ENOC Energy & Efficiency: The Story So Far

1ST EDITION | 2015

ENERGY & EFFICIENCY

THE STORYSO FAR...

01LEADINGE&RM POLICY & MANAGEMENT SYSTEMS IN DETAIL

04MONITORING, IMPROVING & COMMUNICATINGCERTIFICATIONS, AUDITING, AWARENESS CAMPAIGNS, AWARDS

02PLANNINGTHE BUSINESS PLAN MODEL, COMPETENCY MATRIX, STAKEHOLDER MANAGEMENT

03IMPLEMENTING & OPERATINGKPI-BASED E&RM, EFFICIENCY OVERSEAS, PERFORMANCE & PRODUCT IMPROVEMENT

ENERGY & EFFICIENCYT H E S T O R Y S O F A R

H.H. Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi

H.H. Sheikh Hamdan Bin Mohammed Al Maktoum, Crown Prince of Dubai

H.H. Sheikh Mohammed Bin Rashid Al Maktoum , Vice-President and Prime Minister of the UAE,

and Ruler of Dubai

H.H. Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance

It is my pleasure to introduce this report on energy and efficiency which has been extensively researched and collated by ENOC. The report underlines the initiatives undertaken across our organisation to promote world-class Energy & Resource Management (E&RM) practices as well as complementing the UAE governments policy of promoting the judicious use of energy resources, which is mirrored in the Green Economy for Sustainable Development initiative announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai.

ENOC is at the forefront of integrating international E&RM best practices throughout all aspects of our operations. A clearly defined E&RM policy is now part of the ENOC Groups strategic map.

We have also identified smart KPIs to achieve our energy and resource management goals through cost-effective methodologies, which enable us to efficiently manage our energy and resources.

Having adopted a scientific E&RM policy in 2008, ahead of the launch of ISO 50001, ENOCs approach is aligned with the goals of the Dubai Integrated Energy Strategy, which is to reduce energy demand by 30% by 2030 and to diversify the Emirates energy mix. To this end, we have not only been focusing on increasing our energy efficiency but we have also rolled out ambitious initiatives including the opening of the Middle Easts first green service station and the use of cleaner, greener compressed natural gas as an alternative automotive fuel.

As the power behind every successful journey, ENOC remains committed to promoting sustainability for the benefit of future generations. Through our green and efficient energy and resource initiatives we are also supporting the nations ambition to become the global green-economy hub.

Saif Humaid Al Falasi Chief Executive Officer ENOC

Wel

com

eN

ote

ENOCs approach is aligned with the goals of the Dubai Integrated Energy Strategy, which is to reduce energy demand by 30% by 2030

ENERGY & EFFICIENCY2015 THE STORY SO FAR

SAIF HUMAID AL FALASI Chief Executive Officer - ENOC

ENERGY & EFFICIENCY2015

FOREWORDS

Fore

wor

d

The work of the ENOC Energy and Resource (E&RM) Steering Committee has been instrumental in the development of ENOCs E&RM policies and framework. The involvement of senior business unit managers, who represent the various business streams of the ENOC Group, has helped in shaping policies to suit current and forecasted challenges, look at future opportunities and take supportive leadership roles directly within the business units or indirectly in feedback to the committee which reports into the Executive Committee (EXCOM).

The committee has grown over the past year to incorporate more managers as the E&RM programme continues to mature. An important step was to engage with Business Unit (BU) Managers, who have continued to develop their understanding of the opportunities for energy and resource management and sustainability in general terms.

The committee has had some good joint meetings with the Technical Committee, which meets more frequently and has been effective in driving forward implementation plans. The Steering Committee has played a role in directing the focus of the Technical Committee. I believe the work of the Steering Committee will continue to grow and the focus of the initiatives will change over time to address new and upcoming opportunities.

In a nutshell, we consider the primary role of the Steering Committee to be the creation of strategies to ensure alignment with government E&RM strategies throughout development and performance update processes.

On this note, I hope you enjoy the read.

Saif Humaid Al Falasi Chief Executive Officer Chairman, E&RM Steering Committee


Since its inception more than two years ago, the ENOC E&RM Technical Committee has played an important role in driving the development and implementation of E&RM initiatives throughout the Group. Reporting into the ENOC Energy and Resource (E&RM) Steering Committee, the Technical Committee is primarily involved in the implementation of ENOCs E&RM policies and framework. Here, the general involvement of business unit staff, including technical, maintenance, engineering, EHS and procurement technical buyer representatives, has made technical committee meetings an enriching experience. The committee members, who represent the various business units of the ENOC Group, have helped institute shared learning, knowledge transfer and strong technical debates within the context of the forum.

The committee generally has two members who alternate in representing each business unit. This has ensured that representation is guaranteed in every meeting. The committee has met with vendors, suppliers, consultants and other service providers and institute representatives during these meetings and this process has helped keep them keep abreast of the latest standards, technology and initiatives in E&RM.

The committee has had the opportunity, through joint meetings with the Steering Committee, to showcase the programmes implemented and give effective feedback on the initiatives undertaken. The Technical Committee has played a role in accelerating the implementation of technical programmes and initiatives. I believe the work of the Technical Committee will continue to diversify and the focus of the initiatives will change as time goes on and new technologies and strategies are developed and the shared knowledge from case studies and pilot studies increases. It is important to note that one of the primary roles of the Technical Committee was to create centres of E&RM excellence, increasing the knowledge and competence of those who are responsible for stewarding and implementing E&RM initiatives and programmes on the ground. This has been instrumental in supporting the work of the Steering Committee to ensure alignment with government E&RM strategies throughout development and performance update processes.

Waddah S. Ghanem Al Hashemi Acting Executive Director, EHSQ & Corporate Affairs Director, EHSQ Compliance Chairman, E&RM Technical Committee


FOREWORDS

Welcome Note Saif Al Falasi

Forewords Saif Al Falasi, Waddah S. Ghanem

Table of Contents 1ENOCs Global Footprint 3ENOCs Fuel Value Chain 5The Continuous Journey Towards E&RM 7ENOCs E&RM Journey Timeline 8Energy, Sustainability & Green Economy Initiatives 13

01LEADINGE&RM POLICY, STRATEGY & MANAGEMENT SYSTEM IN DETAIL, ETC.

Interview Farid Badri & Hamad M Al Mazam 15Governance of Efficiency Alia Ali Busamra 19Meet the E&RM Steering Members 21Meet the E&RM Technical Members 23The ENOC E&RM Management Policy 25Interview Petri Pentti 26Waste Heat Recovery Francisco Vina Brito 29Blue Print for a Management System P. Radhakrishnan 30The Building Blocks of Efficient Buildings Khalifa Al Qaizi 33IIIuminating Savings Abdoulkader Houmed Abass 35Engaged on All Levels Waddah S. Ghanem Al Hashemi 36Interview H.E. Ahmed Al Muhairbi 37

02PLANNINGTHE BUSINESS PLAN MODEL, COMPETENCY MATRIX, STAKEHOLDER MANAGEMENT, ETC.

The Challenge of Creating Accountability Shamma Al Rahmah 41From Awareness to Mastery 43One-Stop Online Shop 46British Industry Experts for the Gulf Maria Blakely 47Career Milestones Mahesh Mankuzhy 48Switching to Saving Hamdan Al Doukhi 49A Field Trip in the Name of Efficiency 50Mix and Match for Success Shaker Mozdi 51Cool Savings Sathisha Shetty & Jeevan Paul 53

Tab

le o

f C

onte

nts

THE STORY SO FARENERGY & EFFICIENCY

2015

03IMPLEMENTING & OPERATINGKPI-BASED E&RM, EFFICIENCY OVERSEAS, PERFORMANCE & PRODUCT IMPROVEMENT, ETC.

High Expectations Alia Ali Busamra & P. Radhakrishnan 55A Different Kind of Fuel Fazal Ali Khan 58Work in Practice Mark Louie P Burling & Randy Montescarlos 59Case Study: Gas-Fuelled Ferries 60Investing in the Future 61Winning Actions 63Case Study: Ending Water Waste Bhaskar Sinha 64Carbon Management for a Hydrocarbon Manager Fazil Abdul Rahiman 65Trial and Error Alia Ali Busamra 67Research Outside the Core Business Waddah S. Ghanem Al Hashemi 69Tank Trucks Tighten Their Belts Waleed Haidra & Vallilath Unnikrishnan 73Case Study: Want not, waste not Bhaskar Sinha 75A Dry Car-Wash and Vapour-less Pumps 76Birds View on Our Buildings Sachith Kumar K.V 78Case Study: Plug Into the Sun Kasirajan Saravanan & Manoj Sukumaran 82Fine Tuning the Procurement Priyalal Liyanage 83A Global Footprint Fahad Askar 85Terminals on the Horizon Kasirajan Saravanan & Manoj Sukumaran 86

04MONITORING, IMPROVING & COMMUNICATINGCERTIFICATIONS, AUDITING, AWARENESS CAMPAIGNS, AWARDS, ETC.

Regular Health Check Ups for Efficiency Alia Ali Busamra & P. Radhakrishnan 89Case Study: Locking Out The Sun Ahmad Dardas 93Everyone Onboard 94ENOC Energy Award 97Supercharged Data Management 99Fuelling Wellbeing 100In the Spotlight 101ISO in Action Owais Ahmed & Vinoy Skariah 102Gas on The Carousal Gopalakrishnan Vinod 104We Say Thank You 106Thank you & Goodbye Waddah S. Ghanem Al Hashemi 107

FOREWORDS ENERGY & EFFICIENCY2015

Morocco

Kingdom of Saudi Arabia

United Arab

Emirates

Djibouti

United Kingdom

Turkmen-istan

Singapore

Malaysia

South Korea

ENOCs Global Footprint

United Arab EmiratesENOC Supply & Trading LLCENOC Processing Company LLCDubai Natural Gas Company LtdEmirates Petroleum Products Company (EPPCO) LLCHorizon Terminals LtdHorizon Emirates Terminals LtdENOC Fuel Supply Company LLCENOC Marketing LLCENOC Lubricants & Grease Manufacturing Plant LLCEmirates Gas LLCENOC Commercial & Distribution LLCGulf Energy Maritime (GEM) LLC 35.62%EPPCO Projects LLC 51%EPPCO International Ltd 50%Vopak Horizon Fujairah Ltd 33.33%ENOC Tasjeel LLCCylingas Company LLGlobal Technology Services LLCENOC Retail Systems LLCENOC Bunkering International LLCFujairah Energy Petroleum Company LLC 50%Dubai Carbon Centre of Excellence 25%

Kingdom of Saudi ArabiaArabtank Terminals Company Limited 36.5%Saudi Emirates Fuel Company LLCUnited Gulf Aircraft Fueling Company 49%

DjiboutiHorizon Djibouti Terminals Ltd 44%ENOC Djibouti FZCO - 45.6%

MoroccoHorizon Tangiers Terminals SA 34%

United KingdomENOC Services (UK) Limited

SingaporeEmirates National Oil Company (Singapore) Private LtdHorizon Singapore Terminals Pte Ltd 52%ETL Falcon Pte. Ltd.Falcon Grace Pte. Ltd.Falcon Victory Pte. Ltd.

South KoreaHorizon Taeyoung Korea Terminal Limited 50%

TurkmenistanDragon Oil plc - 54%

MalaysiaESL Limited

ENO

C

At a

Gla

nce


Morocco

Kingdom of Saudi Arabia

United Arab

Emirates

Djibouti

United Kingdom

Turkmen-istan

Singapore

Malaysia

South Korea

4


FOREWORDS

ENOCs Fuel Value Chain

Procurement Processing

ENO

C

At a

Gla

nce


Storage Sales

STP

Business Segment Activity

Marketing Retail Terminals

6


FOREWORDS

Th

e C

on

tin

uo

us

Jou

rney

To

war

ds

Ener

gy a

nd R

esou

rce

Man

agem

ent The beginnings Start of the

journey - E&RM Policy and Manual

Even before ENOC had an official energy and resource management policy, the company was engaged in environmental management. Starting with the release of the draft Environmental Management System (EMS) in 2007, compliance audits commenced in 2007 and corrective actions and improvement plans were soon initiated by the business units. One of the primary requirements of an EMS is that relevant environmental aspects and their impacts are identified, evaluated and controlled. The analysis clearly revealed that the main concern was the wasteful use of energy and resources, including for example, the discharge of waste water, use of electricity and natural resources, emissions of carbon dioxide and carbon monoxide, solid waste generation, leaks and spills and so on. By controlling these aspects, energy and resources are automatically used more efficiently.

Within this early EMS, the need for more stringent KPIs became evident, so a reduction target of 10% was set on consumption of electricity, water and fuel and the reduction in the quantity of solid waste, as well as discharges of water and emissions.

Unfortunately, these early KPI targets were either achieved in an unstructured manner, documented with inconsistent data or not achieved at all by the business units.

Energy and Resource Management (E&RM) then became formalised in late 2008 with the framing of the Energy and Resource Policy, addressing:

Measurement, monitoring and analysis of energy and resource use

Wasteful use and reuse of energy and resources

Use of renewable energy

Energy and resource efficiency in purchase of equipment and design

Training, competency and awareness of energy and resource use efficiency

As with any policy, it did not provide any guidance or standards for implementation and therefore the Energy and Resource Management Manual (E&RM Manual) was developed. The draft manual was issued to all business units for consultation and testing in late 2008.

At the time, there were no internationally accepted standards for energy and resource management. The first such standard, BS EN 16001, was issued in July 2009. Due to its novelty, the period of consultation and testing was unusually long and the manual was approved and issued in Jan 2010. Though the manual was in draft form, audits commenced from 2009 onwards and also formed part of the testing and consultation phase of the manual.

In the midst of ENOC proactively setting a framework for energy and resource management, the Government of Dubai took the lead on an Emirate level by setting up the Dubai Supreme Council of Energy (DSCE) in 2009. In the six years that have passed, it has become evident that both processes and guidance are complementary.


E&RM Journey Timeline

GOAL

E&RM policy & system manual were conceptualised. Draft E&RM policy & system manual (GEHS/M/20) were developed

ENOC E&RM policy & draft manual approved. Commencement of audits. CAPs were developed

Setting up of ENOC E&RM S&TCs. ISO 50001 training

Introduction of new KPIs. Verification & monitoring of Business Plans savings & E&RMS. Energy Audits

Audit scope expanded. ISO 50001 standard adopted

Draft E&RM policy & system manual (GEHS/M/20) were sent to all ENOC BUs for consultation on 24th June. A trial audit was conducted. First International Standard BS EN 16001 was issued in July

Implementation of revised benchmark of E&RM audit score target & inclusion of Business Plans in BSCs. EI training

Aligning E&RMS audits with ISO 50001. Monitoring, verification & consolidation of E&RM BPs. Conducting energy audits

2015

2014

2012

2010

2008

2013

2011

2009DSCE established

Development of DIES 2030. Concept of Quick Wins

introduced

Release of DIES 2030

Structured reporting started of Quick Wins

Stringent regulations on energy efficiency introduced

Continue stressing energy efficiency

20% reduction to be achieved in next 6 years in office buildings

8


FOREWORDS

ENOC is committed to operational excellence and be 'best-in-class' for stakeholder satisfaction, prosperity and sustainable growth. Our products, assets and services shall be safe and comply with all applicable laws, regulations and other requirements that we subscribe to.

ENOC commits to be a socially responsible entity and conducts its business in an ethical, transparent and sustainable manner. EHSQ Compliance is an inherent part of our business planning, strategic and operational objectives.

Protect the safety and occupational health of our employees, contractors, customers and general public, in so far as they come in contact with the company or its products as far as reasonably practicable.

Use cost-effective methodologies to manage our energy and water resources prociently, whilst aligning ourselves with the policies and strategies of the Dubai Supreme Council of Energy.

Prevent pollution, preserve biological diversity, and safeguard the environment for sustainable development

Minimize risks to people, assets, and the surrounding community which may be affected by our operations by controlling the design, build, operation and maintenance of assets under the protection of appropriate emergency response systems and facilities.

Report EHS Critical Success Factors as KPIs to reect our own, and more importantly our stakeholders' perception of our EHSQ performance.

The Management shall provide all necessary resources to enable the implementation of EHSQmanagement systems; and promote this culture in cooperation with our employees.

As Such We Shall:

Audit and review our performance and practices against this policy and ensure continual developments and improvements.

Work closely with regulators, Government stakeholders and industry peers in the development of EHSQ standards and initiatives and share good industry practices;

Have transparent, well documented, easily understood and accessible processes and systems.

Train and motivate all employees and contractors to understand and implement this policy, and to make it available to all stakeholders to encourage dialogue.

Review the suitability of this policy at least once every three years to maintain its relevance and to identify areas for improvement.

ENOCs EHSQ Policy

E&RM audits and corrective actionsInternational best practice and ENOCs procedures require periodical audits to ascertain the degree of compliance, which started in 2009, and most of the business units were audited by 2010. As expected the scores in the audits were initially below the target of 2 out of 4 (on average 1.56). The reasons were mainly:

Inadequate measurement of energy and resource consumption and use

Lack of analysis for savings potential and hence no scientific conservation plans and objectives

Lack of training and competency related to energy

No policies in place for considering energy efficiency in purchase and design

High priority corrective actions such as measurement and analysis were implemented on a priority basis.

The Dubai Integrated Energy Strategy 2030 (DIES 2030) was issued in 2011. It aims to reduce electricity demand across the Emirate by 30%. The process is supported by Demand Side Management (DSM), with ENOC being one of the appointed members.

In 2011, ENOC expanded the E&RMS audit scope to include the requirements and objectives of DIES 2030 and the newly issued (2011) international standard ISO 50001, Energy management systems Requirements with guidance for use.

In 2012, the DSCE made it mandatory for all government entities to report their plans, investments and savings from implementing quick-win measures. Through its three years of experience, ENOC already had a head start.

As a large part of the corrective actions were completed in 2013, a second round of audits of the E&RMS were carried out, now with a target score of 3 out of a maximum of 4. The average score during this set of audits increased to 2.71 from the earlier 1.56, a substantial improvement of 74%.


E&RM Steering & Technical Committees and KPIsUntil 2012, most of the initiatives towards E&R efficiency management were driven from an Environment, Health and Safety (EHS) perspective. In 2012 it was decided that energy and resource management needed to be addressed on its own merits, but with close cooperation with EHS functions. The ENOC group strategic map aligned ENOCs strategy with the DSCE requirements and the ENOC group EHSQ policy was amended to include energy and resource use and management as a guiding principle.

Many employees and managers had only a rudimentary understanding of structured and formal energy management systems. Hence, training programs on the ISO 50001 standard were organised for different levels of employees, including managers.

Two key committees were established in 2012, being the E&RM Steering Committee and the E&RM Technical Committee. Meetings take place at set intervals and are agenda-driven and actionable. Apart from implementing the guidance of the Steering Committee, the Technical Committee meetings also serve as a forum for sharing knowledge and information, such as the results of pilot studies, supplier presentations, benchmarks and so on.

2012 also saw the advent of the ENOC Energy Awards, recognising and commending great performance on energy related issues.

Electricity

Units 2012 2013 2014

Million kWh 472 438 421

% reduction over 2012 7% 11%

The above reduction is in spite of an approximate 50% increase in throughput by EPCL.

Given below is the electricity use per unit of production

Units 2012 2013 2014

kWh/unit production 77 53 54


WaterWater is primarily used in the process for EPCL and Dugas and for domestic use in retail

Units 2012 2013 2014

kL 1,878,464 2,071,753 2,000,328

% reduction over 2012 -10% -6%

Consumption increased due to a large increase in the throughput of the refinery

Units 2012 2013 2014

kL water/unit production 0.307 0.250 0.248

% reduction over 2012 18.6% 19.4%

Fuels

The main fuel used is natral gas by the EPCL and Dugas. All other units use a small amount of diesel fuel

Units 2012 2013 2014

Tons of fuel 336285 369122 336348

% reduction over 2012 -10% 0.0%

Consumption has increased due to a large increase in the throughput of the refinery

Units 2012 2013 2014

Kg fuel/unit production 55 45 42


More Efficient by the Year

E&RM competencies and trainingIn 2013, energy and resource awareness programmes were developed in-house and have been delivered throughout the years since.

The Energy Institute (EI) developed and delivered training programmes to build competency for key personnel, such as technicians and engineers/managers. The training was timely as the UAE had started introducing regulations on the energy efficiency of equipment and buildings, such as star ratings for equipment and green building regulations.

In parallel, a competency matrix was developed for energy and resource management related skills by amending the existing EHS competencies.

Electricity use % 2014

Water use % 2014

Gaseous Fuel use % 2014

60%

35%

70%

20%

10%

20%

15%

30%

30%

20%

40%

40%

25%

50%

50%

30%

60%

10%

5%

10%

EPCL

Dugas

EPCL

Dugas

Retail

Dugas

Retail

Others

Other Bus

52%

10%

62%

23%

29%

38%

14%

5%

10%0%

0%

0%


FOREWORDS

F1

IP1

LG1

LG2IP

2IP

3

F2

C1

C2

C3

C4

F3

LG3

Th

e h

igh

ligh

ted

ele

men

ts a

re li

nke

d t

o e

ner

gy a

nd

res

ou

rce

man

agem

ent.

ENOC Group Strategic Map


The vision of ENOC has always been to be a leading regional integrated oil and gas group that is highly profitable and socially responsible towards employees, the community and the environment. In order to achieve this vision, ENOC has set long-term strategic goals. The main strategic goals of ENOC are to align with the UAEs energy needs and contribute to economic development, improve operational performance and achieve sustainable profitable growth, continue to build scales in strategic assets to deliver high returns on capital investment, expand into new markets and enhance competitive positioning by leveraging supply chain strengths and brand image, build a profitable E&P portfolio and create synergies, and to be the employer of choice.

There are four key domains ENOC endeavours in: financial, customers, internal processes, and learning and growth. In the financial domain, ENOC strives to increase investment returns, achieve sustainable profitable growth and maintain a sound financial position. In the domain of customers, ENOC strives to achieve business expansion and to satisfy stakeholders through exploring strategic opportunities, increasing product volumes, meeting and exceeding customer expectations and enhancing the brand by being socially responsible.

In the domain of internal processes, ENOC strives to achieve business process excellence by ensuring that there is a high level of governance and operational standards, increasing operational efficiency, and accelerating the capital investment programme. In learning and growth, ENOC strives to heighten organisational capabilities and culture by attracting, developing and retaining competent people and leveraging knowledge management and information systems, as well as creating a highly innovative and engaging workplace. All four domains are linked to one another forming the current ENOC Strategic Map, which is the Groups guide towards the fulfillment of the set strategic goals and achievement of the long-term vision.

Management SystemsTo achieve consistency in any process, robust management systems and discipline are essential. Hence KPIs were introduced in 2013 covering areas of the E&R audit score, attendance at committee meetings, timely and accurate data submittals and adherence to energy-related training plans.

In the same year, a second KPI called the Energy Business Plan (BP) was introduced, covering both leading and lagging indicators. The leading indicator consisted of a requirement for the business unit to submit a five year plan for a reduction in the use of energy and resources with savings, investments, timelines and responsibilities identified for all significant use areas. The lagging indicator was the achievement of the planned savings the results. Both the management system and the BP were included as one of the elements of the Balanced Scorecard (BSC) for all operating units, streams and the ENOC Group as a whole.

In 2014, the BP KPI was enhanced by a requirement of 50% additional savings over the original savings target via a supplementary energy business plan. While the original KPI in 2013 was to develop an energy BP, the 2014 KPI included achievement of the planned savings.

Monitoring, verification and future plansIn 2014, ENOC introduced verification of audits and corrective action plans and savings in line with the principle of continual improvement. Specialised third party audits were required from the business units in different areas of energy use such as lighting, HVAC, compressed air and process heating. Overall, most of the business units performed as per their plans.

The journey towards energy efficiency is one that does not have an end. Therefore, ENOC is considering the following initiatives for the future:

Third party energy audits

Providing energy efficiency related technical training in specialised areas such as pumps, compressors, HVAC and lighting

Energy Management Systems training such as auditing, ISO 50001 awareness and implementation

Aligning the existing E&RM manual with ISO 50001

Obtaining LEED certification for existing buildings

Benchmarking

It is believed that many of the initiatives stated above will be adopted and implemented in the next three years as a way forward.

12


FOREWORDS

E&RM Steering Committee

E&RM Technical CommitteeE&RM

Audits

E&RM GEHS Standard GEHS/M/036

E&RM GEHSQC Awareness and

Competency Training

Programs

E&RM Public Presentations

E&RM KPIs

E&RM Business Plans for Efficiencies

Sponsorship of Green

Initiatives

Green Investments - ie Solar Park Investment

DSCE-Demand Side Mgt

DSCE Fuel Abatement Strategy Committee

DCCE PJSC Shareholding

Energy Institute

Corporate Membership

Green Business Planning

UAE State of Green Economy

Report

ENOC Sustainability Report

E&RM Benchmarking Studies

ENOC Energy & Efficiency Report

UAE State of Energy Report

UAE Green Strategy

Project Appraisal-

Carbon Management

CDM&Carbon Credits

Dubai Green Economy Partnership

E&RM PolicyTahadee Initiative

Tarbut Initiative

CSR Initiative

Initiative with UNDP - Food Fuel

Program

World Environmental Day

Earth Hour

ENOC Wellness & Social Activities

Program

Charity Work

Employee Engagement in Green Initiatives-

Innovative Scheme

Green Initiatives

Green Stations

ENOC CSR Policy &

Committee

Sustainability & CSR (BCCM/HRD)

E&RM Energy & Resource ManagementCDM Clean Development MechanismUNDP United Nations Development ProgramDSCE Dubai Supreme Council of EnergyGEHSQC Group Environment, Health,

Safety & Quality Compliance

Energy, Sustainability and Green Economy InitiativesENOC is fully committed to achieving sustainable development and highly profitable growth and serving the growing energy requirements of Dubai.In order to accomplish this, ENOC has initiated a number of projects and taken up various energy-saving initiatives. The initiatives were spread out to fall under three pertinent areas: energy and resource management; sustainability and corporate social responsibility, and green economy. Currently, these initiatives are handled by the Group EHSQ Compliance

Directorate, Brands and Corporate Communication Department; Group Human Resources; and Group Finance. Moreover, ENOC identified the sections of overlap within the three areas and believes that in order for these initiatives and activities to be managed properly, they need to be well-communicated to all of the concerned departments. The most prominent initiatives that lie at the core of the overlap are the E&RM Benchmarking Studies, the ENOC Sustainability Report, the ENOCs Energy and Efficiency Report, the UAE State of Energy Report, the ENOC Green Strategy, and the UAE State of Green Economy Report.

Energy & Resource Management (Group EHSQ Compliance)

Green Economy (BP&PM - Group Finance)


LEADINGE&RM POLICY, STRATEGY & MANAGEMENT SYSTEM IN DETAIL, ETC.

Inte

rvie

wFa

rid

Bad

ri &

Ham

ad A

l Maz

am

ENOCs EHSQ policy has recently been revised to align ENOCs E&RM strategy with DSCE requirements

Aligned to Dubais StrategyENOCs structured approach to steer and execute resource efficiency. Twenty-two years of history frames ENOCs journey in becoming a leading regional integrated oil and gas group that is both profitable and socially responsible. In 2008, ENOC identified efficient Energy and Resource Management (E&RM) as a crucial element in its roadmap. Since then, carefully measured targets have been set, starting from a unified E&RM policy and subsequent manual. With compliance audits and corrective action plans for the future set in place, ENOCs focused approach in developing best practices across its operations has been evolving steadily for the past five years.

In 2012, ENOC established a dedicated Steering Committee, a General Technical Committee and Technical Committees for each business unit to align ENOCs business practices with the companys Group Environment, Health, Safety and Quality Compliance (GEHSQ) and Dubai Supreme Council of Energys (DSCE) policies and guidelines. How is this carried out?

F.B.: The Steering Committee defines targets for the Technical Committee based on its E&RM overall strategy and the requirements of DSCE, international best practice standards and GEHSQC policies and guidelines. Once these targets are defined, the members of the Technical Committee develop plans taking into account significant areas for E&RM, projected costs and savings, measurement and monitoring methods, and by mapping out milestones and a feasible timeframe for projects. Once these plans are approved, the relevant business units are responsible for implementation.


each policy takes into account a balanced scorecard, which includes energy implementation as a key performance indicator

FARID BADRI

DIRECTOR - REFINING OPERATIONS IN ENOC PROCESSING COMPANY LLC (EPCL)

How does the Steering Committee reconcile ENOCs existing policies in line with these external bodies?

H.M.: Since its inception, the Steering Committee has developed a new energy policy that aligns ENOC with external bodies guidelines. The committee assigned some of the members to be active members in DSCE. At present, I am a member of DSCEs Gas Supply. I chair internal meetings in my organisation with a group of talented and experienced members from management, engineering and EHS departments. Within the Steering Committee, we develop programmes and tasks in line with timelines for achieving long-term plans, while projecting future conditions. We examine the macro-picture to plan and develop energy saving strategies, which can benefit the organisation without compromising safety and environment regulations. Our quarterly meetings ensure transparency and open lines of communication within the committee.

F.B.: A transparent, well-run channel of communication ensures that all parties involved are aligned. ENOCs own representatives who sit on various committees within external bodies regularly update the Steering Committee during our scheduled meetings. Based on feedback, we review existing policies and examine how they can best meet the requirements and guidelines set by external bodies. As an example, the ENOC EHSQ policy has recently been revised to align ENOCs E&RM strategy with DSCE requirements. ENOC has also developed a standalone E&RM policy to set up an infrastructure for achieving energy and resource management objectives. Transparency through these open channels of communication allow for an increase in response time and adaptability, which helps us achieve our objectives in a unified manner.

HAMAD AL MAZAM

SENIOR MANAGER - OPERATIONS & MAINTENANCE IN DUGAS OUTLINES

16


CHAPTER 01 LEADING

How is the Steering Committee expected to appraise E&RM projects from an investment perspective?

H.M.: Approved energy plans are monitored in phases using a variety of calculations, such as the payback period of implemented energy saving measures, CO2 savings, cost savings and energy resources savings. With each measure in place, we have involved the procurement department, which is responsible for thoroughly researching and testing energy saving equipment, machines, tools and appliances before purchasing them for operational efficiency.

F.B.: The Steering Committee acts as an overseer of various projects proposed by the different business units within ENOC. This guarantees that all projects are focused and in line with the overall group-wide strategy. It is the responsibility of the business units to ensure that the companys investments in their proposed projects are successful in achieving their objectives, including securing financial returns. The business units are, after all, experts in their niche subject matter, and are in the best position to ensure the all-round success of a project.

What does the Steering Committee use as a marker of progress?

H.M.: Held in place by clearly defined gauges, each policy takes into account a balanced scorecard, which includes energy implementation as a key performance indicator (KPI). The KPI calculation includes energy savings that meet DSCE and GEHSQ targets and requirements.

F.B.: The Steering Committee has set two KPIs related to energy and resource management on a corporate level. This is in addition to the existing KPIs of our own Business Units, which reflects improving overall efficiency and reducing costs. The first E&RM KPI is related to compliance with the ENOC E&RM manual and the second is related to developing Energy Business plans. These two KPIs are monitored on a quarterly basis, examining what was planned versus what was achieved. The results are reported to the highest level to track overall performance.

HAMAD M AL MAZAM

SENIOR MANAGER - OPERATIONS & MAINTENANCE

Mr. Al Mazam began his career as a Process Engineer in the GASCO BAB plant in Habshan area. He held a diverse array of positions across the GASCO Ruwais and Buhasa plants, as well as the Sajja gas plant in Sharjah before assuming his current role.

FARID BADRI

DIRECTOR - REFINING OPERATIONS

Mr. Badri holds a Bachelors degree in Chemical Engineering and Petroleum Refining from the Colorado School of Mines, USA. He has been with ENOC for 19 years, during which he has developed experience in refining operations, process engineering, trading of hydrocarbon products and marine operation activities.

In line with our stated Integrated EHSSQ Policy and the direction set by our shareholder ENOC, we have been undertaking projects since 2013 to conserve electricity. 51 pole lights in the petroleum storage tank farm and yard have been replaced with LED lights, resulting in savings of approximately 60000KWH per year. In 2015 we are planning to replace additional pole lights in our storage tank farms with LEDs and to do engineering work in order to automate our truck loading pumps as part of our energy saving strategy.

Nabeel Abdul Kareem, GM of EPPCO International Ltd.

Statement


In your opinion, how can ENOC align its business in conventional energy with Dubais move towards diversifying its energy mix? Are these two fields compatible?

F.B.: In the case of ENOC Processing Company LLC (EPCL), we have created an Energy and Resource Management team consisting of members from operations, engineering, processing, EHS and maintenance. The mandate of this team is to measure and analyse energy consumption through extensive strategies, including benchmarking against other refineries, and proposing possible industry-wide best practices and Capex investments. The team also troubleshoots deviations from the design basis and tracks the investment plan to ensure that the focus is not lost.

From an EPCL point of view, energy is primarily consumed for thermal heat, and therefore it is very difficult for us to move away from hydrocarbon fuels either gas or liquid. In addition to core operations, energy is also consumed for the production of electricity.

Having said this, we do try our best to ensure that our operations are at their most efficient. We are constantly increasing the barrels of feedstock consumed in relation to the

hydrocarbon burned. For example, waste gas that would have otherwise been burned in the flare now generates 50 percent of our thermal and electric needs. This is a small yet significant move.

H.M.: The committees that I am part of not only examine energy saving from a planning and strategy perspective, but also take into account how these plans reduce the companys carbon footprint and emissions. From its foundations to its various iterations, ENOCs committees are collaborative, transparent and pragmatic in their functions, making the companys journey towards a unified vision smooth and sustainable into the foreseeable future.

ENOC, as an energy company, is delivering on the energy needs in the fast growing economy of the Emirate of Dubai. However, since Dubai is in fact a net importer of energy both liquid and gaseous, we are very conscious about the financial impact of the utilisation of resources as well as the environmental impact. Therefore, energy management is significant in our sustained growth plans.

waste gas that would have otherwise been burned in the flare now generates 50 percent of our thermal and electric needs. This is a small yet significant move

18


CHAPTER 01 LEADING

Gov

ern

ance

of E

ffici

ency Two committees, two chairs, 41 members, 16 alternates

and one joint goalWhen establishing a structured approach to Energy and Resource Management (E&RM), two major requirements became apparent: firstly the need to steer the programme based on continuous monitoring and secondly to log and communicate success stories to ensure visibility and ongoing buy-in from top management, business units and teams.

With that in mind, ENOC established two E&RM Committees in 2012. The first is a Steering Committee, which is a top-level committee that includes members representing ENOCs business unit heads.

The committee also includes internal stakeholders who have direct responsibilities and accountabilities in E&RM, including Group Finance (GF), Group Procurement and Contracts (GPC), Group Engineering and

Project Management (GE&PM), Administrative Services and Facilities Management (AS&FM) and Horizon Terminals Limited (HTL) Group representing overseas Terminals.

The second committee is the Technical Committee, which brings together technical representatives from ENOCs business units and other members including Group Procurement and Contracts (GPC), Group Engineering and Project Management (GE&PM), Administrative Services and Facilities Management (AS&FM) and Horizon Terminals Limited (HTL) Group representing overseas terminals. The Technical Committee is constituted of highly qualified engineers with a strong overall understanding of their own operations and activities and the technical aspects of E&RM and related standards.

In the three years since establishment, the committees have accomplished a number of tasks and are involved in various activities such as:

Formulating ENOCs overall strategy for energy and resource management

Establishing ENOCs energy and resource management KPIs

Developing ENOCs energy and resource management competency and capacity building and organising required training with BSI and the Energy Institute (EI) for all business units

Facilitating Business to Business (B2B) contacts between energy and resource management service providers and users

Integrating energy and resource management concerns during the engineering design stage

Incorporating energy efficiency standards into ENOCs corporate procurement and purchasing procedures

Interacting with government departments and conducting site visits, seminars and exhibitions

Knowledge-sharing through ENOCs Group EHSQ Compliance Portal

Facilitating quick wins for business units

Conceptualising energy and resource management business plans and guiding business units in the preparation of their plans

Encouraging business units by recognising their efforts through the ENOC Energy Award

ENOC Group

Finance

ENOC E&RM Steering Committee

Mr. Saif Al Falasi CHAIRMAN CEO

VICE CHAIRMAN

SECRETARY

COORDINATOR

VICE CHAIRMAN

SECRETARY

TECHNICAL ADVISOR

CHAIRMAN Mr. Waddah Ghanem Director - EHSQ Compliance

ENOC E&RM Technical Committee

GPCGPC E&PME&PM AS&FMAS&FMHTL

(represening overseas

Terminals)

HTL (represening

overseas Terminals)

Rep. of 12 BUs

Rep. of 12 BUs

ALIA ALI BUSAMRA

SENIOR EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY)

Ms. Busamra holds a B.Sc. Degree in Chemical Engineering and a M.Sc. Degree in Environmental Sciences. She is Coordinator of the ENOC Energy and Resource Management Steering Committee and Secretary of ENOCs Energy and Resource Management Technical Committee and member in Dubai Carbon Abatement Strategy Technical Committee.


Within this framework, the Steering Committee provides guidance and resources and defines targets for the Technical Committee to develop long-term plans to ensure energy management practices and projects are defined and implemented to meet the requirements and strategy of the Dubai Supreme Council of Energy (DSCE), international best practice standards and Group EHSQ compliance with policies, guidelines and manuals. It also acts as an apex group within ENOC that helps in the development, review and endorsement of policies and principles with respect to energy and resource management. Additionally, the members act as reviewers and approvers for projects proposed by the Technical Committee relating to energy and resource conservation and improved utilisation. The committee also appraises the projects from an investment perspective.

On the other hand, the Technical Committee develops, implements and maintains long-term plans to ensure energy management practices and projects are in compliance and aligned with the requirements and strategy of the Dubai Supreme Council of Energy (DSCE), international best practice standards and Group EHSQ compliance policies, guidelines and manuals. The committee also helps in the development, review and endorsement of technical standards, codes, practices, and projects related to energy efficiency and sustainability. Additionally, the members act as independent reviewers for projects proposed by different business units relating to energy and resource conservation and improved utilisation. The committee also appraises the projects technically and reviews and suggests alternative energy solutions including renewable energy solutions.

The CEO, with the support of the Director - EHSQ Compliance, chairs the high level Steering Committee. The committee is composed of up to 22 members and 1 alternate from across the organisation and meets twice annually. The Director-EHSQ Compliance, with the support of Chief EHS Compliance Officer (Environment & Energy) who acts as a Secretary of the Steering Committee, chairs the Technical Committee. It consists of 19 members and 16 alternates. The committee meets every alternate month to exchange ideas and technical information in 24 meetings as per April 2015.

The committees meet jointly twice per year to strengthen interaction, improve dialogue, create a mechanism for coordinated actions and to discuss progress.

Both committees are aligned with ENOC corporate governance being the Executive Committee (EXCOM). The EXCOM in ENOC is the primary management forum of the group for decision-making purposes comprising of the Chief Executive Officer and a team of highly qualified, dedicated and experienced leaders who understand what it takes to successfully steer an oil and gas group.

ENOC will reduce its overall costs and align its strategies with the Dubai Integrated Energy Strategy 2030 through:

01

02

03

Identifying where, when, why and how much E&R is used in all its activities

Measuring, monitoring, analysing and benchmarking E&R use in all areas in order to determine the potential for E&R conservation and cost savings

Developing, implementing, monitoring and reviewing comprehensive plants to achieve potential savings in the areas and activities identified above

Identifying potential synergies amongst its entities in sharing E&R so as to reduce overall costs to the entire group

Developing and implementing plans to improve the competencies of all personnel whose work can impact E&R use and costs

Aligning ENOCs E&RM policies, strategies and procedures with those of the Dubai Executive Council, DSCE and other regulatory bodies

ENOC E&RM Steering and Technical Committees

Develop and maintain long-term plan to meet targets

Direction and Governance EXCOM

E&RM Steering

E&RM Technical

Provide guidance and resources Define targets to develop long-term plans Meet the requirements of DSCE, IBPS,

GEHSQC policies and guidelines

20


CHAPTER 01 LEADING

18192223

46

2021

57 2

18192223

46

2021

57 2

Saif Al Falasi

Waddah Ghanem

Radhakrishnan

Hesham Ali Mustafa

Alia Busamra

Nabeel Abdul Kareem

Richard Wood

Mohammed Sadek

1

2

3

4

5

6

7

8

Meet the E&RM Steering Committee...


2015

18192223

46

2021

57 2

18192223

46

2021

57 2

Saif Al Falasi

Waddah Ghanem

Radhakrishnan

Hesham Ali Mustafa

Alia Busamra

Nabeel Abdul Kareem

Richard Wood

Mohammed Sadek

1

2

3

4

5

6

7

8

Meet the E&RM Steering Committee...

1 8 9 10

121315161718

3 11

14

1 8 9 10

1213151617

3 11

14

Aman Akram

Abdulsalam Al Hammadi

Craig Garbutt

Sahal Omar

Fahad Askar

Farid Badri

Ahmed Al Mulla

Ashraf Al Hashimi

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

Khalifa Al Qaizi

Taleb Al Saleh

Raed Ali Sheikh

Hamad M Al Mazam

Shamma Al Rahmah

Husam Salem M Al Shawi

Yousuf Harib


CHAPTER 01 LEADING

2930

3132

1617

18

456 2

19

3334

20

21

7

2930

3132

1617

18

456 2

19

3334

20

21

7

Waddah Ghanem

Radhakrishnan

Alia Busamra

Khalifa Al Qaizi

Abdulla A Al Hammadi

Hamdan Al Doukhi

Abeer Belzumool

Adel Al Ali

Waleed Haidra

Gordon Povey

1

2

3

4

5

6

7

8

9

10

Meet the E&RM Technical Committee...


2015

1 8 9

11

2224

2526

27

28

1314

3 10

12

23

15

1 8 9

11

2224

2526

27

28

1314

3 10

12

23

15

Charmaine Mendez

Owais Ahmed

Gopalakrishnan Vinod

Mazumdar

Bhaskar Sinha

Abi Issac

S. Ravindran

Vinoy Skariah

Carlos Tan

Manoj Sukumaran

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

Mohammed Iqbal Qureshi

Noel Enriquez

Girish Kumar Kalkund

Edmund Presquito

Mark louie P Burling

Clayton Rebello

Kasirajan Saravanan

Priyalal Liyanage

Aju Thomas

Sathisha Shetty

K Sachith

Randy Montesclaros

Ahmed Obaid

Noel Erick Ang


CHAPTER 01 LEADING

As a responsible corporate citizen, ENOC is committed to utilising energy and resources efficiently. ENOC believes that the optimisation of resources will lead to overall cost reductions and will make operations sustainable in the long run.

Th

e EN

OC

En

ergy

an

d R

eso

urc

eM

anag

emen

t Pol

icy

Therefore, ENOC has developed a standalone Energy and Resource Management (E&RM) policy to set up the infrastructure for achieving energy and resource management objectives. This was further reinforced by the new directives issued by the Dubai Supreme Council of Energy (DSCE) to all entities to reduce energy consumption by 30% and diversify the energy mix before 2030. Therefore, the ENOC Energy and Resource Management Strategy has also been aligned with the Dubai Integrated Energy Strategy (DIES) 2030.

The development of any management system or policy manual needs to be preceded by a broad policy statement stating the overall intentions of the companys top management,

in this case ENOC, being the responsible energy partner of choice, is committed to sustainable development through optimal use of energy and resources by implementing conservation measures throughout the organisation.

To achieve this, ENOC will make available necessary resources and affiliates in turn are encouraged to:

Measure, monitor, quantify and analyse energy and resource use and prioritise conservation measures.

Reduce, recover and reuse energy and resources wherever economically viable.

Consider use of renewable energy sources.

Consider life cycle costs when evaluating project options.

Continually improve on their energy and resource use performance.

Provide adequate training to personnel and communicate effectively on energy and resource use policy and conservation measures.


2015

Inte

rvie

wP

etri

Pen

tti

The oil and gas industry is known for being extremely capital intensive, and investment projects are implemented with a view to operating assets for decades to come

Efficiency in the BooksThe financial aspects of energy and resource management Meeting the challenges in a carbon-aware era, Petri Pentti, Chief Financial Officer of ENOC, outlines ENOCs commitment to energy efficiency, how business and investment plans help to identify low hanging fruits and financially viable efficiency upgrades.

PETRI PENTTI

CHIEF FINANCIAL OFFICER OF ENOC

How is ENOC planning to integrate energy and resource management as a core pillar for future expansion?

P.P.: Resonating with everything we do, sustainability has emerged at the forefront of ENOCs strategy and operations in recent years. The oil and gas industry is known for being extremely capital intensive and investment projects are implemented with a view to operating assets for decades to come. It is crucial in todays operations that these projects meet the toughest criteria for energy efficiency, as this ultimately will be in line with the three pillars of sustainable business: people, planet and profit.

Currently, ENOC requires that every single capital project, including small to medium-sized maintenance projects, be evaluated from an energy savings and efficiency perspective as well. These elements have been incorporated as requirements in our regular reporting, further supported by the necessary governance structures established and guided by ENOCs Energy & Resource Management (E&RM) Technical and Steering Committees.

26


CHAPTER 01 LEADING

ENOCs EHSQ strategy cites its aim to use cost-effective methodologies to manage energy and water resources proficiently in partnership with Dubai Supreme Council of Energy. What are these methods, and how will this be rolled out?

P.P.: In addition to a longer-term strategies, we have introduced the concept of quick wins in our operations to highlight how energy efficiency can be achieved rapidly with minimum effort and maximum rewards. The five-year plan for E&RM projects is an extensive investment blueprint that outlines anticipated savings and a projected payback period. In order to achieve this, all ENOC business units identify where, when, why and how much energy and resources (E&R) are used in all their activities. The business units also measure, monitor, analyse and benchmark E&R use in all areas of operations in order to determine the savings potential and improvements in working efficiency, while monitoring the companys overall energy performance index. With an accurate measurement of each business units current resource usage, the next step is to develop comprehensive plans that are then applied, monitored and reviewed to achieve savings and efficiency improvements in areas that have been identified from the initial baseline study. With these figures in hand, we can easily identify potential synergies among all business units in sharing resources to reduce overall costs for the entire group.

An important factor in streamlining E&R usage lies in developing and improving the competencies of all personnel whose work can directly impact potential losses or savings in E&R use and costs. With the right training and diligent operational awareness, we can ensure that all of ENOCs E&R policies, strategies and procedures are aligned with that of the Dubai Executive Council, DSCE and other external regulatory bodies.

Of course, as a measure to guarantee sustained progress in efficient E&RM, ENOCs business units will also undertake detailed energy reviews for past, present and future usage. This will help establish best practices and set the benchmark upon which we can strive to improve internally and externally.

This strategy for E&RM has been formulated by ENOC E&RM Steering Committee in line with Dubai Integrated Energy Strategy 2030.

MEASUREMONITOR

ANALYSEBENCHMARK

ARE USED TO

SAVEHOW MUCH

WHYWHEN

EN

ER

GY

&

RES

OU

RC

ES

REUSE REDUCE RECYCLE

The International Energy Agency (IEA)s latest estimates indicate that fossil-fuel consumption subsidies worldwide amounted to $548 billion in 2013, $25 billion down on the previous year, in part due to the drop in international energy prices. Subsidies to oil products represent over half of the total. Those subsidies were over four-times the value of subsidies to renewable energy and more than four times the amount invested globally in improving energy efficiency. In the UAE the subsidy rate in 2013 was estimated to be 65% of the full costs of supply.

Source: IEA World Energy Outlook (http://www.worldenergyoutlook.org/resources/energysubsidies/)

ITS A FACT


How prominently will renewable energy factor in ENOCs future, and in what capacity?

P.P.: Gauging from the strides we are making in the UAE, renewable energy is likely to play a much bigger role in the future than it does at present. Globally, the primary focus has been on power generation in the form of solar projects, wind farms and the like. However, in order to reduce the nations dependence on hydrocarbons, reliance on transportation fuels like gasoline and diesel need to be taken into consideration. The use of biofuels holds a lot of potential, and unlike in many parts of the world, this is yet to pick up pace in the region. If actual mandates that require a certain percentage of bio-content to be blended in the existing pool of transportation fuels are in place in the UAE, we could realise large carbon emission reductions.

On a positive note, the viability and sustainability of fuel subsidies is increasingly being evaluated in the region. ENOC is carefully monitoring these trends as we have substantial infrastructural capabilities that could be relatively easily leveraged to support any potential biofuel initiatives or mandates that may be enforced. Ultimately, these potential changes and opportunities would yield a real return for ENOC, enforcing our belief in the triple bottom line.

What kinds of training programmes are being put into practice for equipping ENOCs workforce with the necessary knowledge and skills in incorporating resource efficiency?

P.P.: ENOC has developed a framework to enhance the competencies and skills of its employees who have direct responsibilities and accountabilities in the E&RM plan. Based on our research, we have identified 12 areas of competencies for technicians, engineers, managers and executives.

ENOC Group EHSQC holds awareness training, while compliance training introduces employees to the ISO 50001:2011 standard and internal audits by BSI. As a member of the Energy Institute (EI), we have access to EIs vast source of technical expertise. EI provides technical training, such as energy management for technicians, engineers and managers.

PETRI PENTTI

CHIEF FINANCIAL OFFICER

Mr. Pentti holds a Masters degree in Economics and Business Administration from the Turku School of Economics and Business Administration, Finland. He has over 23 years of experience spanning the energy, aviation and metal industry sectors holding various finance positions.

Are there any positive results you can share from 2008 when ENOC began focusing on incorporating best practices in energy and resource management?

P.P.: All ENOC business units have showed marked improvements in their E&RM performance. Some of the business units have reached their targets already, while the rest are close to their goals. With this in mind, we have enhanced our audit targets for our business units to achieve higher standards year on year. We have also brought additional business units on board under the domain of E&RM strategy.

The financial impact of our quick-win efforts has been quite encouraging. A meager investment of AED 600,000 has yielded in savings of almost three times that amount. In terms of business plans, the expected annual savings is US$9.6 million, with a payback period of two short years. We have also included a new KPI, encouraging business units to submit three to five additional projects between 2015 and 2019. These additional projects are expected to net at least 50% additional savings in dirhams, as envisaged above those the original plan submitted in 2013.

The E&RM strategy emphasises ENOCs vision to be a leading, highly profitable and socially responsible integrated oil and gas group. We recognise that strategically it is not possible to achieve our goal without unwavering commitment to energy efficiency and sustainability that will also excite our core resource our employees while addressing the expectations of all of our other stakeholders. This is evident from the way we lead; by setting an example for the industry at large.

Efficient Lighting

Waste Segregation & Recycling

Wastewater Treatment

Electricity Conservation

This strategy for E&RM has been formulated by ENOCs E&RM Steering Committee in line with the Dubai Integrated Energy Strategy 2030.

28


CHAPTER 01 LEADING

Naphtha hydrotreating is an essential step for refiners to produce cleaner gasoline from different feedstocks. In a naphtha hydrotreating unit, the harmful sulphur species react with hydrogen in the presence of a nickel-molybdenum catalyst, and are converted and removed as hydrogen sulphide.

The naphtha, free of sulphur, is separated into light and heavy fractions: Light naphtha is either blended in local gasoline or exported as a petrochemical component, while the heavy naphtha constitutes the feed to the Naphtha Reformer, where a high octane gasoline component is produced.

The EPCL Naphtha Hydrotreater debottlenecking project was conceived to increase the capacity of the unit. In order to implement this project within a brief shutdown time, it was necessary to find alternatives to supply the additional energy needed by enhancing the internal heat integration without modifying any of the three furnaces of the unit.

In a multi-disciplined team effort, with the EPCL Engineering Department taking the lead role, alternative solutions were sourced and investigated. After considering environmental and commercial factors, it was decided, among other modifications, to recover waste heat from the flue gas outlet of existing furnaces by installing a dedicated waste heat recovery system within the EPCL Naphtha Hydrotreater unit.

In this case, the energy demand saving in terms of natural gas consumption was 0.52 MMscfd (equivalent to 2.7 M AED/y) and from an environmental perspective, existing flue gas temperatures were reduced from 250C to 150C. The waste heat recovery system continues to ensure more efficient energy usage along the lifetime of the naphtha hydrotreating plant.

Was

te H

eat

Rec

over

yBy

Fra

ncis

co V

ina

Brito

FRANCISCO VINA BRITO

SR. MANAGER - TECHNICAL SERVICES

Mr. Brito holds a Engineering degree with a MSc in Chemical Engineering and Petroleum Refining. He has 28 years experience in petroleum refineries located across the USA and South America.

Naphtha is an ancient, general term that has been used to refer to flammable liquid hydrocarbon mixtures. Derived from Persian, it is used in both Latin and Greek languages and also appears in Arabic as naft. Mixtures labelled naphtha have been produced from natural gas condensates, petroleum distillates, and the distillation of coal tar and peat. The term is used differently across industries and regions to refer to gross products like crude oil or refined products such as kerosene.

ITS A FACT

Common Stack

Stack Damper

WHR 08F-104/105

ID FANS


2015

Blu

epri

nt

for

a M

anag

emen

t Sys

tem

By P

. Rad

hakr

ishn

an

We formulated a total of 40 expectations, for all five elements, dependent on the importance of the element in an operating business

The Step by Step Guide to ENOCs Energy and Resource ManagementENOC has always believed in developing and implementing management systems to control various aspects of its operations in a consistent and uniform manner. One such aspect is environment, health, safety and quality (EHSQ) management. In order to facilitate the business units to manage their EHSQ activities, ENOC Group EHSQ Compliance Directorate regularly develops and issues manuals and guidelines. Manuals are mandatory for all business units, whereas guidelines are guidance documents that may be used for the improvement of existing systems. The way ENOC embarked on this journey is replicable throughout many other entities regardless of size and sector, so take a closer look at the elements of E&RM Manual Ref (GEHSQ/M/20).

In the year of its development, 2008, no international standards such as ISO 50001 for Energy Management Systems were published yet. In addition, ENOC management firmly believes, both now and then, that:

..development and implementation of formal energy and resource management systems is the way to achieve improved energy efficiency and resource conservation in a consistent and sustainable manner. (GEHSQ/M20 page 1)

As the first and fundamental step, a newly developed E&RM policy sets the goals and provides a framework for conservation, to:

Measure, monitor, quantify and analyse energy and resource use and prioritise conservation measures. (GEHSQ/M20 page 3)

Based on this groundwork, the remainder of the manual is aligned with the PDCA (Plan-Do-Check-Act) cycle which is the basis of other widely accepted management system standards such as ISO 9001 and ISO 14001. The four steps of the PDCA cycle were translated into four additional elements to complete the policy.

30


CHAPTER 01 LEADING

The five elements and objectives of the E&RM manual

1 2 3 4 5

Key personnel who can save energy/resources are identified and provided skills, training and encouragement to do so. (Expectation 3.3, GEHSQ/M/20)

Energy, fuel and water-use data are adequately segmented and linked to production/throughput levels for analysis and determining the EPIs. (Expectation 4.7, GEHSQ/M/20)

These objectives are deliberately rather broad, and in order to align the business units to manage energy use in a consistent, systematic and uniform manner, ENOC breaks these elements into specific compliance criteria, our expectations:

Energy and Resource Management Policy

To ensure top management leadership and commitment to energy and resource conservation is visible throughout the organisation.

Energy and Resource Efficiency Planning

To ensure that systems are in place to objectively determine and prioritise energy and resource conservation initiatives and action plans in conformance with the energy and resource policy.

Implementation and Operation

To ensure that the means necessary to achieve conformance with the energy and resource policy and to achieve the planned objectives and targets are in place and effective.

Checking, Monitoring and Improvement

To ensure that systems for measurement, monitoring and assessment of the energy and resource management system performance are robust, consistent and capable of demonstrating the achievement of objectives and targets and legislative compliance.

Management Review

To demonstrate top management commitment to continual improvement of energy and resource management systems through periodic review of the effectiveness of the systems.

ELE

ME

NT

ELE

ME

NT

ELE

ME

NT

ELE

ME

NT

ELE

ME

NT


We formulated a total of 40 expectations, for all five elements, dependent on the importance of the element in an operating business with most specification given for implementation and operation.

For consistency, each expectation requires a system to be in place, which can be

We expect all business units to keep records to demonstrate compliance with the expectations.

As the Energy and Resource Management Manual is mandatory, periodic audits are carried out by ENOC Group EHSQ personnel to determine the degree of conformity. The auditors examine the systems in place to assess the compliance with the expectations as well as the effective implementation of the systems on site. This is where we get out our scoring mechanism. Based on the degree of conformance, a score between 0 and 4 is awarded to each expectation. The target score for each expectation is 3, scores of less than 3 require corrective actions to be mutually agreed by auditor and auditee and implemented.

Based on the degree of conformance, a score between 0 and 4 is awarded to each expectation. The target score for each expectation is 3

P. RADHAKRISHNAN

CHIEF EHS COMPLIANCE OFFICER (ENVIRONMENT & ENERGY)

Mr. Radhakrishnan has a BTech and MS degree in Chemical Engineering. He has over 30 years experience spanning areas such as research and development, operations, QHSE and energy in manufacturing, chemical, petroleum and power industries.

To assist with the auditing process, the manual contains a standard checklist as appendix. This checklist consists of a series of questions on each expectation, some assessing the systems in place (documentation review) and others assessing the implementation and its effectiveness (field verification). Here an example:

Expectation 3.5: All personnel are made aware of general energy and resource conservation measures and persons performing tasks involving significant energy/resource consumption are provided specific training on conservation measures and the importance of conformance.

Document review:

Do training plans for all personnel covering awareness of general energy and resource conservation measures?

Is there a system to identify personnel performing resource intensive tasks/activities?

Do training plans for above personnel include specific conservation measures and importance of conformance?

Field verification:

Is there evidence that all personnel are aware of general energy and resource conservation measures?

Are personnel performing resource intensive activities effectively identified (eg. area wise fuel, water, electricity use)?

Are above personnel provided specific training on conservation and importance of conformance to procedures?

Audit results might require corrective actions, upon which the audit process is repeated and new scores are awarded to continue the improvement cycle step by step, year by year, towards more efficient operations.

a written procedure

a consistently applied non-documented procedure and

implementation of the documented or practiced procedure.

ISO 50001 is based on the management system model of continual improvement also used for other well-known standards such as ISO 9001 or ISO 14001 and was first released in 2011. It helps organisations to integrate energy management into their overall efforts to improve quality and environmental management, by providing guidance on policy development, target and objective setting, Using data to better understand and make decisions about energy use and much more. ENOCs E&RM management system is aligned and certified to ISO 50001 standards.

ITS A FACT

32


CHAPTER 01 LEADING

Th

e B

uil

din

g B

lock

sof

Effi

cien

t Bui

ldin

gs

The ENOC Group is in the process of applying to earn the LEED certification

Outside its core business, ENOC upgrades its office buildings to maximise energy and water savings

The ENOC Group has been committed to the establishment of energy management policies and is striving to achieve self-set sustainability goals. Following the philosophy of investing now secures the future of the next generation; ENOC has taken steps towards the fulfillment of their goals in the form of various initiatives, amongst them investment in the sustainability and efficiency optimisation of their facilities.

KHALIFA AL QAIZI

SENIOR MANAGER - ADMIN SERVICES & FACILITIES

Mr. Al Qaizi holds a Masters Degree in Business Administration. He joined ENOC in 1993 and has over 22 years experience in areas including retail, marketing, brands and properties. His primary interests are energy conservation, Government liaison, management projects, and challenging projects which require creativity.

By K

halif

a A

l Qai

zi


Building efficiency is one of the prominent E&RM tasks that an organisation should meticulously plan. Admin Services & Facilities Management (AS&FM) in ENOC has taken extensive measures to guarantee the maximum optimisation of their buildings efficiency. A Building Management System (BMS) was purchased and installed to provide centralised control of ENOCs buildings and fine-tune their energy consumption during operational and non-operational hours. Similarly, advanced technology for energy conservation has been installed in buildings such as, but not limited to, motion sensors. This was coupled with the switch of all regular light bulbs to Light Emitting Diodes (LED) light bulbs to reduce energy loss due to lighting. Moreover, the AS&FM has managed to reduce environmental impacts by disposing of waste in a recyclable manner and recycling the byproduct condensate water from air conditioners for irrigation purposes. ENOCs long-term vision for the continual improvement of their buildings efficiency includes upgrading old chillers to sustainable ones, refurbishing all the washrooms to have waterless urinals and sensor-activated taps, and installing smart meters and solar photovoltaic panels on the shades of parking spaces to make use of a reusable energy sources. Furthermore, to consolidate the diligence put towards energy management and building efficiency, the AS&FM is in the process of applying for LEED certification for ENOC buildings.

The accomplishments of ENOCs determination are truly exhibited in the forecasted savings. During the procurement of the sustainable equipment, the suppliers estimated that the organisation would be able to save about 6% of energy; however, the organisation defied this projection and managed to attain savings of 11%, which is almost double the initial estimates. Overall, the annual savings attained were AED 381,134 for the year 2014. In light of this success, AS&F aims for savings of about AED 377,000 (10%) for the year 2015. The leadership role that ENOC has taken towards becoming a more socially aware, sustainable organisation is the epitome of inspiration. ENOC will persist along its path concerning sustainability, energy management and building efficiency. The groups continuous improvement plan ensures constant research into the latest technological advances, systems fine tuning for maximum optmisation, staff education and awareness building, participation in building efficiency forums and coordination with DEWA to seek better efficiency solutions.

T H E A N N U A L S A V I N G

ADMIN SERVICES & FACILITIES MANAGEMENT

I N L I G H T O F T H I S S U C C E S S,

THAT ENOC ATTAINED

(AS&FM)

AED 381,134

AED 377,000

2 0 1 4

2 0 1 5

wer

e for the year of

(10%) for the yearAIMS FOR SAVINGS OF ABOUT

AED AED AED AED AED AED AED

34


CHAPTER 01 LEADING

HDTLs policy is to ensure that their facilities are secure, safe, reliable, and efficient; that utility commodities are procured effectively and efficiently; and that energy and water conservation efforts in the different production process are maximised.

Illu

min

atin

gSa

ving

sBy

Abd

oulk

ader

Hou

med

Aba

ss

Energy and water conservation delivers financial savings, improvements in facilities, reduced pollutant emissions at the source, improved energy reliability resulting from improved operating efficiency, and in some cases it can increase productivity.

Along with successful energy reductions to date, HDTL has been striving towards further energy efficiencies and reductions in consumption to meet the goals of providing reliable and cost-effective services to customers and complying with environmental protection terminal policies. To this end, the terminal assessed and identified different opportunities for energy savings that would not jeopardise operational performance.

The terminal produced a five-year plan of energy consumption by reviewing and monitoring the different areas energy usage trends. In 2014, the terminal had an annual throughput of 4,030,794.8 M3 which is 11 times the terminal capacity turnover. Total annual electricity consumption was 2,594,484 Kwh and the average terminal specific energy consumption was 0.66 Kwh/m3.

This baseline energy assessment is to be compared with the energy performance of similar facilities or with an established level of performance. The baseline assessment will be reviewed periodically, every one to two years. The assessment identified the largest energy users and the best opportunities for reduction and an energy saving target was

set, requiring an efficiency overhaul of the terminals facilities.

From the key energy performance indicators assessed for each process a plan was developed, with energy management tasks assigned as additional duties to the Terminal Manager and all terminal staff involved in performing specific conservation tasks. The E&RM Management Team, comprising HDTL management, is organising Energy Management Team monthly meetings to prepare energy use and contingency plans.

The energy saving project applied energy efficient improvements to most facility processes across HDTL. The most notable changes include the retrofitting of over 150 light fixtures with energy efficient LED lighting technology, the replacement of the pumps delta start panel by VSD with the integration of a terminal Energy Management System (EnMS).

Overall, the project is estimated to save HDTL over USD 280,000 annually approximately 21.6% of the companys typical energy bill. The project also serves to improve the quality of life in the terminal facilities and minimise the activities impacting on the surrounding environment, both urban and natural.

ABDOULKADER HOUMED ABASS

TERMINAL MANAGER - HDTL

Mr. Houmed Abass began his engineering career in 1996 with Djibouti Power Supply. He brought his considerable experience to HDTL in 2006.

280,000

150

annual savings

USD

2,5

94

,48

4 K

wh

tota

l ann

ual e

lect

rici

ty c

onsu

mpt

ion

average terminal specific energy consumption

light fixtures

retrofitted

0.66 Kwh/m3

Horizon Djibouti Terminals Limited (HDTL)


Enga

ged

on

All

Leve

ls

ENOC initiated a regulatory framework to control the illicit dealing of diesel and other refined products in the Emirate of Dubai in 2013

How integrated cooperation with the Dubai Supreme Council of Energy informs corporate energy and resource management and vice versaENOC is a key player in Dubais energy sector and has been a dynamic delivery partner for the Dubai Supreme Council of Energy (DSCE) in securing transportation fuel supply for the growing energy demands of Dubai and the UAE. As a strategic partner in driving the Dubai Green Growth Strategy, the Carbon Abatement Strategy and demand reduction measures, ENOC is represented on various committees and work groups, such as the Carbon Abatement Strategy (CAS) Committee, the Demand Side Management Executive Committee and the HSE Committee.

ENOC has been, and continues to be, involved in various work activities including demand side management, supply side management and transport fuel abatement strategic committees. Besides ENOCs involvement at the DSCE Board level, ENOC plays an active role in steering the energy supply strategy of Dubai towards compliance with the aspirations of the Dubai Integrated Energy Strategy (DIES) 2030 through strategy alignment processes.

As an example, through involvement in the council, ENOC initiated a regulatory framework to control the illicit dealing of diesel and other refined products in the Emirate of Dubai in 2013. In support of DIES 2030, ENOC was also the first to introduce low sulphur diesel to the market as one of the clean fuel initiatives, along with the supply of formulated green lubricants and Compressed Natural Gas (CNG).

The collaboration does not stop there. ENOC and the DSCE have also pursued more creative approaches, such as founding the Dubai Carbon Centre of Excellence (DCCE PJSC), or Dubai Carbon, a think thank and advisory on low-carbon initiatives, which works with local and federal government entities.

Since 2013, ENOC has been a member of the Green Economy Partnership along with many other highly engaged entities in Dubai. It is the first multi-stakeholder and cross-sectorial partnership to promote the transition to a green and low-carbon economy in the Middle East. The programmes and initiatives aim to enable the growth of green trade and investment and accelerate the adoption of green technologies, products and services across regional and global markets. Find out more about current activities or join the partnership through www.greeneconomy.ae.

ITS A FACT

Over the past four years of operation, Dubai Carbon has grown into a fundamental catalyst in Dubais transition to a low-carbon economy. The team has supported informed decision-making through local and national greenhouse gas inventories and sector specific analysis, such as the Sate of Action Plan for aviation. In addition, the experts provided advice on strategy development for emission reduction programmes for its shareholders (DEWA, Dubal and ENOC) and public and contracted private-sector entities (Expo 2020, Emirates Transport, Du, Dubai Police and more). This success would not have been possible without forward-thinking and unconditional support from shareholders, namely DEWA, Dubal Holding, Empower and ENOC, to open doors, advocate and provide expertise and data. A big thank you to H.E. Saif Al Falasi for his vision and Eng. Waddah Ghanem for his valuable contribution to the centres work.

Eng. Waleed Salman, Chairman of Dubai Carbon

By W

adda

h S.

Gha

nem

Al H

ashe

mi

36


CHAPTER 01 LEADING

Inte

rvie

wH

.E. A

hmed

Al M

uhai

rbi

Dubai Supreme Council of Energy (DSCE) is a governance body representing major stakeholders in the energy sector. How do you manage to achieve solutions that align with different needs and demands?

H.E. A.M.: Dubai Supreme Council of Energy was established by Law 19 (of 2009) as a governing body tasked with policy development and setting strategic direction for the energy sector to deliver the following objectives:

Supply energy to sustain Dubais growth and development

Diversify energy sources by introducing other fuel sources such as solar

Reduce demand through the rationalised use of electricity and water through abatement programmes

Streamline the functions of the energy sector to ensure successful delivery of the DIES 2030 mandates

Each entity has its own strategy in terms of sustainability and green initiatives, however, through the Dubai Integrated Energy Strategy and Dubai Integrated Gas Strategy 2030, the DSCE has a board meeting on a bi-monthly basis attended by HH Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DSCE, as well as the Vice Chairman, Secretary General and Board Members, to discuss and review strategy progress and ensure alignment.

Getting our ducks in a rowThe integrated approach to an efficient energy sector in the Emirate of Dubai. His Excellency Ahmed Al Muhairbi is the Secretary General of the Du

Date post:	22-Jul-2016
Category:	Documents
Upload:	dubai-carbon
View:	223 times
Download:	4 times

ENOC Energy & Efficiency: The Story So Far

Documents