Appendix

Percentage and total volume of water recycled and reused at the Gazprom Group, 2015-2018
GRI303-3
Indicator 2015 2016 2017 2018
Water intake and drawing, total 4,511.81 4,538.21 4,523.45 4,280.21
Volume of water recycled and reused, total, mcm 11,999.97 12,482.12 12,006.85 11,063.73
Share of recycled and reused water, % 266 275 265 258
Gazprom Group’s water discharge volume including the quality of wastewater and the receiving facility, 2015−2018, thousand m3
GRI306-1
Indicator 2015 2016 2017 2018
Water discharge, incl.: 4,105,662 4,084,287 4,141,396 3,871,109
Water discharge to surface water bodies, incl.: 3,853,750 3,855,451 3,905,255 3,658,442
polluted (untreated) 122,810 99,476 60,015 56,563
polluted (insufficiently treated) 70,368 64,738 63,558 22,395
partially clean (untreated) 3,631,296 3,664,064 3,754,894 3,514,684
partially treated, incl.: 29,276 27,173 26,788 64,800
at biological purification plants 10,804 10,805 10,614 49,674
at physical and chemical purification plants 215 259 251 352
at mechanical purification plants 18,258 16,109 15,923 14,774
Water discharge to subterranean layers 49,088 48,934 45,279 44,689
Water discharge to holding basins 974 1,114 991 574
Water discharge to public utilities 145,013 130,085 144,147 134,015
Water discharge to other systems 56 ,838 48,703 45,725 33,390
Gazprom Group’s waste generation and handling, 2015−2018, t
GRI306-2
Indicator 2015 2016 2017 2018
Waste generated during the reporting year, incl.: 4,954,046.69 4,289,806.76 4,130,290.16 3,555,093.32
Hazard class I 210.82 206.55 265.98 207.87
Hazard class II 8,102.04 8,813.05 751.67 779.05
Hazard class III 202,852.54 102,110.90 94,262.20 84,816.25
Hazard class IV 1,128,355.26 1,036,457.14 1,294,649.85 1,200,485.73
Hazard class V 3,614,526.04 3,142,219.12 2,740,360.47 2,268,804.42
oil slurries 144,280.14 93,598.65 139,209.11 219,917.86
drilling waste 862,980.26 752,123.38 947,597.56 748,003.94
bottom ash waste 3,092,138.87 2,656,454.68 2,321,421.34 1,885,460.58
Waste received from other business entities 18,567.06 10,054.28 10,738.71 16,116.30
Waste recycled at the facility, incl.: 1,549,839.13 222,898.67 170,927.30 21,667.93
oil slurries 1.32 3,984.93 0.00 0.00
drilling waste 39,284.19 121,335.67 86,836.23 0.00
bottom ash waste 1,333,345.95 0.00 0.00 7,686.50
Waste destroyed by the facility, incl.: 89,101.13 90,599.73 77,990.21 75,158.37
oil slurries 310.54 246.56 112.92 112.73
drilling waste 11,283.47 9,748.30 5,140.71 1,273.60
bottom ash waste 0.00 0.00 0.00 0.00
Waste handed over to other business entities, incl.: 1,532,749.88 1,997,221.51 1,661,550.78 12,589,870.21(1)
oil slurries 148,072.24 95,817.52 115,717.97 216,709.522
drilling waste 756,474.01 561,342.77 731,291.72 688,884.596
bottom ash waste 116,709.28 768,407.23 304,707.84 100,968.491
Waste handed over to other business entities for processing 0.0 0.0 13,627.21 6,825.42
Waste handed over to other business entities for recycling, incl.: 911,146.36 844,597.37 1,088,329.47 910,100.02
oil slurries 14,737.88 4,604.03 4,447.38 1,786.82
drilling waste 569,743.16 242,804.75 620,413.74 596,452.80
bottom ash waste 91,546.34 297,556.88 265,083.10 67,823.27
Waste handed over to other business entities for destruction, incl.: 292,881.53 438,838.01 250,968.12 338,783.63
oil slurries 47,839.19 51,677.40 75,678.03 186,060.37
drilling waste 186,730.85 318,538.02 110,877.99 92,101.00
bottom ash waste 5.30 0.00 46.40 25.05
Waste handed over to other business entities for storage, incl.: 5,855.91 446,202.98 5,944.77 11,019,342.77(1)
oil slurries 310.08 38.46 55.41 3.50
drilling waste 0.00 0.00 0.00 0.00
bottom ash waste 0 443,630.70 13.2 0
Waste handed over to other business entities for disposal, incl.: 322,866.08 267,583.15 302,681.22 314,818.37
oil slurries 85,185.09 39,497.63 32,352.06 27,873.20
drilling waste 0 0 0 0
bottom ash waste 25,157.64 27,219.65 39,565.14 33,120.17
Waste placed at operated (own) facilities during the reporting year, incl.: 14,147,984.19 13,608,576.64 13,238,808.76 1,939,945.51
at operated storage facilities, incl.: 13,118,773.48 12,798,661.52 12,586,781.38 1,446,308.05
oil slurries 4,933.85 4,619.28 4,617.82 11,623.74
drilling waste 28,795.36 2,369.37 6,797.55 0
bottom ash waste 2,081,717.64 1,791,905.90 1,573,773.30 1,429,491.76
at operated disposal facilities, incl.: 1,029,210.72 809,915.12 652,027.38 493,637.46
oil slurries 0 0 0 0
drilling waste 65,902.96 77,000.21 49,762.81 59,276.80
bottom ash waste 898,887.99 676,529.04 548,258.98 383,468.56
(1) Changed as Meleuzovskie Mineralnye Udobreniya LLC data is no longer taken into account (that business is not a part of GPNS LLC Group of Companies since February 01, 2018).
Gazprom Group’s GHG emissions by categories of the sources of emissions in 2018, million t of СО2 equivalent
GRI305-1
Sources (processes) Total СО2 СН4
Stationary fuel combustion 188.27 188.27 0.00
Flaring 10.91 10.80 0.11
Fugitive emissions 32.99 0.19 32.80
Oil refining 3.79 3.79 0.00
Ammonia production 0.21 0.21 0.00
Petrochemical production 0.16 0.16 0.00
Other industrial processes 3.53 3.53 0.00
Air transport 0.09 0.09 0.00
Railway transport 0.02 0.02 0.00
GHG emissions, total239.97207.0632.91
GRI302-1

In 2018, the total fuel consumption for internal operating needs by PJSC Gazprom’s natural gas production, transportation, underground storage and processing subsidiaries was 65,034.8 thousand tons of reference fuel(1)

 

(1) Cooling/heating and steam generation are non-core businesses for PJSC Gazprom natural gas production, transportation, underground storage and processing subsidiaries, therefore, accounting of energy consumption for those processes could not be arranged for those PJSC subsidiaries.

 

Total consumption based on core activities of PJSC Gazprom, from non-renewable sources by types of fuel used, 2015−2018, million GJ
Fuel type 2015 2016 2017 2018
Natural gas 1,356.13 1,357.68 1,571.21 1,688.11
Electric power 37.50 38.48 44.99 46.65
Heat energy 89.92 92.46 93.42 94.48
Total fuel and energy resources 1,483.551,488.621,709.621,829.24

The increase in the consumption of energy resources was driven by production volumes growth; however, a comparison of the unit consumption indicators of fuel and energy resources against commodities transportation in similar conditions shows that the energy intensity of PJSC Gazprom’s key production activities has decreased.

The total electric power consumption by PJSC Gazprom natural gas production, transportation, underground storage and processing subsidiaries was:

  • in 2015 — 10,415.72 million kWh;
  • in 2016 — 10,688.2 million kWh;
  • in 2017 — 12,496.9 million kWh;
  • in 2018 — 12,958.0 million kWh(1).

Sales of fuel and energy resources (electric power, fuel for heating/cooling purposes, steam sold) are not a core business for natural gas production, transportation, underground storage and processing subsidiaries, therefore accounting of fuel and energy sales volumes could not be arranged for those subsidiaries of PJSC Gazprom.

 

(1) In order to monitor efficiency of fuel and energy resources consumption for internal operating needs by natural gas production, transportation, underground storage and processing subsidiaries, PJSC Gazprom uses corporate reporting forms on fuel and energy resources consumption for internal operating needs for the corresponding activities approved by the order of PJSC Gazprom. Physical values correlation:

1 kWh = 3.6 • 106 J; 1 cal =4.1868 J.

Natural gas calorific value is 8,085 kcal per m3.

Gazprom Neft’s (upstream) in-house power generation, 2015−2018
Indicator 2015 2016 2017 2018
In-house electric power generation, million kWh 1,143 1,178 1,471 1,458
In-house heat energy generation, thousand Gcal 212 231 252 278
Gazprom Neft’s (downstream) energy consumption, purchase and generation, 2015−2018
Indicator 2015 2016 2017 2018
Total electric power consumption, million kWh 3,341 3,400 3,237 3,396
Heat energy purchase, thousand Gcal 4,683 4,478 4,521 4,868
Heat energy generation, thousand Gcal 6,009 6,194 5,822 5,836

At Gazprom Energoholding, fuel consumption declined in 2018 by 2% mainly due to more efficient equipment operation modes in electricity and heat generation.

Gazprom Energoholding’s fuel consumption from non-renewable sources, 2015−2018, million tons of reference fuel
Fuel type 2015 2016 2017 2018
Coal 8.4 7.5 7.1 5.9
Gas 44.7 48.9 47.5 47.7
Fuel oil 0.4 0.4 0.4 0.5
Diesel fuel 0.0 0.0 0.0 0.0
Other fuels 0.0 0.0 0.0 —
Total53.556.955.154.1

Energy sold by Gazprom Energoholding in 2018 amounted to 157,757.2 million kWh.

Energy sold by Gazprom Energoholding, 2015−2018, million kWh
Generating company 2015 2016 2017 2018
PJSC Mosenergo 56,349.3 60,858.4 60,250.6 60,195.4
PJSC OGK-2 69,611.1 72,938.9 69,722.2 64,982.1
PJSC TGС-1 28,969.0 30,590.9 32,579.2 32,579.7
Total154,929.4164,388.3162,552.0157,757.2
Gazprom Neftekhim Salavat LLC’s fuel consumption from non-renewable sources, 2015−2018
Fuel type UoM 2015 2016 2017 2018
Natural gas for production mcm 434.3 486.0 428.6 464.8
thousand GJ 14,457 16,178 14,267 15,472
Natural gas as fuel mcm 505.7 541.1 467.9 469.7
thousand GJ 16,833 18,012 15,575 15,635
Total mcm 940.0 1,027.1 896.5 934.5
thousand GJ 31,29034,18929,84231,107

Electric power and steam consumption increased at Gazprom Neftekhim Salavat LLC due to the increase of production volumes. Electric power consumption for heating declined due to favourable climate conditions.

Energy consumption at Gazprom Neftekhim Salavat LLC, 2015–2018
2015 2016 2017 2018
Electric power consumption, million kWh 12,690 13,583 13,364 14,336
Electric power consumption for heating, thousand Gcal 306 332 335 322
Electric power consumption for cooling, million kWh 2,017 2,315 2,159 2,453
Steam consumption, thousand Gcal 7,425 8,126 8,386 9,118
Energy sold for heating, thousand Gcal 57 62 65 65
Steam sold, thousand Gcal 275 354 422 418
Overall energy consumption, including natural gas as fuel, thousand GJ 68,221 74,492 71,163 75,796

At Gazprom Neftekhim Salavat LLC, there is no energy consumption from renewable sources.

GRI302-3

In 2018, energy intensity of the core PJSC Gazprom activities increased due to the growth of production volumes. However, a comparison of the unit consumption indicators of fuel and energy resources against commodities transportation in similar conditions shows that the energy intensity of PJSC Gazprom’s key production activities has decreased.

Energy intensity of the core activities of PJSC Gazprom, 2015−2018(1)
Activity 2015 2016 2017 2018
Gas production, kg of reference fuel per thousand cubic meters 17.7 17.8 18.0 19.0
Gas transportation, kg of reference fuel per mcm • km 26.3 26.3 27.3 27.8
Underground gas storage, kg of reference fuel per thousand cubic meters 6.4 5.7 7.2 6.9
Gas processing,
kg of reference fuel per thousand cubic meters 72.1 72.3 71.4 72.9
kg of reference fuel per ton 45.1 45.5 45.3 46.4

(1) In order to calculate the energy intensity ratio for the main type of PJSC Gazprom activities, the following denominators were used:

• Gas production — volume of gas produced (thousand m3);
• Gas transportation — commodity transportation activities (million m3 • km);
• Underground gas storage — the total volume of gas taken and injected (thousand m3);
• Gas processing — the respective processed volumes of gas and liquid hydrocarbon feedstock (thousand m3).

In the course of energy intensity calculation, the following fuel and energy resources consumed for internal operating needs of the core PJSC Gazprom production processes were taken into account: natural gas, electric power, heat energy.

In course of energy intensity calculation, the energy consumed internally by PJSC Gazprom is taken into account.

Gazprom Energoholding’s (1) companies energy intensity 2015−2018
Indicator UoM 2015 2016 2017 2018
for the denominator
Power plant busbar output (other than HPPs) million kWh 122,845 130,801 126,944 124,068
Productive supply of heat energy to end customers (net of intercompany balances) thousand Gcal 111,311 119,119 116,276 119,048
for the numerator
Reference fuel consumption at sources thousand tons of reference fuel 53,253 56,863 55,066 54,085
Third-party heat energy procurement thousand Gcal 3 ,146 4,134 3,818 4,978
Electric power consumption at boiler houses million kWh 489 522 572 556
Electric power consumption at heat networks million kWh 915 946 969 954
HPPs
Power output by hydro generators at HPPs million kWh 12,332 12,863 13,686 12,819
Busbar output at HPPs million kWh 12,247 12,775 13,595 12,730
Energy intensity of TPPs1.741.741.731.70
Energy intensity of HPPs1.121.121.121.12
Total energy intensity1.711.711.701.68

(1) Energy intensity of Gazprom Energoholding companies is defined as the ratio of fuel consumption at power plants and boiler houses of the subsidiaries, heat energy supplied to the subsidiaries’ networks by third parties, electric power consumed at boiler houses and heat networks facilities of the subsidiaries to the total busbar output of the power plants and heat energy to end customers (all intragroup balances of heat energy are excluded).

HPP energy intensity is defined as the ratio of electric power generated increased by the average efficiency ratio of hydroturbine units (assumed at 0.9) to HPP busbar output.

The general energy intensity takes into account HPP electric power output at 0.9 efficiency ratio in the numerator and HPP busbar output in the denominator.

Results of Energy Saving and Energy Efficiency Improvement Programs at the Gazprom Neft Group in 2018
GRI302-4
Type of fuel and energy resource Upstream Downstream Gazprom Neft Shelf LLC Total
Electric power, million kWh 462 18.9 0.218 481.118
Heat energy, thousand Gcal 0 279.4 0 279.4
Fuel, thousand tons of reference fuel 1.1 137.5 0 138.6
Results of Energy Saving and Energy Efficiency Improvement Programs at Gazprom Energoholding in 2018
Generating company Fuel saving, thousand tons of reference fuel Electric power saving, million kWh Heat energy saving, thousand Gcal
TotalIncluding gas
PJSC Mosenergo 1,177.7 1,163.7 571.5
PJSC TGС-1 12.8 12.0 9.1
PJSC OGK-2 33.7 21.4 17.1
PJSC MOEK — — 0.9
Total1,224.21,197.1598.6
Results of Energy Saving and Energy Efficiency Improvement Programs at Gazprom Energoholding, 2015−2018
2015 2016 2017 2018 2015 2016 2017 2018
Fuel, thousand tons of reference fuelIncluding gas, thousand tons of reference fuel
PJSC Mosenergo
Plan 772,6 534,9 308,3 408,76 757,2 524,2 302,26 395,5
Actual 849,74 956,8 900,9 1 177,7 814,7 933,3 885,8 1 163,7
PJSC TGС-1
Plan 21,5 12,8 10,4 25,87 18,2 10,6 10,36 24,5
Actual 21,14 16,8 11,2 12,8 10,6 15,7 11,0 12,0
PJSC OGK-2
Plan 113,0 42,0 24,0 37,06 74,3 30,1 17,12 25,5
Actual 40,12 76,0 23,0 33,7 21,4 17,1 13,6 21,4
PJSC MOEK
Plan 0 0 0 0,68 0 0 0 0,7
Actual 0 0 0,2 0 0 0 0,2 0
Gazprom Energoholding total
Plan907,1589,7342,7472,37849,7564,9329,74446,2
Actual911,01 049,6935,31 224,2846,7966,1910,61 197,1
Electric power, million kWhHeat energy, thousand Gcal
PJSC Mosenergo
Plan 451,2 33,3 11,0 36,49 20,0 123,07 0 0
Actual 419,3 392,8 565,3 571,6 14,1 46,05 87,6 123,3
PJSC TGС-1
Plan 1,7 0,2 0,4 8,97 0 0,15 0,2 8,2
Actual 7,0 0,3 0,6 9,1 0 0,15 0,1 0,2
PJSC OGK-2
Plan 41,0 21,0 12,6 9,61 77,0 29,0 29,0 0
Actual 67,0 105,7 22,1 17,1 1,4 47,67 7,4 0
PJSC MOEK
Plan 0,5 0 0 2,66 86,9 40,87 20,6 27,5
Actual 0,5 0 0 0,8 89,5 92,07 79,5 60,7
Gazprom Energoholding Total
Plan494,454,524,057,73183,9193,0949,835,7
Actual493,8498,8588,0598,6105,0185,94174,6184,2
Results of Energy Saving and Energy Efficiency Improvement Programs at Gazprom Neftekhim Salavat LLC, 2015−2018
Indicator 2015 2016 2017 2018
Natural gas saving, mcm 0.000 0.000 49.935 43.783
Electric power saving, million kWh 5.295 0.348 1.021 0.883
Heat energy saving, thousand Gcal 1.481 4,799 21.503 49.675
Total, thousand tons of reference fuel1.9270.79960.43257.390
Total, million GJ0.0560.0231.7711.682

Produced Deposit Water and Its Utilization

GRIOG 5
Deposit water produced by the Gazprom Group, 2015−2018, thousand
2015 2016 2017 2018
Gazprom Group 2,744.6 2,829.3 3,210.7 3,754.4

Hydrocarbons flaring volumes

GRIOG 6
APG resource and utilization at the Gazprom Group as of 2015
Indicator APG resources, mcm
 Flared, mcm
 Utilization level, %
Gazprom Group 10,060.79 1,691.33 83.1%
incl. Gazprom Neft 8,101.52 1,606.28 80.2%(1)
APG resource and utilization at the Gazprom Group as of 2016
Indicator APG resources, mcm
 Flared, mcm
 Utilization level, %
Gazprom Group 11,386.49 1,968.88 82.7%
incl. Gazprom Neft 9,560.93 1,933.32 79.8%
APG resource and utilization at the Gazprom Group as of 2017
Indicator APG resources, mcm
 Flared, mcm
 Utilization level, %
Gazprom Group 13,090.97 2,847.41 79.0%
incl. Gazprom Neft 11,434.86 2,825.14 76.2%
APG resource and utilization at the Gazprom Group as of 2018
Indicator APG resources, mcm Flared, mcm Utilization level, %
Gazprom Group 16,000.94 3,149.29 80.2%
incl. Gazprom Neft 14,398.06 3,113.65 78.3%

(1) Total, excluding the share of production by organizations investments wherein are classified as joint operations

Financial and Other Risks and Opportunities Due to Climate Change

GRI102-15, 201-2

The Gazprom Group identified the potential climate change risks and their impact upon the Group’s operations. The key climate change risks of the Gazprom Group are temperature change risks, as well as physical, economic and social risks.

The key climate change and GHG risks for the Gazprom Group
Temperature change risks
  • Change of temperature of the most sensitive frozen soils with higher salt content.
  • Increased number and magnitude of adverse hydrometeorological phenomena, including higher frequency of floods during spring and spring/summer tide periods.
  • Shorter periods of winter roads(1) operation.
  • Risks of higher gas consumption for internal operating needs as the outside air temperature declines(2)
Physical risks
  • Risks of damage of buildings and constructions.
  • Risks of higher failure rate of pipeline transport.
  • Risks of deformation of water supply and sewerage systems.
Social risks
  • Risks of higher adverse impact upon people’s health due to extreme and adverse hydrometeorological phenomena and infectious diseases proliferation.
  • Risks of inflicting damage to private property of the employees of the Gazprom Group’s companies.
Environmental risks
  • Risks of environmental damage
Reputational risks
  • Risks of failure to discharge commitments by the Gazprom Group
(1) Winter road means motor road that could be operated in winter period only.

(2) Decline in outside air temperature by 1 degree Celsius.

The Gazprom Group’s companies implement comprehensive activities aimed at mitigating negative consequences of climate change for operational activities. Such activities include:

  • Assessment of the climate change impact in the territories where the Group technological facilities are located;
  • Regular machinery and equipment monitoring, as well as assessment of predictability of the operational processes applied in the areas subject to climate change;
  • Use of reinforced pipes in the areas subject to climate change;
  • Construction of indoor compressor shops in the areas of adverse weather and climate conditions;
  • Construction of backup power plants in the permafrost areas at gas production sites;
  • Development of gas production facilities designs taking into account the weather and climate conditions;
  • Bottom penetration of the pipelines in the areas adjacent to the shores in order to ensure protection of their offshore sections;
  • Permafrost management in the construction areas in course of Yamal peninsula deposits development: redundancy of groundworks and foundations of the facilities reliability using modern thermal stabilization technologies in eternally frozen grounds adjusted for perennial thawing;
  • Development of the comprehensive insurance systems, including insurance of the environmental risks of the Group’s companies and compensation of environmental damage.