Ecology and Energy Conservation

  • In 2014 Gazprom earmarked RUB 49 billion for environmental protection purposes
  • In 2014 Gazprom Group saved 2.5 million t of fuel equivalent

2014 — Year of Environmental Awareness in Gazprom

To what extent does Gazprom adhere to the commonly accepted principles of nature conservation and environmental protection?

Gazprom runs its business in compliance with the environmental legislation of the Russian Federation, commonly accepted international principles and OAO Gazprom Environmental Policy based on such principles. In 2011 the Board of Directors approved the amended OAO Gazprom Environmental Policy and recommended that Gazprom Group companies adhere to it.

Environmental impact mitigation and natural resource conservation are the mainstays of OAO Gazprom’s environmental activities. This is proved by the fact that despite an annually increasing scope of operations, the environmental impact made by OAO Gazprom subsidiary companies remains stably low and keeps declining as measured by a number of indicators. For instance, between 2010 and 2014 air emissions of all the Gazprom Group companies declined by 13.3%, amount of waste – by 19%.

Gazprom pays great attention to preventive environmental protection measures: the Environmental Inspectorate is operational in OAO Gazprom, all corporate project documents are reviewed by OAO Gazprom’s environmental experts.

Gazprom has the Environmental Management System that passed a certification procedure for the international ISO 14001:2004 standard compliance. Det Norske Veritas, an independent certification body, conducted the certification audit. OAO Gazprom Coordinating Committee for Environmental Protection and Energy Efficiency ensures the implementation of the corporate Environmental Policy and conducts the comprehensive evaluation of the Company’s environmental activities.

In 2014 Gazprom held the Year of Environmental Awareness – over 20 thousand events were organized (including 428 events involving non-governmental organizations) with 362.7 thousand people participating. About a thousand on-the-spot visits and media tours were organized for media representatives, students and schoolchildren. Throughout Russia, over 11.6 thousand ha of territories were cleared of waste, 484 water bodies were rehabilitated, more than 170 thousand trees and bushes were planted.

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How much does Gazprom spend on environmental protection?

In 2014 Gazprom Group’s expenses associated with nature conservation totaled RUB 48.98 billion. In the past six years the overall costs of Gazprom Group for nature protection made up about RUB 212.74 billion.

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What are Gazprom’s energy conservation initiatives?

Gazprom’s energy conservation policy generally aims to reduce gas losses and process gas consumption, enhance and optimize operating modes of process facilities as well as introduce new energy saving technologies.

The 2011–2013 Energy Saving Program helped preserve 7.34 million t of fuel equivalent, including 6.13 billion m3 of natural gas and 790.8 million kWh of electricity, that resulted in the prevention of greenhouse gas emissions of more than 23 million t of CO2-equivalent.

By now, the Company adopted the Energy Saving Program over 2014 to 2016. Implementing this Program, Gazprom saved 2.48 million t of fuel equivalent, including over 2 billion m3 of natural gas, 254.6 million kWh of electricity and 237.2 thousand Gcal of heat. The aggregate value of conserved resources came to RUB 7.14 billion measured in 2014 prices. Associated petroleum gas (APG) utilization within Gazprom Group has demonstrated a steady increase – from 55% in 2010 to 93.5% in 2014.

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Does Gazprom have any eco-friendly alternative to gasoline?

Marketing of gas as a motor fuel, million m3
Marketing of gas as a motor fuel, million m3

Natural gas represents the most acceptable alternative to petroleum types of fuel due to its economic, resource and environmental characteristics. Compressed (pressurized) and liquefied natural gas used as a fuel enables to significantly enhance the cost effectiveness of road and railway transport and mitigate its environmental impacts.

At present, the Russian fleet of natural gas vehicles (NGV) is made up of nearly 100 thousand units, with 5% owned by Gazprom. The global NGV fleet exceeds 15 million units.

Currently Gazprom Group owns 280 CNG filling stations, including 205 in Russia and 75 in Germany, the Czech Republic, Poland, Slovakia, Belarus, Armenia and Kyrgyzstan. Today, NGV refuelling capacities are being pushed to Eastern Siberia and the Far East. CNG filling stations have been built in Bratsk. A construction project for a methane filling station in Petropavlovsk-Kamchatsky was prepared, a CNG filling station is being designed in Yuzhno-Sakhalinsk.

Starting from 2012, Gazprom made great efforts to expand the Russian NGV market. A reconstruction schedule has been developed and is now being implemented for the operating CNG filling stations until 2020. Design & survey operations are being carried out and equipment is being purchased for filling stations construction. Work is currently underway on installing compressed natural gas (CNG) modules at the existing filling stations. A Memorandum with Russian Railways has identified the platforms for converting trains to liquefied natural gas (LNG) as well as the construction sites for LNG production facilities and railway vehicle filling stations.

With a view to systematize the Company’s efforts in this area, a special-purpose company – Gazprom Gazomotornoye Toplivo – was set up. The company consolidates all the core assets related to the NGV fuel production and marketing. Cooperation is being developed at all levels of the government, draft legislation has been prepared. Work has been organized for the comprehensive industry development. All key players in the Russian gas motor fuel market are engaged in it, including financial institutions, regional governments, NGV vehicles manufacturers and suppliers, equipment manufacturers and major vehicle fleet operators.

Gazprom by its personal example demonstrates the efficiency of natural gas as a vehicle fuel and actively converts its own vehicle fleet to natural gas. At present 6,522 equipment units of the Group run on natural gas. In 2014 alone Gazprom’s subsidiaries purchased 1,674 gas-fired cars. In 2015 the Company plans to purchase about 3,000 NGVs. It is planned that by 2015 at least 30% of Gazprom Group’s vehicles will run on natural gas, by late 2017 – at least 50%.

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