monitoring report - netinform varna 2010.pdf · project: monitoring report ... the automated system...

Project:

MONITORING REPORT

Reduction of Greenhouse Gases by Gasification in VarnaMunicipality

Project proponent:Verification period:Emission reductions:Type of verification:Version:

Overgas Inc. AD, 5 Philip Kutev str.; Sofia - 1407, Bulgaria1st January 2010 - 31st December 201069805 tC02eFourth periodici/12th January 2011

Approved by:

.;C~Kamen SimeonovTemporary Acting as Manager of ProcessJoint Implementation Contracts ManagementOvergas Inc. AD

Monitoring report for 2010 of the projeet "Reduetion of Greenhouse Gasesby Gasifieation in Vama Municipality"

TABLE OF CONTENTS

1. GENERAL INFORMATION FOR THE PROJECT 42. MAIN PRINCIPLES OF THE MONITORING PLAN 43. REPORTING AND MANAGEMENT SYSTEMS 54. QUALITY MANAGEMENT AND ASSURANCE SYSTEM 65. PARAMETERS MEASURED AND MONITORED 65.1. Data archiving 65.2. Measurements of the monthly amounts of natural gas that enters into to GDN and

the gas' low heating value 75.3. Measurement of the monthly amount of transported and delivered natural gas to

the end users 75.4. Accuracy of the measurement data and measurement reliability 85.5. Balance of the amount of natural gas wh ich entered into the GDN and delivered to

the end users 95.6. Insignificance of the leakages, procedures for prevention and accidents' elimination

.............................................................................................................. 106. PROCEDURES FOR EMERGENCIES 117. PROCESSING OF INITIAL DATA 118. CALCULATION OF THE EMISSION REDUCTIONS 138.1. ERUs generated by the project 138.2. Results of the conducted monitoring 149. ENVIRONMENTAL IMPACT 14

Annexes:1. Block scheme of the fuels' supply after gasification and project boundaries;2. Description andjustification of changes to the project's design as described in

thePDD3. List of the applicable procedures and instructions from the Quality

management system;4. Certificates ofthe natural gas delivered by Bulgargas EAD in 2010;5. Calculations;

Overgas [ne. AD ERU05/21 2

Monitoring report for 2010 of the project "Reduction of Greenhouse Gasesby Gasification in Varna Municipality"

ABBREVIATIONS

AGDSCRMELMERUFSERFGDCGDCIMSGDNGISGMBGMSGRBGRMBGRMSGRSLHVLHVav

PDDSAMTSSCADA

Automated Gas Distribution StationCustomer Relationship ManagementEquipment Lifeeycle ManagementEmission Reduetion UnitFuel Switeh Emission Reduetion FaetorGas Distribution CompanyGas Distribution Companies Information Management SystemGas Distribution NetworkGeographie Information SystemGas Measuring BoardGas Measuring StationGas Regulation BoardGas Regulation and Measuring BoardGas Regulation and Measuring StationGas Regulation StationLow Heating ValueAverage Low Heating ValueProjeet Design DoeumentState Ageney for Metrology and Teehnieal SurveillaneeSupervisory Control and Data Aequisition



1. GENERAL INFORMATION FOR THE PROJECT

The project "Reduetion of Greenhouse Gases by Gasification in Varna Municipality" isimplemented under the Joint Implementation (JI) mechanism of the Kyoto Protocol accordingto the contract ERU OS/21 between the Kingdom of the Netherlands and Overgas Inc. AD. Theproject has been granted Letters of Approval by the Republic of Bulgaria and the Kingdom ofthe Netherlands.

This JI project is implemented under the Technical Scope 1 - Fuel Switch and aims atreduction of greenhouse gases by:• fuel switch from liquid and solid fuels and part of the electricity used by industrial, public

and administrative consumers and households to natural gas;• Improvement of the energy efficiency of the combustion installations of the end users.

The Project design document (PDD) of the project has been subject to Determination byKPMG Sustainability B.V. The Determination report stating that the PDD has been properlyprepared on the basis of ArticJe 6 of the Kyoto Protocol and the guldeJines for theimplementatlon of ArticJe 6 of the Kyoto Protocol in the Marrakech Accords(FCCC/CP/2001/13/ADD.2; 21 January 2002).

The project has been subject of Initial, First, Second and Third Periodic Verification by TÜVSÜD Industrie Service GmbH. A fourth periodic verification will take place in the year 2011based on this Monitoring report encompassing the period 1 January - 31 December 2010.

The project implementation envisages the generation of 362 566 Emission Reduction Units(ERUs) in the period 2008-2012.

The ERUs are generated by fuel switch of solid and liquid fuels and electricity to natural gasand improvement of the energy efficiency of the combustion installations of the industrial,public and administrative, and residential end users. The production, transportation anddistribution of the electricity replaced by natural gas is incJuded within the project boundariesas it is described in the PDD (Annex 1: Block scheme of the fuels' supply after gasification andproject boundaries). Its emission factors are calculated particularly for Bulgaria and areapproved and officially published by the Ministry of Environment and Water for use in JointImplementation projects'.

Due to the negligible leakages du ring the transportation and delivery of the solid and liquidfuels, the intermediate storehouses for storage and sale are not incJuded in the projectboundaries. The natural gas leakages are also not incJuded in the project boundaries since theconstructed GDN is new, with high quality and reliability, and since the anticipated leakagesare insignificant. .

In relation to unexpected circumstances occurred and according to the Procedures RegardingChanges during Project Implementation by JISC 22, annex 2, from 16 June 2010, aDescription and justification of changes to the project's design as described in the PDD isprovided in Annex 2 of the Monitoring Report.

In 2010 the amount of natural gas delivered to the end users reached 57 056.087 thousandsm3

• During the monitoring period 69805 ERUs have been generated.

2. MAIN PRINCIPLES OF THE MONITORING PLANThe Monitoring Plan described in the PDD is based on the following principles:

1 Baseline study ofJoint Implementation projects in the Bulgarlan energy sector. Carbon emissionfactor, April 2005,http://www.moew.government.bg/recenCdoc/c/lmate/Base/lne%2OCEF%20Summary.pdf



• The total annual natural gas consumption by the end users by sectors is used as anactivity indicator to control and determine the greenhouse gas emissions during theproject implementation;

• The fuel switch emission reduction factor (FSERF) is used for converting the amount ofdelivered natural gas to the end users into ERUs for each sector;

• The FSERFs take into account the fuel switch effect and the reduced energy consumptiondue to the increase of the efficiency of the combiJstion installations;

• The natural gas amounts delivered to the end users in the three sectors are taken intoaccount for the calculation of the total amount emission reductions generated by theproject;

• The fulfilment of the contractual amount of ERUs is determined on the basis on therealized emission reductions;

• At constant low heating value, the change in the natural gas composition does not lead tochange in the carbon dioxide emission factor. On an energy base the carbon dioxideemission factor is identical for all kinds of natural gas independently of its quality;

• In case of a change in the low heating value of the delivered natural gas, a recalculationof natural gas amounts is made according to the LHV used for the calculations in the PDD.

The monitoring of the JI project is performed by the team of the Joint ImplementationContracts Management Process. The employees have a high educational qualification andhave participated in additional specialized trainings in the field of the greenhouse gasemissions trading, environmental management systems, quality management systems, etc.

3. REPORTING AND MANAGEMENT SYSTEMSThe Gas Distribution CompaniesInformation Management System (GDCIMS) includesthe modules Customer Relationship Management (CRM), Billing, Equipment LifecycleManagement (ELM), Reports and Informations.

The CRM module manages the database of all c1ients, including data for the combustioninstallation. The module serves also for tracking the customer's status - it displays the stageof customer's connection. The CRM module allows automatic issuing, generation and printingof documents and contracts. lt contains statistic and marketing data for the users - site type,gas pressure data, mode of use, level of continuity, agreed and consumed amounts of naturalgas, etc. In the module data for the appliances which use natural gas - type of the gasappliances and their main technical parameters are entered.

The Billing module uses a database for the consumption of natural gas by c1ients, generatesinvoices and allows remote controlof the activities of natural gas delivery to the end users.The module works with data base. which contains the main information necessary for theGDC's financial relations with thecustomer. The Billing module allows automatic invoicegeneration, which is made after conclusion of series of reports in the Reports module andprinting letters of notification and bills for invoices. The payments are also indicated in it.

ELM is an information module for maintenance of the networks and the devices. lt allowsgeneration of information about the equipments in the GDN. The information contains dataabout the address and the factory number of each equipment, maximum hourly consumption,input and output pressure, date of exploitation initiation, manufacturer and type of gas meter,etc. The module tracks the elements for electric and chemical protection and the status of theodorizing system. The module also generates information about exploitation status of theGDN, inspection and setting, as weil as determined revision with disassembling of theequipment of the GDN.

The Reports module serves for preparation of various informations. The readings of the gasmeters of the end users are input in this module for the calculation of their monthlyconsumption of natural gas.

Overgas Ine. AD ERU05/21 5

Monitoring report for 2010 of the projeet "Reduetion of Greenhause Gasesby Gasifieation in Varna Municipality"

The Informations module generates various informations using the data managed by theother modules. This module is used for the generation of the data for the natural gaseonsumption by sectors, used for the ealculation of the ERUs generated by the project.

The Automated System for Dispatch Control Overcomm 2.0 of the SCAOA (SupervisoryControl and Oata Acquisition) system contributes for the high reliability of themeasurements and accuracy of the data of contralIed variables: pressure, temperature andconsumption. It reports occurrence of deviations from the technological parameters in thevalue of a measured parameter and deviations in the operation of the measuring devices. Thedispatch management is centralized; it is based in Sofia and it services all the GDCs affiliatesof Overgas Inc. AD.

4. QUALITY MANAGEMENT AND ASSURANCE SYSTEMThe Quality Management System developed in Overgas Inc. AD allows for the activities donein the company and GDCs to be duly documented and managed. The personnel is acquaintedwith and trained to implement and follow the approved pracedures, instructions and workdocuments in the scope of their activity.

The maintenance of GOCIMS and Overcomm 2.0 systems, as weil as the activities relevant tothe exploitation, technical maintenance and servicing of the GDN and to the control over thedeliveries of natural gas are performed in accordance with the unified quality managementsystem of Overgas Inc. AD and the GDCs. The procedures from the QMS are in compliancewith the existing national legislation regulating the activities of Overgas Iztok AD. All activitiesare implemented by the appropriate staff in the company, wh ich is selected and trained inaccordance with the above mentioned procedures.

The QMS indudes also a procedure for selection of employees reqUirmg a high degree ofeducation, professional experience, knowledge and skills for occupying a particular position.

A list of the pracedures and instructions of Overgas Inc. AD's quality management systemthat are related to the monitoring of the "Reduction of Greenhouse Gases by Gasification inVarna Municipality" praject is presented in Annex 2: List of the applieable praeedures andinstruetions fram the Quality management system.

Brief information about the qualitycontral and quality assurance procedures relevant to theexploitation, technical maintenance and servicing of the GDN and to the contral over thedeliveries of natural gas is presented below in the respective seetions of the monitoringreport.

S. PARAMETERS MEASURED AND MONITOREDFor the preparation of the Monitoring report data were used from the monitoring and themeasurement results of:• Amounts of natural gas entered into the GDN - measured monthly at the Gas Measuring

Station (GMS);• Average low heating value of the natural gas - measured monthly by a licensed

laboratory;• Amounts of natural gas transmitted and delivered to the end users by sectors - measured

monthly at each user's gas measuring station or board.

5.1. Oata archivingThe data about the amount of natural gas delivered to the end users, as weil as other data,necessary for the elaboration of the Monitoring report, are entered, stored and archived in theGDCIMS by authorized employees of Overgas.

This information system contains all the information relevant to the technical maintenanceand the consumption of natural gas by each dient of the GDC fram the stage of preliminarysurvey.

Overgas Ine. AD ERU05j21 6

Monitoring report for 2010 of the project "Reduction of Greenhause Gasesby Gaslfication in Varna Municipality"

All the information entered in the modules of the 1SMGDC is stored on a back-up hard drive atOvergas 1ztok AD. The data are subsequently recorded on servers and a back-up copy ismade on a back-up server every day. The servicing of the 1MSGDC is performed by theaffiliate company "Metodia" AD.

Paper and digital copies of the Monthly statements for delivery and Certificates of natural gasfrom Bulgargas EAD are archived and stored at Overgas 1ztok AD and at Overgas 1nc. AD'sheadquarters. Paper copies of the monthly invoices and statements for delivery to every userare stored at Overgas 1ztok AD, while digital copies can be generated by the 1MSGDC.

All the documentation regarding the J1 project "Reduction of Greenhouse Gases byGaslfication in Varna Municipality", relevant to the determination, monitoring, reporting andverification of the project is archived and kept on paper and digital copies at the Ecology andSustainable Development Dept. This information will be submitted to the company's archiveafter the project implementation.

5.2. Measurements of the monfhly amounts of natural gas that enters into to GDNand the gas' low heating value

The measurement of the natural gas delivered by Bulgargas EAD is performed monthly on thebasis of a contract for delivery signed with Overgas 1ztok AD. The delivered amounts aremeasured at the AGDS by calibrated gas meter and electronic volume corrector, which areproperty of Bulgargas EAD.

To improve the management of the process of distribution and delivery of natural gas to theend users at the AGDS an electronic volume corrector, property of Overgas 1ztok AD is alsoinstalled. The device is of the same type as the one of Bulgargas EAD and it has beencalibrated after it. It is connected to a GPRS modem which transmits in real time to theCentral Dispatch Management via the GSM network data for gas consumption, temperatureand pressure. The device stores archives with hourly, daily and monthly data for the amountsof natural gas and the technological parameters of the gas.

With regard to the amounts of natural gas that enters into the GDN, a Delivery Statementis prepared and signed by both parties. The Delivery Statement includes information aboutthe natural gas amount preliminarily ordered by the GDC and the actual amount invoiced andreceived.

The monthly Delivery Statements are obligatorily accompanied by monthly Averagecertificate ofthe natural gas issued by Bulgargas EAD. This certificate includes informationabout the composition of the natural gas and its Low Heating Value. Copies of the certificatesare presented in Annex 4: Certificates of natural gas deliVered by Bulgargas EAD to OvergasIztok AD in 2010.

For ta king into account the influence of the low heating value of the natural gas delivered byBulgargas EAD over the greenhouse gas emission reductions realized, the annual weightedaverage of the natural gas low heating value is calculated on the basis of the monthlycertificates and the monthly statements for natural gas delivery.

5.3. Measurement of the monthly amount of transported and delivered naturalgas to the end users

The conditions and the order for reporting the delivered by each GDC natural gas amounts areregulated by Rules for working with the users, General terms and conditions forselling natural gas to users for residential needs, Contract for distribution anddelivery ofnatural gas, and Contract for transportation.

The natural gas amounts are measured in cubic meters at standard conditions. "Cubic meterat standard conditions" means the amount of natural gas in a volume of one cubic meter at atemperature of 293.15 K and absolute pressure of 0.101325 MPa.

Overgas Inc. AD ERU05/21 7

Monitoring report for 2010 of the projeet "Reduetion of Greenhouse Gasesby Gasifieation in Varna Municipality"

Aeeording to the Ru/es for working with the users and regulations from Overgas Inc. AD'squality management system, two methods are applied to transform the measured amounts ofnatural gas into standard conditions:

• Use of special devices ca lied volume eorrectors;• Use of a fixed factor, based on the meteorological characteristics.

The transformation of the measured natural gas amounts into standard conditions for theindustrial users is done using volume correctors within the measuring devices. Themeasurement of the amounts of natural gas delivered to the residential and "smalI" industrialusers (at 100 mbar pressure and maximum hourly consumption less than 25 m 3/h) is donewith the fixed factor, whose definition is described in the Ru/es for working with the usersand in the PDD.

In the presence of a volume corrector within the measuring device, the volume of the gasconsumed Vst is read direetly from the electronic corrector or from the counter of the gasmeter if it is equipped with a built-in temperature mechanical corrector.

In the absence of a volume corrector within the measuring device, the volume of the naturalgas eonsumed is calculated by the formula:

Vst=Vp*Ktp (1),where:Vp the natural gas amount read on the gas meter;Ktp the product of the temperature (Kt ) and pressure (Kp ) correction faetors.

The natural gas consumption of the users in the industrial, public and administrative, andresidential sectors is read manually every month by employees of Overgas Iztok AD. In caseof an industrial or institutional dient the reading of the metering device is done in thepresence of a representative of the dient, who confirms the accuracy of the reading. Theseusers receive a monthly statement about the amount of natural gas delivered which is signedby the dient and a representative of Overgas Iztok AD.

The readings of the gas meters are recorded in a protocol, whieh also contains the ID of thegas meter of the respective user and the gas meter's readings of the previous month. Theconsumption data for each user aretyped manually in the Repons module of the GDCIMS byauthorized employee of the GDC. The Billing module of this system serves for generation ofmonthly invoices for all users in the three sectors.

5.4. Accuracy of the measurement data and measurement reliabilityThe high accuraey of the measurements of different parameters and data is guaranteed bythe reliable and precise work of the gas meters, manometers, temperature converters,electronic correctors and pressure converters at the Gas Regulation Stations (GRS), GasRegulation Boards (GRB), Gas Measuring Stations (GMS), Gas Measuring Boards (GMB), GasRegulation and Measuring Stations (GRMS) and Gas Regulation and Measuring Boards(GRMB).

The delivered amounts of natural gas to the end users are measured on the user's propertyborderline with measurement devices (gas meters), which are subject to a type approval, toan initial control and to a subsequent periodic control in a defined time interval according tothe legislation of the Republic of Bulgaria.

The devices for natural gas measurement (gas meters) are subject to check-up by the StateAgency for Metrology and Technical Surveillance (SAMTS) or by an authorized person as perart. 43, par. 4 of the Law on Measurements in the terms, defined with an Order of thechairman of SAMTS.

As per Order N2 A-l02 of 5 March 2010 of the chairman of SAMTS the regularity for checkups of the volume gas meters with deformable chambers (diaphragm) or with roots bodies(pistons) and of turbine gas meters for gas and additional devices for them is two years.



For measurement of the users' natural gas consumption, Overgas Iztok AD is usingdiaphragm, roots and turbine gas meters. The company has a certifieate for gas meters typeapproval, as weil as a passport with ID for each device. Overgas Iztok AD prepares annualschedules for subsequent metrological control of the measurement devices. For 2010 themetrological check-ups of 2723 diaphragm and 238 roots and turbine gas meters have beenscheduled.

In 2010 metrological check-ups of 3125 diaphragm and 186 roots and turbine gas meters fornatural gas have been performed. In case of necessity the devices have been replaced withnew ones. All gas meters and volume correctors used by Overgas Iztok AD for themeasurement of the end users' consumption of natural gas are dully caJibrated.

The metering device of Bulgargas EAD measuring the amount of natural gas entering into theGDN, which is used as cross-check parameter for the plausibility of the total consumption, isalso caJibrated.

If a metering device or a volume corrector without correct caJibration is identified, the deviceis disassembled and sent to a Iicensed laboratory for metrological check. Such devices arereplaced by calibrated devices at the moment they are disassembled.

In case of failure of a metering device or a volume corrector, an average correction factor isapplied for the determination of the consumption by the user. This factor is calculated usingthe consumption of similar users with similar metering devices in the same area or theconsumption of the same user in the same month the previous year. A bilateral protocolstating the agreed consumption of natural gas was issued and signed by the consumer and arepresentative of the GDC.In 2010 there is no case of faulire of metering device.

The reliability of the measured parameters is guaranteed by the implementation ofInstruction r-02.02.04 for execution of technical meinntanance of devices on GOM ofOvergas Inc. AD. According to thisinstruction, the technical service and repair of the GRSs,GRBs, GRMSs and GRMBs should be requested by the GDCs. The regularity, scope andresponsibilities for servicing and maintenance of the technical devices for measurement ofnatural gas amounts are described in the instruction.

In conformity with this instruction, revision with disassembling the equipment is performedwith regard to the integrated system for centralized repair by the service company OvergasServiz AD on the basis of contracts with Overgas Iztok AD and annual Schedules forrevision with disassembling the equipment in the GON devices (Annex II to theInstruction r-02.02.04), co-coordinated and approved by Overgas Iztok AD. For eachrevision with disassembling a bilateral Statement for performed revision withdisassembling and setting the equipment in GON devices is prepared. In 2010 a totalnumber of 75 revisions including disassembling and setting the equipment in devices in theGDN of Overgas Iztok AD were performed and the respective statements have been issued.

In accordance with Instruction r-02.02.04, the data from the signed Statements isrecorded in the Exploitation register of the GON territory (working document r02.02.02-PA1) information for every technical servicing of the equipment is performed.

In 2010, preventive maintenance of 8060 equipments was performed (GRSs, GRBs, GRMSs,GRMBs, GMSs and GMBs) in OrdE? to ensure the continuity of the gas supply and thereliability of the equipment operations in the GDN. During this preventive maintenance taps,filters, valves and gaskets of the equipments were checked and in case of necessity werereplaced.5.5. Balance of the amount of natural gas which entered into the GON and

delivered to the end usersAccording to Procedure n 03.00.00-2 for Control of Natural Gas Retail Sales theamount of natural gas delivered to the clients and the amount of natural gas that entered into


Monitoring report for 2010 ofthe project "Reduction ofGreenhouse Gasesby Gasification in Varna Municipality"

the GON are compared. The data are collected from the GOCIMS and from the monthlystatements of Bulgargas EAO, and the reasons for the deviations are analized. The mainreason is the different time of reporting. The monthly amounts of natural gas delivered to theGOCs are compared also to the data for the weekly amounts, wh ich are received by theSCAOA dispatch system in order to serve for the preparation of weekly operation reports.

The annual balance of the amount of natural gas input into the GON and delivered to the endusers of Overgaz Iztok in 2010 is presented in Table 1. The balance is prepared on the basisof the registered data for the natural gas amounts at the entrance (AGOS) and at the exit(end users' installations) of the GON.

Naturaigas,thousand sm3 0/0

Entered into the GON 67 863.00 100.00%

Oelivered to the users 68 101.96 100.35%

Oifference -238.95 -0.350/0

Table 1: Balance of natural gas amounts, entered into the GDN and deliveredto the end users of Overgas Iztok AD in 2010

The differences between the amounts of natural gas at the entrance and at the exit of GON ofOvergaz Iztok AO are insignificant and due to the different time of reporting. Thesimultaneous reporting of the readings for all end users is impossible, since the users' gasregulation and measuring stations and boards do not have remote reading. The natural gasamount needed for initial filling when commissioning large GON sections also leads todeviations in the parameters.

The balance of the amounts of natural gas at the entrance and at the exit of GON confirmsplausibility of the total gas consumption of the users.

5.6. Insigni'icance 0' the leakages, procedures 'or prevention and accidents'elimination

According to Instruction r-02.02.02 'or Technical meintanance 0' linear parts 0' GONwalk-through checks for breaking the integrity of the gas pipelines and for gas leakages andcheck-ups of the equipment status, etc. were performed daily, weekly, monthly or on everythree months depending of the location of the piplines. At the end of each walk-through checkthe information is recorded into the Exploatation register 0' the GON (workingdocument r-02.02.02-pal).

The deviations from the normal operation of the measuring devices and thetelecommunications reported by the SCAOA system are registered in Form 'or the currentstatus 0' the equipment or apart 0' the GON (working document F5-Hl-6.3-012)and Failures 0' the te/ecommunication devices and the automated system 'ordispatch management (working document F6-Hl-6.3-012). According to theinformation in these documents, occurrence of any deviations or failures in the functioning ofthe equipment and sections of the GON, as weil as of the telecommunications are dullywatched and eliminated so thelr normal operation is restored.

In 2010 totally 90 166.34 m underground gas pipeline networks were investigated for naturalgas leakages. According to the elaoorated Statements for inspection for leakages in the GONin 2010 2 cases of leakages in the gas distribution pipelines and 1 case of leakages in the tapof gas pipeline branch have been found. The leakages were timely eliminated.

The natural gas leakages along the GON are due to accident leakages after breaking adistribution pipeline and to the scavenging before repairs and connections. The accidents areregistered by Overgas Iztok AO in Statements of ascertainment.


Monitoring report for 2010 ofthe project "Reduction ofGreenhouse Gasesby Gasification in Varna Municipality"

According to the information for accidents in 2010 from the Statements of ascertainment forthe accidents occurred, the amounts of natural gas leaked are minimal. There are 29 cases ofaccidents in the GDN for 2010. 23 of them are related to natural gas accidentalleakage.

Information for the natural gas leakages during the accidents in 2010 is presented in Table 2.

2010

Amount of natural gas leaked, thousand sm3

Amount of natural gas entered into the GDN,thousa nd sm3

7.951

67863.000

Share of the naturalgas, % 0.012%

Table 2: Oata for the amount of natural gas leaked during accidentsin the GON of Overgas Iztok AO in 2010

6. PROCEDURES FOR EMERGENCIESThe actions in case of occurrence of large-scale accidents are planned in compliance with thedocument ,Q7.0S.02.13 - Action plan in occurrence of substantial production accidentin the gas distribution network on the territory of a municipality. The plan ihcludespreventive actions for non-admission of accidents' occurrence, forecasting the type and theconsequences of accidents in the GDN, defining the actions and the obligations of theoperational personnel.

In accordance with the legislation the activities in GDC in time of accidents and emergencysituations are implemented following Instruction H-7.0S.02.16 for rules for work inaccidents and emergency situations. In case of accident or emergency situation,information for the implemented changes and the reasons for them are elaborated, as weil asprotocols after investigating the reasons for the accidents occurred. In case of accident oremergency situation Overgas Iztok AD cooperates also with the users, the public supplierBulgargas EAD and the state and municipal bodies.

The emergency readiness of Overgas Iztok AD is ensured by the development of anEmergency plan. This Emergency plan is agreed following the respective order with theRegional Service for Fire Safety and Rescue and with Civil Protection. Overgas Iztok EADprovides for the emergency technical equipment and instrumentation, as weil as anemergency reserve of technological materials - elements of the GDN and implements controlover the emergency readiness - over the status of the technical equipment, the reserve andthe efficiency of actions on the emergency plan. The emergency readiness in the GDC isregulated also by the state legislation and is subject of periodical planned and sudden control.

7. PROCESSING OF INITIAL DATAThe data on the amount of natural gas delivered to the end users is received in Overgas Inc.AD monthly according to the Procedure n 03.00.00-2 for Control of Natural Gas RetailSales. They are entered into the GDCIMS by authorized employee of Overgas Iztok AD. Thedata about the amount of consumed natural gas in each sector, used for the calculation of thegenerated greenhouse gases emission reductions of the project, are taken from theInformation module of the GDCIMS.

To report the influence of the 101'1 heating value of the natural gas delivered, the amount ofthe consumed natural gas had to be corrected as it is envisaged in the Monitoring plan of thePDD. Toward that goal, a correction factor is used.

The data on the amount of the delivered natural gas by Bulgargas EAD in the MonthlyStatements on delivery and the average low heating value of the natural gas in theCertificates of the natural gas are used for calculation of the correction factor. The correctionfactor calculation is made according to Formula 2 and Formula 3.

Overgas Inc. AO ERU05j21 11

Monitoring report for 2010 ofthe project "Reduction of Greenhouse Gasesby Gasification in Varna Municipality"

The average weighted value of natural gas's low heatlng value LHVav 15 calculated on thebasis of the monthly certificates and the monthly statements on delivery of natural gas toOvergas Iztok AD by Bulgargas EAD.

where:QNGm

LHVNG,mQNGy

LHVav = :E QNG m * LHV NG, m / QNG y (2),

is the amount of natural gas delivered for the month m in 1000 5m3 ;

is the low heating value of the natural gas during the month m in GJj1000m3;

is the amount of natural gas delivered for the year y in 1000 5m3;

The correction factor for taking into account the influence of the low heating value of thedelivered natural gas K is calculated according the formula:

K = LHVav / LHVNG(3)

where:LHVNG is the low heating value of the natural gas, used in the calculations in the PDD

in GJj1000m3•

Information about the amounts entered into the GDN and its low heating value by monthsfram the monthly statements and the certificates of the natural gas is presented in Table 3.The calculated annual weighted average for 2010 is also presented in the table.

Month

JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

TotalLHVav

Purchased naturalgas, thousand sm3

963977207335453843993659395041314218513153457798

67863

LHV, kcal/m3

804280488059809080658095808980968084805980528047

8063Table 3: Amounts of natural gas entered into the GDN

and low heating value ofthe gas in 2010

The data for calculation of the correction factor K for 2010 are presented in Table 4.


Monitoring report for 2010 of the projeet "Reduetion of Greenhause Gasesby Gasifieation in Varna Municipality"

Average low heating value of the delivered naturalgas, kcal/m 3

Average low heating value of the delivered naturalgas, GJ/1000 sm3

Low heating value of the natural gas used in PDD,GJ/1000 sm3

Correction factorfor taking into account theinfluence of the iow heating value of thenatural gas

8063

33.760

33.400

1.0108

Table 4: Correetion faetor for taking into aeeount the influeneeofthe natural gas low heating value in 2010

To increase the calculation accuracy and to use more actual input data and following aCorrection Action Request from the Second Periodic Verification, the FSERF calculated in thePDD has been recalculated. The recalculation has been made using the official electricityemission factors for Bulgaria, approved and published by the Ministry of Environment andWater (MOEW) for use in Joint Implementation projects under the Kyoto Protocol.

The updated FSERF values by years for the three sectors are presented in Table 5.

Sector 2008 2009 2010 2011 2012

Industrial 0.97 0.92 0.91 0.90 0.89Public and 1.16 1.09 1.05 1.03 1.05administrativeResidential 3.48 3.02 2.97 3.17 3.12

Table 5: Reealculated FSERF values by years and seetors, tC02e/1000sm3

8. CALCULATION OF THE EMISSION REDUCTIONSAccording to the approved monitoring plan, the amount of greenhouse gas emiSSionreductions is calculated by multiplying the annual consumption of natural gas in each sectorby the FSERF for the respective sector for the reported year. For reporting, the amounts ofnatural gas delivered to the end users in every sector are corrected by a factor taking intoaccount the low heating value of the gas. The calculation of the factor is made as described inItem 7 - Processing of Initial Data of the Monitoring report.

8.1. ERUs generated by the projectThe amount of the emission reductions generated in the year is calculated by the formuia:

ERU z,y = FSERF z,y * QNG z,y * K (4),where:

ERU z,y

FSERFz,y

QNGZ,yK

is the amount of emission reduction units for the year y in the sector z, tC02e;is the fuel switch emission reduction factor for sector z, for the year y,tCOze/1000sm3

;

is the amount of natural gas delivered to sector z, in the year y, 1000 sm3 ;

is the correction factor for taking into account the change of the low heatingvalue of the delivered natural gas.

The amount of natural gas delivered in 2010 to the end users by Overgas Iztok AD, includedin the JI project is 58 080.102 thousand sm3

, The calculations of the greenhouse gas emissionreductions for 2010 are presented in Table 6.



Natural gas CorrectionCorrected

FSERF, Greenhouse

consumption, factorfornatural gas

tCO:z/gas

Sector thousand 2010consumption, thousand emission

sm3 thousandsm3 reductions,

sm3 ,tC02e

Industrial 35795.870 1.0108 36 181.3 0.91 32866seetorPublic andadministrative 15432.517 1.0108 15 598.7 1.05 16338sectorResidential

6851.715 1.0108 6925.5 2.97 20601sector

Total 58080.102 58705.5 69805

Table 6: ERUs realized in 2010, tC02e

8.2. Results of the conducted monitoringo In the period reported, from 1st January 2010 to 31st December 2010, the

implementation of "Reduction of the greenhouse gases by the Gasification in VarnaMunicipality" projeet lead to generation of 69 805 ERUs (Item 8.1).

o The monitoring shows that the projeet boundaries, determined in the PDD, have notbeen ehanged (Item 1.3).

o The reporting of the amounts of natural gas, which enters into the GDN, isimplemented at high degree of accuracy and is controlled by Bulgargas EAD andOvergas Iztok AD (Item 5.2).

o The data used for the calculation of the ERUs generated by the project implementationare accurate and reliable (Item 5.4).

o The leakages from the natural gas distribution are insignificant and have no impact onthe final results (Item 5.6).

o In 2010 the low heating value of the delivered natural gas has been in the range of8000 ± 100 kcal/nm3 (Table 3).

The calculation of the greenhouse gas emission reductions are performed in accordance withthe Monitoring plan of the determined PDD of the "Reduction of Greenhouse Gases byGasification in Varna Municipality" projeet and the Manual for elaboration ofmonitoring reports on the Joint Implementation projects of Overgas Inc. AD.

The Excel worksheet file Monitoring_Varna_11Jan_proteeted.xls, containing the detailedcalculations of the amount of the realized greenhouse gases emission reductions is integralpart of the present Monitoring report.

9. ENVIRONMENTAL IMPACTThe switeh from the traditional energy sourees to natural gas leads to a reduetion of theoverall amount of the emissions, and to an enhancement of the natural and urbanenvironments. The amounts of the emission reductions of pollutants and greenhouse gasesresulted the replacement of the traditional fuels with natural gas are calculated annually. Theinformation is submitted to the Public Communications Management Process of Overgas Inc.AD and to the GDCs.

E'aborate~k

I1iyan PlamenovTemporary Acting as Expert in ProcessJoint Implementation Contracts ManagementOvergas Inc. AD


monitoring report - netinform varna 2010.pdf · project: monitoring report ... the automated system...

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