4.2 Environmental Protection and Sustainable Use of Natural Resources

111#c520

Targets for and results of 2018

Annually, PJSC Gazprom identifies significant environmental aspects that are taken into account when the environmental targets are defined. In 2018, methane emissions in the atmosphere during the repairs of gas trunklines and nitrogen oxides emissions from the operation of compressor stations, effluents discharge, waste disposal and noise emission were deemed significant environmental aspects.

PJSC Gazprom set six Corporate Environmental Targets for 2017–2019 taking the values of 2014 as baseline indicators.

In 2018, four out of six established target indicators were achieved. Growth of the fees for excessive environmental impact vs 2014 baseline level was driven by late receipt of environmental permits and it was not associated with additional environmental impact. Growth of the fuel and energy resources consumption for internal operating needs is driven by disproportionate increase in fuel and energy resources consumption as natural gas transportation increased (in 2018, goods transportation activities increased by 15.5%). Energy intensity analysis of trunkline gas transportation in comparable conditions of goods transportation activities confirms that unit indicators of fuel and energy resources consumption tend to decline.

111#c521

Comparison of fuel and energy resources specific consumption for internal operating needs is correct if comparison is performed with a period when similar goods transportation activities were performed, rather than vs the preceding year. For example, comparison of 2018 vs 2013 shows unambiguous decline of fuel and energy resources specific consumption.

In 2018, the scope of transportation activities was 1,768 trillion m3∙km, and in 2013 it was 1,640.2 trillion m3∙km. And fuel and energy resources consumption was 27.8 kg of reference fuel per mcm∙km in 2018 and 30.3 kg of reference fuel per mcm∙km in 2013

111#c550
Corporate Environmental Targets achievement achieved by PJSC Gazprom in 2018, %
No. Corporate Environmental Target Organizations in scope of the EMS application Target achievement
1. Reduce methane emissions in atmosphere, % All subsidiaries involved in natural gas transportation Reduction by 3.8%
2. Reduce NOx unit emissions in atmosphere, t/mcm All subsidiaries involved in natural gas transportation Reduction by 2.2%
3. Decrease discharge of polluted and insufficiently treated wastewater into surface water bodies, % All subsidiaries Decrease by 23.5%
4. Decrease the share of waste sent for burial, % All subsidiaries Decrease by 5.3%
5. Reduce the fees for excessive impact, % All subsidiaries Increase by 2.7%
6. Reduce specific consumption of fuel and energy resources for internal operating needs, kg of reference fuel per mcm•km All subsidiaries involved in natural gas transportation Increase by 1.8%
111#c551

Gazprom Neft set four environmental targets for 2018. Three of them were achieved. During the reporting year, the APG use level reached 78.32%.

111#c552
Corporate Environmental Targets achievement achieved by Gazprom Neft in 2018
No. Corporate Environmental Target Target achievement
1. Achieve the targets as related to specific emissions of hazardous (pollutant) substances in atmosphere The target was achieved. In 2018, specific emissions were:
3.26 kg per 1 ton of reference fuel of hydrocarbons produced;
0.70 kg per 1 ton of reference fuel of hydrocarbons processed.
2. Achieve the targets as related to specific GHG emissions in atmosphere The target was achieved. Specific GHG unit emissions were:
89.70 kg per 1 ton of reference fuel of hydrocarbons produced;
70.34 kg per 1 ton of reference fuel of hydrocarbons processed.
3. Increase the share of waste treated and recycled The target was achieved. The share of treated and recycled waste increased by 6.17% vs 2017 and equalled 89.68%.
4. Achieve the medium-term target — increase of APG use level to 95% This is medium-term objective. In 2018, APG use level was 78.32%. The reporting-year program of activities aimed at achieving the medium-term objective was implemented in full.
111#c553

Gazprom Energoholding set three targets for 2018–2019 and two out of them were achieved in 2018. The share of excess fees for negative environmental impact increased in 2018 by 2.3% vs the baseline level as of 2014. The reason was the use of mark-up factors for assessing the payments due to temporary absence of the permits caused by lengthy projects approval by the supervisory authorities.

111#c554
Corporate Environmental Targets achievement achieved by Gazprom Energoholding in 2018
No. Corporate Environmental Target Baseline (2014) Target (2019) Actual (2018) Achievement assessment
1. Reduce specific NOx air emissions in 2019 (vs baseline level of 2014) by 0.02 t/ million kWh 0.41 0.39 0.37 –0.04 t/ million kWh. The target is achieved by 100%.
2. Reduce the share of waste sent for burial in 2019 (vs baseline level of 2014) by 2.11% 95.4 % 93.3 % 94.6 % –0,8%. The target was achieved. Activities aimed at drawing bottom ash waste in economic circulation are in progress.
3. Reduce the share of excess fees for negative environmental impact in 2019 (vs baseline level as of 2014) by 8.38% 23.6 % 15.3 % 25.9 % +2.3% (vs baseline). The target is not achieved.
111#c555

Gazprom Neftekhim Salavat selected the indicators as of 2015 as the baseline. All five targets set for 2018 were achieved.

111#c556
Corporate Environmental Targets achievement achieved by Gazprom Neftekhim Salavat in 2018
No. Corporate Environmental Target Environmental objective (2018)
Environmental target achievement
1. Reduce nitrogen dioxide emissions in atmosphere Reduce nitrogen dioxide emissions in atmosphere by 2% vs 2015 baseline level. Achieved. Emissions were reduced by 13.2% vs 2015 baseline level.
2. Reduce ammonia emissions in atmosphere Reduce ammonia emissions in atmosphere by 2% vs 2015 baseline level. Achieved. Emissions were reduced by 81.8% vs 2015 baseline level.
3. Reduce hydrogen sulphide emissions in atmosphere Reduce hydrogen sulphide emissions in atmosphere by 3% vs 2015 baseline level. Achieved. Emissions were reduced by 34.7% vs 2015 baseline level.
4. Stabilize fees for pollutant air emissions of the stationary facilities made since 2017, keeping it at the level of 2015 Non-exceedance of the established rates of maximum admissible emissions. Achieved. Fees for pollutant air emissions were reduced by 67.7% vs 2015 baseline level.
5. Improve environmental protection capabilities of the employees Provide trainings to employees in accordance with the approved training plan for 2018 Achieved. Environmental protection training was provided to 100 employees.
111#c557

Gazprom Group’s spending on environmental protection

111#c558

RUB 29.19

billion

investments in Gazprom Group capital assets aimed at environmental protection and rational use of natural resources in 2018

111#c559

RUB 39.15

billion

RUB 39.15 billion Gazprom Group’s current environmental protection expenditures in 2018

111#c560

In 2018, the Gazprom Group’s environmental protection expenditures totalled RUB 68.96 billion, including environmental protection-related investments in capital assets in the amount of RUB 29.19 billion, current environmental protection expenditures in the amount of RUB 39.15 billion, payments for negative environmental impact in the amount of RUB 0.62 billion.

In 2018, the total Gazprom Group’s environmental protection expenditures in the Russian Federation declined by 3% vs 2017 due to reduction of high investment expenditures of Gazprom Neft Group.

111#c562

Environmental Protection Investments

111#c563
Investments in capital assets aimed at environmental protection and rational use of natural resources, 2015–2018, RUB million
2015 2016 2017 2018
Gazprom Group15,75422,54235,58529,189
Gas business companies 6,932 2,542 4,451 5,613
incl. PJSC Gazprom 6,893 2,271 2,863 5,284
Gazprom Neft Group 3,114 14,275 27,102 19,029
Gazprom Energoholding 2,837 368 579 1,374
Gazprom Neftekhim Salavat 2,871 5,356 3,453 3,173
111#c564

The amount of the Gazprom Group’s investments in capital assets aimed at environmental protection and rational use of natural resources declined by 18% vs 2017 due to completion of major investment projects by Gazprom Neft Group, such as construction of innovative waste treatment facilities at Moscow Refinery and the pressure-tight petroleum products loading rack at Omsk.

In 2018, the majority of the Gazprom Group’s investments were aimed at atmospheric air protection (RUB 15,815 million, or 54% of the total Group’s investments in environmental protection and rational use of natural resources).

RUB 6, 647 million (23%) were invested in protection and rational land use, including RUB 3,082 million spent on reclamation.

RUB 6,107 million (21%) were spent on protection and sustainable use of water resources, including RUB 4,323 million spent on construction of water treatment facilities and recirculated water systems.

RUB 620 million (2%) were spent on performing other tasks, including RUB 308 million spent on waste recycling, treatment and dumping units and landfills, RUB 35 million spent on protection and sustainable use of forests, RUB 33 million spent on fish stock protection and replacement, and RUB 244 million spent for other purposes.

In 2018, Gazprom Group commissioned in operation:

  • 49 wastewater treatment units and facilities with 52,31 thousand m3 per day capacity;
  • 3 recirculated water systems with 0.27 thousand m3 per day capacity;
  • 18 waste treatment and recycling units with the annual capacity of 6.81 thousand tons;
  • 1 landfill for recycling, treatment and dumping of toxic industrial, household and other waste with the annual capacity of 17.02 thousand tons.
111#c565
Structure of the Gazprom Group's Gazprom Group investments in environmental protection and rational use of natural resources, 2018, %
111#c566

Current environmental protection expenditures

In 2018, the Gazprom Group’s current environmental protection expenditures increased by 14% vs 2017.

A larger share of costs is traditionally accounted for by wastewater collection and treatment. The Gazprom Group’s current expenditures structure as of 2018:

  • Wastewater collection and treatment — RUB 20.38 billion or 52%;
  • Land, surface waters, and subterranean waters protection and reclamation — RUB 6.14 billion;
  • Atmospheric air protection and climate change prevention — RUB 4.88 billion;
  • Waste handling — RUB 5.70 billion;
  • Biodiversity preservation and designated natural areas protection — RUB 0.49 billion;

Other environmental protection purposes (environment protection against noise, vibration and other types of physical impact, ensuring radiation safety of the natural environment, research and development aimed to reduce negative environmental impact and other) — RUB 1.57 billion

111#c568
Structure of the Gazprom Group's Gazprom Group current environmental protection expenditures in 2018, %
111#c567
Current environmental protection expenditures(1), 2015–2018, RUB million
111#c807
2015 2016 2017 2018
Gazprom Group32,16934,10334,46839,154
Gas business companies 17,349 18,757 19,247 21,125
incl. PJSC Gazprom 14,788 15,424 15,595 16,138
Gazprom Neft Group 6,656 7,005 7,028 6,080
Gazprom Energoholding 2,215 2,717 2,326 2,132
Gazprom Neftekhim Salavat 5,950 5,623 5,868 9,817
111#c761

(1) Current expenditures include operating expenses, payment for environmental protection services and overhaul of the environment protection-related capital assets.

 

111#c569

Fees for Negative Environmental Footprint Impact

In 2018, the fees for pollutant air emissions (58%) and for dumping of production and consumption waste (36%) prevailed in the structure of negative environmental impact fees.

111#c570
Gazprom Group's environmental payments structure by types of negative environmental impacts, 2015–2018, RUB million
111#c573
2015 2016 2017 2018
Pollutant emissions into atmospheric air 875.7 427.38 412.39 356.94
Pollutant discharges into water bodies 74.66 63.72 40.23 35.36
Dumping Disposal of production and consumption waste 840.06 333.7 315.36 223.46
111#c571

In 2015–2018, Gazprom Group’s negative environmental impact fees became 3 times lower. The decline is driven mainly by reduction of fees for pollutant emissions in course of APG flaring at Gazprom Neft fields, elimination of mark-up factors, offset of previous excessive payments made when advance payments were performed, as well as by the activities aimed at ensuring timely receipt of permits and authorization documents.

Excess fees accounted for 32% of the negative environmental impact payments of the Gazprom Group in general, 21% at PJSC Gazprom, 59% at the Gazprom Neft Group, 26% at Gazprom Energoholding, 27% at Gazprom Neftekhim Salavat. In the vast majority of cases, the excess fees were accrued due to organizational reasons — late receipt or extension of environmental permits.

111#c574
Negative environmental impact fees, 2015–2018, RUB million
2015 2016 2017 2018
Gazprom Group1,790.42824.80767.97615.76
Gas business companies 483.78 275.35 302.80 275.69
incl. PJSC Gazprom 375.12 237.47 266.07 251.04
Gazprom Neft Group 837.11 270.86 211.00 139.09
Gazprom Energoholding 460.01 260.91 232.63 187.70
Gazprom Neftekhim Salavat 9.52 17.68 21.54 13.28
111#c575

Payments for Non-Compliance with Environmental Legislation

In 2018, government supervisory agencies held 753 checks of compliance with environmental requirements in course of the Gazprom Group’s facilities operation and identified 435 breaches. No breaches were identified as a result of 503 checks.

Out of 435 breaches identified, 35 breaches (8%) were overturned by courts of law, 253 breaches (58%) were remedied within the established term, and the term for remedying 106 breaches did not expire during the reporting year. The total of 357 breaches were remedied during the year, including 104 breaches identified in course of checks held in the previous years.

275 breaches (63%) posed no threat to the environment and did not entail any penalties for legal entities.

111#c576
GRI 307-1

During the reporting year, the penalties paid amounted to RUB 17.12 million, including RUB 3.46 million paid based on the results of checks of the previous years. No information is available on non-financial sanctions imposed by supervisory agencies pursuant to the Administrative Offences Code of the Russian Federation.

In 2018, the Gazprom Group compensated the damage inflicted to the natural environment for the total of RUB 188.64 million, including the damage inflicted during the previous reporting periods for the total of RUB 177.14 million. The damages assessed due to accidents in 2018 amounted to RUB 1.74 million. Most of the compensation was accounted for by damage inflicted as a result of incidents at the Gazprom Neft Group’s pipelines in 2017 and minor (by the territory affected) land contamination in the YaNAA. As the petition to reduce the amount of claim less the cost of reclaiming the land plots was considered at the court of law, the compensation for damage was paid in 2018.

111#c577
Penalties paid by the Gazprom Group (excluding joint operations) in the Russian Federation, 2015–2018, RUB million
111#c578

Water: pollution prevention and sustainable use

The main Gazprom’s objective as related to water management is to reduce wastewater disposal to surface water bodies and enhance wastewater treatment.

PJSC Gazprom Water Resources Utilization System Development Program for 2016–2020, “Water of Life”, is in effect at PJSC Gazprom. It stipulates the following targets:

  • Ensure sustainable high-quality water supply to PJSC Gazprom’s production and other facilities;
  • Ensure efficient wastewater disposal from PJSC Gazprom’s production and other facilities;
  • Ensure environmental safety and rational use of natural resources as related to PJSC Gazprom’s water supply and wastewater disposal.

Implementation of the Water of Life Program will improve efficiency of water purification and water treatment through increase of the share of water purification plants (WPP) achieving sanitary and epidemiological potable water standards from 70% WPP in 2014 to 90% WPP by 2020.

The share of wastewater purified to match the standard parameters at water treatment facilities (WTF) in the total volume of wastewater disposed to the water bodies shall be increased from 60.7% in 2014 to 72% by 2020.

Pursuant to the Water of Life Program, water intensity of commercial products manufacturing shall be reduced by 6% and the volume of water reused for process purposes shall be increased by 25% by 2020.

In addition, as related to water resources protection, PJSC Gazprom EMS stipulates the Corporate Environmental Target for 2017–2019 to decrease discharge of polluted and crude wastewater in surface water bodies by 40.13% vs the baseline level. The status of achieving the Corporate Environmental Target is evaluated annually. In 2018, the target was achieved, the indicator was reduced by 23.5%.

111#c579
GRI 303-1

In 2018, Gazprom Group companies withdrew and received 4,280 mcm of water for water supply purposes, which is 5.4% less than in 2017. Water withdrawal from natural sources declined by 5.1%, i.e. to 4,065 mcm.

111#c580
Gazprom Group's water consumption indicators, 2015–2018, mcm
111#c581

Natural sources account for 95% of the Gazprom Group’s water withdrawal, surface water bodies account for 96.2% of it, and ground water sources — for 3.8%. The Group’s water consumption structure by types of sources depends upon specific features of operations and location of the facilities. Most of the water consumption (3,997 mcm) is accounted for by Gazprom Energoholding’s generating entities.

111#c582
Gazprom Group's water consumption structure by types of sources in 2018, mcm, %
111#c583
Gazprom Group3,911.53153.80133.7981.08
Gas business 45.02 29.67 19.55 10.23
Incl. PJSC Gazprom 17.51 25.10 5.57 9.82
Gazprom Neft 32.79 99.99 1.76 1.65
Gazprom Neftekhim Salavat 36.62 0.46 3.41 2.05
Gazprom Energoholding 3,797.10 23.68 109.08 67.15
111#c584
GRI 303-2

PJSC Gazprom’s key natural sources of water intake are surface water bodies, such as the Kara Sea (a part of the Ob Bay, the Baydaratskaya Bay basin), Volga river (Kizan arm, Kigach tributary, Lastochkina arm, a section of the Volgograd Reservoir), Kuban, Pur (Khadutte and Yengayakha rivers) and other. Water is withdrawn from the surface and subterranean sources solely in accordance with the effective legislation and pursuant to water use agreements and extraction licenses.

111#c762

Gazprom Group water intake does not produce any material impact upon the environment.

111#c585
GRI 303-3

The Gazprom Group companies reduce water withdrawal from rivers, lakes and seas on a systemic basis. Recirculated water supply systems are installed at the facilities: wastewater is purified, cooled and treated, and supplied repeatedly for process needs. As a result, significant water saving is achieved in course of production. In 2018, the recycled and reused water volume amounted to 11,063.73 mcm at the Gazprom Group.

111#c586

Information on the Gazprom Group’s share and total volume of recycled and reused water as of 2015–2018 is provided in Appendix

 

111#c587

Gazprom Group disposes wastewater to surface water bodies pursuant to Decisions on Granting Water Bodies for Use in accordance with Pollutants Discharge Norms.

111#c588
GRI 306-5

There are no water bodies and associated habitats subject to significant impact of water disposal.

111#c589
GRI 306-1

Out of 3,658 mcm of wastewater discharged into surface water bodies in 2018, 3,579 mcm is partially clean water and effluents treated to standard quality.

111#c590
Gazprom Group water use indicators, 2015–2018, mcm
111#c591

Information on the Gazprom Group’s volumes of wastewater disposal, including the quality and the receiving body, is provided in Appendix

 

111#c593

At Gazprom, Gazprom Energoholding companies account for the majority of wastewater discharged into the surface water bodies: out of the total volume of 3,658 mcm, they dispose in the surface water bodies 3,587 mcm of water. In 2018, Gazprom Energoholding total wastewater disposal amounted to 3,713 mcm and included disposal to surface water bodies (3,587 mcm), storage lagoons (0.36 mcm), public utility systems (106.6 mcm) and other systems (18.7 mcm).

111#c592
Gazprom Group wastewater disposal to surface water bodies, 2015–2018, mcm
2015 2016 2017 2018
Gazprom Group3,853.753,855.453,905.263,658.44
Gas business companies 34.09 35.10 33.87 31.80
incl. PJSC Gazprom 10.88 11.69 10.74 9.78
Gazprom Neft Group 27.20 0.11 0.12 0.11
Gazprom Energoholding 3,754.12 3,781.85 3,832.00 3,587.15
Gazprom Neftekhim Salavat 38.34 38.39 39.26 39.38
111#c763

In course of operational environmental monitoring, the Gazprom Group’s entities control the state of water bodies in the regions of operations. For example, at Bovanenkovskoye OGCF in the Yamal peninsula, the design solutions exclude wastewater disposal to surface water bodies completely in order to preserve fish resources. Fish protection devices are used in course of water withdrawal from the water bodies.

In 2018, water zone monitoring was carried out in the Prirazlomnaya IROP district; it showed that the state of the water zone is within the normal limits, measured parameters match natural background, and no variances from the natural performance of the coastal ecosystems were detected. Species diversity of the cenosis is at a sufficiently high level.

111#c594

Sakhalin Energy CompanySakhalin Energy Investment Company Ltd. (Sakhalin Energy) is not included in the consolidated IFRS statements. Information on Sakhalin Energy activities is included in the Report due to the relevance of the company results for the topic discussed in this section. monitored the water condition in the seabed level, benthal deposits and benthic community in the vicinity of the drill waste disposal facilities. Proceeding from 2017 monitoring results, the Federal Service for Supervision of Natural Resources confirmed that waste disposal produced no adverse impact on the environment.

111#c595
GRI 303-3

Gazprom Neft completed construction of «Biosphere» biological treatment plants at Moscow Refinery and commenced construction of similar facilities at Omsk Refinery. State-of-the-art technological solutions ensure 99.9% purification of wastewater discharge and 2.5 times decline of river water consumption. More importantly, wastewater is not disposed into natural water bodies after treatment, instead over 70% of it is reused in production processes. The technological solutions reduce the total space of treatment facilities significantly, make them more compact and ensure absolute pressure-tightness of the water treatment process stages.

111#c596

The cost of the “Biosphere” project implementation was RUB 7.3 billion in case of Moscow Refinery, and at Omsk Refinery, the investments will amount to RUB 18.6 billion

111#c597

In 2018, Gazprom Energoholding entities carried out certain activities aimed at water resources protection and preservation. For example, construction and installation works were completed as related to sewer pipe networks modernization, chemical water treatment liquid residue dewatering facility, construction of local treatment facilities at the point of discharge to the city sewer line at the Pravoberezhnaya CHPP of PJSC TGС-1 in St. Petersburg. PJSC Murmansk CHPP completed modernization of water treatment facilities at Discharge Outlets No. 2 (KC-1), No. 3 (KC-2) and No. 1 (KTC). Water metering equipment was installed at the Southern and the Northern water discharge outlets of CHPP-16 of PJSC Mosenergo. PJSC Mosenergo installed storm runoff metering units at CHPP-25 and process water metering units at the onshore pumping station of CHPP-26. The Krasnoyarsk SDPP-2, a branch of PJSC OGK-2, reduced process water use: it reused water from the outlet channel, in particular, in order to heat the feeder channel in winter period, to prepare feed water makeup for boilers and for ADT feeding. In order to ensure reasonable use of water resources, the Novocherkassk SDPP, a branch of PJSC OGK-2, performed metrological certification and maintenance of “SIRENA” cooling water metering system.

111#c598
GRI 303-3

At Gazprom Neftekhim Salavat, recycling water supply is organized on the basis of 20 water recycling units for all process plants and facilities in order to reduce river water consumption. The overall company water recycling indicator is 98.1%, which is the evidence of technical excellence of Gazprom Neftekhim Salavat’s recycling water supply systems and high percentage of recycled water use in the total industrial water supply volume. In 2018, recycled water supply amounted to 1,195 mcm.

111#c765

All Gazprom Neftekhim Salavat’s wastewater is sent to PromVodoKanal  LLCtreatment facilities through centralized sewerage systems.

In 2018, the discharge of effluents treated to standard quality into the surface water bodies was 39.4 mcm.

111#c599

Information on the volume of formation water produced and its use at the Gazprom Group is provided in Appendix

111#c600

Land: timely restoration and prevention of adverse impacts

Exploration and prospecting, construction and operation of wells, pipelines and other facilities result in land disturbance and pollution. However, the impact upon land resources is not a significant environmental aspect for the Group. The Gazprom Group companies carry out disturbed lands reclamation and rehabilitation in a timely manner and in full, in order to put them back in economic turnover. In addition, the Gazprom Group works on liquidating the accumulated environmental damage of the previous years (former land users). While using lands, Gazprom preserves and restores their fertility.

Disturbed and polluted lands are restored by performing technical and biological reclamation stages using the following methods:

  • mechanical treatment of the lands;
  • soil stabilization, in particular, on the slopes (e.g., latex coatings, Xantan biopolymer, waste drilling mud, geowebs and geotextile are used);
  • use of humic compounds preparations, deionizing growing media, rhizospheric bacteria strains, terrestrial algae (algae phytomelioration), etc.;
  • hydrocarbon pollution removal technologies using microbiological preparations (such as Putidoil, Devoroil, BIOROS);
  • biological reclamation technologies using special grass mixtures.
111#c601
GRI 304-3

In 2018, 25,787 ha of lands were disturbed in course of the Gazprom Group entities operations, which is significantly less than in 2017 (42,162 ha). During the year, 15,767.5 ha were reclaimed.

111#c602
Gazprom Group land protection performance, 2015–2018, hectares
2015 2016 2017 2018
Territory of lands disturbed during the year 58,054.53 27,027.45 42,162.29 25,786.97
incl. polluted 82.30 71.31 87.33 111.26
Disturbed lands reclaimed during the year 18,220.34 42,450.24 19,600.05 15,767.52
incl. polluted 187.37 94.08 89.10 96.13
111#c603

The Gazprom Group also takes preventive measures in order to reduce the territory of disturbed lands. For example, the Group’s companies apply advanced methods of green seismic exploration, horizontal and directional drilling, which prevent disturbance and pollution of lands, reduce the amount of waste and the space required for their storage. Blockwork construction technologies used for field facilities construction out of ready components, cluster well patterns in the fields, construction of multiline gas pipeline systems in the single right-of-way facilitate reasonable use of lands where the Group’s companies carry out construction.

111#c604

Emergency oil spill prevention

GRI 306-3

In 2018, the total amount of oil and petroleum product spills resulting from 917 pipeline ruptures equalled 70 tons . The majority of oil and petroleum product spills is accounted for by the Gazprom Neft Group — 69 tons were spilled as a result of 884 pipeline ruptures. At Gazprom Neft, pipeline ruptures were registered at the line sections of infield pipelines. In most cases, the ruptures were caused by internal corrosion (94%) being the result of corrosive substances transmission at oil and gas fields.

Oil spill management and response bodies are established at Gazprom Neft. Volunteer emergency response teams exist at all production facilities and they are in constant preparedness. Members of Emergency Situations (ES) Coordination Teams are on duty on a 24 X 7 basis in case of emergencies or crises. The Duty Dispatcher Service operates on a 24 X 7 basis. Classroom trainings, drills and emergency response exercises are held regularly at different levels and representatives of executive authorities are involved in them.

The activities of Gazprom Neft Shelf  LLCaimed at containment and liquidation of the consequences of emergency oil spills are defined in the Oil Spills Prevention and Liquidation Plan in Prirazlomnaya IROP Operational Area of Responsibility in Pechora Sea Water Zone. In order to prevent and liquidate petroleum products spills in course of the IROP operation, Gazprom Neft Shelf  LLCensures constant emergency response readiness involving the appropriate resources and manpower of professional emergency response teams. In case of a spill, the support vessels that are on constant duty near the IROP are to immediately begin operational activities aimed at oil spill containment.

111#c605
Total number of emergency drills and exercises held at Gazprom Neft Group, 2015–2018
111#c606

Biodiversity: preservation and enhancement

111#c607

RUB 521.65

million

were invested by Gazprom Group in preserving biodiversity and designated natural areas protection, fish reserves protection and replacement in 2018

111#c608
GRI 304-2

In 2018, no significant direct or indirect impact of the Group companies’ operations on vulnerable ecosystems and biodiversity was registered.

While implementing the most complex oil and gas production projects, Gazprom is fully aware of its responsibility for preserving ecological balance. Gazprom Group companies apply modern technological solutions allowing to mitigate environmental impact of the operations, carry out continuous environmental monitoring, implement biodiversity preservation programs both in the areas that are directly affected by the facilities and outside them at all regions of operations in Russia and abroad.

Fish protection devices are installed at water intakes, and overhead transmission lines are equipped with bird protection devices. Trees are planted in the areas of Gazprom Group companies’ operations and in their areas of influence.

111#c609

Gazprom Group Biodiversity Preservation Program Based on the List of Flora and Fauna Species Being Indicators of Marine Ecosystems Stability in the Arctic Zone of the Russian Federation enacted by OJSC Gazprom Neft in 2015 is in effect at Gazprom. The document includes PJSC Gazprom’s biodiversity preservation strategy and action plans to be carried out in course of the Gazprom Group’s projects implementation at the Arctic continental shelf of the Russian Federation, at inland sea waters, in the territorial waters and contiguous zone of the Russian Federation. The subsidiaries provide financing to the projects implemented in collaboration with the Russian Geographic Society in Arctics, including monitoring the Arctic island ecosystems, preservation of populations of rare marine mammal species, as well as the polar bear in the designated conservation areas (DCA) in the North-East of the Barents Sea.

Gazprom Group provides financial and practical aid to federal, regional and local DCAs. For example, Gazprom Dobycha Orenburg LLCprovides financial and organizational support to Orenburgsky State Natural Reserve project aimed at the Przhewalski’s horse reintroduction in the natural habitat: thanks to the company support, about 30 new animals appeared in the Orenburg Region.

Since 2007, Sakhalin Energy in collaboration with Exxon Neftegas Limited participates in grey whale monitoring program implementation. In 2018, GazpromNeft — Sakhalin LLCjoined them. The joint monitoring program is implemented in order to evaluate the animals’ condition and their number, expand scientific knowledge base regarding grey whales and factors affecting them in their habitats.

PJSC Gazprom provides charity support to non-profit organizations Amur Tiger Population Research and Preservation Center and the Eurasian Center for Preservation of Amur Leopards, which implement the projects aimed at preserving and increasing the population of rare animal species included in the Red Book of Russia.

In 2018, a lot was done in fish resources replacement area, including most valuable species. Millions of fish were released in the rivers of the Black Sea, the Baltic Sea, Arctic seas’ and the Far East seas’ basins. Gazprom Neft began the new stage of the large-scale biodiversity support program in 2018. In addition to the works carried out in the Barents Sea, activities aimed and restoring Atlantic salmon population were implemented in Karelia part of the White Sea. In the Keret river, 25,000 two-year-old Atlantic salmons (the most valuable salmonids species) were released.

111#c766

In the summer months of 2018, the Gazprom Group companies released over 9 million fingerlings and alevins of peled, dog salmon and muksun in the water bodies in Sakhalin, Yakutia and the KhMAA. In the Vologda Region, over 5 million alevins of nelma were released in the Kubena river; over 25,000 dog salmon alevins were released in the Krasnoyarka river basin; 12,000 peled alevins were released in the Aannyaakh river flowing in the Vilyuskoye Water Reservoir; over 200,000 muksun fingerlings and almost 1.5 million peled alevins were released in the Irtysh river.

111#c610

For more details on biodiversity preservation by the Gazprom Group see the PJSC Gazprom Environmental Report 2018

 

111#c611

Certain facilities owned by the Gazprom Group’s entities are located near the borders of or directly in the environmentally vulnerable and designated conservation areas. Facilities located inside DCAs include sanatorium and health resort facilities, communication facilities and gas supply facilities, including those supplying gas to the population centres located within DCAs and public resort areas. In some DCAs or their protected zones there are monitoring wells of the operational environmental monitoring systems, gas trunkline sections, branch gas pipelines and producing wells.

The Gazprom Group has facilities within the following DCAs or in their protected zones:

  • Anyiusky, Kislovodsky, Losiny Ostrov, Meshchersky, Nechkinsky, Orlovskoye Polesye, Pleshcheevo Ozero, Pripyishminskie Bory, Sochinsky, Ugra, Khvalynsky, Yugyd Va national parks;
  • State natural reserves and federal reservations: Klyazminsky, Nadyimsky, Priazovsky, Ryazansky, Saratovsky, Severo-Ossetinsky, Utrish;
  • Certain regional DCAs.

All requirements of the national legislation as related to environmental protection and land-use conditions of a particular DCA are adhered to.

111#c612

Waste: reduction of burial and disposal amounts

The EMS of PJSC Gazprom stipulates the target to reduce the share of waste dumping in 2017–2019 vs the baseline level of 43.6%. Achieving of the Corporate Environmental Target is evaluated annually. In 2018, the target was achieved.

Gazprom’s priority is to reach maximum possible use of resulting waste in the industrial process. Best available technologies that reduce the waste volumes or zero waste best available technologies are implemented. Those measures would help reduce the amount of waste delivered for dumping or recycling.

111#c613
GRI 306-2

In 2018, the Gazprom Group produced 3,555 thousand tons of waste, which is significantly (14%) less than in 2017 — 4,130 thousand tons.

111#c614
Gazprom Group's waste production dynamics, 2015–2018, thousand tons
111#c615

Information on the Gazprom Group’s waste generation and handling is provided in Appendix Appendix

111#c616

The reduction is driven by decline of bottom ash waste production (Hazard Class V) at Gazprom Energoholding facilities by 18.8% (predominantly due to substituting coal with natural gas in the fuel mix) and drilling waste production decline by 21.1% at the Gazprom Neft Group.

The majority of the Gazprom Group’s production and consumption waste (97.6%) belong to low-hazard and virtually non-hazardous waste categories. Most of the Group’s waste consists of bottom ash waste of Gazprom Energoholding, as well as drilling waste and oil sludge that are mostly produced at oil and gas production and processing facilities.

111#c617
Gazprom Group's waste structure by types, in 2018, %
111#c618
Gazprom Group companies’ shares in waste generation in 2018, %
111#c619

In 2018, Gazprom Neft produced 1,007 thousand tons of waste, including 910,000 tons of Hazard Class IV.

Gazprom Energoholding produced 1,998 thousand tons of waste in 2018, most of which (1,885 thousand tons) is bottom ash waste, and 1,971 thousand tons is Hazard Class V waste.

111#c620
GRI OG7

The key objective of the Gazprom Group oil and gas production companies is environmentally sound disposal of drilling waste in course of wells construction and operation. In 2018, the total of 866,080 tons drilling waste were in circulation (including 108,930 tons of waste existing as of the beginning of the year, 748,000 tons of produced waste, 9,140 tons of waste produced from other entities), including 79.5% (688,880 tons) that were handed over to specialized licensed organizations for recycling and treatment, as well as for safe dumping.

111#c621
Gazprom Group companies’ share in drilling waste generation in 2018, %
111#c622
Gazprom Group's drilling waste handling structure in 2018, thousand tons
111#c623

One of the key requirements to well construction process is to prevent negative environmental impact of drilling waste, especially in harsh natural environment and climatic conditions of the Far North. In order to achieve that, design solutions facilitating reduction of drilling works environmental impact are used actively in course of field development. Thus, pit-free drilling technique is applied in course of producing wells construction. The Gazprom Group expands the practice of applying drilling waste recycling technologies that produce mineral construction materials, which are used for general construction works in course of fields development.

In 2018, Gazprom Neft recycled 616,800 tons of waste and neutralized 286,660 tons of waste using its own resources or through third parties. There were 144,700 tons of waste left as of the end of the year.

Gazprom Energoholding recycled 147,300 tons of waste using its own resources or through third parties, 305,130 tons were exported. In order to dispose of bottom ash waste from the Troitsk SDPP of OGK‑2, the dump established at Shubarkol salt lake is used. It is located in the Kustanai Region of the Republic of Kazakhstan, therefore, all environmental activities pertaining to it are carried out in compliance with the Environmental Code of the Republic of Kazakhstan. During the reporting period, OGK‑2 exported bottom ash waste (Hazard Class V) to the Republic of Kazakhstan (Shubarkol lake):

  • 2016 — 504,300 tons;
  • 2017 —419,400 tons;
  • 2018 — 305,130 tons.

Gazprom Neftekhim Salavat handed over to third parties 82,200 tons of waste for disposal, 28,600 tons of waste for recycling and 1,470 tons of waste for neutralization. The year-end balance was 23,330 tons of waste.

Waste is transported and handed over to third parties for use, neutralization or dumping by specialized organizations that hold waste handling licenses.

111#c624

Air: pollutant emissions

111#c625

1,839

thousand
tons

of pollutant emissions were collected and neutralized by the Gazprom Group in 2018

111#c626
GRI 305-7

The Gazprom Group’s emissions composition is driven by the specifics of its companies’ business.

111#c627
Component structure of air emissions across the Gazprom Group in 2018, thousand tons, %
111#c629
Gazprom Group Gas business Incl. PJSC Gazprom Gazprom Neft Gazprom Neftekhim Salavat Gazprom Energoholding
Hydrocarbons (including methane) 1,497.78 1,440.04 1,365.13 56.73 0.87 0.14
Carbon monoxide 594.10 383.61 365.53 177.30 4.64 28.55
Nitrogen oxides 328.62 192.52 183.71 21.80 6.10 108.20
Sulphur dioxide 276.16 56.54 56.49 71.13 14.54 133.95
Volatile organic compounds 116.23 25.98 18.39 84.58 5.28 0.39
Solids 75.00 3.11 1.70 17.16 0.73 54.00
Other gaseous and liquid substances 6.12 0.82 0.46 4.60 0.67 0.03
111#c630

In 2018, pollutant emissions from the Gazprom Group’s stationary sources amounted to 2,894 thousand tons, which is slightly above the previous year level. Insignificant pollutant emissions growth is driven by increase of natural gas extraction, transportation and injection/ withdrawal volumes.

111#c631
Dynamics of the Gazprom Group's Gazprom Group gross pollutant air emissions, 2015–2018, thousand tons
111#c632

In 2018, 1,839.41 thousand tons of pollutants were collected and neutralized at tail gas treatment units of the Gazprom Group. Gazprom Energoholding accounted for 1,722.14 thousand tons of that amount, PJSC Gazprom — for 108,300 tons, and other Gazprom Group companies — for 8,970 tons. The collected and neutralized pollutant substances consisted of 93% of solid particles, predominantly solid fuel ash of power industry facilities, and of 7% of gaseous and liquid substances (including 95% of sulphur dioxide).

111#c633
Dynamics of the key pollutant air emissions from the Gazprom Group's Gazprom Group stationary sources, 2015–2018, thousand tons
111#c635
Hydrocarbons (including methane) Carbon monoxide Nitrogen oxides Sulphur dioxide Other substances
2015 1,430.8 533.64 286.26 328.43 251.42
2016 1,462.35 550.48 288.46 346.09 221.08
2017 1,495.67 529.92 313.57 262.66 194.15
2018 1,497.78 594.1 328.62 276.16 197.36
111#c636

In 2018, the Omsk Refinery donated to the Omsk Region a mobile environmental laboratory worth RUB 21 million. The mobile monitoring station is equipped with the modern gas analysis systems to detect pollutant substances in the air, including hydrogen sulphide, nitrogen oxides, hydrocarbons, methane, sulphur dioxide and carbon monoxide. In addition, the station is equipped for measuring the urban noise level and the automatic weather station that captures meteorological data, in particular wind speed and direction.

111#c637

Gazprom Energoholding companies continue active work aimed at mitigation of environmental impact of production facilities. Automatic environmental monitoring systems are installed at utility boilers of CHPPs and boiler plants at district thermal plants owned by PJSC Mosenergo and PJSC MOEK; they support real-time tracking of pollutant substances concentration in effluent gases and implementation of emission reduction activities, if necessary. The systems provide information automatically both to the environmental departments of the companies and to Mosecomonitoring Moscow City Service.