifications, and environmental management systems. The overall attendance figure was 1,361 for a total of 16,711 hours. Training courses were also held for a variety of job positions in the company and, although they cannot be classified as training activities devoted to safety and environmental protection, they provide employees with skills that are indispensable if they are to carry out their duties correctly and safely. Courses were organised for company employees for a total of 73,840 hours of training with an overall attendance figure of 3,340. In 2001, approximately o 420,000 were spent on HSE-related training for personnel who now work for Snam Rete Gas. RESEARCH AND DEVELOPMENT Snam Rete Gas s environmental research and development effort is aimed at reducing the environmental impact of its activities, improving safety conditions and developing technologies for natural gas transmission which are more efficient and less polluting. EMISSION FORECASTING MODELS In the research sector, Snam Rete Gas is developing systems to monitor emissions from gas turbines installed in its compressor stations. At present, the methods for assessing these emissions fall under two main categories: Direct methods, which consist in installing combustion gas analysers on the flue-gas stacks of the turbines; Indirect methods, which consist of simulation models that can determine the extent of the emissions from a turbine by processing its operational parameters. The indirect, or forecasting, methods are based, on the one hand, on a thorough theoretical knowledge of the chemical, thermodynamic and fluid-dynamic mechanisms of the combustion process (phenomenological approach) and, on the other hand, on an extensive data bank of empirical measurements of emissions at different turbine load conditions (statistical approach). In practical applications, simulation methods combine these two approaches, correlating a series of data with equations developed theoretically. In this way, the advantages of both methods are preserved and the disadvantages eliminated. The advantage of indirect systems is to eliminate the critical factors associated with the use of sophisticated equipment to analyse emissions, which needs frequent checks by specialised personnel if it is to stay reliable. In collaboration with the Universities of Salerno and Naples, Snam Rete Gas has carried out research which has made it possible to develop an integrated system of mathematical models and calculation codes to forecast emissions of nitrogen oxides and carbon monoxide from gas turbines installed in compressor stations. In addition, in collaboration with Nuovo Pignone, a project is under way to use indirect methods for emission monitoring. Important experiments have been conducted on one PGT 10 unit at the Terranuova Bracciolini compressor station and, as part of the remote monitoring and diagnostics project, on the PGT 25 units at the Gallese, Melizzano, Enna, Tarsia and Istrana stations. 12

15 More specifically, activities in 2001 concerned: the development of mathematical models to forecast emissions from gas turbines; life cycle analyses for natural gas and other fuels; methods for estimating natural gas emissions; the development of methods to analyse the safety of the gas transmission network and compressor stations; and safety assessments relating to several processes carried out by the LNG re-gasification plant. AUDITS Environmental and safety audits are carried out in compliance with the principles set out in Snam Rete Gas policy. To verify the correct implementation and effectiveness of the environmental and safety management systems in place and identify areas susceptible of improvement, as well as verifying compliance with the law, routine internal audits are carried out. These audits are planned in such a way as to guarantee that every operating unit is audited periodically. The auditing activities are performed by a team of suitably trained/qualified people. In particular, the head of the audit team is usually a qualified environmental auditor or a person with equivalent experience. When necessary, in addition to routine internal audits to ascertain compliance with management systems, targeted audits are carried out to verify specific technical-operating situations and identify appropriate improvements. In 2001, a total of 31 audits were performed, involving all the compressor stations, the LNG re-gasification terminal and some of the offices at San Donato Milanese. Of these audits, 27 were carried out by an internal team and 4 by an external team. LEGISLATION Snam Rete Gas s activities are subject to national and local environmental and safety legislation, international agreements and control and authorisation procedures. There are dedicated offices in the company s organisation which: collect and update the legislative framework, identifying the regulations that apply to the company s activities and arranging for their analysis and dissemination to the operating units and offices concerned; file all deeds of authorisation and plan their updating; prepare specific procedures for the implementation of legislation and regulations; HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 13

16 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT HEALTH, SAFETY AND ENVIRONMENTAL MANAGEMENT verify compliance with regulations and authorisations. REPORTING METHODS Snam Rete Gas s 2001 HSE Report has been prepared using the guidelines recommended by the Environmental Reporting Forum, promoted by the Eni Enrico Mattei Foundation. Operating, environmental and economic data characterising activities in Italy relating to natural gas transmission, LNG re-gasification and gas compression for storage purposes have been analysed. In particular, the following data have been taken into consideration: characteristic data on the activities performed; energy consumption; atmospheric emissions; waste production; water consumption and waste water; injury statistics; costs incurred for health, safety and the environment. Quantities of natural gas transmitted refer to gas with a gross calorific value of 38.1 MJ/m 3. The figures for atmospheric emissions have been calculated mainly on the basis of measurements or, in the absence of measured data, using emission factors recommended by the US Environmental Protection Agency (US-EPA) and by the CORINAIR (COoRdination INformation AIR) project. Natural gas emissions have been estimated using the method worked out by the Gas Research Institute (GRI) in conjunction with US-EPA, applied to Snam Rete Gas s plant configuration. Injury trends have been established on the basis of conventional frequency and severity rates. The frequency rate corresponds to the number of injuries, resulting in inability to work for at least one day, for every million hours worked. The severity rate corresponds to the number of working days lost, relative to injuries resulting in inability to work for at least one day, for every thousand hours worked. Capital expenditures and operating expenses refer to costs incurred in connection with company activities and other action aimed specifically and primarily at environmental protection, health and safety. Safety expenditure does not include capital expenditures relating to network and plant safety and operating expenses for network and plant maintenance and control, unless they also have a substantial environmental content. For example, expenditures for safety valves, remote-controlled valves, increased pipe thickness, greater burial depth for pipes with respect to current legislation, route changes, etc., are not included. These costs (which are considered an integral part of company activities) account for a high percentage of the company s total capital expenditures and operating expenses. To better qualify the information collected and relate it to company activities, environmental performance indicators have been defined which make it possible to compare data referring to different years irrespective of changes in these activities. The reliability, completeness and uniformity over time of the environmental and economic data included in the report are ensured by a computerised procedure whereby data are collected by all the operating units concerned and are processed and verified by the central unit in charge of preparing the HSE report. The methods used to prepare the report may be improved and the data may be revised to take into account new and more in-depth classification criteria. 14

17 UNI EN ISO CERTIFICATION The environmental management systems in place at gas compressor stations and the LNG re-gasification terminal are certified to UNI EN ISO Certification is valid for 3 years during which time visits are paid by the certification body approximately every nine months. In 2001, the organisation in question DNV Italia (Det Norske Veritas) carried out the audits needed to maintain certified status which was confirmed. The audits took place in July at the LNG terminal and in October at three compressor stations chosen at random by DNV. A few minor cases of non-conformity were found during these audits and some recommendations were made. Head office structures and operating units took remedial action which was also aimed at preventing any recurrence of the situations concerned. At the end of 2001, Snam Rete Gas s top management reviewed the environmental management system in order to verify its adequacy and effectiveness and approved the new environmental programme for UNI EN ISO CERTIFICATION Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 15

18 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT UNI EN ISO CERTIFICATION ENVIRONMENTAL IMPROVEMENT PROGRAMMES AND TARGETS FOR COMPRESSOR STATIONS With a view to continuous improvement and in the framework of the environmental management system for compressor stations, the environmental programme for 2002 has been defined. The tables below show the 2001 ENVIRONMENTAL IMPROVEMENT PROGRAMME OBJECTIVES AND T ARGETS ACHIEVED Reduce noise Sound-absorbent barriers installed in the Messina station Dispose of asbestos Roofing containing asbestos eliminated in the Enna and Rimini stations Reduce atmospheric emissions Heat generator in the Messina station replaced of combustion products with a more energy-efficient unit Reduce energy consumption objectives and targets achieved in connection with the 2001 programme, those where work is in progress and the new objectives and targets set out in the 2002 environmental programme. O BJECTIVE W ORK IN PROGRESS T ARGET Dispose of asbestos Replacement and subsequent disposal of roofing containing asbestos at the Melizzano station, by 31/12/2002 Reduce atmospheric emissions of natural gas Installation of low-emission equipment and turbines and combustion products in the new Masera station, by 31/12/2002 Reduce atmospheric emissions of combustion products Replacement of heat generators in 4 stations, Reduce energy consumption with more energy-efficient units, by 31/12/2004 Reduce energy consumption Use of remote-monitoring and diagnostics programs, by 31/12/2003 Eliminate ozone-depleting substances Modification of all fire-extinguishing systems, by 31/12/2005 Prevent accidental discharges (surface and subsurface) Replacement of underground tanks, by 31/12/2004 O BJECTIVE 2002 ENVIRONMENTAL IMPROVEMENT PROGRAMME NEW O BJECTIVES AND T ARGETS T ARGET Prevent accidental discharges (surface and subsurface) Creation of suitable areas for loading and offloading oil products at 4 stations, by 31/12/2002 Improve waste management Creation of 7 areas for the temporary selective storage of waste, by 31/12/2002 Improve waste water management Complete a study to optimise waste water management, by 31/12/

19 Data in this section refer to activities in Italy in connection with natural gas transmission, LNG re-gasification and the compression of gas sent to storage fields. Environmental data and indicators are summarised in Tables 1.1, 1.2 and 1.4 in the enclosed Performance Indicator cards. RESULTS thanks to targeted energy saving programmes and by installing high-efficiency turbines including aeroderivative turbines with an energy efficiency of 37%. Energy consumption for transmission activities fell from around 9,470 TJ in 2000 to around 6,960 TJ in RESULTS Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT ENERGY CONSUMPTION Energy consumption in 2001 totalled approximately 12,700 TJ. Compared with 2000, total energy consumption was down by 25%. This is due mainly to the reduction in the volume of gas transmitted and the quantity sent into storage, a decrease in the average distance travelled by the gas and optimisation of transmission conditions. Most of the energy used was natural gas, which accounted for more than 91% of the total energy needed for the activities. Of the total energy consumed, gas turbines operating in compressor stations accounted for 74%. These turbines drive centrifugal compressors that provide the pressure needed to transmit the gas (transmission consumption - 6,271 TJ) or send it to the underground storage fields (storage consumption - 3,202 TJ). This result has been achieved over the years, The energy consumption indicator for gas transmission activities shows a decrease from 0.37% in 2000 to 0.29% in Natural gas consumption at the compressor stations is controlled and optimised by the Dispatching Centre with specific software programs. These programs make it possible to determine the best efficiency point for each station and the best operating conditions for the import lines and to plan the optimum use and operation of the compressor stations used for storage. The energy saving achieved by applying these information systems is estimated to be in the region of 4-6%. A TMOSPHERIC EMISSIONS Most of the atmospheric emissions of polluting substances are caused by combustion processes. The use of natural gas as the main source of energy helps to minimise emissions of sulphur oxides and particulate. 17

20 Energy consumption Percentage breakdown of energy consumption by activity Gas transmitted and energy consumption for transmission activities TJ 18, m 3 80,000 TJ 12,000 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT RESULTS 15,000 12,000 9,000 6,000 3, Natural gas Electricity Other energy Gas transmission 54% LNG re-gasification 16% Over the past few years, in order to reduce nitrogen oxide emissions caused by the combustion of natural gas in the gas turbines used in compressor stations, some existing turbines have been retrofitted and new ones have been installed with low-emission burner systems. NO x emissions deriving from transmission activities fell from approximately 1,480 tonnes in 2000 to approximately 1,010 tonnes in The action taken in recent years to curb atmospheric emissions has led to a substantial reduction in nitrogen oxide emissions. In 2001, compared with 2000, the NO x emissions indicator relating to transmission activities fell from 20 to 15 kilograms per million cubic metres of gas transmitted. Greenhouse gas emissions deriving from Snam Rete Gas s activities consist of carbon dioxide and methane, which is the main component of natural gas. Carbon dioxide is produced during combustion processes and is directly correlated to fuel Gas storage 25% Other (general services) 5% 60,000 40, Gas transmitted Consumption for transmisson consumption. In 2001, the reduction in energy consumption caused a reduction in total CO 2 emissions which fell from about 895,000 tonnes in 2000 to about 660,000 tonnes in Carbon dioxide emissions deriving from transmission activities fell from about 520,000 tonnes in 2000 to about 381,000 tonnes in The CO 2 emissions indicator relating to transmission activities fell from 7.1 to 5.5 tonnes per million cubic metres of gas transmitted. Natural gas emissions originate partly from the normal operation of plants and partly from discharges during maintenance operations or as a result of accidents. They can be divided into four categories: vented emissions, fugitive emissions, emissions from pneumatic actuators powered by gas, and emissions of unburnt gas in flue-gas from combustion plants. There was a reduction in natural gas emissions in 2001, from 55 million cubic metres in 2000 to 43 million, with a consequent reduction in methane emissions, from 36,300 tonnes in 2000 to 29,000 tonnes in ,000 6,000 20,000 3, Energy consumption/energy transmitted (Transmission activities) Energy consumption/energy transmitted *average distance travelled (Transmission activities) % 0.6 %/10 3 km

21 ENVIRONMENTAL ASSESSMENT OF THE SNAM RETE GAS TRANSMISSION SYSTEM In 2001, the transmission of 1,000 cubic metres of natural gas in Snam Rete Gas s network used the energy and produced the atmospheric emissions and waste indicated below. The use of 1,000 cubic metres of natural gas in Italy as an alternative to coal and petroleum products in thermal power Energy consumption Data for 1,000 cubic metres of natural gas 100 MJ (corresponding to approx. 0.4% of the energy transmitted) Atmospheric emissions emissions produced emissions avoided NO x 14.5 g 2,190 g SO g 14,750 g CO kg 850 kg CH kg CO 2 eq kg 850 kg Waste produced GAS TRANSMISSION SYSTEM SNAM RETE GAS stations, in industrial plants and in the residential/commercial and automotive sectors prevented the emission into the atmosphere of far larger quantities of nitrogen oxides, sulphur oxides and carbon dioxide than those produced during transmission. 1,000 cubic metres of natural gas correspond to approximately 34.5 GJ and represent the average consumption of a family in the 6-month winter period. 20 g RESULTS Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT DISPATCHING CENTRE NATURAL GAS FIELDS 4 5 IMPORT POINTS 7 UNDERGROUND STORAGE 10 PRESSURE REDUCTION PLANTS COMPRESSOR STATIONS (TRANSMISSION) 8 LNG RE-GASIFICATION (GNL ITALIA) 11 INDUSTRIAL USERS AND POWER STATIONS 13 RESIDENTIAL AND COMMERCIAL USERS 3 PIPELINE NETWORK 6 COMPRESSOR STATIONS (STORAGE) 9 GAS TANKERS 12 URBAN DISTRIBUTION NETWORKS NO x emissions Percentage breakdown of NO x emissions by activity NO x emissions/gas transmitted (Transmission activities) t 3,000 kg/10 6 m , , Transmission Other activities 2001 Gas transmission 57% LNG re-gasification 4% Gas storage 35% Other (general services) 4%

22 HIGH-EFFICIENCY LOW-EMISSION GAS TURBINES Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT RESULTS Substantial investments have been made in recent years to renew the gas turbines used in compressor stations. Special attention has been paid to environmental factors, concentrating on technology involving low-emission gas turbines that use premixed combustion chambers. With performance on a par with that of traditional diffusive combustion chambers, this technology makes it The reduction in natural gas emissions is attributable to the action taken to curb them and to the boil-off recovery unit at the LNG re-gasification terminal having resumed normal operation. Compared with 2000, there was a 6% reduction in natural gas emissions deriving from transmission activities, from approximately 37 million cubic metres to approximately 35 million in The natural gas emissions/gas transmitted indicator also registered a reduction. possible to reduce emissions of pollutants, namely nitrogen oxides (NO x ) and carbon monoxide (CO), to below 100 milligrams per cubic metre. In 2001, Snam Rete Gas s transmission activities involved the use of 11 low-emission turbines out of a total of 34 turbine units, i.e. approximately 32% of the total number in operation. In 2001, there was a decrease of 30% in total greenhouse gas emissions compared with 2000 due to the reduction in energy consumption and in natural gas emissions. The greenhouse gas emissions indicator relating to transmission activities fell by 14%. The tonnes of carbon dioxide equivalent have been calculated on the basis of the global warming potential of carbon dioxide and methane emissions, as indicated by IPCC (Intergovernmental Panel on Climate Change). t 1,000,000 CO 2 emissions kg/10 6 m 3 9,000 CO 2 emissions/gas transmitted (Transmission activities) 750, , ,000 6,000 3, Transmission Other activities Percentage breakdown of natural gas emissions Natural gas emissions Percentage breakdown of natural gas emissions by type of installation 10 6 m Vented 24.5% Pneumatic actuators 41.0% Fugitive 34.1% Unburnt gas 0.4% 1997 Transmission Other activities Compressor stations (storage) 16% LNG terminal 4% Transmission network 16% Compressor stations (transmission) 20% Pressure reduction and regulating plants 44%

23 CLIMATE CHANGE AND NATURAL GAS TRANSMISSION There is growing scientific evidence that greenhouse gas emissions have an influence on climate change. The Intergovernmental Panel on Climate Change analyses the causes and effects of changes in climate. According to IPCC, emissions caused by human activities contribute to the increase in the greenhouse effect, with carbon dioxide accounting for 65% of these emissions, methane for 19%, chlorofluorocarbons for 10% and nitrous oxide for 6%. An increase in the use of natural gas as an alternative to petroleum products and coal, which emit larger quantities of CO 2, is one of the most promising and feasible options for reducing CO 2 emissions. Natural gas can play an important role in achieving the target set for Italy in the Kyoto Protocol, which is to reduce greenhouse gas emissions by by 6.5% compared with the 1990 figure. The combustion of natural gas produces 25-30% less carbon dioxide compared with petroleum products and 40-50% less compared with coal, for the same energy input. Emissions per unit of energy output can be further reduced by using natural gas in high-efficiency applications and technologies, such as condensing boilers, g CO 2 eq. 1,200 1, cogeneration plants and combined cycle plants for electricity generation. A gas-fired combined cycle with a 56-58% energy efficiency, compared with the approximate 40% efficiency of conventional steam cycles, can reduce CO 2 emissions by 52% compared with a traditional plant powered by fuel oil and by 62% compared with a coal-fired plant. Natural gas also has the edge on other fossil fuels as regards the reduction of greenhouse gas emissions, even taking into account the emissions of methane, the main component of natural gas, from extraction to end use. Life cycle analysis shows that, in electricity generation, the total greenhouse gas emissions expressed as CO 2 equivalent and calculated taking into consideration carbon dioxide and methane emissions and their global warming potential (1 for CO 2 and 21 for CH 4 ) in the life cycle of natural gas are 53-65% lower than in the coal cycle and 47-60% lower than in the oil cycle. The ranges shown for the Greenhouse gas emissions in the life cycle of fossil fuels used to generate electricity Italian gas End use * Literature data Russian gas percentage reductions reflect differences in the activities included in the life cycle and in the sources of information. Snam Rete Gas s policy has always been to curb emissions of natural gas, and consequently of methane, for safety, operational and economic reasons. In recent years, its commitment has increased in response to the problem of climate change. Estimating emissions of natural gas from Snam Rete Gas s transmission system is part of this commitment. This is carried out using a method developed by the Gas Research Institute (GRI), in conjunction with the US Environmental Protection Agency (US-EPA), and adapted to Snam Rete Gas s plant configuration with an ad hoc research project and measurement campaigns in the field. The results are published annually in the HSE report. Work completed by Natural gas* Oil Other stages Coal Snam Rete Gas to curb and reduce natural gas emissions includes: installing gas recovery systems in 6 compressor stations; activating electrichydraulic starter systems for 17 turbines; eliminating the automatic venting of gas from all turbines with dry seals (27 out of the 34 turbines used for transmission); installing valve actuators with pressurisation systems powered by air instead of gas in 2 compressor stations. Natural gas emissions originating from the transmission activities carried out by Snam Rete Gas in 2001 totalled less than 35 million cubic metres, corresponding to approximately 23,000 tonnes of methane. Compared with 1993, this is a reduction of around 15% despite an increase of more than 35% in the volume of gas transmitted. This reduction is all the more significant if we consider that in Italy, according to figures published by ANPA (the Italian environmental protection agency), there was an increase of 4.4% in total greenhouse gas emissions between 1990 and 1999 and a 2.6% increase in total methane emissions. RESULTS 21 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT

24 % 0.08 Natural gas emissions/gas transmitted (Transmission activities) Percentage breakdown of natural gas emissions by activity t CO 2 eq./10 6 m 3 20 Greenhouse gas emissions/ gas transmitted (Transmission activities) Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT RESULTS W ASTE 2001 The quantities of waste produced by Snam Rete Gas s activities are very limited and are due mainly to the maintenance and operation of plants and pipelines, to flushing operations before new large-diameter pipelines go into service and to the cleaning of septic tanks that are used at some facilities to treat domestic sewage. As regards the management of the main types of special waste, the operating units located throughout Italy have reached an agreement with Ambiente SpA, an Eni Group company specialised in waste management. Used oil and spent batteries containing lead are consigned direct to the national consortia responsible for their recovery. To improve waste management, a programme is under way to create areas for the temporary selective storage of waste at compressor stations. The total production of special waste in 2001 amounted to 1,658 tonnes. Of the total waste produced, 91% belongs to the non-hazardous category and 40% was recovered. Gas transmission 80% LNG re-gasification 4% Gas storage 16% Waste produced in transmission activities increased from approximately 1,020 tonnes in 2000 to approximately 1,410 tonnes in Selective waste collection continued at head office and this made it possible to recover and recycle about 100 tonnes of paper and cardboard. W A TER CONSUMPTION AND WASTE WATER Water consumption and waste water in gas transmission activities have little significance from the environmental point of view, due to the limited quantities involved and the type of waste water discharged. In 2001, water offtake consisted of about 2.3 million cubic metres of sea-water and 0.6 million cubic metres of fresh water. The sea-water is used to cool the auxiliary power plants at the LNG re-gasification terminal and the fresh water is used mainly for office activities, fire extinguishing systems and irrigating green areas. A study was completed in 2001 aimed at improving waste water management at the LNG terminal Waste production Water consumption t 2, m 3 5,000 1,500 4,000 1,000 3,000 2, , Transmission Other activities Transmission Other activities

25 In addition, a start was made on a study to improve waste water management at compressor stations. The reduction in water consumption (22%) and in waste water (3%) compared with 2000 is due to less fresh water having been used in offices. The main sources of noise in the gas transmission system are the compressor stations, which are usually in rural areas along the primary pipeline network, and the pressure reduction stations, which link pipelines operating at different pressures and enable gas to be supplied to the distribution networks. To minimise noise from its facilities, Snam Rete Gas s underlying policy is one of prevention. This involves the correct dimensioning of plants in the project preparation stage, accompanied by an acoustic impact forecast. For existing facilities, when plant revamping is not technically and/or economically feasible, adjustments are made to plant operating conditions. Compressor stations Gas turbines are installed in special insulated cabins and suitable silencers are fitted to the NOISE ABATEMENT NOISE EMISSIONS The measures taken to reduce noise pollution from transmission facilities involve installing insulated cabins, sound-absorbing hoods, low-noise valves and silencers on vents and burying pipes. flue-gas stacks. Gas filters and coolers are another source of noise and, if necessary, these are insulated with a layer of rock wool or sound-absorbent barriers are installed in the immediate vicinity. Pressure reduction stations Nearly all the pressure reduction plants are equipped with low-noise valves. Acoustic treatment also involves installing removable sound-absorbing hoods for plants in the open and insulating buildings in the case of covered plants. Where possible, gas feed pipes are buried completely or housed in covered inspection pits. Monitoring To verify sound levels, environmental noise assessments to measure emissions are carried out at regular intervals. RESULTS Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 23

26 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT RESULTS In 2001, as part of the programme to improve continuously the environmental performance of compressor stations, sound-absorbent barriers were installed at the Messina compressor station at a cost of more than o 0.3 million. ENVIRONMENTAL RESTORATION Most of the environmental restoration work carried out in 2001 concerned the following pipelines: scale-up of the pipeline importing gas from northern Europe (Masera-Mortara section) in Piedmont; Polaveno-Darfo pipeline in Lombardy; Mestre-Trieste pipeline scale-up (Villa Opicina-S. Giuseppe della Chiusa section) and Flaibano- Pordenone pipeline, in Friuli-Venetia Julia; main Genoa spine (Fegino route change) in Liguria; Bernalda-Brindisi pipeline in Basilicata and Apulia. The types of restoration work undertaken consist essentially of: soil consolidation and drainage to make the areas concerned stable and safe; introduction of supporting structures to reinstate or improve the original contours of slopes and hillsides; introduction of protection structures for work involving river crossings in order to regulate the flow of water and reinstate the river-bed; regulation of surface water to protect the newly reprofiled land from erosion caused by slopewash; reconstruction of plant cover to restore the original landscape with targeted works. One particular restoration job worthy of mention involved transplanting areas of Mediterranean bush along the right-of-way of the Bernalda-Brindisi pipeline. In addition, to minimise the environmental impact of the Pontremoli-Parma pipeline, approximately five kilometres of pipe were laid in a tunnel using advanced no-dig technologies, in the vicinity of mounts Cervellino, Tavolana, Spinetta and Cucchero and the area called Bosco di Felino. Due to the flooding that affected many regions in northern Italy in 2000, particularly Piedmont, Liguria, Emilia and the Aosta Valley, extraordinary environmental restoration work continued in several areas where pipelines are in operation. This work will be completed in PIPELINE MONITORING When plants and pipelines are in operation, they are subjected to regular checks and maintenance to ensure high safety standards. In 2001, some 1,280 kilometres of network were inspected with intelligent pigs and some 9,900 kilometres were monitored by helicopter. The programme of monitoring by helicopter involved weekly and monthly flights over the line for a total of more than 352,000 kilometres. To prevent pipeline damage caused by corrosion, in addition to the normal precautions (cathodic protection, special types of coating, etc.), electrical surveys were carried out on some 600 kilometres of pipeline during the year to check its integrity and take remedial action where necessary. Pipelines laid in unstable areas continued to be monitored with strain gauges in During the year, geological surveys were carried out on 880 kilometres of network, including 500 kilometres of pipeline involved in this type of survey for the first time. To prevent any interference with and/or damage to the subsea pipelines that cross the Strait of Messina, a campaign of visual/instrumental inspections of the pipes and the shore ends took place in The purpose of this was to check the integrity of the pipes and the environmental conditions in their vicinity. SUBSTITUTION OF OZONE-DEPLETING SUBSTANCES Campaigns conducted in recent years with the specific aim of eliminating halon and CFC have 24

27 been completed. In 2001, to reduce the quantity of other ozone-depleting substances, a new programme was launched to eliminate HCFC. Under this programme, new fine water spray systems are to be installed in all compressor stations currently equipped with fire-extinguishing systems that use NAF-S-III (HCFC). In 2001, 9 fire-extinguishing systems were replaced. The programme is expected to be completed before the end of 2005, three years ahead of the deadline set in current legislation. INJURY STATISTICS To gauge performance in terms of safety, reference is made to the frequency and severity rates calculated for injuries suffered by employees at work. In 2001, the frequency rate was 16.9 and the severity rate was 0.4. These rates cannot be compared with those for prior years due to the organisational changes that have taken place. As far as accident factors are concerned, the most important are falls (for the kind of accident), A W ARENESS MEETINGS ON SAFE DRIVING Analysis of statistics for recent years shows that injuries caused by road accidents, both in working hours and when commuting, represent a high percentage of total injuries. The company has always supported initiatives aimed at eliminating or limiting the driving risk. These actions have led to a substantial reduction in the percentage of injuries caused by road accidents, from 43% in 1997 to 34% in There has also been a steady increase in the percentage of accidents attributable to third parties, highlighting the growing attention being paid by our employees when driving company vehicles. The measures taken by the company have been of a parallel nature, involving both the human element (awareness campaigns, organisational measures, etc.) and the vehicles (replacing low-powered vehicles with others of a higher category, improving safety standards with righthand rear-view mirrors, air bags, air conditioning). In addition, new organisational tools have been introduced to ensure the correct management and maintenance of the vehicles. As a follow-up to the above actions and as part of the company s prevention and continuous improvement policy, the HSE Committee has decided to launch a new campaign to raise the awareness of those employees who are the most frequent users of company vehicles. This initiative, which began in 2001 and will end during the first few months of 2002, is aimed at illustrating the rules of conduct for safe driving. In particular, aspects relating to the human element, the vehicle, work organisation and the environment are analysed, but even the most elementary rules of caution and observance of the highway code are discussed. For this awareness campaign, technical experts from the prevention and protection service, based both at head office and at the regional centres, attended a special training course prior to holding a series of meetings with all the employees concerned. During these meetings, when participants are also required to fill in a questionnaire by way of self-assessment, the employees are given a safety handbook on Driving motor vehicles prepared by the prevention and protection service. RESULTS Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT 25

28 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT RESULTS means of transport (for the agent), driving and inspections and controls (for the activities) and lack of attention (for the cause). There was a reduction in road accidents compared with last year, both during working hours and when commuting. The so-called commuting accidents are those that occur when employees are travelling between their homes and places of work. In particular, it is to be noted that most of the road accidents were the fault of third parties. These latter accidents accounted for 81% of the total, compared with 65% in 2000, confirming that our employees are paying more and more attention when driving. Despite this improvement, injuries caused by road accidents continue to represent a high percentage (34% in 2001) of total injuries. The in-house process regarding notification of accidents and injuries is managed by means of a dedicated back-up system operating via . This makes it possible for the people concerned (assignors of work, unit heads, prevention and protection service) to be advised in real time about the accident and its dynamics and the status of the follow-up activities. HSE EXPENDITURE Expenditure has been recorded and classified by analysing capital expenditures and operating expenses and identifying those incurred specifically and primarily for health, safety and the environment. In 2001, HSE expenditure totalled approximately o 64.5 million. The expenditure incurred in 2001 and in prior years has made it possible to maintain high environmental protection and safety standards when constructing and operating plants, in accordance with the company s policy and its objectives for continuous improvement. The item air/climate protection mainly includes capital expenditures in connection with the elimination of HCFC in fire-extinguishing systems, the replacement of a heat generator and the installation of some hydraulic starter systems (to replace gas-activated systems) for gas turbines in compressor stations, as well as other measures taken to limit and monitor atmospheric emissions. HSE expenditure Percentage breakdown of expenditure million o Operating expenses Capital expenditures Air/climate protection 5% Other environmental protection activities 15% Health and safety 12% Landscape protection/ restoration 67% Training 1% 26

29 The item landscape protection/restoration comprises expenditure for restoration work after pipe laying and maintenance and expenditure for the landscaping and maintenance of green areas at facilities. Expenditure for restoration is represented by the sum of the ordinary expenditure, i.e. costs incurred to return the land to its condition prior to excavation, and extraordinary expenditure, i.e. additional costs incurred to improve the original condition of the land. The main costs making up the item other environmental protection activities comprise the costs incurred for noise abatement, soil protection, waste and waste water management and research and development. Table 1.3 in the enclosed Performance Indicator cards gives a detailed list of HSE expenditure. In 2001, approximately o 420,000 were spent on HSE training courses. studies, research, risk assessments pursuant to Legislative Decree 626/94, preparation of contingency plans, plant and equipment (automatic safety and fire-extinguishing systems, materials and warning signs), personal safety devices and accident insurance. This expenditure does not include costs relating to plant safety, e.g. capital expenditures for safety valves, remote-controlled valves, increased pipe thickness, greater burial depth for pipes with respect to current legislation, route changes, etc. These account for a high percentage of the company s total capital expenditures and operating expenses and are considered an integral part of the company s activities. To safeguard the health of employees, approximately o 1 million were spent in 2001 on studies, research, medical equipment, analysis and control apparatus, work on plants, industrial hygiene inspections and monitoring and medical tests. RESULTS Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT Safety expenditure in 2001 totalled approximately o 7.8 million, comprising the costs incurred for 27

30 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT GNL ITALIA On 1 November 2001, all Snam Rete Gas s LNG re-gasification activities were transferred to a new company, GNL Italia, controlled 100% by Snam Rete Gas. GNL Italia operates the Panigaglia terminal, located in the Fezzano di Portovenere district (province of La Spezia). This terminal is the only plant in Italy that receives and re-gasifies liquefied natural gas. Built between 1967 and 1970, it was revamped between 1990 and 1996 in order to process light LNG. When revamping, special care was taken to ensure that the terminal blended in with its surroundings on the basis of a project prepared by the University of Genoa s School of Landscape Architecture. The terminal covers an area of some 45,000 square metres and consists of two storage tanks, each with a capacity of 50,000 cubic metres, vaporisation equipment and a berth for the gas tankers. The criteria for the design, construction and operation of the Panigaglia terminal comply with very stringent international regulations and involve stateof-the-art technology in terms of safety and environmental protection. GNL ITALIA (Det Norske Veritas) carried out the relevant audit and confirmed certification. In December, the chairman of GNL Italia confirmed the company s HSE policy and its new environmental and safety programme. In the Panigaglia terminal, natural gas converted to the liquid phase by lowering its temperature to -160 C is reconverted to the gaseous phase in a simple heating operation and sent to the gas pipeline network. In 2001, the terminal sent approximately 3.6 billion cubic metres of gas to the network, consuming about 2,010 TJ of energy. Activities at the terminal in 2001 caused the following atmospheric emissions: approximately 77 tonnes of nitrogen oxides, 48 tonnes of carbon monoxide and 93,000 tonnes of carbon dioxide. Natural gas emissions totalled around 1.77 million cubic metres, whereas sulphur oxide and particulate emissions are negligible. Waste production amounted to 109 tonnes. A total of 2.3 million cubic metres of sea-water were used to cool auxiliary power plants. In 2000, the LNG terminal site achieved UNI EN ISO certification of its environmental management system. This system is integrated with a plant safety management system complying with Legislative Decree 334/99. In July 2001, according to the procedures for maintaining certified status which involve a visit by the certification body every nine months, DNV Italia Considering the operating trend at the terminal, there has been little change in the environmental indicators compared with last year, with the exception of natural gas emissions which fell from approximately 9.75 million cubic metres in 2000 to 1.77 million in This reduction is due to the boil-off recovery unit having resumed normal operation. % 2.0 Energy consumption for re-gasification/ LNG sent to network

31 2002 ENVIROMENTAL AND SAFETY IMPROVEMENT PROGRAMME ENVIRONMENTAL OBJECTIVE E NVIRONMENTAL TARGET Reduce atmospheric emissions of natural gas Replacement of existing boil-off compressors, by 31/10/2002 Reduce noise GNL ITALIA ENVIRONMENTAL AND SAFETY IMPROVEMENT PROGRAMMES AND TARGETS With a view to continuous improvement and in the framework of the environmental management system for the re-gasification terminal, GNL Italia has defined its environmental and safety programme. The tables below show the new objectives and targets. Prevent accidental discharges (surface and subsurface) Replacement of gas oil tanks, by 31/12/2002 Improve waste water management Modification of the main drainage system, by 31/12/2002 Dispose of asbestos Elimination of roofing containing asbestos on former turbine shed, by 31/12/2002 GNL ITALIA Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT S AFETY OBJECTIVE S AFETY TARGET Prevent conditions causing breakage of fragile parts Completion of a new plant configuration in conjunction with the replacement of the absorber of the existing boil-off compressors, by 31/10/2002 Identify reliable gas leak detectors Completion of an assessment study regarding installation of a reliable system to detect LNG losses, by 31/12/

32 Snam Rete Gas HEALTH SAFETY ENVIRONMENT REPORT VERIFICATION OF THE REPORT VERIFICATION OF THE REPORT 30