Enagás Carbon Footprint

Transcription

1 Enagás Carbon Footprint 2014

2 Table of Contents 1. Introduction Enagás' profile Enagás' business activities Scope of operations Organisation Commitment to combating Climate Change Management of greenhouse gas emissions Enagás Carbon Footprint scope Greenhouse gases (GHG) included Reporting period covered Organizational Boundaries Operational Boundaries Base year GHG emission sources Calculation methodology Justification of specific exclusion of sources Quantitative assessment of uncertainty Changes in 2014 vs 2013 Carbon Footprint Carbon Footprint Adjusting base year emissions Project based emissions reductions External verification statement de 30

3 1. Introduction The purpose of this annually published report is to inform about 2014 Enagás Carbon Footprint. Throughout this document the organization intends to communicate to all its stakeholders their commitment to Climate Change as well as the daily efforts carried out for continuous improvement in greenhouse gases (GHG) emissions reductions. Also, Enagás comes to reporting on the evolution of its activity and its performance in terms of GHG emissions. 2. Enagás' profile 2.1. Enagás' business activities Enagás is the leading natural gas transportation, regasification and storage company in Spain and the technical manager of the Spanish gas network. It has also been certified by the EU as Independent Transmission System Operator (TSO). Enagás provides key strategic support to the operation of the gas network in Spain. The company carries on the technical management of the gas system in Spain and the construction, operation and maintenance of gas infrastructures in a secure, efficient, profitable and sustainable manner. Enagás develops, operates and maintains its infrastructures, providing third-party access to the network and offering distribution companies services that meet their needs and expectations. The company boasts the following infrastructures: Over 10,000 kilometres of gas pipelines throughout Spain. Three Underground Storage Facilities: Serrablo (Huesca), Yela (Guadalajara) and Gaviota (Vizcaya). Four Regasification Plants: Cartagena, Huelva, Barcelona and El Musel (Gijón). Enagás also owns 40% of the BBG Regasification Plant (Bilbao), 40% of the Altamira plant (Mexico) and 40% of the Quintero plant (Chile), through a joint venture with Oman Oil Company, which owns 51%. Besides, Enagás owns, since June 2012, 50% of the company that is developing the Morelos pipeline and, since August 2013, 50% of the Soto La Marina Compressor Station construction firm, both located in Mexico. Throughout 2014, Enagás also acquired 41.94% of the company Gascan, responsible for the construction of two Regasification Plants in the Canary Islands, 20% of Gas Transportation Company of Peru (TGP), 30% of the company Compañía Operadora de Gas del Amazonas (Coga), 25% of the Peruvian South Pipeline ( Gasoducto del Sur Peruano ), and 16% of Trans Adriatic Pipeline (TAP). 3 de 30

4 ENAGAS OVER THE WORLD Although Enagás headquarters are located in Madrid (Spain), the company projects are located over the world. Trans Adriatic Pipeline (TAP) (16%). Compressor Station Soto La Marina (50%) Morelos gas pipeline (50%) TLA Altamira Regasification plant (40%) Over 10,000 kilometres of gas pipelines. 3 Underground Storage Facilities: Serrablo (Huesca), Yela (Guadalajara) and Gaviota (Vizcaya). Gas Transportation Company of Peru (TGP) (20%) Compañía Operadora de Gas del Amazonas (Coga) (30%) 5 Regasification Plants: Cartagena, Huelva, Barcelona, El Musel (Gijón) and BBG (Bilbao). 2 Regasification Plants projects in Canary Islands. Peruvian South Pipeline ( Gasoducto del Sur Peruano ) (25%) Quintero Regasification plant (20,4%) 4 de 30

5 2.2. Scope of operations Enagás' activities in the gas value chain include transportation of natural gas, regasification, underground storage, loading and unloading of methane tankers and LNG truck loading. The operations at the company's facilities are described below: Regasification Plants: Gas is transported in LNG methane tankers at 160ºC below zero in liquid form and is unloaded at the Regasification Plants. There, the temperature of the liquid natural gas (LNG) is raised through a physical process, generally using seawater evaporators, converting it into gas. The natural gas is then injected into the network of gas pipelines and transported throughout the Spanish mainland. LNG is also loaded onto LNG tankers and LNG trucks at these facilities. Regulating and metering stations (RMS): RMSs are located at points of supply (outlets). They reduce the pressure of the gas to 16 bar as a means of starting a process that will regulate pressure until it reaches the final pressure used by companies and households. These stations also measure the natural gas delivered. Enagás currently has 428 RMSs. These kinds of facilities are constantly being built and brought into service as a result of requests for new gas supply points from gas distribution and transmission companies. Gas pipelines: Gas pipelines are high-pressure steel tubes that can carry natural gas. At the end of 2013, Enagás transmission network was made up of 10,314 km of pipelines designed to be operated at maximum pressures of 72 and 80 bar. Compressor Stations (CS): Compressors at these stations raise the pressure of the gas to 72/80 bar so as to maximise the transmission capacity of the pipelines. Enagás currently has 18 compressor stations which have a total installed generating capacity of 508,650 kw (ISO certified). The maximum pressure at the compressor stations is between 80 and 72 bar depending on the maximum pressure permitted by the gas pipelines in question, while the minimum pressure ranges from 40 to 45 bar. Underground Storage Service (AGS): To match supply with demand and cover peaks in consumption caused, for example, by seasonal fluctuations in demand and disruption to supply, the system must be able to store large volumes of gas. In case of underground storage facilities, gas is either stored underground in former deposits or injected into deep aquifers or cavities hollowed out in saline formations. 5 de 30

6 2.3. Organisation The Resource Division coordinates Climate Change management at Enagás, together with other departments. Specifically, the Organisation and CSR Director, who reports directly to the Managing Director of Resources, is responsible for managing and reporting on sustainability and environmental matters, which include calculating the carbon footprint. 6 de 30

7 3. Commitment to combating Climate Change Enagás operates the natural gas transmission network and manages its infrastructures in a secure, efficient, profitable and environmentally-friendly manner. This commitment minimizes the environmental impact of greenhouse gas emissions, which are the main cause of Climate Change. The company's CSR Strategy, Vision 2020, identifies the distinct competences in the area of sustainability that allow it to drive business development while taking into account one of the key factors in the evolution of the gas market: the trend towards a low-carbon economy. The strategy is based on three strategic objectives: To be a company that is a beacon for safety and reliability for all those who interact with it (safe and reliable company). To be prepared to exploit the opportunities of a sustainable and low-carbon business model (sustainable business). To have a team that is able to take the opportunities offered by the new, more competitive and more sustainable markets (outstanding skills). 7 de 30

8 4. Management of greenhouse gas emissions Enagás' commitment to combating Climate Change and reducing GHG emissions is growing every year. In 2011 the company set up an internal multidisciplinary working group that monitors emissions on a monthly basis, identifies initiatives for improvement and reviews compliance with the aim of reducing the company s emissions. This action has an effect on employees variable remuneration. Carrying out the Enagás Group's Carbon Footprint, in accordance with the GHG Protocol guidelines and directives and the UNE-EN ISO standard, is another step forward in the company's GHG emissions reductions commitment. Enagás' Carbon Footprint was measured using an emissions quantification methodology that increases the accuracy and traceability of the GHG emissions from its activities. 73% of total GHG emissions included in scope 1 and 2 of the Carbon Footprint have been verified, as included in the EU ETS, with a reasonable level of assurance. The remaining 27% corresponds to fugitive emissions, emissions from other greenhouse gases (different to carbon dioxide), among other sources not included in EU ETS. Enagás verifies its Carbon Footprint report in accordance with UNE-EN ISO standard to afford it accredited certification, thus increasing transparency for its stakeholders. It will also identify and quantify initiatives to reduce emissions across all areas of its activity in the years ahead. The 2014 Carbon Footprint incorporates for the first time, the identification and quantification of emissions reduction initiatives (project based emissions reductions) Enagás Carbon Footprint scope As mentioned above, Enagás performs the activities of natural gas transportation, regasification, underground storage, methane tankers loading and unloading. In that sense, all reported GHG emissions come from such activities Greenhouse gases (GHG) included Enagás Carbon Footprint includes all greenhouse gas listed in the Kyoto Protocol and generated by its own activities: Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide (N 2 O) Hydrofluorocarbons (HFCs) Perfluorocarbons (PFCs) Reporting period covered The scope of this report includes information related to year de 30

9 Organizational Boundaries The Enagás Group is formed by different subsidiaries or associated companies with different ownership percentages and control levels. For corporate reporting purposes, Enagás has used the control approach, accounting for 100% of the GHG emissions from operations over which it has financial control. Financial control is owned over the companies where Enagás has the ability to direct their financial and operating policies with a view to gaining economic benefits from its activities. In these cases, according to the International Accounting Standards, a method of global consolidation in the financial statements is applied. Accordingly, this report provides information on issues relating to business societies on which Enagás had an ownership percentage of 100% during 2014, as well as Enagás Transporte del Norte (ETN) company, with 90% ownership Operational Boundaries Enagás has identified the GHG emission sources of its activities and has classified them into three scopes (scope 1, scope 2, and scope 3) for accounting and reporting purposes Base year Scope 1: Direct GHG emissions. Direct GHG emissions from sources that are owned or controlled by the company. Scope 2: Electricity indirect GHG emissions. Scope 2 accounts for GHG emissions from the generation of purchased electricity consumed by the company but that physically occur at the facility where electricity is generated. Scope 3: Other indirect GHG emissions. Scope 3 emissions are a consequence of the activities of the company, but occur from sources not owned or controlled by the company. Scope 3 emissions are categorized according to GHG Protocol. The base year is established as the first time when Enagás Carbon Footprint was externally verified, in de 30

10 4.2. GHG emission sources The next emission sources have been identified in each of the three covered scopes: Scope 1 1. Direct emissions from stationary combustion 2. Direct emissions from mobile combustion 3. Direct emissions from fugitive emissions Scope 2 Scope 3 1. Purchased goods and services 2. Capital goods 3. Fuel- and energy related activities (not included in scope 1 or Natural gas consumption in process boilers (pre-heating boilers of the RMS, plant boilers and methanol and TEG regeneration boilers). Natural gas consumption in submerged combustion evaporators at Regasification Plants. Natural gas consumption in emergency generators. Natural gas consumption in turbo compressors over the gas compression process. Natural gas flaring in normal operations (pilot flaring systems and other flame maintenance systems at Regasification Plants). Natural gas flaring in ships/ tanker loading operations (boil-off gas 1 generated in LNG tanker loading operations). Natural gas flaring at the technical minimum (below the technical minimum production stage of each plant). Natural gas flaring due to leaks (in normal operations at Regasification Plants). Natural gas flaring due to maintenance operations at Regasification Plants. Natural gas consumption in heating and cooling systems. Diesel consumption in fire protection pumps and diesel generators for electricity generation. Emissions from the consumption of gasoline to refuel Enagás' fleet of vehicles. Emissions from the consumption of diesel to refuel Enagás' fleet of vehicles. Natural gas vented below the technical minimum production range of each plant. Natural gas vented in maintenance operations and new connections in the transmission network. Fugitive emissions at the Enagás facilities (leaks). Fugitive emissions of F-gases from refrigeration, air-conditioning and fire protection equipment (leaks). Emissions generated in the production of electricity by third parties and used by Enagás. Emissions from extraction, production, and transportation of goods and services purchased or acquired by Enagás. Emissions from paper consumption are reported separately. Emissions from extraction, production, and transportation of capital goods purchased or acquired by Enagás. Emissions from extraction, production, and transportation of fuels consumed by Enagás: natural gas, gasoline and diesel. Emissions from extraction, production, and transportation of fuels 1 LNG must be kept cold to remain a liquid, independent of pressure. Despite efficient insulation, there will inevitably be some heat leakage into the LNG, resulting in vaporisation of the LNG and producing the boil-off gas. 10 de 30

11 scope 2) 4. Upstream transportation and distribution 5. Waste generated in operations 6. Business travel 7. Employee commuting 15. Upstream leased assets consumed in the generation of electricity consumed by Enagás. Emissions from vehicle renting company (which the fleet of Enagás is made of). Fuel consumption of these vehicles is excluded as it is accounted within scope 1. (Not included in Carbon Footprint 2014 but identified for future reports) Emissions generated by the companies providing transportation services at Gaviota Underground Storage by helicopter and boat. (Not included in Carbon Footprint 2014 but identified for future reports) Emissions from helicopter and boat transportation services fuel consumption at Gaviota Underground Storage. Emissions from disposal and treatment of waste generated in Enagás facilities. Emissions from transportation of employees for business-related activities (in vehicles not owned or operated by Enagás). Emissions from transportation of employees between their homes and their worksites (in vehicles not owned or operated by Enagás). Emissions, not included in scope 1 or scope 2, generated by companies in which Enagás has a shareholding but doesn t have financial control, as well as those that have been acquired in the second half of the reporting year. (Not included in Carbon Footprint 2014 but identified for future reports) 4.3. Calculation methodology After identifying and classifying emission sources by scope, activity data and associated emission factors are gathered. A centralized approach for gathering data on GHG emissions is followed. This consists of individual facilities reporting activity data to the Organization and CSR Direction of Enagás, where aggregated GHG emissions are calculated. Thus, Enagás has different data collection tools such as SLM, ORION, GESCON, etc. Activity data is measured, calculated or estimated, as follows: Natural gas self-consumption and venting occurring at the facilities and in the transmission network are always measured with equipment owned by Enagás. These data are dumped daily in the SLM tool. Diesel consumption in stationary sources is measured considering the purchase invoices and the amount stored at beginning and at the end of year. The amount of natural gas vented over pipelines is gathered from the internal tool ORION. Each zone manager calculates the volume of gas vented in accordance to relevant approved procedure which is communicated to the GTS by mail. Then, data is manually included in ORION. Fuel used in the vehicle fleet is automatically registered through the SOLRED card. Electricity consumption data are gathered from monthly bills. In the case of Regulation and/or Metering Stations and Transmission Centres, data from different positions are recorded aggregated in the internal GESCON tool. Natural gas flared at Underground Storage Facilities is estimated from a dragging rate of natural gas by the TEG (drying) and are provided annually by each facility. Heating natural gas consumption data are entered into the internal tool GESTINCID by each facility provided separate data for heating purposes are available. In the case of fugitive emissions (or leaks), Enagás is carrying out a measurement campaign , which provides real data for Regasification Plants, Compressor Stations, Regulation and/or Metering Stations, positions and Underground Storage 11 de 30

12 Facilities. Fugitive emissions across pipelines have been estimated based on the reference data published by the Intergovernmental Panel on Climate Change (IPCC). Lower level of the IPCC emissions range provided has been chosen, since the on-site measurements have shown that real data always remain below or near the lower limit provided. The amount of F-gases is gathered from the recharge delivery notes provided by the equipment maintenance companies. Scope 3 GHG emissions: - Category 1, 2 and 3 emissions are provided by the CDP Supply Chain program from Carbon Disclosure Project, consisting of requesting Climate Change data to Enagás suppliers. - Business travel activity data are provided by Enagás travel services supply agency. - Fuel consumption from helicopter and boat at Gaviota Underground Storage are provided by each of the transportation service suppliers. - Activity data from disposal and treatment of waste generated in Enagás facilities come from waste managers annual reports. - Emissions derived from employee commuting have been estimated based on generic trip data. Emission factors, global warming potentials and conversion factors have been carefully selected to ensure the reliability of sources and representativeness and updating of used values. Also, as far as possible we have tried to prioritize country specific factors against global factors as follows: For stationary and mobile combustion of natural gas, diesel and gasoline, National Spanish Inventory data (reported to the UNFCCC) for emission factors and net calorific values (NCV) were chosen. The remaining emissions have been calculated using the most updated emission factors and global warming potentials published by the IPCC. Electricity emission factor corresponds to latest data published by Red Electrica Española (R.E.E) (2013 data). GHG emissions are then calculated following the next formula: GHG emissions (tco 2 e) = Activity Data x Emission Factor Enagás has developed a Carbon Footprint Calculating and Reporting Procedure, which describes the entire process of activity data gathering, emissions calculation and reporting. This procedure has been reviewed and approved according to the quality management system of the company, certified under ISO 9001: All the numerical information provided in this report comes from a calculation excel spreadsheet in which activity data, emission and conversion factors, as well as resulting emissions for each GHG source are detailed. Enagás Carbon footprint 2014 report has been verified with a reasonable level of assurance by AENOR, according to the requirements of the UNE-EN ISO 14064: 2006 standard Justification of specific exclusion of sources GHG emissions derived from companies in which Enagás doesn t have financial control are excluded from scope 1 and scope 2, as well as those which equity participation has been acquired during the second half of the reporting year. 12 de 30

13 Emissions, for which no reliable activity data have been gathered, have been excluded from scope 3 (excluded emissions are indicated at the sources identification table) Quantitative assessment of uncertainty In the case of emissions included under the European Union Emission Trading Scheme (EU ETS), the level of uncertainty complies with Spanish Regulation 601/2012, which lays down the requirements on accuracy depending on the type of source stream and the characteristics of each facility. For the other emissions, the level of uncertainty is the maximum error permitted under the various regulations applicable as the emissions have been calculated on the basis of: Consumption and activity-related data, which are measured and monitored to manage invoicing. Emission factors from tested sources. In addition, the measuring equipment is periodically verified and calibrated (internal and external audits of the quality management system verified in accordance with UNE-EN ISO 9001 standard). Specifically, the gas meters are under legal metrological control (Royal Decree 889/2006) in accordance with the rules of the Technical Management of the Spanish Natural Gas System and Metering Protocol Detail PD-01. Fugitive emissions (leaks), which represent 9.9% of the total carbon footprint, are based on project specific measurements and have higher uncertainty, which has not been possible to evaluate. The uncertainty associated to each scope 1 and 2 emission sources is provided next: 13 de 30

14 Scope 1 1. Direct emissions from stationary combustion 2. Direct emissions from mobile combustion 3. Direct emissions from fugitive Emission sources Natural gas consumption in process boilers Natural gas consumption in evaporators Natural gas consumption in emergency generators Natural gas consumption in turbo compressors Natural gas flaring in normal operations Natural gas flaring in methane tanker loading operations Natural gas flaring below the technical minimum Natural gas flaring due to leaks Natural gas flaring due to maintenance operations Natural gas consumption in heating and cooling systems Diesel consumption in fire protection pumps and diesel generators tco 2 e % total emissions Source of measurement Level of uncertainty 23, % Turbine meters 2 1, % Turbine meters % Turbine meters 2 164, % Turbine meters 2 1, % 65, % 173, % % 0 0.0% Own ultrasonic meter Own ultrasonic meter Own ultrasonic meter Own ultrasonic meter Own ultrasonic meter % Turbine meters % Supplier invoices 2 Gasoline % Supplier invoices 2 Diesel 1, % Supplier invoices 2 Natural gas vented below the technical minimum 10, % Natural gas vented 37, % Own ultrasonic meter Own ultrasonic meter Source of the uncertainty Maximum errors permitted by legal metrological control 889/2006 Maximum errors permitted by legal metrological control 889/2006 Maximum errors permitted by legal metrological control 889/2006 Maximum errors permitted by legal metrological control 889/2006 Maximum errors permitted by legal metrological control 889/2006 Maximum errors permitted by ISO standard Maximum errors permitted by ISO standard Maximum errors permitted by ISO standard Maximum errors permitted by ISO standard Maximum errors permitted by legal metrological control 889/2006 Maximum errors permitted by RD 889/2006 Maximum errors permitted by RD 889/2006 Maximum errors permitted by RD 889/2006 Maximum errors permitted by ISO standard Maximum errors permitted by ISO standard de 30

15 emissions Fugitive emissions (leaks) 56, % Studies conducted by Enagás or by third parties No uncertainty defined n/a Fugitive emissions of F-gases from refrigeration equipment, air-conditioning equipment and fire protection equipment % Service charge reports for the refrigeration equipment No uncertainty defined n/a Scope 2 Electricity consumption 33, % Supplier invoices 2 Carbon footprint ,033 Carbon footprint uncertainty Maximum errors permitted by legal metrology (RD 889/2006). Multistage load-balanced Class C polyphasic meters The uncertainty associated with scope 3 emissions has not been defined. 15 de 30

16 4.6. Changes in 2014 vs 2013 Carbon Footprint Some changes have been made in the 2014 Carbon Footprint regarding one: Estimation of fugitive emissions (leaks) was performed with on-site measurements for different types of components along 2013 and 2014; nevertheless 2013 results were not available when 2013 Carbon Footprint was originally calculated. Update of diesel emission factor and natural gas net calorific value according to the latest data published by the Spanish National GHG emissions Inventory, as well as methane density at normal conditions. Scope 3 content has been enlarged by fulfilling additional categories. Original 2013 Carbon Footprint only included paper consumption, business trips and employee commuting. 2 Refers to the base year recalculated version. 16 de 30

17 5. Carbon Footprint 2014 Enagás Carbon Footprint 2014 reached 571,033 3 tco 2 e, leading to a 10.8% increase over the previous year. GHG emissions breakdown is detailed next: Total emissions 2014: Scope 1 and 2 emissions evolution: 3 Scope 1 and scope 2 GHG emissions. 17 de 30

18 Scope 1 and 2 emissions by activity: 285,059 tco 2e 244,257 tco 2e 38,111 tco 2e 3,606 tco 2e 18 de 30

19 Facilities that contribute the most to Enagás Carbon Footprint are Regasification Plants (50%), followed by Compressor Stations (29%). Scope 1 and 2 emissions evolution by activity: Facilities Regasification Plants Compressor Stations Pipelines Underground Storage Facilities Regulating and Metering Stations Ofices and Transmission Centers Vehicle fleet TOTAL Scope 1 and 2 emissions (tco 2e) Difference ( ) 199, , % 177, , % 35,831 47, % 64,197 38, % 34,453 33, % 2,006 1, % 1,584 1, % 515, , % In 2014 natural gas consumption and therefore the total scope 1 and 2 GHG emissions, have increased mainly due to the higher operation of the plants below the technical minimum operation range, as well as to significant activity of methane tanker loading, as explained later. The increase in emissions along pipelines is due to a significant natural gas venting operation occurred near Sabiñánigo in March (this vent represents 81% of total vents in pipelines). On the other hand, there has been a reduction in emissions in Underground Storage Facilities mainly due to leaks estimations, which were based on international organizations reference values in 2013, but were lately replaced by on-site measurement results which were found to be more realistic. 19 de 30

20 Scope 1 and 2 emissions by source: 20 de 30

21 The main sources of emissions in 2014 were natural gas flaring during plant operations below the technical minimum range and natural gas consumption in turbo compressors located at Compressor Stations, accounting for 30.4% and 28.8% respectively of scope 1 and 2 total emissions. The increase of operation below the technical minimum in Regasification Plants in 2014 is a direct consequence of the decline in domestic demand for natural gas (-9.6%) and the higher amount of natural gas transported through pipeline network through international connexions. This year, the number of days in which the plants operated below the technical minimum range of production has been 588, compared to 489 days in 2013 (a 20% increase). Operation below the technical minimum range leads to a 30% emissions increase compared to normal operation. Although the company optimises the way the Spanish gas system works to guarantee supply in a secure, efficient, profitable and sustainable manner, the different agents in the system, especially the distribution companies, decide the gas input and output based on their customers needs. Although these decisions are not under Enagás control, they entail a significant impact on Enagás greenhouse gas emissions. Natural gas flaring during methane tankers loading turns out to be another major source of GHG emissions (11.4%), being an increasingly carried out activity for Enagás at Huelva and Cartagena plants. In 2014, 37 ships were loaded, while only 20 were in 2013 because of market demand. In the same way, fugitive emissions (leaks) have been a main source (9.9%). In this regard, Enagás launched in 2013 a 3 years leaks measurement and minimization campaign in different facilities. Repair of leaking components is carried out in places where a leak is detected. Direct emissions by greenhouse gas: Scope 1 and 2 emissions by greenhouse gases are shown next: The main greenhouse gas emitted is carbon dioxide (CO 2 ), due to natural gas consumption for stationary combustion, as well as flaring at Regasification Plants. Methane (CH 4 ) emissions are mainly due to natural gas vented at Regasification Plants and to fugitive emissions all over Enagás facilities and infrastructures. N 2 O and F-gases emissions are not significant compared to CO 2 and CH 4. These emissions come from natural gas and diesel combustion and from leaks in refrigeration and air conditioning equipment, respectively. 21 de 30

22 Scope 1 and 2 emissions intensity evolution: Three emission intensity indicators, that allow assessing the overall performance of the organization, are shown next: Emissions by turnover experienced a growth of 9% between 2013 and 2014, almost equivalent to the increase in total scope 1 and 2 emissions due to technical minimum operations and taker loading. Turnover increased 1% in 2014 over the previous year. Emissions by employee increased a 3% due to an 8% increase in Enagás workforce in In the case of emissions by total gas outputs, including transportation regulated activity (national market demand, international connections outputs, among others) and outputs to Portugal, there has been a 12% increase, since the amount of transported gas (outputs) was -1% compared to 2013 due to a nationwide demand reduction. Scope 3 emissions breakdown: Scope 3 1. Purchased goods and services 2. Capital goods 3. Fuel and energy related activities (not included in scope 1 or 2) 4. Upstream transportation and distribution 5. Waste generated in operations 6. Business travel 7. Employee commuting TOTAL SCOPE 3 Emissions from extraction, production, and transportation of goods and services purchased or acquired. Emissions from paper consumption. Emissions from extraction, production, and transportation of capital goods purchased or acquired. Emissions from extraction, production, and transportation of fuels consumed by Enagás: natural gas, gasoline and diesel, as well as fuels consumed in the generation of electricity consumed by Enagás. Emissions from helicopter and boat transportation services fuel consumption at Gaviota Underground Storage. Emissions from disposal and treatment of waste generated in Enagás facilities. Emissions from transportation of employees for businessrelated activities (in vehicles not owned or operated by Enagás). Emissions from transportation of employees between their homes and their worksites (in vehicles not owned or operated by Enagás). 3,264 tco 2 e 37 tco 2 e 1,135 tco 2 e 21 tco 2 e 5,945 tco 2 e 197 tco 2 e 2,330 tco 2 e 44 tco 2 e 12,973 tco 2 e 22 de 30

23 Scope 3 emissions are not under Enagás control. However Enagás intends to participate in the awareness of its supply chain regarding GHG emissions reductions and therefore has taken a step forward in their identification and quantification, mainly by joining CDP Supply Chain program. 23 de 30

24 6. Adjusting base year emissions Enagás has defined a base year recalculation procedure that has been followed and has entailed the following changes: - Methodological error detected in using the emission factor for natural gas flaring. - Error in electricity consumption units. - Error when dragging cells for some formulas. These adjustments have turned into a scope 1 and 2 emissions reduction of 6.8% in 2013 and therefore are considered the object of adjustment. Emissions after base year recalculation are the following: Carbon Footprint Carbon Footprint 2013 v v.1 (recalculated) Scope 1 516, , % Emissions (tco 2 e/year) Difference between v.2 and v.1 Scope 2 36,079 36, % Scope 3 2,020 2, % Total scope 1 and 2 552, , % Total scope 1, 2 and 3 554, , % 24 de 30

25 7. Project based emissions reductions Enagás developed an Energy Efficiency Plan in order to reduce consumption of both natural gas and electricity. All of these measures were also encouraged by setting annual targets for self-consumption reduction. Thus, different initiatives were carried out in 2014 related to the optimization of energy demand and use management, energy efficiency and improvements in technology or operation processes, which enabled meeting targets and led to energy and cost savings, and to its consequent GHG emissions reductions. 25 de 30

26 Measure Description Baseline and methodology used for energy savings calculation Energy savings in 2014 Emission reductions in 2014 Optimization of Compressor Stations operation, related to the entrance of natural gas through international connections Fuel self-consumption reduction targets for 2014 in Compressor Stations by implementing measures such as: - Operation changes, - Flow controlling, - Adjust compression parameters, - Use of control valves, among others. The avoided emissions are calculated from the improvement in the ratio "consumption at Compressor Stations related to international connections inputs". Baseline is estimated based on historical data and operations foreseen in the reported year. The improvement is calculated by comparing baseline to a real data based ratio, calculated after measures implementation. This difference is converted to the amount of not consumed natural gas (in GWh) and to emissions reductions reached. The following data have been used: Compressor stations AREA 1 : Córdoba; Almendralejo y Coreses- K01+ Huelva AREA 2 : Chinchilla; Montesa y Paterna - M00 AREA 3 : Lumbier y Villar Arnedo - G01 Range of operation Baseline Real ratio ratio Inputs < 1.2 * 10 6 Nm 3 /h 0.23% 0.14% * 10 6 Nm 3 /h 0.32% 0.17% * 10 6 Nm 3 /h 0.37% 0.23% > 1.5 * 10 6 Nm 3 /h 0.41% 0.26% Inputs < 0.63 * 10 6 Nm 3 /h 0.03% 0.01% * 10 6 Nm 3 /h 0.21% 0.01% * 10 6 Nm 3 /h 0.25% 0.04% > 0.75 * 10 6 Nm 3 /h 0.35% 0.21% Inputs < 0.39 * 10 6 Nm 3 /h 0.39% 0.33% * 10 6 Nm 3 /h 0.73% 0.51% > 0.42 * 10 6 Nm 3 /h 0.77% 0.54% 344 GWh 69,439 tco 2 e 26 de 30

27 Measure Description Baseline and methodology used for energy savings calculation Energy savings in 2014 Emission reductions in 2014 Optimization of the operation below technical minimum at Regasification Plants Optimization of methane tankers loading operations at Regasification Plants Reduction targets for natural gas flaring during operation below the technical minimum through the adoption of exceptional operational measures such as: - Reducing boil-off generation by not cooling facilities that are not limited regarding emissions under EU ETS, - Recovery of boil-off by delivering it to local networks, - Increasing use of boil-off for selfconsumption, - Improvements of boil-off collectors insulation, among others. Reduction targets for natural gas flared during the loading of ships through the adoption of exceptional operational measures such as installing pressure control valves in tanks to control the boil-off, among other. The avoided emissions are calculated from the improvement in the ratio "natural gas flared during the operation below technical minimum divided by the number of days in which plants have operated below this technical minimum. Baseline is estimated based on historical data and operations foreseen in the reported year. The improvement is calculated by comparing baseline to a real data based ratio, calculated after measures implementation. This difference is converted to the amount of not consumed natural gas (in GWh) and to emissions reductions reached. The following data have been used: Operation range below technical minimum Baseline ratio (GWh/d) Real ratio (GWh/d) Emisión <Escalón I I < Escalón < II > Escalón II The avoided emissions are calculated from the improvement in the ratio "natural gas flared during methane tankers loading divided by the total amount of loaded gas. Baseline is estimated based on historical data and operations foreseen in the reported year. The improvement is calculated by comparing baseline to a real data based ratio, calculated after measures implementation. This difference is converted to the amount of not consumed natural gas (in GWh) and to emissions reductions reached. The following data have been used: Baseline ratio Real ratio 1.39% 0.96% 119 GWh 23,052 tco 2 e 135 GWh 26,097 tco 2 e TOTAL GWh 118,588 tco 2 e 27 de 30

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