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Sustainability Report 2016

56

As a leading energy supplier in mainland China, it

is our responsibility to make safety a top priority

by improving standards within our operations.

We utilise systems that are operationally

successful in Hong Kong, such as SCADA, which

has now been adopted in mainland China.

Likewise, in 2016, we introduced our knowledge

of polyethylene (PE) piping to our mainland

operations and became heavily involved in setting

PE piping standards for the country.

The Group has been asked to become involved in

establishing multiple codes and specifications for

our industry in mainland China, offering a channel

for us to make direct contributions to the gas

industry at large. To help raise the standard of our

industry’s corporate safety and risk management

practices in mainland China, we have published

guidelines such as Towngas Mainland Joint

Venture Network Design, Construction and

Maintenance Guidelines (DM11) and Plant and

Station Equipment and Facilities Maintenance

Guidelines (DM50), among others.

Since 2015, G-Tech Piping System (Zhongshan)

Company Limited, our wholly-owned subsidiary,

has supplied piped-gas operators with PE pipes

manufactured under a stringent quality control

system. By ensuring we only use fittings produced

by our business units, we can be confident that

our JVs’ pipes comply with high safety standards.

Not only does this minimise the risk of accidents,

but it also mitigates reputational risk. We have

continuously implemented the replacement

programme of replacing aging cast iron gas pipe

with more durable PE pipe.

A further level of protection is the requirement

that all our city-gas projects conduct safety

inspections of their operational gas networks and

address any issues that arise.

We also established process safety key

performance indicators (KPIs) for our new energy

businesses, specifically our ECO mainland

Mainland China

chemical plants. Furthermore, we update the

process safety audits for our CBM liquefaction

plant and methanol plant regularly, so they

correlate with the latest national and industry

standards. The 2016 safety audits of both plants

achieved a good result.

A further measure was to adopt bowtie analysis

to identify potential risks arising during

operational stages at our chemical plants, and

ways to offset them systematically. Moreover, we

continued to improve Process Safety Management

(PSM) quality in accordance with international

standards. In 2016, we implemented a Mechanical

Integrity (MI) enhancement scheme at two of our

chemical plants, where a Failure Mode, Effect and

Criticality Analysis (FMECA) was carried out to

determine critical equipment with a relatively high

priority. Over 10 pieces of critical equipment were

identified following the MI workshop, allowing us

to optimise our preventative maintenance strategy

more effectively.