2622-BAN: Natural Gas Access Improvement Project, Part A: Ashuganj and Elenga Compression Station

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1 Safeguards Monitoring Report Project No Semi Annual Report July- December BAN: Natural Gas Access Improvement Project, Part A: Ashuganj and Elenga Compression Station Prepared by Gas Transmission Company Limited for People s Republic of Bangladesh This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

2 In preparing any country program or strategy, financing any project, or by making any designation of or reference to a territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 Gas Transmission Company Ltd. (GTCL) (A Company of Pterobangla) Plot No.F-18/A, Sher-E-Bangla Nagar Administrative Area, Agargaon, Dhaka 1207 Project: Installation of Compressor Stations at Ashuganj & Elenga under ADB Loan No BAN: NGAIP Social Safeguard Due Diligence Report A. Introduction: Gas Transmission Company Limited (GTCL), a state-owned Company under Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) is responsible for construction, augmentation, operation and maintenance of the high-pressure natural gas transmission pipeline grid in the country. In the country most of the gas fields are located in the northeast and central regions while the delivery points are located throughout the country which was not covered by natural gas, and, the gas distribution systems were facing inadequate gas supply due to low pressure in the transmission lines. In order to facilitate the expansion of natural gas in less developed areas, the Government of Bangladesh (GoB) intended to develop the energy sector with adequate upstream and downstream investments. The Government s Development Goals are (i) to provide energy for sustainable economic growth and for maintaining energy security in the country, (ii) to provide energy to all socio-economic groups of the country, especially, to the less developed areas, (iii) to diversify use of indigenous energy, and (iv) to contribute to the protection of the environment. In line with that, GoB has entered into a loan agreement (2622:BAN) with the development partner Asian Development Bank (ADB) under Natural Gas Access Improvement Project (NGAIP) to meet the foreign currency requirement for implementation of the Project. GTCL, as an executing agency (EA), has implemented the Component Part- A2: Installation of Compressor Stations at Ashuganj & Elenga of the Project (NGAIP) by engaging EPC Contractor Hyundai Engineering Co. Ltd., Korea (HEC) through International Competitive Bidding (ICB) process. B. Site Location and Station Configuration: Ashuganj Gas Compressor Station (AGCS): At Ashuganj around 24 acres of land was under the possession of GTCL since 25 yrs. back for development of different gas sector facilities at Ashuganj area. Among the own land of GTCL at Ashuganj, about 10 acres of land was used for Ashuganj Gas Compressor Station(AGCS) and remaining land are now being used as existing Ashuganj Gas Manifold Station (AGMS). The location of AGCS is at the east bank of river Meghna and 1 km NE from the existing Ashuganj Fertilizer & Chemical Complex Ltd. (AFCCL). Fig: Geographical Layout of Ashuganj Gas Compressor Station (AGCS) Safeguard Due Diligence Report_CSP_GTCL (ADB Loan No BAN:NGAIP) Page 1

4 AGCS consists of 3 X 15 MW (3 X HP) ISO rated Siemens SGT 400 Gas Turbine Driven Centrifugal Compressor Packages with gas filtration & cooling system. The other station support systems and utilities include flare system, instrument & plant air system, potable and utility water system, fuel gas system, power generation system including substation, fire & gas detection system and fire water system, gas metering system, condensate storage & handling system including API separator etc. Control & Office Building, Substation Building, Gas Generator Building, Air Compressor Building, Gas Compressor Shelter, Fire Water Pump Shelter and Guard Houses are also incorporated in the plant lay-out. Total Station Flow Capacity: 750X2 = 1500 MMSCFD, by operation of two compressor units and third unit is on standby mode. Design Suction Pressure: 680 psig, Design Discharge Pressure: 1000 psig. Fig: Ashuganj Gas Compressor Station (AGCS) Elenga Gas Compressor Station (EGCS): The site for Elenga Gas Compressor Station (EGCS) was also under the possession of GTCL (Total 5.52 acres) out of which about 3 acres of land was used for the compressor station. EGCS has also been installed at GTCL s premises beside the existing GTCL and Titas Gas District Regulatory Station (DRS) at Elenga in Tangail District. Fig: Geographical Layout of Elenga Gas Compressor Station (EGCS) Safeguard Due Diligence Report_CSP_GTCL (ADB Loan No BAN:NGAIP) Page 2

5 EGCS consists of 3X5.7 MW (3 X 7500 HP) ISO rated Siemens SGT 100 Gas Turbine Driven Centrifugal Compressor Packages with all ancillary facilities and station support systems and buildings as mentioned for AGCS. Total Station Flow Capacity: 250X2 = 500 MMSCFD, by operation of two compressor units and third unit is on standby mode. Design Suction Pressure: 650 psig, Design Discharge Pressure: 1000 psig. Fig: Elenga Gas Compressor Station (EGCS) Elenga Ashuganj Fig: Location of Ashuganj & Elenga Gas Compressor Stations in the Context of Bangladesh Safeguard Due Diligence Report_CSP_GTCL (ADB Loan No BAN:NGAIP) Page 3

6 C. Social Safeguard Issues: No fresh acquisition of land was required for Installation of Compressors at Ashuganj and Elenga both sites. Hence no involuntary resettlement and indigenous people issues were present there. Environmental safeguard issues are being addressed with periodic monitoring and mitigation measures. D. Observation: The project was undertaken in loan agreement 2622-BAN:NGAIP the characterized Category-A as SPS 2009, but as there is in fact no issue of resettlement and adverse impact on livelihood. As per Environmental Assessment Guidelines 2003, the project falls under Category B, which requires IEE study. According to the IEE study, compressor station project might have temporary impacts on the environment and would be overcome with mitigation and enhancement measures. There is no ecologically sensitive area, reserve forest, national park in the two compressor station sites. There is no significant irreversible adverse impact. Because of the isolated nature of the compressor stations, there would be no cumulative impact as well. Based on the outcome of the IEE study, it is concluded that the two compressor stations will contribute substantially to the overall development of the gas sector as well as the national economic growth of the country with no adverse environmental and social impact. As per recommendation of IEE study, no EIA study was needed but an Environmental Management Plan (EMP) was formulated. The IEE & SIEE reports were submitted to ADB and approved accordingly at the early stage of the project. In the IEE study, the initial environmental and social impacts were identified and the respective mitigation measures were formulated and appended to the EPC Contract Agreement as binding clauses for implementation during execution of the Contract to ensure that ADB s Environmental Safeguard Policy is being implemented. The stations are currently running under extended operation and maintenance period by HEC under EPC Contract. As per terms of the Special Conditions of Contract (SCC) between GTCL and HEC, HEC is entrusted for implementation of Environmental Management Plan (EMP) in line with the relevant points given under different phases of construction and operation of the Compressor Station. Accordingly, HEC has engaged a third party, named, Miah Environmental Monitoring Center (MEMC) for Monitoring of implementation of EMP of the project. MEMC is responsible for performing the Environmental Perimeter Tests (EPT) which includes stack emissions, ambient air quality, noise level, soil test, ground water & surface water quality tests and reviewing health & safety of workers with providing test analysis and reporting quarterly and yearly basis. They are duly performing the assigned activities and submitting the reports with findings & observations regularly. In both stations, Dry Low Emission (DLE) technology is used in gas turbines to minimize the gaseous emission. The plant is being kept neat and clean, and safe and healthy working conditions are being provided for the workers. GTCL has already submitted three quarterly reports for the year 2017, and will soon separately submit a yearly Environmental Monitoring Reports for Year 2017 in detail for Ashuganj & Elenga Gas Compressor Stations for ADB s review. It is worth mentioning that Environmental Clearance Certificates for both Ashuganj & Elenga Gas Compressor Stations from Department of Environment (DoE), Bangladesh was obtained which is now under renewal process on yearly basis. In the present status of continuing extended O&M period of the project by the EPC Contractor HEC, the relevant safeguard issues under EMP have been implementing and monitoring strictly as it was conducted during Pre-construction, Construction and Commissioning stages of the project. No damage to ecological structure, adverse impact to the environment and/or grievance from any concerned locality and/or stakeholdrs have ever been reported and realized till date. === === === Safeguard Due Diligence Report_CSP_GTCL (ADB Loan No BAN:NGAIP) Page 4