Annual Report - 2005-06 - GAIL (India)

ANNEXURE TO THE DIRECTORS’ REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE EARNINGS & OUTGO AS PER SECTION 217 (1) (e) OF THE
COMPANIES ACT, 1956, READ WITH COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF
BOARD OF DIRECTORS) RULES, 1988
A. CONSERVATION OF ENERGY:-
(a) Energy conservation measures
taken:
1. Energy Audit has been carried out at
HVJ, Dibiyapur by
M/s PCRA at a total cost of
Rs.5.25 Lakhs and for UPPC, Pata,
M/s Forbes Marshall carried out
Energy Audit for steam traps and
condensate recovery system. Based
on the recommendation of the audit,
around 300 steam traps have been
replaced and the recommendations
for condensate recovery are under
implementation. Besides above, various
other steam conservation measures as
taken including optimization of amine
flow in GSU carried out in December
2005 have resulted into reduction in
steam consumption of the complex
by 22100 MTs compared to 2004-2005.
The additional savings on account of
steam conservation as compared to
2004-2005 is @ Rs.88.4 Lakhs.
2. Benchmarking as established
for various parameters of energy
conservation is being closely
monitored to control and reduce the
specific energy consumption. The
present Benchmark is now under
review for further improvement.
3. Variable Frequency Drive (VFD) system
implemented at GPU, Gandhar for cooling
water make up pump, AHU of main control
room AC & Administrative Building, at
HVJ-Jhabua for two GAC fan motor & at
GPU-Usar for cooling tower fan motor
has resulted in energy savings monthly/
yearly @ 38393 KWH / 460716 KWH with a
corresponding cost savings of monthly/yearly
@ Rs.1.42 Lakhs/ Rs.17.04 Lakhs. The total
savings during 2005-2006 achieved-Energy
– 166.7 MWH , Cost-Rs.6.2 Lakhs.
4. Modification done in lighting systems by
installation of energy efficient lighting devices
and controls, installation of energy efficient
UPS systems and solar heater at Gandhar, PATA,
Vijaipur & various stations of JLPL & HVJ have
resulted in energy savings monthly/yearly
@ 30845 KWH / 370141 KWH and cost savings
monthly/yearly @ Rs.1.43 Lakhs/ Rs.17.1 Lakhs.
The total savings during 2005-2006 achieved-
Energy – 279.53 MWH , Cost - Rs.12.85 Lakhs.
5. Installation of additional p.f. improvement
equipments and maintaining p.f. in the
range between 0.98 to 1.0 at various
locations of JLPL have resulted into prevention
of losses of electrical energy. A substantial
additional monthly/yearly savings of
Rs.3.32 Lakhs/ Rs.39.92 Lakhs is now being
achieved towards rebate from Electricity Board.
Additional rebate achieved during 2005-2006 is
Rs.23.95 Lakhs.
6. The awareness campaign to save
energy, modifications carried
out on the static and rotary
equipments and their controls
and effort for optimal utilization
and proper maintenance of the
static /rotating equipments at
PATA , Vijaipur and Hazira have
resulted into substantial energy
savings of 381.36 MWH/month
(4576.32 MWH /year) and 28799
MKcal/month (345588 MKcal/year),
the corresponding cost savings of
which is around Rs.1.65 Crores/
month (Rs.19.8 Crores/year ). Total
savings achieved during 2005-
2006 on account of energy is
3784.3 MWHR plus 249210 MKcal
and corresponding cost savings
achieved Rs.13.54 Crores.
(b) Additional investments
and proposals, if any, being
implemented for reduction of
consumption of energy:
1. Variable speed drive(VSD) for hot
oil circulation pump motor at Usar
have been taken up for
implementation at an estimated
cost of Rs.3.0 Lakhs and the same
expected to be commissioned
during 1 st quarter of 2006-2007.
With the implementation of
the above, the monthly /yearly
reduction in consumption of
energy would be 8500 Kwh
/100000 Kwh and the cost
reduction would be around
Rs.0.29 Lakhs/3.45 Lakhs.
2. Modification in the lighting system
by installation of energy efficient
lighting devices and installation
of energy efficient UPS system
and Capacitor Bank for p.f.
improvement are being taken up
at various work centres of JLPL and
HVJ-Vijaipur during 2005-2006
at an estimated investment of
Rs.33.16 Lakhs, which would result
in energy savings of monthly/
yearly @ 44.64 Mwh/535.7 Mwh
and cost savings monthly/ yearly
Rs.2.33 Lakhs/Rs 27.95 Lakhs.
3. Additional investments as
proposed to be made towards
various modifications of the
equipments and their controls and
proper maintenance of the same
for optimal operation and saving
of energy during 2006-2007 is
around Rs.4.55 Crores . The total
energy savings as estimated would
be 307.5 MWH/month (Electricity)
plus 4825.8 MKcal (Fuel) with a
corresponding savings of cost
around Rs.36.95 Lakhs /month.
Besides above, various energy saving
measures have been planned/
approved and are being implemented
to enhance operational efficiency and
thereby save cost as detailed below.
PATA:
1. Flare Gas Recovery Project: This project, is
aimed at recovering flare gases going into flare
system for ultimate use as fuel gas in boilers.
The project, consisting of gas compression
system and associated piping etc. is being
implemented through an EPCM consultant
M/s Lurgi India. The estimated expenditure
of the project is Rs.10.72 Crores. The
implementation of the project would result into
fuel savings to the tune of 132894 MKcal/year
with corresponding cost savings of
Rs.6.5 Crores per annum.
2. Installation of additional STG: Installation
of a 9 MW extraction type STG unit with an
investment of Rs.18 Crores has been approved.
The installation of extraction type STG would
enable efficient use of VHP steam to produce
HP steam and also in power generation which
will reduce dependence on state grid and make
savings of Rs.7 Crores per annum.
3. Advanced Process Control (APC): This project
is under implementation for upstream units
(GPU/GCU/LPG) with an investment of
Rs.7.5 Crores after implementation of the
project, it is expected to reduce the specific
energy consumption to the tune of 3% in these
units.
4. Ethylene boil off gas diversion
to HDPE units: This project will
reduce recycling cost of ethylene
by diverting it to HDPE units. The
project comprises of a compressor
and associated piping etc. The
project costing Rs.9.85 Crores will
result into energy savings of 19328
MWH/year and cost savings of
Rs.5.3 Crores annually. Additionally,
ethylene production will increase,
resulting into more polymer
production equivalent to
production benefit of
Rs.10.8 Crores.
5. Diversion of sphere vapor to
HDPE units: Ethylene vapor from
sphere which is presently being
recycled back to GCU will be
diverted towards HDPE units to
save recycling energy cost to the
tune of Rs.4.1 Crores per annum.
Energy savings per year will be
9091 MWH. Additionally, ethylene
production will increase, resulting
into more polymer production
equivalent to production benefit of
Rs.8.0 Crores.
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