Page 1

Sustainability Report 2010


Reader’s Feedback As an initiative to save paper, ADGAS welcomes your comments on this Sustainability report electronically by accessing ADGAS website (www.adgas.com) and clicking this icon:

ADGAS 2010 Sustainability Report Feedback ADGAS employees can access the survey by clicking the same icon on the intranet and through the internet. Alternatively, you can use your Smartphone with a QR reader app to scan this code and fill in the reader’s feedback online.

If you have any comments on this sustainability report, please contact:

Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) PO Box: 3500, Abu Dhabi United Arab Emirates Tel: +971 2 6065677/6065539/6065547 Fax: +971 2 6065500 Email : sustainability@adgas.com www.adgas.com


Table of contents 4 | CEO’s Message 6 | ADGAS Profile 9 | Our Core Values 9 | Our Vision and Mission 10 | Our Strategy 12 | Board Members 14 | 2010 Key Achievements 15 | 2011 Goals & Priorities 15 | 5 Years Strategic Goals 16 | GRI Application Level and IPIECA/API 18 | Memberships 18 | Stakeholder’s Engagement 20 | ADGAS and Sustainability 22 | Our Definition of Sustainability 24 | Sustainability Wheel 25 | Our Journey Towards Sustainability 26 | Society 28 | Internal Community 32 | External Community 34 | Health and Safety 44 | Environment 52 | Economy 63 | Report Parameters 64 | GRI Reporting Index 66 | IPIECA/API Reporting Index 67 | Abbreviations


3


Our em employees mployees ar are key assets and enablers rs for our ssustainability implementation. program m impleme


CEO’s Message I am pleased to introduce to you ADGAS second Sustainability Report. In this report, we look back at 2010 ADGAS performance in the sustainability three pillars: Economy, Environment and Society and our efforts to ensure a sustainable balance among them and their implications on ADGAS and stakeholders. Under ADGAS Sustainability vision of “Sustaining Tomorrow...Today”, ADGAS is utilizing best technologies to reduce its impact on environment and developing its human capability thereby contributing positively to the local society and respecting international Sustainability standards. 2010 was a remarkable year for ADGAS with record achievements in the plant HSE and production performance. 2010 also saw the commissioning of the Offshore Associated Gas (OAG) facilities on Das Island and the exporting of Natural Gas to the local network.

ADGAS feels proud to be involved in securing these gas supplies and looks forward to participate more in the National Energy requirements through the commissioning of the Integrated Gas Development facilities in 2013. With this new role, ADGAS is positively contributing to the preservation of the local ecosystem through providing a clean source of energy fitting with low carbon theme of the 21st century. We are committed to our Shareholders and ADNOC group Sustainability charter and we will be taking Sustainability further in the coming years with the aim of being a pioneer in this field. ADGAS considers Abu Dhabi natural resources conservation a priority and ensures that the ecological system of the Emirate is intact. Creating value to our Shareholders sets as one of our sustainability principles. We are embarking on

many projects that look at the company’s long term growth and facilities integrity. Sustainability for ADGAS is about forward-thinking and participation of all the divisions in this prestigious commitment through sustainability education and awareness. Our employees are key assets and enablers for our sustainability program implementation. We spare no efforts in making sure that all employees’ welfare, health and safety are protected and the working environment encourages productivity and development. I would like to extend my thanks to all of those involved in this report data collection and writing and I hope you will find it informative and useful. Fahim Kazim Chief Executive Officer

5


AS

AD G

OF PR

ILE


ADGAS pioneered liquefied natural gas production in the Gulf region, having originally been established in 1973 to make efficient use of gases associated with crude oil production, which were until then being flared. The company is now a leading producer of clean energy, supplying global, regional, and domestic markets.

7


Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) was established in 1973 upon the directive of the late Sheikh Zayed Bin Sultan Al Nahyan, founder of the United Arab Emirates, continued by His Highness Sheikh Khalifa Bin Zayed Al Nahyan, UAE President.

The Company is the pioneer Liquefied Natural

In 2010, ADGAS became the operator of the

Gas (LNG) producer in the Gulf region. It was

Offshore Associated Gas (OAG) facilities and

formed to put an end to flaring that wastefully

117KM Subsea line which transfer natural

burnt gas extracted during the processing

gas from the offshore fields to GASCO

of crude oil. To efficiently utilize this natural

Habshan Gas plant and later as sales gas

resource, ADGAS produces clean energy for

to industrial customers in Abu Dhabi and

sale on the international market, benefiting

Northern Emirates.

the UAE and its people. ADGAS works closely with its business ADGAS’s success is largely due to its

partners ADMA-OPCO (for the supply of

shareholders’ high level of support. Current

feed gases), NGSCO (shipping partner)

best practice and state-of-the-art technology

and GASCO (for the natural gas export to

employed by ADGAS have been made possible

onshore), together ensuring the efficient, safe

as a result of access to the collective knowledge,

and reliable production and supply to clients.

experience and involvement of the shareholders: ADNOC, Mitsui & Co., BP and Total. ADGAS has been closely associated with the Tokyo Electric Power Company (TEPCO) for over 34 years, during which time many

ADGAS Shareholders

joint expansion projects were completed, new plant control systems introduced, and many more integrity and reliability projects commissioned to ensure continuous production to meet contractual commitments and customer requirements.

70% - ADNOC 15% - Mitsui & Co, Ltd 10% - BP 5% - Total

In addition, ADGAS has progressively diversified the sale of its products (LNG, LPG, Paraffinic Naphtha, and Sulphur) in the global energy marketplace through term contractual arrangements, as well as spot deals to different Energy and Petrochemical producers in Middle East, Asia and Europe.

SUS TA IN

ADG AS 2

01

A IN

AB

0S US TA

EP

Y ILIT

YR LIT BI

OR

T

8

The Company’s business locations are: Das Island – location of its process trains, storage and shipping facilities, and plant support functions: Operations, Maintenance, General Technical Services, Engineering, Projects, Integrity and Quality. ADGAS Operations are only in the United Arab Emirates. Abu Dhabi – headquarters building, hosting ADGAS’ general management and all administrative, financial and support services. Tokyo – liaison office to serve our principal customer (TEPCO).


Our Core Values

Our Vision and Mission

1. Health, Safety & Environment:

ADGAS long-term vision

Being committed to protecting the health, safety & environment in all that we do.

2. Ethical Conduct: Strict adherence to our codes of ethical conduct.

3. Business Excellence and Quality: Striving for the best by setting and reaching challenging targets to rank amongst the world’s best in customer, people and society satisfaction.

4. Learning & Continuous Improvement: Continuously getting better in all that we do, as individuals and as teams.

5. Commitment: Honoring all our commitments as company to achieve our corporate goals and to align personal goals and assume responsibility to deliver on our commitments.

“We will play a key role in the LNG and natural gas industry, creating wealth and value, implementing the National Energy Strategy and serving our valued customers and community in a socially responsible manner.”

ADGAS mission statement “We will achieve our vision through the safe and efficient production, marketing, sale and delivery of LNG, LPG and natural gases, P.Naphtha and sulphur; building on our ADGAS history, solid partnerships and human capital. We will strive to sustain our recognized international reputation for reliability, integrity and efficiency and to continually improve HSE and business performance. We will attract, develop and retain competent and dedicated staff.”

2010 Snapshots Production

8.23 MMT

Sales

7.98 MMT 1,590

Employees Emiratization Net Profit

70%

7% above target

Flaring

9.2 MMSCFD

Awards Trips Reports competition by Ministry of Education & Runner-up in ADNOC HSE award in innovation category Community Contributions

146% increase compared to 2009

Striving for the best by setting and reaching challenging targets to rank amongst the world’s best in customer, people and society satisfaction.

9


Our Strategy ADGAS Strategic themes

People

As a member of ADNOC group of companies, ADGAS prides itself to be a valuable contributor to the local economy and society. To sustain our role, we utilize all possible means to keep our strategic vision and mission in line with changing environment and challenges. ADGAS strategy map consists of 4 strategic themes with sustainability as an integral focus for each theme:

People theme is recognized as an essential part in developing and executing organizational strategy by effectively utilizing employee talent & ability and increasing employee satisfaction. Moreover, it plays a vital role in increasing the awareness of the company’s various activities to reach out to the community.

National Energy Strategy

Governance

The National Energy Strategy is concerned with maximizing the value of the national energy resources, by ensuring that ADGAS operates in the most efficient and reliable manner with minimal wastage, and optimum sales value.

Operational Excellence Operational Excellence stresses the need to continually improve the way we manage our production assets, seek more cost effective ways in the whole value chain, and reduce environmental impact. ADGAS will exploit every opportunity to optimize its production quantities by improving plant availability and reliability, reducing opportunity losses, and maintaining production levels through improved asset integrity.

Health, Safety, Environment, Integrity and Reliability ADGAS has an excellent record on health and safety, and strives to further improve its environmental record, despite the complexity and ageing technology of its production assets. ADGAS will further identify innovative and effective engineering solutions for long term assurance of its assets.

SUS TA IN

ADG AS 2

01

A IN

AB

0S US TA

EP

Y ILIT

YR LIT BI

OR

T

10

At the top of ADGAS Governance structure is the Supreme Petroleum Council (SPC) and ADNOC who set the overall group policies and strategic direction and serve as the vital Government link in maintaining oversight over ADGAS’s activities in line with the overall strategies and policies of the UAE. ADGAS Shareholders provide robust oversight role in the management of ADGAS through the Board of Directors, Board Advisory Committee (BAC), Technical Shareholders’ Committee (TSC), Finance Committee (FINCO) and the audit Committee.

• Board Advisory Committee (BAC): with 8 members, it enables adequate preparation for Board meetings, to review matters of common concern to the Shareholders of the Company and to make recommendations to the Board of Directors in order to facilitate the passing of appropriate resolutions by the Board.

• Technical Shareholders’ Committee (TSC): with 8 members, it provides a forum for Shareholders and ADGAS specialists to meet and discuss progress on ADGAS Capital Projects, and any other significant technical issues.

• Finance Committee (FINCO): with 8 members, it provides a forum for shareholders and ADGAS specialist to meet and discuss progress of any significant financial issues.

• Audit Committee: with 4 members, it assists the board in overseeing the Effectiveness of the Company’s internal control and risk management systems and ensures compliance with legal and regulatory requirements and Code of Ethics.


Corporate Strategy Map

11


Board Members as in 2010

H. E. Yousef Omair Bin Yousef

Abu Dhabi National Oil Company

Mr. Ali Khalifa Al Shamsi

Abu Dhabi National Oil Company

Dr. Saif Sultan Al Nasseri

Abu Dhabi National Oil Company

Mr. Awaidah Murshed A. Al Murar

Abu Dhabi National Oil Company

Mr. Takatoshi Hayakawa

Mitsui & Co. Ltd.

Mr. Shuichi Kawano

Mitsui & Co. Ltd.

Mr. Jeremy Pearson

BP

Mr. Jean-Luc Guiziou The Board of Directors consists of 8 members and is chaired by H.E. Yousef Omair bin Yousef (ADNOC CEO & Secretary General of the SPC).

in the various board committees supports their vital role of transferring best practices, both through technology transfers as well as contemporary business processes.

ADGAS board meets twice a year to discuss the company Year-to-Date environmental, economical and social performance and subjects related to the organization’s employees, projects and strategy. The Shareholders’ participation

Executive Management team (The ADGAS leadership team) is under the overall stewardship of ADGAS Chief Executive officer (CEO) Mr. Fahim Kazim who is supported by Management Committees at two levels:

SUS TA IN

ADG AS 2

01

0S US TA

A IN

AB EP

Y ILIT

YR LIT BI

OR

T

12

Total

General Management Members (GMM) Comprising the CEO, SVP Administration), SVP (Commercial), SVP (Technical), VP (LNG Plant) and Strategy & Corporate Development Manager.

Management Team Members (MTM) Comprising GMM together with Managers of all ADGAS Divisions and certain Departments that report directly to the CEO, or SVPs. The Organization of the MTM is depicted in the following diagram.


Organization of the Management Team Members

Industry Structure, Board of Directors and Advisory Committees SUPREME PETROLEUM COUNCIL (SPC)

ADNOC

ADNOC GROUP OF COMPANIES

BOARD OF DIRECTORS

BOARD AUDIT COMMITTEE

FINANCE SUB-COMMITTEE

BOARD ADVISORY COMMITTEE

GENERAL MANAGEMENT

TECHNICAL SUB-COMMITTEE

13


2010 Key Achievements ADGAS organized the “2010 Key Achievements Workshop” on January 16, 2011. The workshop was attended by ADGAS divisions’ managers and departments’ heads and senior staff, with the aim of reviewing and evaluating the main achievements of each division during 2010. The following achievements have won the approval and recognition of participants, listed according to the number of votes each has won:

1 2 3

Record production, high reliability, minimum trips, flaring & emissions

Operations

Successful conclusion of TEPCO Price Settlement

Marketing Projects

OAG Performance Test Run Completion Flaring Reduction By changing control strategy and re-engineering APC

5 6 7 8 9 10

14 14

UAE Nationals Integration

Maintenance

Reduction of Hydrocarbon Piping Leaks

Integrity & Quality

Knowledge Transfer Program – Best Practices Sharing

Finance

Flaring and Emission Reduction Initiatives

Integrity & Quality

FD Fans Performance Improvement, thru In-Situ Rotor Balancing Technique

IT Infrastructure Improvements

ADGAS 2010 SUSTAINABILITY REPORT

Engineering

Maintenance

Information Technology


2011 Goals & Priorities • Further reduction in flaring and emissions • Sustainable operations of the OAG facilities and gas supplies to Abu Dhabi • Increased shareholders returns • Excellent HSE record • Zero interruptions to ADMA-OPCO operations and oil production • Higher LNG plant Reliability and minimum outages • Excellent progress of the IGD project • 2010 Corporate survey outcomes action plans implementation • Development and retention of UAE nationals • Knowledge management piloting and implementation • “Duty of Care” to all ADGAS employees • Enhanced internal communication

5 Years Strategic Goals National Energy Strategy • Enhancing the sales strategy to optimize revenues. • Ensuring plant flexibility by de-coupling ADGAS operations from ADMA-OPCO to minimize disruptions to up-stream activities. • Supplying gas efficiently to on-shore through the OAG and IGD facilities, providing Abu Dhabi with gas and exploiting opportunities to enhance ADGAS operations. • Exploring power generation options to ensure effective and efficient power generation for future off-shore requirements.

Operational Excellence • Ensuring integrity of critical equipments through full compliance of routine maintenance. • Optimizing inventory value. • Effectively implementing Assets Integrity and Reliability Management System (AIRMS). • Optimizing Risk Based Inspection (RBI) to ensure effective inspection regime.

• Reducing Shutdown Duration and Work Scope, by reviewing and challenging current practices, to optimize resources and reduce cost. • Adopting the best operating practices for improving its operations and better systemization, thereby reducing plant trips and improving recovery time. • Reducing opportunity losses and increasing production, by identifying reasons for losses, and developing and implementing innovative solutions to address the losses. • Developing and implementing an integrated planning function to align the various parties to focus and improve the utilization of resources. • Enhancing operation flexibility and efficiency by increasing utilization of assets and improving maintenance practices by implementing SRCM. • Excelling at contracting and purchasing processes by adopting good procurement techniques and procedures that assure an optimal inventory level without risk to operation and deploying an optimized integrated schemes program.

• Formalizing a corporate risk management process by aligning the different related processes to be managed in the most efficient manner.

Supplying gas efficiently to on-shore through the OAG and IGD facilities, providing Abu Dhabi with gas and exploiting opportunities to enhance ADGAS operations.

15


Since 2002, the symbol of ADGAS logo “the double wave” represents the new wave of progress. It is shown as an environmentally friendly wave.

Health, Safety, Environment and Plant Integrity & Reliability • Reducing health & safety risks •

Excelling at contracting & purchasing processes

Exploring and implementing effective solutions to ensure Integrity and Reliability

Minimizing environmental impact

Driving cross-functional effectiveness & integrated planning

Ensuring effective risk management

People •

Developing Talent Management solutions • Attract High Caliber Talent • Talent Development • Talent Retention

• Providing Customer Service Excellence •

Enhancing People Engagement

• Improving Duty of Care

SUS TA IN

ADG AS 2

01

A IN

AB

0S US TA

EP

Y ILIT

YR LIT BI

OR

T

16

Common Strategic Objectives • Enhancing cross-organizational alignment and teamwork to ensure all the company is working towards the same goals. • Implementing an effective communication strategy to enhance the timely communication of strategy and strategic performance across the business to better help employees understand how they contribute to the achievement of ADGAS goals. • Retaining knowledge through effective systems and encouragement of knowledge management transfer processes. • Implementing decision support processes and systems to ensure the appropriateness of the information for decision making. • Encouraging a company culture of responsibility, accountability and work ownership and improving team accountability by cascading the Balanced Scorecard process through all business areas. • Improving the Performance Appraisal system to ensure clarity between responsibility, achievement and performance.


GRI Application Level and IPIECA/API This report uses the leading international guidelines for sustainability reporting, namely the Global Reporting Initiative (GRI), and the International Petroleum Industry Environmental Conservation Association/ American Petroleum Institute (IPIECA/API) reporting guidance. ADGAS self-declares this report to meet GRI Application Level C. The GRI index can be found on page 64, and the IPIECA/API index on page 66. GRI checked this report against the criteria for the GRI application Level C, and the GRI has qualified it as Application Level C.

GRI hereby states that Abu Dhabi Gas Liquefaction Company Ltd. (ADGAS) has presented its report “ADGAS 2010 Sustainability Report” to GRl’s Report Services which have concluded that the report fulfills the requirement of Application Level C.

Statement GRI Application Level Check

GRI Application Levels communicate the extent to which the content of the G3 Guidelines has been used in the submitted sustainability reporting. The Check confirms

that the required set and number of disclosures for that Application Level have been addressed in the reporting and that the GRI Content Index demonstrates a valid representation of the required disclosures, as described in the GRI G3 Guidelines. Application Levels do not provide an opinion on the sustainability performance of the reporter nor the quality of the

information in the report.

The Global Reporting Initiative (GRI) is a network-based organization that has pioneered the development of the world’s most widely used sustain ability reporting framework and is committed to its continuous improvement and application worldwide. The GRI Guidelines set out the principles and indicators that organizations can use to measure and report their economic, environmental, and social performance. www.globalreporting.org Disclaimer: Where the relevant sustain ability reporting includes external links, including to audio visual material, this statement only concerns material submitted to GRI at the time of the Check on 9 May 2011. GRI explicitly excludes the statement being applied to any later changes to such material.

17


Memberships

Stakeholders’ Engagement

ADGAS works toward being more involved in the society through its professional membership and representation in prestigious institutions and organizations including:

Stakeholders are defined as any party that can affect or be affected by the actions of the business as a whole. We believe that continuous engagement with our stakeholders helps us to direct our efforts more effectively in achieving our key sustainability objectives. Stakeholders’ expectations are meticulously analyzed to put in place plans and programs to address them.

International Gas Union (IGU): The objective of IGU is to promote the technical and economic progress of the gas industry. The members of IGU are associations and entities of the gas industries in 73 countries. It cooperates with many global energy organizations.

The following table lists ADGAS key stakeholders, methods of engagement, stakeholders’ priorities and ADGAS response. This is a preliminary analysis that is still under finalization:

ADGAS is a member of ADNOC group of companies which is a member of Abu Dhabi Sustainability Group (ADSG)

Stakeholders’ Engagement STAKEHOLDER Shareholders

Local Society

ENGAGEMENT METHOD • Shareholders meetings

01

A IN

AB

0S US TA

EP

Y ILIT

YR LIT BI

OR

T

18

• Financial returns

• Board meetings

• Maintain reliable and safe operations

• Routine reporting

• Preserve reputation as reliable LNG and gas exporter

• Internal auditing

• Participate in local economic & social development

• Maximizing profit

• Strict HSEIR practices • Quality performance & operations

• Minimum environmental impact

• Contributions

• Social events participation

• Employment opportunities

• Assistance to educational institutes

• Through employees’ families

• Safe operations

• Participation in social events

• Community contribution

• National HR development

• Joint research initiative

• Continuous community engagement

• Participate in ADNOC sustainability initiative

SUS TA IN

ADGAS RESPONSE

• Website

• Engagement with government

ADG AS 2

STAKEHOLDER’S PRIORITIES

• Provide clean energy sources • Respect Human rights


STAKEHOLDER Employees

ENGAGEMENT METHOD

STAKEHOLDER’S PRIORITIES

ADGAS RESPONSE

• Regular meetings

• Satisfactory job, pay & benefits

• Competitive salaries & rewards

• Website & portal

• Safe & healthy working environment

• Health & safety incentives

• Moubadara scheme

• Continuous career development

• Development programs

• Performance appraisal

• Long service awards

• Corporate survey

• Equal opportunities

• ADGAS news • Through ADNOC/SPC

• Contributing to quality of life

• Ensuring compliance with government regulations

• Financial returns

• Commitment toward Emiratization

• Developing national human resources

• Open & transparent communication to ADNOC/government

• Compliance with government regulations

• Maximizing profit

• Ongoing visits and communication

• Reliable liquids & gas supplies

• Regular dialogue with customers

• Quality products

• Customer satisfaction surveys

• Tokyo Liaison Office (TLO)

• HSEIR Reputable gas & liquids supplier

• Producing quality products

Government/Regulators

Customers

• Management of natural resources

• Regular yearly meetingsw

• Routine HSE & Sustainability reporting

• Reliable gas-supply to mainland • On-time products loading • Providing excellent logistics and services

Das Island community

• Das administration team

• Minimum environmental impact

• Through Das employees

• Safe operations

• Social events participation

• Initiatives to improve the social life and wellbeing of Das employees.

• Enhanced living conditions • Safe & healthy working environment

Suppliers/contractors

• Bidding/tendering

• Fair contract bidding/awarding

• Website

• On-time payment

• Day-to-day liaison

• Good working conditions

• Fair bedding & contracts awarding

• Prequalification meetings

Industry groups

• Regular meetings/workshops

• Exchange Industry best practices

• Regular daily communication • Shared initiatives

• Develop consensus for common issues

• Reporting

• Support and aid each other

• Participate in conferences/workshops to enhance reputation & acquire industry best practices

• Achieve upstream/downstream positive impact

19


SU S

ADGA S&

INA TA

Y BILIT


The Company’s commitment to sustainability stems from our belief in its importance for the long-term success of our business and the wellbeing of the coming generations. Sustainability is embedded right across our business and enjoys the commitment and support of the entire ADGAS management team and employees.

21


The Company’s commitment to sustainability stems from our belief in its importance for the long-term success of our business and the wellbeing of the coming generations. Sustainability is embedded right across our business and enjoys the commitment and support of the entire ADGAS management team and employees.

opportunity to participate in activities in the community through several partnerships and initiatives.

Our commitment to sustainability is also evident in our five-year business plan, which includes objectives that promote sustainability. These objectives cascade down to all business units and employees through the Balanced Scorecard Performance Management System, and also our Performance Appraisal Management System.

The ADGAS definition of sustainability includes its social, environmental and economic dimensions:

We measure and manage our sustainability performance against these objectives and the internationally recognized Global Reporting Initiative (GRI) criteria and IPECIA/API. Day-to-day operations closely follow the documented HSE practices, which are in line with ADNOC’s Code of Practice (CoP) and the ADGAS HSE management framework.

Environment: we hold the natural world in trust for future generations. Environmental stewardship is integral to ADGAS corporate culture.

Major hazards and business risks associated with production assets are managed through a management framework called AIRMS (Asset Integrity and Reliability Management System). To make sustainability a daily business, our employees receive training on safety and environmental issues, and are given the

Sustainability management is the integrated management of social, environmental and economic performance with the goal of creating value for all stakeholders.

SUS TA IN

ADG AS 2

01

A IN

AB

0S US TA

EP

Y ILIT

YR LIT BI

OR

T

22

Our Environment Management System (EMS) gained ISO-14001 accreditation in 1994, and is audited and re-certified every three years. Going forward, ADGAS is working to consolidate its approach to sustainability in the development of an integrated policy, model and implementation strategy that will take all the elements of our sustainability function into account.

Our Definition of Sustainability

Society: harnessing ADGAS people’s expertise, creativity, and skills so that the Company performs successfully. It is also about our relationships with customers, business partners and the community.

Economy: business cannot exist without creating shareholder value. Identifying and mitigating risks is a fundamental aspect of fulfilling this objective.

All ADGAS sustainability issues are incorporated into the ADNOC sustainability framework, which is based on the Global Reporting Initiative (GRI) and IPECIA/ API. ADGAS is continuously engaged in enhancing its approach to sustainability, with new initiatives and performance measures.

“We are a registered Organizational Stakeholder of the Global Reporting Initiative (GRI) and support the mission of the GRI to develop globally accepted sustainability reporting guidelines through a global, multistakeholder process.”


Our 10 preliminary Sustainability principles are:

Value

ADGAS grants shareholders maximum ROI, assets protection and returns for local business partners. All information provided to shareholders is transparent to enable them to make the right business decisions

Risks

ADGAS strives to minimize/mitigate corporate risks that can pose financial and environmental impact and employees and social dangers

Governance

ADGAS manages its resources effectively with all systems focusing on the stakeholders interests and have ethical standards and practices in dealing with them

Customers

ADGAS respects the customers’ needs and rights and strives to deliver reliable optimum quality products

Economy

ADGAS runs its facilities efficiently thus reducing impact on environment and society and increasing shareholders values

Energy Efficiency

Environment

ADGAS strives to protect the environment and promote sustainable development within its processes, products and other activities

Environmental Impact

Health

ADGAS ensures that the health of its employees is maintained with best standards and practices guaranteeing their welfare

Safety

ADGAS strives to make its employees work in a safe working environment and reduce risks to ALARP levels

Society Our People

ADGAS engages in HR management practices that promote personal and professional employee development, engagement, and empowerment

Community

ADGAS fosters a mutually beneficial relationship between itself and community (Abu Dhabi & Das Island) in which it is sensitive to culture, context, and needs of the community

ECONOMY

ENVIRONMENT

SOCIETY

Customers

Environmental management System

Internal Community

Suppliers

Environmental Baseline & Impact Assessment Study

Health & Safety

Natural Resources

Flaring & Emissions

ADGAS & its Community

Offshore Associated Gas (OAG) Projects

Monitoring of Stack Emissions and Ambient Air Quality

Risk Management/Risk Assessment

Environmental Projects

AIRMS

Energy Efficiency and Monitoring

Strategic Projects

Materials Water Waste Disposal Transportation

23


Sustainability Wheel To help us focus our sustainability efforts on issues particular to ADGAS operations, we are currently working on a sustainability Model that lists ADGAS sustainability principles in the three Sustainability dimensions: Economy, Environment and Society.

24

ADGAS 2010 SUSTAINABILITY REPORT


Our journey towards Sustainability

2010

2010

2010

2010

ADGAS won the ADNOC HSE, awarded as runner-up in the sustainability category

ADGAS celebrated the achievement of 20 million manhours without lost time injuries (LTIs)

ADGAS commissioned the Offshore Associated Gas facilities and started supplying natural Gas to onshore

ADGAS issued its first annual Sustainability Report

2009

2009

2009

2008

ADGAS launched the ‘Save Water’ campaign

ADGAS received the Dubai Quality Award

ADGAS won the ADNOC HSE, awarded as runner-up in the innovation category

ADGAS launched a ‘paperless day’ campaign in June

2007

2007

2007

2007

2007

ADGAS signed the OAG construction contract to provide gas to onshore facilities

ADGAS conducted its first Corporate Employee Survey

ADGAS celebrated its first-time achievement of 30 million manhours without lost time injuries (LTIs)

ADGAS partnered with MASDAR in Clean Development Mechanism (CDM) projects

ADNOC HSE award: runner-up in the environment category

2005

2004

2004

ADGAS started implementation of ADNOC CoP

ADGAS implemented the Competency Assurance Management System

ADGAS awarded ISO 14001 certification

1997

1994

1991

1990

HSEMS implementation with its new framework based on eight elements

Train 3 commissioned, doubling ADGAS’ production capacity

ADGAS joined the International Safety Rating System (ISRS)

ADGAS and TEPCO signed a new extended (25 years) sales agreement

1977 The late Sheikh Zayed Bin Sultan Al-Nahyan officially inaugurated the ADGAS LNG Plant on 3 October

25


Y ET

SO CI


ADGAS strives to provide a safe and healthy working environment free from any discrimination and in which human rights are respected. We had no cases of discrimination in 2010. We provide competitive packages in line with ADNOC guidelines with 1:1 basic salary ratio for male and female and ensure that all our employees have equal training and development opportunities.

27


ADGAS’ societal responsibilities

Internal Community

extend to its internal and external

ADGAS Employees

community – from the welfare and development of employees to supporting the needs of the wider society within which the company operates. Numerous initiatives contribute to creating benefits through education, health, and humanitarian efforts.

ADGAS strives to provide a safe and healthy working environment free from any discrimination and in which human rights are respected. We had no cases of discrimination in 2010. We provide a competitive package in line with ADNOC guidelines with 1:1 basic salary ratio for male and female and ensure that all our employees have equal training and development opportunities.

348

As part of ADNOC group, any significant operational changes are announced in advance to employees and normally any significant effects are minimized to ensure the wellbeing and prosperity of the employees.

ADGAS Employees

193

1049

Permanent employees Fixed-term employees Temporary employees

ADG AS 2

01

SO

A IN

Y ET

CI

0S US TA

YR LIT BI

EP

OR T

28

ADGAS employees are a precious asset and important driver of the company’s success. Creating a working environment where an employee can flourish and develop is one of the senior management top priorities. We aim at attracting top talents and results-oriented employees who will assist us in keeping our competitive advantage. In 2010, ADGAS total workforce was 1,590 (1,397 employees and 193 supervised contractors) with an increase of 6% since 2009. This number includes the employees on Das Island, Abu Dhabi HQ and Tokyo Liaison office. 80% of the total workforce is on Das Island.

The KPIs to manage and measure our human resources strategy include Emiratization, UAE nationals’ integration, people development, organizational capability, and employee engagement measures. ADGAS 2010 attrition rate was within the industry norm. Our initiatives in improving social welfare and work-life balance in coordination with ADMA-OPCO on Das Island reduced resignations of both nationals and expatriates

to within the industry average and helped partially by the economic downturn. Continuous efforts are made to improve the standard of accommodation, recreational facilities and catering in coordination with ADMA-OPCO on Das Island. The social and welfare committees at Abu Dhabi headquarter and Das; Island have played a positive role in assisting employees to maintain a healthy work-life balance. The quality of benefits for full-time staff is a key factor in staff retention, and a positive reflection of ADGAS’ significant investment in human resources. These benefits include life insurance, healthcare, disability and invalidity coverage, maternity leave, and retirement provision. In order to minimize the psychological impact of serious illness if faced by an ADGAS employee, ADGAS also provides education and training, counseling, prevention, and risk control programs and treatment.

Emiratization Recruiting and developing national talents is one of ADGAS strategic objectives and social sustainability principles. Mr. Abdullah Al Dhaheri (Human Resources Division Manager) explains how ADGAS achieved the Emiratization milestones of 70% in 2010 and the plan to sustain this good performance:

Why Emiratization is important to ADGAS? ADGAS sees Emiratization as a social commitment to the UAE and the government. Creating jobs to the UAE nationals is important to the nationals’ families’ stability and society prosperity. ADGAS considers His Highness Sheikh Khalifa Bin Zayed Al Nahyan, president of the UAE, guidance’s on recruiting and


ADGAS Employees

2010 Turnover Rate

CATEGORY

(%)

CATEGORY

(%)

Male

93

Male

4.3

Female

7

Female

0.4

<30 years old

26

<30 years old

0.9

Between 30-50 years old

50

Between 30-50 years old

1.9

>50 years old

24

>50 years old

1.9

Members in Governance Bodies and Staff Members Percentage CATEGORY

MEMBERS IN GOVERNANCE BODIES (%)

STAFF MEMBERS (%)

UAE nationals

82%

70%

Arab expatriates

9%

11%

Western expatriates

9%

2%

Asian expatriates

0.0%

16.5%

Other

0.0%

0.5%

EMIRATIZATION (%)

TURNOVER RATE (%)

70 | 2010

4.7 | 2010

66.3 | 2009

2.5 | 2009

62.9 | 2008

7.2 | 2008

58.8 | 2007

5.3 | 2007

54.1 | 2006

3.3 | 2006

51.6 | 2005

4.3 | 2005

29


Total Training Hours

72,222

50 Average training hours per employee in 2010

developing UAE nationals as one of its utmost important commitment. The achievement of 70% Emiratization is part of the Sustainability principles and we are working hard to achieve more in the next years and create a national talents pool that will serve ADGAS and the country.

How did ADGAS achieve this result? ADGAS followed up the shareholders guidance and directions through the pre-set Emiratization KPI and created an action plan on how to achieve the target. The action plan included the creation of an intake plan with the coordination of ADGAS line managers. The intake plan fulfillment required great effort by HR and the ADNOC National Recruitment Committee (NRC). ADGAS also took part in many recruitment fairs and campaigns under the NRC umbrella. In the Learning & Development side, CAMS and CAS systems contributed to Emiratization through a structured development path for the new national intake and good-performance recognition system. ADGAS also employs innovative methods in the nationals’ recruitment strategy and utilizes all possible venues.

ADG AS 2

01

SO

A IN

Y ET

CI

0S US TA

YR LIT BI

EP

OR T

30

36,414

29 Average training hours per employee in 2009

What challenges ADGAS faced while striving for this achievement? ADGAS faced fierce competition with other organizations in the country which benchmarked itself with ADNOC and its group of companies. Other challenges included providing proper training and development of the new national intake and assigning dedicated coaches and mentors.

What is HR future plans to ensure the development of the national workforce? In coordination with ADNOC and its group of companies, ADGAS will keep reviewing the CAMS and CAS systems to enhance their effectiveness and share learned lessons to prevent any future shortfalls. ADGAS will keep progressing with its nationals’ development strategy, setting up corporate priorities and milestones through a continuous improvement process.

Training and Development ADGAS employees enjoy an extensive training and capacity-building strategy that starts from the employee’s first days in the company until retirement. We conduct a range of training courses based on training requirements and development plans for soft skills such as power reading, report writing, technical, IT, and vendorspecific courses. We also conduct retirement planning courses, with two sessions held in 2010 involving 27 participants.

Management Succession Planning (MSP) is regularly undertaken by the company to assess and evaluate the career path of employees at senior levels while defining the best-fit capabilities to suit the company. ADGAS also uses the Competence Assurance Management System (CAMS) for the development of its new UAE national graduates. In 2010, 100% of our employees underwent formal appraisal and review. Our appraisal system which is based on competencies provides a framework for managers to monitor and improve performance of their staff to reach optimum results.

Knowledge Management Knowledge management (KM) is about building organizational intelligence by enabling people to improve the way they work in capturing, sharing, and using knowledge. It involves using the ideas and experience of employees to improve the organization’s performance. Building on what works well leads to better practice, strategy and policy. Continuing the initiation process from 2009, during 2010 ADGAS started a phased approach of defining & implementing Knowledge Management Framework and started a pilot project within the Maintenance Division.


Knowledge Movement in an Organization

31


Moubadara Scheme

Social & Recreational Committee

Since 2008, ADGAS suggestion scheme “Moubadara” has been a tool to enhance communication within ADGAS. It allows ADGAS management to get continuous flow of suggestions and ideas which can have great impact on the business and the development of the company. Numbers of Moubadara suggestions were received through this scheme are:

In 2010, ADGAS Social and Recreational Committee (ASRC), in corporation with ADGAS’ Baynounah Club, organized over 70 functions and activities for ADGAS staff and their families. The various specialized committees working under the wider ASRC’s umbrella developed an extensive program of events during 2010, ranging from adventure events to foreign language courses and from handcraft and tailoring workshops to trips to foreign countries. Every single month, the ASRC has a few activities that cater for all tastes and inclinations at minimal or no charge.

228 | 2010 114 | 2009

Employee Tarahum Fund To help its employees meet the demands of life and also encourage savings for future, ADGAS established the TARAHUM FUND in 2005. The Fund is open to all employees to become members by making a monthly contribution ranging between 3 & 5% of their gross salary. These contributions are used to provide interest free loans to the members recoverable in 24 monthly installments. By the end of 2010, the fund has a total contribution of nearly 4 Million AED with total granted loans reaching 2.2 Million AED.

On Das Island, social and recreational activities abound as the Company made a point of constructing numerous well equipped facilities, all free of charge for all employees.

Management Development Program (MDP) December 2010 saw evidence of ADGAS’ continuing commitment to the development of its management population with the running of the Management Development program on Sir Bani Yas Island. The 2010 program focus was “Supporting Others to Get the Job Done” with the clear objective of moving managers away from direct problem solving and towards developing, coaching and empowering their teams to become self sufficient in the long term. In response to this, a large scale, 3 days event was designed and run between 12th and 14th December, involving new levels of challenging Activity Based Learning and Development designed to bring out the genuine behaviors from managers and then allow new strategies to be considered.

82% of ADGAS management body are Nationals

December 2010 saw evidence of ADGAS’ continuing commitment to the development of its management population with the running of the Management Development program on Sir Bani Yas Island. 32 32


ADGAS Family

Corporate Survey

ADGAS realizes the time-honoured fact that loyal, motivated employees constitute the cornerstone of corporate success. It treats its employees as members of one family, providing all possible services and conveniences that make life and work easier for them.

ADGAS considers its employees’ viewpoints as drivers for improvement. In 2007, ADGAS started the practice of conducting a corporate survey to gauge the employees’ perceptions on many organizational aspects and concerns. The exercise was proven important and a second survey was decided to be conducted in 2010. Dr. Abdulhameed Al Hosani (Head of Corporate Quality and Change Management) highlighted the corporate survey importance to ADGAS.

Apart from learning and development programs, ADGAS offers its employees and their families’ endless opportunities to engage in a wide range of social and recreational activities around the year to enrich their life and maintain their well-being.

CC&PR Department An important event organized by the CC&PR Department was the annual ceremony to honour those employees who have spent a considerable time in ADGAS. The Long Service Award Ceremony is intended to honour and recognize the efforts and commitment of those who spent 10, 15, 20, 25, 30 or 35 years in the Company, and to present them as role models for young employees. The CC&PR Department also coordinated the subsidized Hajj and Umra trips for Muslim employees and their families who wish to perform this religious duty, negotiating with service providers to ensure maximum convenience for participants. ADGAS continued, in 2010, to demonstrate its responsibility towards its own workforce and its community at large; organizing functions including ADGAS’ annual Family Day, where employees and their families spent an exciting day in the open air, with plenty of games, competitions, prizes and fun, bringing more joy and social interaction to the internal life of the Company.

What value it added to ADGAS and its employees? Corporate survey can add vital feedback to senior management on many issues to allow them to gauge their performance, the organization work environment, measure on employees’ engagement and enablement, level of satisfaction of HR services, and many more. The 2010 survey was compared to the one conducted in 2007 and was also benchmarked with Middle Eastern and Global results.

When did ADGAS start this exercise and what were the objectives?

What were the 2010 survey main highlights?

The first employee opinion survey on a corporate level (corporate survey) was launched in 2007. The main objectives were to establish the following:

In 2010 survey 18 dimensions were measured covering areas such as HR services, employee engagement, communication effectiveness, management effectiveness, pay& benefits, to name a few. Also, in 2010 survey, a new dimension was added, employee enablement, which in combination with employee engagement measurements makeup an outcome called employee effectiveness in the organization.

1. Create a two-way communication channel between senior management and employees 2. Build an environment of trust and transparency 3. Improve both employees’ work and life and ADGAS processes and policies 4. Enhance employee’s effectiveness through better engagement and enablement

How can you gauge the employees’ response to the 2010 corporate survey? The employee response to the second survey in 2010 was excellent with a response rate of 82%. This great result demonstrates the level of commitment and involvement ADGAS employees have, in addition to the wealth of opinion and feedback made available to decision makers in the organization.

Series of actions have been developed by different divisions to address issues raised by employees and an implementation plan with timeline has been set. Pulse surveys in June and December of 2011 will follow to measure 3 main KPIs extracted from the Corporate Survey to gauge progress. These 3 KPIs are: employee engagement, communication effectiveness, and managerial effectiveness.

These functions materialized its own vision that stresses the importance of its role as a socially responsible organization.

33


Health and Safety HSEMS Implementation and Monitoring The ADGAS HSE Management System, which was developed and launched in 2004, has seen its implementation improving steadily. The system complies fully with all the ADNOC expectations and this is demonstrated by the close out of all previously identified gaps and weakness in 2010. Out of 64 recommendations raised by the External Audit team, 56 were effectively closed, representing 88% completion. Furthermore, the HSEMS Steering Group Committee chaired by the ADGAS CEO, have held regular meetings with Program Champions to review the progress and achievements for each program and hence improve further the implementation of ADNOC HSEMS expectations. The figure shows the 2010 HSEMS compliance for each Element as well as the overall compliance. This shows a better improvement than 2009 due mainly to a more pro-active way of handling Contractors and an increase visibility of management on sites.

Awards and Achievements In 2010 ADGAS and its Contractors have accomplished the following extraordinary HSE achievements. • A paper on “CO2 Emission Reduction by minimization of Flaring and Improvement of Boiler Stability & Efficiency” was presented among fourteen other papers in the 2009 ADNOC HSE Award, was awarded Runner up prize in the Innovation Category. • On the 25th October 2010, ADGAS and Contractors have achieved its set target of 20 Million Man-hours without LTI.

34 34


Safety Performance At the end of December 2010, ADGAS and its Contractors achieved 21.3 Million man-hours without LTI, since the last LTI which occurred on 10th March 2009. The lessons learned from the 2008 fatal accident were demonstrated by the closure of 76 actions out of 78 (representing 97%) and this clearly has shown the commitment of ADGAS Managements towards continuous improvement and better HSE performance. In addition to the above, the contractor for the major project (OAG) has achieved an unprecedented record of 14.2 Million Man-hours without LTI since the last LTI recorded in March 2008.

Advanced Safety Audits (ASA) In 2010, a total of 1874 advanced safety audits were conducted which is less than 2009 due to the deferment of Train 1 overhaul. In order to align individual behaviour to safe working practices, the key theme emphasised during behavioural safety audit was the family value concept and what role an individual plays toward his family wellbeing by working safely.

HSE Training Following the finalization of the fatal accident report and the HSEMS external audit report, several recommendations identified the need to improve HSE training by developing and conducting the following additional HSE training topics: • Confined Space Entry.

A numbers of sessions were arranged for both senior and junior staff to attend the above courses as well as other HSE Training courses in line with the 2005 ADGAS Safety case recommendations and the 2008 fatal accident recommendations.

ASA’S VS YEAR

1874 | 2010 2065 | 2009 1721 | 2008

In continuation to implement the Incident Command system (ICS) for Das Island, several training sessions at different levels and for different ICS positions were also delivered in order to fully comply with ADNOC Code of Practice CoP V5-05. In addition to the above ICS courses, several workshops & desktop exercises were also held to allow hands on experience for all emergency response personnel.

1212 | 2007

In 2010, HSE Department has conducted a total of 650 HSE courses attended by 3898 employees (both ADGAS & Contractors) covering a wide range of HSE topics.

650 3898 2010

1182 | 2006 833 | 2005 527 | 2004

HSE TRAINING

645 4164 2009 616 2860 2008 508 2437 2007 487 2381 2006 595 2552 2005 518 2498 2004 655 3665 2003 Total Courses

Total Attendees

• Breathing Apparatus standbys. • An introduction to hazard identification for PTW nominees. • H2S E- learning.

35


Departmental HSE Performance Measurements The 2010 HSE performance measurement for the Departments has shown a substantial improvement in comparison to 2009 and to the targets set for each department. This is in line with ADGAS Policy to improve HSE at all levels and in all disciplines. The performance indicators included in this measurement scheme are: Number of near-miss reported, HSE Workplace meetings, Planned General Inspections, Management Safety Tours, Advanced Safety Audits, HSE Trainings attended against committed schedule and HSE Toolbox talks provided to site workforce.

These audits are essential because they provide ADGAS Management with feedback on the adequacy, effectiveness and implementation of the HSE System in place. Some of the planned HSE audits are conducted by external safety auditors to allow a third party view of the effectiveness of the HSE systems in place. The following are some of the audits provided in 2010:

During 2010 ADGAS has captured all nearmisses including the Process Safety ones and introduced and measured 2 Process Safety KPI’s (PSIR & PSSR).

• Four joint audits conducted by ADGAS and ADMA OPCO staff for the following Contractors: Descon, Target, ADCC and Intergulf.

SO

CI

0S US TA

A IN

Y ET YR LIT BI

EP

OR T

36

The ADGAS Emergency Response Plan is now part of the Das Facility Response Plan.

• Bi Monthly audits of site contractors.

Despite the fact that the number of Near-misses reported in 2010 is slightly less than in 2009, the increased safety attitude & behavior of both ADGAS Employees and contractors has resulted in an increase reporting of Near-misses per employee.

01

Emergency Preparedness

ADGAS 5 year rolling HSE Audit plan covers not only the ADGAS critical operations, facilities and systems but also include its contractors HSE management system.

Near-Miss Reporting

In 2010, HSE Department recorded a total of 3485 Near-miss reports which is less than 2009 due to the deferment of Train 1 overhaul. The ADGAS 2010 HSE KPI related to Near-misses reporting per established position surpassed its stretched target by more than 50%.

ADG AS 2

HSE Audits

• Turnaround Audit conducted to ensure HSE preparedness for Train1 Turnaround. • HSEMS Audit for a Subcontractor for IGD Project was conducted by DNV. • 17 Audits conducted at Contractor sites as part of the HSE Pre-qualification. • Joint ADGAS & ADMA-OPCO HSE Campaign covering all Das Contractor was launched on 20th January 2010 for three months. • Joint ADGAS & ADMA-OPCO Audit team formed & conducted Housekeeping Audits of all Das Contractor Yard on a weekly basis for three months from February 2010 to April 2010.

In 2010 several emergency exercises and evacuation drills were conducted jointly with ADMA-OPCO to test the capability of both companies Emergency Response teams, the personnel awareness of the Emergency and Evacuation procedures and the readiness and effective response of the Das Fire Services. In addition to the above exercises and drills, 4 real emergencies occurred respectively on 16th May, 20th August, 17th October & 10th November 2010 resulting in the full deployment of both ADGAS and ADMA-OPCO Emergency Teams. Furthermore, on monthly basis, evacuation drills are conducted for all ADGAS & Contractors Das buildings. In addition to that, a full evacuation exercise was conducted for the ADGAS/ADMAOPCO HQ Building in Abu Dhabi on the 3rd May 2010.


Emergency Preparedness DATE

EMERGENCY/DRILL SCENARIO

2nd January 2010

Fire / Explosion situation at ADGAS Substation No.6

5th March 2010

Aircraft crash accident at Das Airport

17th April 2010

Gas leak at the ADMA-OPCO CTU Scrubber

8th May 2010

Total power outage at Das-Island

4th September 2010

Gas leak at the OAG site

13th November 2010

OAG Feed gas compressor failure

HSE Performance Measurements DEPARTMENTS/DIVISIONS

RANK

NUMBER OF NEAR MISS RECEIVED

3485 | 2010

Operations

1st

General Technical Services (Das)

2nd

Maintenance

3rd

Administration - Das

4th

Corrosion & Inspection

5th

1091 | 2005

Engineering Support

6th

824 | 2004

Materials Operations

7th

754 | 2003

Product & Quality

8th

415 | 2002

3900 | 2009 3564 | 2008 1787 | 2007 1251 | 2006

“On monthly basis, evacuation drills are conducted for all ADGAS & Contractors Das buildings, a full evacuation was conducted on the 3rd May 2010.” 37


HSE in Projects For every project and major plant modification, a project specific HSE plan is developed by the relevant contractor which identifies all the HSE studies and activities that need to be carried out at each stage of the project, in line with the approved project HSE requirements. The following on-going projects were managed by ADGAS during the year 2010: • Offshore Associated Gas (OAG) • Integrated Gas Development (IGD) • Flare Handling & Emission Reduction (FHER) • Permanent Training Centre (PTC) • STOREX Control System Upgrade (CSU) • New Paraphinic Naphtha Tanks

Products Safety and Responsibility ADGAS aims at satisfying its customers through producing the best natural gas liquids products. The products specifications go through an intensive lab analysis before they are shipped. Strict HSE and Quality control measures are taken throughout the production stages to ensure products quality and customers’ Health & Safety criteria. In 2010, we had no record of any non-compliance incident in our products.

Occupational Health ADGAS has intensified its efforts to provide Occupational Health care service in a constant endeavour to provide a healthy workplace to its employees.

In 2010, there were seven cases of occupational illness mainly from heat stress for contractor staff. There were no identified cases of reportable occupational illnesses for the direct ADGAS staff. This has been credited largely due to the various awareness & training campaigns involving every level of the workforce.

Occupational Health Surveillance A system has been developed for occupational health data monitoring of ADGAS employees in collaboration with Das Clinic. This is in line with ADNOC-COP requirement to establish a system of health surveillance in order to assess the impact of occupational health hazards on employee health. The health data is collected considering similarly exposed group of employees, to evaluate the adverse effect of an occupational health hazard on the affected organs of the human body considering the pre & periodic employment health records and other relevant examinations.

Workplace Monitoring Workplace monitoring has been conducted in a planned manner based on the major health hazards as identified in the Occupational Health Risk Assessment. The monitoring program mainly focused on the chemical [welding fumes, isocyanate based paints and Benzene, Toluene, Ethyl benzene & Xylene (BTEX)] & physical hazards (heat, noise & radiation).

Welding Fumes The Fabrication & Welding area is a sub-section of the General Technical Services Department

(GTSD) workshop and is responsible for construction

& re-building of any metal based items on the plant like pipe works, vessels and structures. Two surveys were conducted to analyze the contaminants in the welding fumes & the suspended particulates for the welders. The sampling focused on the fume contaminants & the total particulate matters concentrations in the ambient air of the workplace. All the sample results were within the permissible exposure limits.

Isocyanate based paints The Blasting & Painting workshop is responsible for preparation and painting of all new & corroded pipe work and other assets on the Production Plant. Workplace monitoring was conducted for evaluating the airborne concentrations of Isocyanate during the spray painting operations for the painters. The result indicated the level of isocyanates to be well within the permissible limits.

Benzene, Toluene, Ethyl Benzene, Xylene (BTEX) The Product Quality Department carries out regular testing, verification & approval of all incoming raw materials, outgoing products and process streams for ADGAS and ADMA operations on Das Island. Workplace monitoring was performed to estimate the concentration of BTEX in the workplace along with biological monitoring for urinary metabolites amongst the product analysts performing sampling and testing functions. The monitoring yielded negligible concentrations of BTEX in the workplace & the biological samples.

“A project specific HSE plan is developed by the relevant contractor which identifies all the HSE studies and activities that need to be carried out at each stage of the project”

38


Life Cycle Assessment- Health and Safety YES Development of product concept

9

Research and Development (R&D)

9

Certification

9

Manufacturing and production

9

Marketing and promotion

9

Storage distribution and supply

9

Use and service

9

Disposal, reuse or recycling

9

OCCUPATIONAL ILLNESS CASES - 2010

NO

0 | JAN 0 | FEB 0 | MAR 0 | APR 0 | MAY 0 | JUN 5 | JUL 2 | AUG 0 | SEP 0 | OCT 0 | NOV 0 | DEC

HSE studies conducted in 2010 for on-going ADGAS projects. HSE STUDIES \ PROJECTS

OAG

Hazard Identification (HAZID)

9

HSE Plan

9

IGD

FHER

PTC

9 9

Hazards & Operability Study (HAZOP)

SCSU

NEW PARAPHINIC NAPHTHA TANKS

9

9

9

9

9

9

9

9

9

9

9

HSE Impact Assessment (HSEIA)

9

9

HSE Requirements

9

9

Safety Integrity Level (SIL)

9

Project HSE Review (PHSER)

9

Quantified Risk Assessment (QRA)

9

9

9

9

9

9

Occupational Hygiene Monitoring Schedule - 2010 JAN Thermal Environment Welding Fumes

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

9

9

9

9

9

9

9

9

9

9

9

9

9

Isocyanate Paints

9

9

BTEX

9

9

Noise

9

39


40 40


Thermal Environment A bimonthly monitoring of thermal environmental condition was carried out to estimate the Thermal Work Limit (TWL) as advocated by Health Authority of Abu Dhabi (HAAD) as an index of evaluating thermal load for outdoor work in gulf conditions. This enabled the estimation of maximum safe work rate for working in heat with the prescribed work-rest cycles for the workers.

Noise Personal noise dosemetry was conducted for employees in Utility (Maintenance) to quantify the noise dose from exposures while performing routine activities in the plant. The collected data showed a substantially high level of noise in reference to the threshold limit. The impact on hearing acuity is being checked from the medical records to analyze the effect of noise on the human ear as well as the effectiveness of the current Personal Protection equipments such as ear plugs and muffs in reducing noise to safe working level.

Naturally Occurring Radioactive Material (NORM) A thorough survey was initiated to assess the presence of NORM sources in the plant operations in line with the ADNOC-COP requirements. The survey considered the sludge samples from several plants in Train 2 & 3. The results showed that the NORM levels for all the solid waste samples are well within the ADNOC exemption limits. This NORM analysis acts as a baseline assessment and will be followed by a survey during the upcoming Train-1 Overhaul in 2011.

HEAT STRESS AWARENESS CAMPAIGN - 2010

CAPE | 06 GRANITE | 08 METITO | 09 INTERGULF | 12 IMECO | 16 IRSHAD | 10 ADMA | 35 DFIS | 01 ALMELEHY | 06 HYUNDAI | 04 ADGAS | 07 GINORSE | 02 HHI | 04 TARGET | 02 CLEANCO | 07 ADCC | 06 FIRE SERVICE | 03 TECHNIP | 01 ADT | 01 GOGAS | 01 WOONGJIN | 02 Attending company

Number of people

41


Training & Awareness ADGAS organized numerous awareness presentations for adverse thermal environmental conditions encountered in the summer months. The program was attended by key personnel from ADGAS & its contract companies. An awareness video on heat stress was also incorporated in the company portal to emphasize the seriousness of heat stress and its health implications. Several health spotlights were circulated throughout the year covering the most significant workplace hazards like noise, heat and office ergonomics. The spotlights also focused on lifestyle issues like smoking and obesity. Numerous posters related to occupational health hazards and first-aid was distributed amongst the various departments to enhance the general awareness of the employees.

Assistance Programs ADGAS concern for its employees reaches their families too. We ran several campaigns throughout the year about road safety, heat stress, fires at home and others. We encouraged all the employees to deliver these massages to their families and friend. ADGAS medical coordinators are available to give medical advices to the employees and their families.

ADGAS and its Community If we search for a keyword that best describes the values of ADGAS, that keyword would be “responsibility”. In its established policies and everyday activities that target its internal workforce or its external stakeholders and community, ADGAS acts as a responsible employer and a responsible citizen.

ADG AS 2

01

SO

A IN

Y ET

CI

0S US TA

YR LIT BI

EP

OR T

42

We have been blessed by the unconditional support extended to us by the leadership, since the early 1970s, when the late Sheikh Zayed Bin Sultan Al Nahyan laid ADGAS foundation stone as an environmental and economically feasible enterprise. Therefore, we try to pay back what we have long received; knowing that what you give will always get back to you in more than one way. We realize that we work within a community to which we are accountable. The issues and concerns of this community are at the core of our business, and we continuously work to address them in the best way we can. The following are just samples of how we approach our responsibilities towards our local community:

Educational Support ADGAS knows that its future success depends on having enough technical expertise in the local market. With a globally recognized shortage of engineering and technical expertise that is vital for the oil and gas industry, ADGAS goes out of its way to motivate young students towards following technical and engineering disciplines. To this end, ADGAS sponsors various academic functions in the local academic institutions. In 2010, ADGAS sponsored the Higher Colleges of Technology (HCT’s) Abu Dhabi Industrial Award that aims at recognizing and honouring academic excellence, especially in the engineering discipline. It has also sponsored and contributed to other functions within the HCT and ADNOC’s Petroleum Institute (PI) and those organized by the Society of Petroleum Engineers (SPE). To acquaint young UAE students with the gas industry and the available future careers in this sector, ADGAS regularly organizes student trips to its facilities on Das Island, followed by competitions for the best reports written by students on such trips.

In certain cases, like employment exhibitions, ADGAS organizes shows and presentations in campus to acquaint students with the rewarding careers in ADGAS and in the oil & gas sector at large.

Health Awareness ADGAS shares its community’s concerns about the health issues faced by the population. In the UAE’s opulent society, diseases like diabetes, high blood pressure and heart problems are common, and national campaigns are launched to combat such diseases. ADGAS was closely involved in sponsoring these campaigns, encouraging healthy lifestyles, participating in walking events, organizing specialized presentations and lectures, issuing various health-related messages for both internal and external audiences and organizing blood donation campaigns. The Company’s organ (ADGAS News) has regularly featured articles and stories that address health issues.

Humanitarian Issues As a socially responsible organization, ADGAS has always been committed to the concept of “giving back” to society. In 2010, it took the initiative by organizing special events for children of special needs, donating heavily to help their institutions provide a better service for this challenged group of people. It has also sponsored some Red Crescent campaigns and Civil Defense initiatives.

National Events To further establish its role as an active and responsible citizen, ADGAS got also involved, in 2010, in sponsoring national events that aim to promote local heritage and traditions like Al Dhafra Date Festival and Abu Dhabi Camel Festival.


Assistance Programs EDUCATION/TRAINING Program recipients

Yes

Workers

9

Workers’ families

9

Community members

No

COUNSELLING Yes

No

9

9

PREVENTION/RISK CONTROL Yes

TREATMENT

No

Yes

9

No

9

9

9

9

9

ADGAS

CONTRACTORS

9 9

ADGAS & Contractors 2010 HSE Performance ELEMENT \ COMPANY

ADGAS + CONTRACTORS

Number of Man-Hours worked

1,825,000

9,175,000

11,000,000

Fatalities

00

00

00

Lost Time Injury

00

00

00

No of Accidents

12

03

15

Restricted Workday Cases (RWDC)

00

03

03

Medical Treatment Case (MTC)

01

01

02

Lost Time Injury Frequency Rate (LTIFR)

00

00

00

Absentee (hours)

4,866

144

5,010

Vehicle Accident

02

01

03

“In 2010, ADGAS took the initiative by organizing special events for children of special needs, donating heavily to help their institutions provide a better service for this challenged group of people.”

43


ENV IRO ENT NM


Comprehensive environmental protection policies and processes typify all ADGASâ&#x20AC;&#x2122; operations Projects address diverse environmental concerns, such as reducing impact, conserving natural resources, and minimizing emissions and total carbon footprint. Opportunities for further improvement are constantly under review.

45


ADGAS places the environment and its protection at the top of its agenda. As part of its ongoing commitment, ADGAS invests significantly in environmental protection schemes, such as flaring and emissions reduction, to minimize the environmental impact of its operations and conserve natural resources.

Environmental Protection Expenditures (AED)

Waste Disposal (5,082,490) Emissions Treatment (50,506,823) Prevention (179,441) Environmental Management Cost (7,842,335)

ENV IRO

ADG AS 2

01

A IN

T EN NM

0S US TA

YR LIT BI

EP

OR

T

46

Environmental Management System ADGAS continues to maintain its status of ISO 14001 certification from Lloyd’s Register of Quality Assurance through successful surveillance audit as per revised standard ISO14001:2004. Four internal and two external Audits of ISO 14001 were completed as per the plan. In 2010 only one minor observation was reported by external auditor.

Environmental Baseline and Impact Assessment Study In accordance with the requirements of ADNOC COP, a joint ADMA/ADGAS Environmental Baseline Study (EBS) of Das Island and separate Environmental Impact Assessments (EIA) of ADGAS existing facilities and operations were completed. ADMA, the job officer of the project awarded the job to M/s. Blue Sea Environmental consultant. The field work started in 2009, and the project was completed in Quarter 1 of 2010. EBS determined the current status of the “Das Island” marine, terrestrial and atmospheric environments. In the EIA, the impacts of existing ADGAS Das Island facilities and operations on various environmental aspects were evaluated. EIA included a detailed analysis of potential environmental impacts of different ADGAS operations on environmental components, like air quality, ambient noise, seawater quality and marine flora and fauna. Best practices were identified to minimize potential environmental impacts and improve environmental performance of existing ADGAS Das Island facilities and operations.

Flaring and Emissions ADGAS produces a clean source of energy which produces less carbon dioxide. ADGAS is striving to reduce its operational impact on environment and is planning to drastically reduce its emissions and flaring by 33% in 2015 from its 2010 levels. ADGAS average flaring during 2010 was 9.2 mmscfd against a target of 13.0. The major contributors to this success goes to implementation of fuel gas process control in Train 3 and plant efficiency enhancement which lead to a reduction in the flaring due to plant trips and reduced Green House emissions by 272,314 Tonnes of CO2 equivalent and the deferment of Train 1 overhaul.

Monitoring of Stack Emissions and Ambient Air Quality ADGAS is routinely monitoring stack emissions sources (boilers and gas turbines), and ambient air quality on Das Island twice a year by using chemical analytical methods. Ambient air quality was evaluated in six different locations for Respirable Particulate Matter, Total Suspended Particulates, Sulphur Di Oxide, Oxides of Nitrogen and Hydrogen Sulphide. Respirable Particulate Matter and Total Suspended Particulates are above limits in four locations.

Environmental Projects ADGAS is actively pursuing several projects for the improvement of its environmental performances. Amongst these, flaring reduction schemes are being top most priority. Ongoing environmental projects are listed below:

Flaring Reduction Schemes (Package 1) To align with the shareholders commitment, ADGAS set itself an aggressive plan for accelerated implementation of three flaring


reductions scheme. After the implementation of all the schemes in this package; Flaring is expected to be brought down to a level of 4.3 MMSCFD. 2 of the schemes are planned for implementation in 2011 bringing flaring to 5-6 MMSCFD and the third scheme is intended for implementation in the coming 5 years.

Emission Reduction Schemes (Package 2 & 3)

Gas Flaring (MMSCFD)

9.2 | 2010 16.5 | 2009 14.5 | 2008 15.6 | 2007 21.4 | 2006

Two separate engineering packages that aim to reduce CO2 and non-CO2 emissions from ADGAS sources.

22.7 | 2005

Package 2: Energy Efficiency Improvement/ CO2 Reduction Schemes

Annual Emissions (Tonnes)

Comprising three schemes, this package is based on improving thermal efficiency of the existing boilers and gas turbines. The implementation of these schemes is expected to lead to an annual reduction of approximately 350KTons of CO2.

Package 3: SRU Reliability and Integrity Improvement Schemes/SOx reduction. The nine schemes in this package are focused on improving the reliability of the Sulphur Recovery Units, while one will replace sour fuel gas with sweet gas to run the gas turbines. It is expected that these schemes will result in a total reduction of SOx of approximately 44 KTon.

Effluent Treatment Plant

NOx | 4,544 SOx | 57,261 VOC | 2,580 Methane | 4,364 PM |

117

ODS & CFC-11 |

0

Tonnes of CO2 equivalent Direct Green House Gas Emissions

| 4,904,299

Indirect Green House Gas Emissions

| 1,016

Other Indirect Green House Gas Emissions

| 3,373

ADGAS had engaged a consultant to recommend measures to meet the UAE federal regulations for discharging its effluents to sea. Several site visits had been made and samples collected for analysis. Treatment process has been finalized and FEED work has been completed.

â&#x20AC;&#x153;ADGAS is actively pursuing several projects for the improvement of its environmental performances. Amongst these, flaring reduction schemes are being top most priority.â&#x20AC;?

47


Energy Efficiency and Monitoring Following a high level energy study by ADNOC, ADGAS has engaged a consultant to carry out detail study on energy optimization and framed a list of short term and long term recommendations. Accordingly a road map has already been circulated for evaluation by various departments.

Environmental Protection and Waste Reduction initiative With a clear focus on saving precious natural resources, in support of sustainability, an Environmental Protection and Waste Reduction initiative was launched in the form of 3 key focused promotional schemes during 2010. a.

‘Save Water’ Campaign involved installation of water saving devices in the headquarters building, residential accommodation and Das Island.

b. ‘Energy Saving Bulbs’ were distributed to all employees for use in their homes in

c.

In addition to the above an Energy awareness presentations were conducted to further emphasize the role of individuals in conserving energy. ADGAS has also completed in-house study about its performance on energy usage. Specific energy consumption (SEC) data for individual trains have been evaluated and procedures have been developed for monitoring of boilers and Gas turbine efficiencies. Further, an initiative has been put in place to engage a team of energy specialists to make a detail energy study for ADGAS trains. ADGAS doesn’t generate or consume energy through renewable sources.

Abu Dhabi – this helped save energy.

Materials

An incentive scheme for reduction in utilities’ consumption was launched to

ADGAS tracks the consumption of raw materials, semi-manufactured goods and direct materials internally to monitor material efficiency and the cost of material flows. Due to the nature of ADGAS operations, no input materials are recycled.

encourage employees and families to optimize consumption of electricity and water at homes. The Incentive Scheme, coupled with ‘Save Water and Electricity’ campaign, resulted in achieving utilities reduction by 5 to 39% during 2010.

2010 Total materials consumed

10,883,707

ENV IRO

ADG AS 2

01

Total weight (tonnes)

A IN

T EN NM

0S US TA

YR LIT BI

EP

OR

T

48


61,310,000 GJ 2010 total direct energy consumption

21,990 GJ 2010 total indirect energy consumption

300,000 GJ 2010 total energy saved

“An Environmental Protection and Waste Reduction initiative was launched during 2010. The Incentive Scheme, coupled with ‘Save Water and Electricity’ campaign, resulted in achieving utilities reduction by 5 to 39%.” 49


CASE STUDY: Paperless Day Campaign ADGAS celebrated the paperless day on 03/06/2010. In order to commemorate the day and to demonstrate ADGAS commitment, printers and copiers across all ADGAS offices were switched off, regulating to absolute minimum. This initiative was intended to encourage reduction in use of paper. The effective campaign resulted in achieving a significant reduction by 56% or 1.9 tons in paper wastes (equals saving of 38 trees) compared to 3.4 tons of paper wastes generated in 2009. EAD’s report announced that ADGAS helped reduce carbon emission by 798 kg, following the ‘paperless’ day.

Water

Waste Disposal

ADGAS understands the overall scale of potential impacts and risks associated with excessive water usage. Huge amounts of seawater are harnessed in the cooling of the LNG plant and to produce potable water.

793 tons of hazardous materials were sent to BeAAT for disposal during 2010. Waste generation and disposal continue to be tracked and monitored.

ADGAS is increasing its focus on water saving through campaigns to rationalize water consumption, and also through the installation of water-saving devices in its offices and employees’ homes. ADGAS had withdrawn 1,087,613,658 m3 of sea water for the LNG plant equipment cooling and desalination and 15,902 m3 of municipal water.. Due to ADGAS operations nature, we do not recycle or reuse water. ADGAS ensures that the water discharged back to the sea is free of any hydrocarbon by using Low pressure steam injected to disperse tracing hydrocarbon vapor carry over. The 2010 total discharged water was 1,038,354,484 m3.

Concentrations for all solid waste samples were well within the ADNOC exemption limits. There are no specified guidelines in ADNOC CoOP on Liquid samples for NORM. However, ADGAS carried out liquid sample analysis to have basic information about the nature of NORM parameters that may persist in the samples. Results will be further validated with a more detailed analysis with an expanded scope in 2011.

Transportation ADGAS recognizes the significant environmental impacts of transportation systems, from global warming to local smog and noise. The statistics available from transportation data outlined below provides a baseline for optimization in the future. As this is a new indicator and not all data was available, relevant assumptions were used in our calculations.

“ADGAS is increasing its focus on water saving through campaigns to rationalize water consumption, and also through the installation of water-saving devices in its offices and employees’ homes.” 50


Waste Disposal WASTE DISPOSAL METHOD

HAZARDOUS WASTE DISPOSED (TONNES)

NON-HAZARDOUS WASTE DISPOSED (TONNES)

Composting

0

0

Reuse

0

0

Recycling

0

483.034

Recovery

0

0

Incineration

0

0

Landfill

0

0

Deep well injection

0

0

On-site storage

0

0

Other (specify)

794.22 – Sent to Takreer BeAAT

1107.4

DAS ISLAND

ABU DHABI

Paper | 1,600 KGs

To BeAAT(Haz) | 793 Tons

Pastic | 1,400 KGs

Recycle | 483 Tons

Metal |

400 KGs

Musafah(N.Haz.) |

0 Tons

Municipal | 467 Tons

Transportation VEHICLES

PLANES (DAS ISLAND)

VESSELS (DAS ISLAND)

Distance travelled (km)

7,921,670

372,320

20,700

Energy use (GJ)

25,923

22,860

-

Emissions of NOx (tonnes)

2.0

1.0

-

Emissions of CO2 (tonnes)

1,671

1,631

-

Total spills (m3)

0

0

0

51


Das Island Future Projects

EC O

N Y OM


53


TEPCOâ&#x20AC;&#x2122;s Futtsu Thermal Power Station

54 54


ADGAS has a strategic objective of creating wealth to its shareholders and maximizing its revenue from Operations. ADGAS has a dedicated marketing division that markets ADGAS products and optimizes its selling conditions with current and potential customers.

Tokyo Electric Power Company (TEPCO) ADGAS Marketing, Sales and Production coordinate production schedules to meet agreed customer contract requirements. ADGAS’ exceptional commitment to these schedules is evident in the high-level management participation in managing the relationship with our main customer. Our commitment to TEPCO includes a permanent office, Tokyo Liaison Office (TLO), and personnel at their location to ensure accurate and timely communication, which in turn ensures that TEPCO’s requirements are addressed on an immediate basis.

Other Customers As an ADNOC group company, ADGAS is a key contributor to the wealth of Abu Dhabi and the nation. ADGAS LNG, LPG, Paraffinic Naphtha and Sulphur sales have generated vast revenues over the past 30 years, maximizing shareholders’ returns. Additionally, ADGAS is set to play a key role in Abu Dhabi’s vision of 2030, supplying natural gas from offshore to onshore facilities to meet the increasing local demand. Great examples of this shift are the recently commissioned Offshore Associated Gas project (OAG) and the Integrated Gas Development (IGD) projects, which will supply in total 1 billion standard cubic feet per day of natural gas.

Customers Providing our customers with quality products has helped us create longstanding strong relationships, among the most notable being our relationship with our main customer, Tokyo Electrical Power Company (TEPCO), which dates back to ADGAS’ beginnings in the early 1970s.

Although TEPCO is our primary customer, ADGAS applies the same diligence and quality to other customers to ensure maximum satisfaction. The marketing team schedules semi-annual customer visits to better understand evolving customer needs and gauge perceptions that will allow us to enhance customer satisfaction. These routine visits are supplemented by meetings on the sidelines of major regional and global industry conferences and seminars. The overall excellent perception of ADGAS in the eyes of its customers is essentially the outcome of sound management of customer relationships. ADGAS regularly conducts customer surveys designed to measure customer perceptions on a five-point scoring system covering image, satisfaction levels, products and services, support and services, and loyalty. 2010 customers’ satisfaction was 100% and zero cases of breaching of customer privacy and losses of customer data.

Suppliers By supporting local business in Abu Dhabi & UAE in general in the supply chain, ADGAS indirectly attracts additional investment to the local economy. ADGAS follows ADNOC guidelines and procedures and implements a strict procedure in evaluating and selecting bidders. The evaluation is governed by the supplier HSE-prequalification, price, delivery time, specifications and performance. In line with ADNOC guidelines, ADGAS deals with foreign suppliers through local sponsors, which are entitled to a percentage of the foreign supplier contract, thus ensuring that some of this money is spent locally. In 2010, ADGAS spent 85.2% of the procurement budget on local suppliers.

Natural Resources ADGAS believes in conserving the country’s natural resources. The natural gas supplied from the upstream company ADMA-OPCO is the main natural resource consumed by ADGAS. We utilize high quantities of this natural gas in producing Liquefied Natural Gas (LNG) and other by-products, and in generating power and steam to keep our LNG plant operating. We make sure that our operations are efficient to capture all incoming natural gases from ADMA and enhance throughput by minimizing wastage through flaring and reducing opportunity losses.

55


OAG Snapshots

April 2010 Commissioning date Dec 2010 Full capacity production 2,500 Peak Manpower involved Offshore Associated Gas (OAG) Project In 2010, ADGAS started playing an additional major role in the natural gas supply to the onshore network through exporting the gas from the offshore fields. This new role in addition to the existing natural gas and sulphur products export adds to the company strong influence in the National Energy Strategy and its importance to the minimum interruption of the UAE Offshore oil production. Mr. Bader Al Mohammadi (Senior Vice President (Technical)) sheds light on the added importance of the OAG to ADGAS and the country’s economy, environment and society:

How will the OAG contribute to the national economy and its sustainable development? With the increasing demand of energy in the growing and developing local economy, OAG is providing a new source of gas to the onshore network linking the onshore and offshore gas fields and processing networks.

ADG AS 2

EC

01

ON A IN

Y OM

0S US TA

YR LIT BI

EP

OR T

56

This is a great achievement as both offshore & onshore large reserves are now integrated giving more flexibility and solutions during contingencies. OAG and the coming IGD facilities (project under construction) is now a key economic contributor to Abu Dhabi vision 2030 which depends on the oil & gas sector to provide the growth that will be necessary to achieve the Emirate’s agenda of economic diversification. Another key advantage for OAG is that it provides ADGAS with additional gas processing capacity that will give ADMA-OPCO more freedom to produce any quantities of oil. Before that, ADMA’s production used to suffer whenever there was a major shutdown in ADGAS trains, as ADNOC’s strict policy prohibits flaring associated gas into the air. OAG supplies the onshore network with around 200 MMSCFD which constitutes around 20% of ADGAS production. The supplied quantity is going to increase to 1000 MMSCFD with the planned commissioning of the IGD project in Quarter 3 of 2013. Such supply provides clean source of energy to the onshore power generation facilities. OAG also creates a downstream advantage to our sister company GASCO by improving its facilities and, operational flexibility.

What are the OAG positive impacts on the environment and society? Besides the provision of clean source of energy to the onshore power generation facilities, OAG is contributing positively to environment and society through minimizing the natural gas

flaring and emissions to atmosphere that will occur if ADGAS facilities are shutdown. This follows ADNOC strict guidelines on flaring and emissions.

How can the OAG enhance the LNG plant value creation? OAG gives ADGAS LNG plant more flexibility in optimizing the Turnaround duration thus increasing availability and revenue. It also, gives a chance to explore new customers with varying LNG specification thus leading to increasing ADGAS marketing portfolio.

How else OAG played an active role in creating a value for the society and ADGAS employees? The project contributed to the social sustainability through creating jobs and developing ADGAS experience in the gas compression operations and maintenance. It enhanced ADGAS employees’ project management skills which is an asset for any future projects. Our employees were also exposed to other companies experience and knowledge nationally and internationally. The project execution and commissioning sharpened our existing coordination and decision making skills as we are now dealing with new downstream stakeholders. The OAG was a great chance for UAE nationals to develop their technical and administration skills and sharpen their talents. ADGAS is proud to have the new experience of maintaining and operating one of the longest dense phase gas pipelines in the world.


57


Risk Management/Risk Assessment Risk management is about achieving an appropriate balance between realizing opportunities for gains while minimizing adverse impacts. It is an integral part of good management practice and an essential element of good corporate governance. To be most effective, it has been a constant endeavor to embed risk management as part of the ADGAS’ culture, practices and business processes, rather than be viewed or practiced as a separate activity. With the implementation of an Enterprise Risk management (ERM) Framework in ADGAS, a one consistent framework for managing all risks across ADGAS and its divisions exists.

ADGAS’ ERM framework comprises of: • An Enterprise Risk Management policy statement expressing a clear mandate; • An overarching set of Standards that set the performance requirements for risk management;

• Supporting Guidelines that provide a consistent, generic tool kit of best practice methods to satisfy the requirements of the Standards; • A consistent process for risk analysis and setting priorities; • A consistent vocabulary for risk management; • A risk management information system with appropriate functionality to support and drive consistency, is currently under implementation The core set of risk management processes is consistent with ISO 31000:2009.

Risk Register ADGAS’ corporate risk register contains a set of 33 key ‘headline’ risks. Of these risks, 19 have negative impacts and 14 represent potential opportunities with positive consequences for the company, as summarized in the Summary Risk Register Table. Each headline risk has been developed from a group of more detailed risks.

Risk Treatment Treatment workshops are regularly held in order to: • Examine selected corporate risks in detail; • Review existing controls and their effectiveness • Identify options for improvement, and their associated benefits and costs; • Agree actions for improvement. A number of additional controls or improvement initiatives are agreed as an outcome to the risk treatment workshops. Actions for improvement were drawn up and followed up for active implementation. The level of the risk will be reviewed and will be scaled down only when it is conclusively established that the actions are implemented and are working effectively. This is a continuous process.

“ADGAS’ corporate risk register contains a set of 33 key ‘headline’ risks. Of these risks, 19 have negative impacts and 14 represent potential opportunities with positive consequences for the company” 58


ERM Process

Summary Risk Register

Likelihood

Consequences Insignificant

Minor

Moderate

Major

Catastrophic

E

D

C

B

A

1xO 1xR

3xO 7xR

4xO 1xR

2xO 3xR

A: Almost Certain B: Likely C: Possible

1xO

D: Unlikely

2xO 2xR 3xR

E: Rare Key:

Low

Medium

High

Extreme

59


ADGAS Asset Integrity & Reliability Management Systems (AIRMS) ADGAS is implementing the “Asset Integrity & Reliability Management Systems” with the continuing goal of improvements in integrity assurance through better-defined processes, procedures and records, and a reduction in errors and, consequently opportunity losses. Greater awareness of the fundamental role of integrity to safety and performance by all employees is fundamental to AIRMS implementation and sustainability. This process enhances the overall sustainability of ADGAS’ performance through higher reliability of the systems, fewer losses due to equipment failures, lower overall emissions from flaring and more efficient energy use from stable operations. The structural hierarchy of these objectives with the policies of ADGAS is shown in this figure: Specific efforts to attain this goal in 2010 were improved training and frequency of training for AIRMS awareness. Workshops with ADGAS departments were held to explain and develop the HSE-CES Performance Standards. An improved training course and a much greater extent of coverage for RCA investigation training were initiated. Better liaisons between L&D and Production to track all training for a better assessment of needs and results were established.

The management’s commitment and presence was evident through two Steering Committee meetings and four Element Champion/Process Owner meetings. Better focus by the Element Champions on specific deficiencies in related processes was noticed in 2010.

Integrated Gas Development (IGD) The Das Island IGD facility, which is planned to be commissioned in the third quarter of 2013, will enable an additional 880 mmscfd of HP Gas from Umm Shaif to Habshan through Das Island. The produced gas will be initially processed in the ADMA-OPCO facilities at Umm Shaif and then sent to the IGD facilities on Das Island. There, the gas will be conditioned for export to Habshan through the new 30” (OAG) pipeline. At Habshan, the gas will be further processed in the OAG facilities and new trains for optimum production of lean gas, which will be sent to the gas header, and NGL, then to storage. The NGL will then be sent to GASCO Ruwais for further fractionation.

Our challenge in 2011 is to improve the ability of AIRMS to provide leading indicators that are acted upon by the responsible individuals. That will include enhancing the timeliness and transparency of information, improving the general awareness of AIRMS’ goal and the engagement of all employees in recognizing the fundamental relationship of their job knowledge and performance to integrity, reliability and their own safety. The management must remain (or increase) visibly promoting the actions required by AIRMS through personal/team discussions, accurate performance appraisals and feedback, and allocation of resources to accomplish the objectives.

Trains 1 & 2 Replacement Options

Strategic Projects ADGAS plays an important role in contributing to the national energy strategy. The ultimate outcome of National Energy Strategy (NES) theme in ADGAS Strategy map is to optimally utilize the natural resources to maximize value to the country and shareholders. Keeping this in mind, ADGAS looks at its future obligations and business continuity opportunities very seriously and started to embark on theses strategic projects:

For ADGAS business continuity, feasibility study was undertaken whether to rejuvenate the existing Trains 1 and 2 or replace them with a new single Train. Both options were found technically feasible but replacement train is economically better besides other advantages of safety and environment. The project is under PRE-FEED study.

“The Das island IGD facility, which is planned to be commissioned in the third quarter of 2013, will enable an additional 880 mmscfd of HP Gas from Umm Shaif to Habshan through Das Island.”

60 60


The AIRMS Pyramid

61


62 62


Report Parameters Process for Defining Report Content Determining our Priority Issues: We have undertaken a systematic process to identify ADGASâ&#x20AC;&#x2122;s priority sustainability issues. We have applied each of the principles for defining report content. Our process has resulted in the identification of sustainability issues across the stages of our development process and in our corporate functions that will drive our sustainability strategy. We report on the relevant issues for each stage and for our internal crosscutting functions in this report. These issues are all deemed essential to business success and are not prioritized. Prioritization within each issue is defined in the form of a selected group of Key Performance Indicators (KPIs) and related targets that we have determined as the best means of achieving progress towards sustainability. Materiality: We think that we have covered all topics (and included associated indicators) that reflect the organizationâ&#x20AC;&#x2122;s significant economic, environmental, and social impacts, or that would substantively influence the assessments and decisions of stakeholders. This includes main issues raised by stakeholders, issues reported on by our peers, standards and guidelines including the GRI G3 Reporting Guidelines.

Stakeholder inclusiveness: We considered and believe we have identified all of our key stakeholders and have outlined how we engage them, our understanding of their interests and expectations, and how we have responded.

Clarity: Sustainability is a relatively new concept in our region and we have made an effort to provide introductory information where useful to facilitate reader understanding of the report content.

Sustainability context: We considered our sustainability context, taking into account global trends towards sustainability, but also considering regional and local contexts in which we operate. In some cases we point out the different priorities among these contexts, and how we try to best address these issues from multiple perspectives.

Re-Statements & Changes: Compared to our 2009 Sustainability Report, this report does not have any re-statement or significant changes in its scope, boundaries or measurements methods

Ensuring Quality in Our Sustainability Reporting

Reporting Boundaries

Balance: We believe this report presents both the positive aspects of our performance and areas requiring significant improvement. Comparability: Wherever possible we have provided 2005 to 2010 year-on-year data (end: Dec 31 each year), and have attempted to follow the GRI Indicator Protocols in order to facilitate comparison of our report against industry peers and other companies. Accuracy: We have aimed for maximum accuracy. Where estimations or other limitations to the data are involved, this is identified.

Assurance: This report is not assured by a third party.

Limitations: Energy calculations were made based on the most appropriate assumptions and knowledge. The exact calculation of some parameters like emissions and plant-related KPIs are also based on certain technical assumptions. Some data did not directly exist in our systems and relevant efforts were made to get the most practical figures. Data measurement techniques: all the data in this report are accurate as much as possible. No estimations or extrapolations were made to cover for any missing data gap.

63


GRI Reporting Index 1. Strategy & Analysis GRI

4. Governance, Commitments & Engagement PAGE(S)

PAGE(S)

GRI

PAGE(S)

1.1

p. 5

4.1

p. 10-13

EN1

p. 48

1.2

p. 8-1, 14-15, 21-24

4.2

p. 12

EN2

p. 48

4.3

p. 10-12

EN3

p. 49

4.4

p. 12

EN4

p. 49

4.5

Proprietary information

EN5

p. 49

4.6

Proprietary information

EN6

p. 46-49

4.7

Proprietary information

EN7

Not applicable

4.8

p. 9-11, 22-23

EN8

p. 50

EN9

ADGAS Operations Doesn't affect any significant water source p. 50

2. Organizational Profile GRI

PAGE(S)

2.1

p. 8

2.2

p. 8

2.3

p. 12-13

2.4

p. 8

2.5

p. 8

2.6

p. 12-13

2.7

p. 8

2.8

Proprietary information

2.9

p. 8

2.10

p. 9

3. Report Parameters GRI

64

GRI

6. Environmental

PAGE(S)

3.1

p. 15

3.2

p. 15

3.3

p. 15

3.4

p. 2

3.5

p. 63

3.6

p. 63

3.7

p. 63

3.8

p. 63

3.9

p. 63

3.10

No re-statement

3.11

p. 63

3.12

p. 64

3.13

p. 63

ADGAS 2010 SUSTAINABILITY REPORT

4.9

p. 10-13

4.10

p. 10-13

4.11

Does not exist

4.12

p. 22-23

4.13

p. 18

4.14

p. 18-19

4.15

p. 18-19

4.16

p. 18-19

4.17

p. 18-19

EN11 EN12

ADGAS does not operate near protected areas

EN13 EN14 EN15

5. Economic GRI

EN10

PAGE(S)

EN16

p. 47

EN17

p. 47

EN18

p. 47

EN19

p. 47

EN20

p. 47

EC1

Proprietary information

EN21

p. 50

EC2

Not applicable

EN22

p. 51

EC3

Not applicable

EN23

p. 51

EC4

EN24

No data available

EN25

No data available

EN26

EC6

ADGAS does not receive any financial assistance from the government. UAE does not have minimum wage policy p. 55

EC7

p. 28-30

EC8

Not applicable

EN29

ADGAS produces natural gas products that are shipped in tankers No fines or sanctions were imposed on ADGAS p. 51

EC9

p. 28-33

EN30

p. 46

EC5

EN27 EN28


7. Social GRI

PAGE(S)

GRI

PAGE(S)

LA1

p. 29

SO1

Not available

LA2

p. 29

SO2

Not available

LA3

p. 28

SO3

Not available

LA4

SO4

LA6

No policy exists covering collective bargaining agreements Minimum time period is stipulated in writing in each individual's contract Not available

LA7

p. 43

LA8

p. 43

LA9

trade unions do not exist in UAE

SO7

ADGAS did not have any cases of corruption in 2010. ADGAS did not provide any financial support for any political party ADGAS did not provide any financial support for any political party Zero case in 2010

LA10

p. 30

SO8

Zero case in 2010

LA11

p. 30

PR1

p. 39

LA12

p. 30

PR2

LA13

p. 29

LA14

p. 28

HR1

Not available

PR3

ADGAS is not aware on any voluntary or regulatory non compliance issues related to products or services p. 55

HR2

Not available

PR4

Zero case

HR3

ADGAS educates all employees about their rights p. 28

PR5

p. 55

PR6

p. 55

PR7

Zero case

PR8

p. 55

PR9

No fines or monetary sanctions

LA5

HR4 HR5

HR8

Employees unions do not exist in the UAE. ADGAS engages its employees through other tools. See page 19. Child labour is against the UAE and ADNOC policies. ADGAS adheres to the nationals and internationals workers rights legislations. ADGAS has an overtime policy and prevents any compulsory labour. Zero training in 2010

HR9

Zero case in 2010

HR6 HR7

SO5

SO6

ADGAS sustainability journey continued in 2010 with excellent performance in the sustainability three pillars: Society, Environment and Economy. This is ADGAS second Sustainability report which is a follow-up report to our baseline 2009 Sustainability Report. This report is intended for our employees, customers, shareholders, and the wider community. We hope you will find it informative and insightful. This report sheds light on 2010 sustainability performance and includes some important historical achievements and data in addition to ADGAS future goals. We appreciate the contributions of everyone who provided data and comments on our last report. This made it possible for us to create an enhanced report and broadened our knowledge in sustainability reporting best practices. ADGAS produces this report annually as a printed version for concerned parties and makes it available on www.adgas.com and the employeesâ&#x20AC;&#x2122; intranet. We welcome your feedback on this report. Please send your general comments on sustainability@adgas.com and fill in the electronic feedback-form as described at the end of this report.

65


IPIECA/API Reporting Index IPIECA/API

Page(s)

IPIECA/API

ENVIRONMENTAL PERFORMANCE INDICATORS

SOCIAL & ECONOMIC INDICATORS

E1

Greenhouse gas emissions

p. 47

SE1

Local community impacts and engagement

p. 18-19

E2

Energy use

p. 49

SE2

Indigenous peoples

p. 22

E3

Alternative energy sources

p. 49

SE3

Involuntary resettlement

N/A

E4

Flared gas

p. 47

SE4

Social investment

All the report

E5

Biodiversity and ecosystems services

-

SE5

Local content practices

All the report

E6

Fresh water

p. 50

SE6

Local hiring practices

p. 28-30

E7

Other air emissions

p. 47, 51

SE7

Local procurement and suppliers development

p. 55

E8

Spills to the environment

p. 51

SE8

Human rights due diligence

p. 27-28, 38-41

E9

Discharges to water

p. 50

SE9

Human rights and suppliers

-

E10

Waste

p. 50-51

SE10

Security and human rights

p. 34-37

SE11

Preventing corruption

-

HEALTH AND SAFETY PERFORMANCE INDICATORS

66

Page(s)

HS1

Workforce participation

p. 34-41

SE12

Preventing corruption involving business partners

-

HS2

Workforce health

p. 38-39

SE13

Transparency of payments to host government

-

HS3

Occupational injury and illness incidents

p. 43

SE14

Public advocacy and lobbying

N/A

HS4

Product stewardship

p. 38

SE15

Workforce diversity and inclusion

p. 29

HS5

Process safety

p. 34-37

SE16

Workforce engagement

p. 29-33

SE17

Workforce training and development

p. 30

SE18

Non-retaliation and grievance systems

p. 28

ADGAS Sustainability Report 2010  

ADGAS Sustainability Report 2010

Read more
Read more
Similar to
Popular now
Just for you