|Protect The Environment|
We Are Committed To Protect The Environment
Reducing Greenhouse Gas Emissions
Halon And CFC Removal
HCFC And HFC Losses
Oil In Produced Water
Environmental Impact Assessment (EIA)
Nera Tests At Retail Sites
What They Say About Shell Malaysia
natural environment supports all human, plant and animal activity. We
continually look for new ways to reduce the environmental impact of our
operations, products and services throughout their life cycle.
targets are set for a number of environmental parameters. Many of these
are over and above the requirement of the Malaysian legislation and
related international conventions and protocols. Finding effective ways
to reduce our environmental impacts also makes us more competitive.
made good progress in almost all the areas covering our environmental
parameters in 2003, beating our own reduction targets for gas
emissions, gas flarings and spills.
atmospheric concentrations of greenhouse gases (GHGs) are believed to
be raising average global temperatures. This could lead to changes in
the climate and local weather – storms, droughts, floods and a rise in
supports the international effort to address climate change through
various initiatives such as reducing our GHG emissions through energy
efficiency and environmental management programmes.
response begins with reducing greenhouse gas (GHG) emissions from our
operations namely, reduce usage of fuel (combustion), venting and
flaring, vapour losses or evaporation from tanks and equipment during
transport and storage of oil products, and leaks from process
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venting or release of gas of no local use to atmosphere, was a prime
reduction target in EP because of its big contribution to global
warming potential. Major modifications were made at locations where
venting occured, to reduce or eliminate continuous venting. We met our
target to reduce gas venting, in our EP operations from 77.3 kilotonnes
(KT) of gas in 2002 to just 7.64 KT in 2003 – a performance which is
better than the company target of 9.42 KT of gas. This significant
improvement was due to the lower emissions in Central Luconia field and
the conversion of our South Furious and Barton vent-to-flare projects
efforts to reduce flaring in our operations through a number of
initiatives have resulted in significant reduction of Carbon Dioxide
(CO2) emissions in 2003.
- The introduction of heavy paraffin
synthesis off-gas firing into the boilers in our GP operations has
reduced flaring by around 170 kilotons per annum.
EP, better compressor uptimes, close monitoring and good Gas Oil Ratio
(GOR) management as well as the commissioning of the Kinabalu
compressor contributed to the lower flaring levels at 375.553 kilotons
against the target of 444.967 kilotons in EP operations.
actual Sulphur Oxide (SOx) emissions of 0.12% of throughput was higher
than the 2002 figures for our refinery operations due to the processing
of Middle East Crude which carries a higher sulphur content; however,
the emission level is still well below the target limit of 0.16% set
within the Shell Asia Pacific Zone refineries.
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Reducing Flaring And Cost Leadership
MDS made further progress on the utilization of Heavy Paraffin
Synthesis (HPS)-off gas or HOG in 2003, resulting in a reduction
in flaring as well as witnessing significant cost leadership.
completion of the engineering works with respect to the utilization of
HPS-off gas to the Hydrogen Manufacturing Unit (HMU) by end of 2003
enabled about 400 tonnes of HPS-off gas per day to be utilised in the
the commencement of this environmentally-friendly and efficient energy
initiative in 2002, approximately 80 percent of every 1,000 tonnes of
HOG per day (1000 T/day) has been utilised. This has resulted in
savings worth about RM6 million if compared to the level of efficiency
This initiative saw a reduction some 410,000 tonnes per annum of CO2.
compliance with our Minimum Environmental Standards, all equipment
containing halon and chlorouflourocarbons (CFC), which are
ozone-depleting substances, have been phased out completely
in 2002 and relinquished to the Halon Bank in 2003.
having hydro-chloroflurocarbon (HCFC) content are identified and the
amount of HCFC present recorded. We estimate a total of 4067 kg of
hydro-chloroflourocarbon (HCFC) in stock and equipment are present in
EP operations. Through maintenance, approximately 1052 kg of HCFC was
lost to the atmosphere in 2003. Both figures are higher when compared
to 2002 mainly due to improved reporting from the sites.
hydro-flourocarbon (HFC) found in equipment for our EP operations (2385
kg) and losses (152 kg) in 2003 witnessed a higher level compared to
ways to minimise the amount of waste we produce is an ongoing
challenge, not just because capacity for hazardous waste is
diminishing, but because our commitment to sustainable development
demands it. If waste elimination is not a viable option, we try to find
alternative solutions to reuse or recycle the waste we generate. In EP,
one of the continuous improvement efforts is the introduction of Green
Procurement Policy, which gives preference to products and services
which are environmentally friendly, e.g. in terms of recycability.
The main sources of solid wastes arising from our operations are:
- Domestic wastes
- Non-hazardous wastes, and
- Hazardous wastes from oil production and storage
MDS generated 299 metric tonnes of waste in 2003, with 59 metric tonnes
of accumulated scheduled waste sent to a government approved recycler,
Kualiti Alam, for disposal.
total of 81.9 kilotonnes (KT) of non-hazardous waste and 0.092 KT of
hazardous waste were generated in EP's operations in 2003 compared to
31.6 KT and 0.92 KT of non-hazardous and hazardous wastes generated in
2002. The increase in non-hazardous waste quantity is
primarily due to increase construction and demolition waste from
renovation of company housing facilities in Lutong.
Refining Company's deployment of a proven sludge reduction technology
has reduced the volume of wet sludges disposed from its operations by
as much as 70%. The quality of the treated materials from the equipment
more than meets the landfill criteria with moisture content less than
0.1% and Total Organic Carbon (TOC) at 0.25%.
catalysts generated from SRC operations, amounting to 2,430 MT, were
re-used as raw feedstock at cement plants in Perlis and Negeri
Sembilan. Another 1,900 MT of recovered waste oil has been sent for
off-site recycling via the Department of Environment's (DoE) licensed
Wet Stock Management
fuels delivered to our petrol retail stations are stored in underground
tanks. To ensure that the integrity of the tanks are maintained at all
times, Shell Malaysia OP embarked on a standardised process in our wet
stock management (WSM).
the process in place, proactive measures are undertaken such
as tank and pipeline testings so that leaks
can be detected early. The WSM covers a step-by-step process from the
acceptance of the fuel at the retail station to the dispensing of
the fuel. The quantity of the stock is recorded and if data derails
from the prescribed limits, remedial action can be taken immediately.
is a journey through several phases. For 2003, the focus centred on the
standardisation of the process and submission of the wet stock data.
This process presents a big challenge to the way we work as in the
past, dealers kept their records on site.
considerable amount of water is used for the purpose of cooling and
make-up for steam generation in our operations, which when discharged
may contain a small quantity of oil. In EP we also discharge an
increasing amount of formation water with the crude oil that we produce.
overall average oil content of produced water discharged into the sea
from operating facilities in EP was 20.8 milligrams per litre (mg/l),
an improvement against the overall 2002 performance of 21.2 mg/l and
the target of 21.2 mg/l. Individual facilities such as the F6 offshore
platform saw a vast improvement of 6.4 mg/l from 11.6 mg/l in 2002, due
to optimization of corrosion inhibitors injection rate. (See graph on
Oil in Effluence Discharge- EP )
Our GP operations recorded an average of 1.28 mg/l. against the legislative limit of 10 mg/l
SRC, the average oil in water content was at 1.6 mg/l for 2003, well
below the legislative limit of 10 mg/l for refineries and the limit set
by the Organisation for Economic Cooperation and Development (OECD).
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of crude oil, oil products or chemicals can impact the environment,
erode stakeholder trust and cost a lot of money to clean up. In 2003,
there were no major oil spill incident. However, there were three minor
hydrocarbon (diesel and kerosene) spill incidences against our zero
spill target in EP. Quantity spilled were minor (2 liters and 45
liters) and the third 300 liters.
remedial measures in accordance with our oil spill response procedures
were taken during each of these incidents and lessons learnt were
shared among our operations personnel to prevent similar occurrences in
SRC operations reported one spill incident when an oil interceptor
overflowed during heavy rain. Immediate action was successfully taken
by SRC personnel to contain the weathered hydrocarbon with the full
knowledge of DoE, the local district council and Port Dickson community
leaders. Learning from the incident has resulted in the following
• Revising the overall effluent/drainage system
• Raising the bund wall of the interceptors
• Updating operating procedures
Shell's Gas and Power operations reported zero spill incidents in 2003.
Impact Assessments are carried out for all new projects and major
modifications to existing facilities. Some EIAs are conducted for
purpose of compliance to Malaysian legislation but there are others,
which are conducted for internal use, thereby contributing to improved
environmental focus on the project or activity. Three EIAs for new
projects, two post EIA monitoring study and an Environmental Risk
Assessment (ERA) study for the decommissioning of the Ketam offshore
facility were completed in EP for the year 2003.
There was one EIA conducted in GP for its Shell MDS debottlenecking project.
The EIA findings confirmed that all the projects were environmentally acceptable and could proceed.
Global Warming Potential (GWP)
Our EP operations achieved an overall good performance in the GWP parameters in 2003.
was due to lower than target emissions in all our offshore producing
platforms as a result of good compressor uptimes. Close monitoring on
our flaring levels, particularly in our Sabah operations, and an
efficient GOR management also contributed to the reduction in the GWP.
We however did not meet the stretched target range due to the following reasons:
• Higher production leading to higher associated gas flaring
Additional production well tests during the year which were not
incorporated during GWP target setting time
• Emissions from fuel burning equipment were higher than forecasted.
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2003, 12 retail sites which were classified as medium risks under the
Network Environmental Risk Assessment (NERA) underwent some
improvements to reduce the risk of soil and groundwater contamination.
Improvement activities included:
Replacing double-wall underground tanks & replacing pipelines
• Installing monitoring wells and remediation measures
• Improving discharge facilities
• Installation of oil interceptors
• Resurfacing of retail site forecourts
A total of 39 retail sites in the Klang Valley had undergone the NERA exercise in 2002.
the NERA exercise, soil and groundwater quality at retail sites are
tested and monitored primarily to ensure that the environmental risk
element around our retail station sites is contained at all times. The
plan is to cover all 830 retail sites in the country progressively.
has a rich and diverse biological life (biodiversity) which is the envy
of other countries. Preserving this priceless heritage is part of
sustainable development. Towards this end, Shell Malaysia actively
conducts a number of on-going projects in collaboration with local
authorities and non-governmental organisations; aimed at promoting
biodiversity awareness among schoolchildren and undergraduates.
2003, several hundred schoolchildren, local undergraduates and 40
college students from Holland benefited from educational nature camps
conducted in Miri and Bintulu in Sarawak, Kepong, Selangor and Pulau
Malaysia signed a Memorandum of Understanding (MoU) with the Malaysian
Coral Reef Conservation Society (CoRAL) to sponsor the former's Coral
Planting project at Pulau Perhentian.
Supporting Local Agenda 21
21 is one of five documents agreed during the United Nations Conference
on Environment and Development (UNCED), in Rio de Janeiro in June 1992.
Signed by 179 Heads of Government, it is a blueprint for sustainable
development in the 21st century, aimed at providing a high quality
environment and healthy economy for all the peoples of the world.
is a guide for individuals, businesses and governments in making
choices for less environmentally destructive developments, and
ultimately a challenge to translate understanding into action in
developing sustainable lifestyles.
line with our commitment to sustainable development, Shell Malaysia EP
supported the Local Agenda 21 initiatives hosted by the Miri Municipal
Council, one of two Local Agenda 21 pilot projects in Malaysia.
Miri pilot project concentrates on managing solid waste and sewage, and
Shell headed one of the six working groups formed to implement the
Under the Shell-driven working group, two
new commercially run recycled centres were established. A detailed
Eco-Pack booklet providing useful information and tips was published
and distributed to Miri residents. This was followed by a seminar cum
exhibition designed to give participants and visitors the environmental
and ethical awareness, values and attitudes, skills and behaviour
needed for delivering sustainable development.
Sharing Environmental Awareness With Young Stakeholders
approach our commitment to protecting the environment in a number of
ways. One is realising the commitment in our operations through a
continuous improvement journey. The other focus is through sharing the
environmental responsibility message with young stakeholders who will
inherit this planet.
Environmental Camp at Membedai at Labuan in July 2003 was one such
sharing initiative. Over 30 secondary school children and teachers
participated in the three-day environmental awareness camp which was a
joint "green project" between Shell Malaysia EP, the Education
Department and the Department of Environment (DoE) Labuan.
Advisers from Shell and DoE put the participants through their paces
with particular emphasis on the proper management of industrial,
domestic and scheduled wastes. They visited some illegal dumping sites
on Labuan Island to see for themselves the consequences of improper
handling and irresponsible disposal of wastes.
was a learning process about some issues in the real world for these
young future guardians of planet Earth. Like many other such camps that
shell conducts regularly, the initiative is ultimately designed to
realise shared sustainable development goals.
Conserving Our Precious Corals
2003, Shell Malaysia signed a Memorandum of Understanding (MoU) with
the Malaysian Coral Reef Association (CoRAL) for the development of the
proposed coral planting project, known as the "Coral Garden
Initiatives", in the serene waters around Pulau Perhentian, Terengganu.
the MoU, Shell provides financial support to the tune of RM 76,000
towards the project which will be implemented in phases. Besides
contributing the funds, Shell sees the project as a capacity building
opportunity for our local scuba diving community and staff volunteers
in coral management and research models.
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are proud to report that our leadership in environmental management
systems and environmental care programmes have earned us the following
awards in 2003:
Joint winner in the ACCA Malaysia Environmental Reporting Award
2003 (won by Shell Malaysia for the 2nd consecutive year)
Overall champion in the Sarawak Chief Minister's Environmental
Award (won by Sarawak Shell Berhad)
Best Environmental Reporting Award in the National Annual
Corporate Reporting Awards (NACRA) (won by Shell Refining Company (FOM)
Bhd for the second consecutive year)
Champion in the Large Enterprise Category of the Sarawak Chief
Minister's Environmental Award (won by Sarawak Shell Berhad)
Excellence Award from Atomic Energy Licensing Board (AELB)
Malaysia for Shell Malaysia EP (Labuan Integrated Facility)
Runner-up in the Large Enterprise Category of the Sarawak Chief
Minister's Environmental Award (won by Shell MDS (M) Sdn Bhd)
generous gesture in sponsoring the Danum Nature Interpretation and
Environmental Education Building is yet another instance of Shell
Malaysia's commitment towards fulfilling a fundamental requirement as
we strive to create a better society in Sabah."
YAB Datuk Musa Haji Aman, Sabah Chief Minister.
Shell through its staff had lived up to its pledge not only through
their company's initiated programme but most notably through their
voluntary efforts to promote awareness on environmental appreciation.
What Shell had done, within and outside the organisation, reflected
deserving respect for their proactive and responsive approaches to
enable the environment to be sustainable and could be enjoyed through
to the next generations of society."
Hamdan Ismail, Senior Journalist, The Borneo Post, Sarawak.
am extremely impressed by the support from both the management and
staff of Shell Refining Company, undertaking many communal projects. We
receive lots of information on safety, health and the environment. So
much so that each time we think of Shell we think of safety."
Tuan Haji Tomijan Md Nor (Chairman JKKK Kampong Arab, Port Dickson)
learnt how a corporate organization like Shell Malaysia rises to the
challenge of supporting sustainable development initiatives in areas
which are considered far apart from their core business."
Siti Safura Abdul Aziz, UiTM undergraduate.
active participation of Shell staff clearly demonstrated their
commitment to educational, social, tourism and safety excellence in
Hussaini Hakim, Social Manager, Bintulu Division, Sarawak
science camp, held in collaboration with Shell, has helped to enhance
love for science through experiential learning as well as inculcate a
responsible attitude towards environmental care among primary school
students in Bintulu."
Isah @ Aishah bt Hj Saberi, Headmistress, SK Agama Majlis Islam Sarawak.
offer of help during the 'Anti-Pollution Campaign' is truly
appreciated. We believe together we can achieve our target of 10,00
trees to be planted in Port Dickson ... contributing to the greening of
Maj. (R) Anthony S. Raj (President Port Dickson Residents Association, Negeri Sembilan)
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