Overview
Our facility extracts LPG and produces LNG from the Dampier to Bunbury pipeline with our products sold to the domestic and international markets. We employ approximately 60 employees and 20 long term contractors.
Priorities and Outcomes
Key Sustainability Indicators
Year in Review
The major focus of our business is the continued safe operation of our facility and minimisation of any adverse effects on the environment and the local community.
We maintained a good safety performance, achieving six years LTI free in February 2009 and two workplace injuries requiring medical treatment.
The main environmental areas we focused on during the year were preventing the significant release of hydrocarbons into the atmosphere and maintaining compliance with our Environmental Protection Act 1986 license conditions. These priorities were achieved.
The LNG production plant began operating this year and was officially opened in April by the Hon Peter Collier MLC, Minister for Energy.
people
February 2009 marked six years of Wesfarmers LPG operating without an LTI. This achievement was recognised with an award to our employees and contractors. However, we did have one employee workers compensation claim due to a finger injury.
Given the developments in our operations, such as the LNG plant and other general revisions to operations, our site induction training programme was updated with a new DVD presentation and induction document. This is available to all new and existing employees and contractors.
Employee numbers increased slightly from approximately 55 to 60 and long term contractors remained at approximately 20, due to the commissioning of the LNG plant.
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Water
We consumed approximately 28 megalitres of water this year, up approximately 18 per cent. To improve our awareness of water usage, we participated in the Water Corporation Water Challenger assessment in December and submitted our Water Efficiency Management Plan (WEMP) to the Water Corporation. We have identified a number of initiatives and implemented an action plan to reduce our future water consumption. We aim to reduce water consumption by approximately five per cent in the coming year.
Waste
Approximately 711 cubic metres of solid waste was removed from site, down 22 per cent.
Approximately 29,100 litres of liquid waste was removed from site, up 119 per cent, due mainly to the inclusion of oily water, inorganic and liquid waste from the LNG plant.
Air emissions
National Pollutant Inventory (NPI) emissions were estimated for the 2007/08 year and submitted to NPI and are available at www.npi.gov.au. Our emissions are ranked as low.
Contamination
Our site is classified as Contaminated – Restricted Use under the Contaminated Sites Act 2003, due to previous land use. No further action is required with respect to this contamination.
Noise
We conducted a noise survey of our facility following the completion of the LNG plant and we are compliant with the environmental noise regulations in the general operation of the plant. We received a noise complaint related to shipping activity which is referred to in the Governance section of this report.
Environmental expenditure
In an effort to reduce our environmental footprint, we invested in noise surveys, environmental stack emission testing and other related projects.
Recycling
We continued with our paper and cardboard recycling and approximately 75 cubic metres were removed from site, down approximately seven per cent.
Dust
Since the construction of the LNG plant was completed, dust issues have reduced. Grass areas of the site continue to be maintained to help control dust.
Greenhouse emissions
Our total greenhouse gas (GHG) emissions were estimated to be 149,843 tonnes of carbon dioxide equivalent (CO2e), up 12 per cent on last year.
Our total greenhouse gas (GHG) emissions were estimated to be 149,843 tonnes of carbon dioxide equivalent (CO2e), up 12 per cent on last year. The GHG emissions were largely due to fuel gas consumption (approximately 80 per cent) and fugitive gas emissions due to gas turbine starter gas and flaring (approximately 13 per cent).
We submitted applications for our LPG and LNG plant to the Department of Climate Change (DCC) requesting assistance under the Emissions Intensive Trade Exposed (EITE) programme within the Carbon Pollution Reduction Scheme (CPRS).
We are awaiting a response from the DCC.
Energy use
Total energy consumption was estimated to be 2,300,357 gigajoules, up 10 per cent on last year. This energy use is broken down into natural gas (approximately 89 per cent of total energy consumption), electricity (one per cent) and fuel (less than one per cent).
Energy efficiency initiatives
We have identified a number of potential energy saving initiatives such as plant optimisation projects, solar panel use and energy saving options related to the office environment. These initiatives will be followed up on a priority basis.
Governance
Our facility operates under licenses issued by the DEC and Department of Mines and Petroleum
(DMP) and we are not aware of any potential non-compliance during the year with licensing or approval conditions except as set out below. We received a noise enquiry from the DEC (following a community complaint) in relation to increased noise from our LPG flare during a shipping activity. This was followed up with a noise survey of our facility and whilst there are no sensitive receptors at our boundary, we do exceed our limits by approximately 1 to 2 dBA on the southern boundary during infrequent shipping activities. The DEC and community representatives have been advised of this and
we are assessing options to address this issue.
We conducted a major accident event review of our LPG plant and submitted our revised Safety Report to DMP for approval in February 2009, under the new Major Hazards Facilities Regulations. DMP have granted us an extension for compliance for an approved Safety Report to 31 December 2009. This will allow us time to update our hazard register and conduct a Safety Integrity Level (SIL) study for our LPG plant.
Community support
Wesfarmers LPG continued to focus on local community through our membership with Kwinana Industries Council and Kwinana Industries Public Safety Liaison Group. We continued to support a number of community initiatives including the Rotary Club, Lions Club, Police and Community Youth Centres and the Blue Light Streetsmart Handbook.
Feedback and complaints
We maintain an environmental complaints register to record any complaints from the local community. One noise complaint was referred to us by the DEC as a result of flaring during a shipping activity. We are assessing options to address this issue.
Economic investment
The new LNG production plant was brought into operation in November 2008 as part of the $138 million vertically integrated project, which provides LNG to the domestic market.
Opportunities for growth in the LNG market on the east coast were also considered in an effort to further develop the domestic LNG market.
2010 Priorities
- Improve HSE measurement with introduction of lead indicators.
- Maintain Lost Time Injury Frequency Rate (LTIFR) of zero..
- Operate our facilities with high standards of process safety.
- Conduct a Safety Integrity Level (SIL) study for our LPG plant.
- No significant release of hydrocarbons to the atmosphere.
- Positively contribute to and engage with the communities in which we operate.
- Development of our people.
- Continue to explore energy efficiency opportunities.
Case Study
Official opening of our new LNG production plant
We completed the commissioning of a new 175 tonnes per day LNG production plant on our existing site in Kwinana, leveraging from the existing infrastructure and operational support and expertise at Kwinana. The plant came into operation in November 2008.
The plant is the only hydrocarbon plant in Australia to employ a spherical pressurised storage vessel for LNG and includes gas processing, storage and loading facilities.
The plant is part of a vertically integrated Wesfarmers Energy project which aims to increase the use of LNG as an alternative fuel, particularly in the heavy duty vehicle fuel and remote power generation markets. The main benefit of using LNG over diesel is the improved environmental performance for fuel related greenhouse gas emissions.
Construction was completed with no Lost Time Injuries (LTIs) and this contributed to achieving six years with no LTIs in February 2009.
The new LNG plant provided employment for approximately 600 people in Kwinana over 12 months and created additional employment for five Process Operators.