2.9. Innovations and R&D

RUB 12.1 billion

investments in R&D in 2019

RUB 10.5 billion

economic benefit from using R&D results in 2019

289

R&D results implemented in production operations

Innovation Management

The development of the Gazprom Group is associated with the continuous work performed to address technological, economic and other challenges that require application of new knowledge and higher efficiency of innovative activities.

In the reporting period, the innovation management framework has not changed.

For more details on innovation management at PJSC Gazprom see the Gazprom Group’s Sustainability Report 2018

 

PJSC Gazprom’s Innovative Development Program until 2025 is the Company’s tool for long-term planning and management of innovative activities. The Program covers gas, oil and electric power businesses of the Gazprom Group.

 

The annual R&D Program of PJSC Gazprom and its subsidiaries is the short-term planning tool. The R&D Program follows unified principles and rules set forth for both the parent company and subsidiaries.

The subsidiaries order the R&D activities in order to obtain scientific research results required for their own scope of business. PJSC Gazprom pays particular attention to further implementation of R&D results and the results of protected intellectual property that have proved to be of significant use for PJSC Gazprom, as well as to the commercialization of the rights to such results.

PJSC Gazprom’s Patent Strategy until 2025Approved by order of PJSC Gazprom No. 92 dated March 4, 2019, part of the Group’s intellectual property management framework, was developed and approved in 2019 for the legal protection of technical and technological solutions developed within the Company. The purpose of the Patent Strategy is to ensure efficient intellectual property management performance.

Gazprom is implementing its Informatization Strategy, with the Gazprom Group’s Comprehensive Target Program for the Development of the Integrated Information Environment (IIE) for 2018—2022Approved by resolution of the Management Committee of PJSC Gazprom No. 39 dated October 23, 2017 being fulfilled as part of it. In line with the Program, the Gazprom Group’s business and operational activities should be governed by three fundamental principles: integration, innovation, and import substitution.

In 2019, the Gazprom Group continued to implement end-to-end digital technologies (robotic systems, neurotechnologies, and artificial intelligence technologies applied in big data analysis). Information management systems (IMS) providing automation of basic business processes were being integrated. In 2019, the following main steps were taken under the Comprehensive Target Program for the Development of the IIE: data marts were implemented for seven subsidiaries to transition to a tax monitoring system (a form of tax control), and IMS templates by type of activity were introduced at six gas producing subsidiaries, five gas transmission subsidiaries, and PJSC TGC-1.

In 2019, the investment in digitalization at the Gazprom Group amounted to RUB 498.68 million.

The transfer to the low-carbon development scenario strengthened the position of hydrogen as an energy source. The production and use of hydrogen and methane-hydrogen mixtures is a promising area of diversification and is a way to a more efficient use of natural gas.

 

In the reporting period, the following comprehensive R&D projects were implemented:

  • development of innovative technologies to use methane-hydrogen mixtures in production operations (to reduce carbon footprint and increase the efficiency of Russian gas supplies);
  • development of innovative technologies to produce hydrogen from methane without greenhouse gas emissions (to pursue diversification and increase the efficiency of pipeline gas use).

 

In order to promote innovative activities and introduce innovations into its routine operations, PJSC Gazprom holds an annual competition for PJSC Gazprom’s Science and Technology Prize. In 2019, the competition included 17 projects, with the total number of authors reaching 148.

 

The possibilities and achievements of the corporate science along with the results of PJSC Gazprom’s cooperation in the sphere of R&D were demonstrated at the Gas Science and Innovations booth within the InGAS Stream 2019 — Innovations in the Gas Industry specialist exhibition held as part of the 9th St. Petersburg International Gas Forum.

 

For other examples of innovative and digital solutions implemented by the Gazprom Group in 2019 see pages 124–126 of the PJSC Gazprom Annual Report 2019

 

The top place in the corporate Science and Technology Prize competition of PJSC Gazprom went to the paper entitled “Rehabilitative and remedial treatment technology for employees of Gazprom.” The work was developed by Gazprom Transgaz Moscow in close cooperation with the Industry Clinic and Diagnostic Center and the relevant subdivisions of Gazprom. The paper describes a solution for raising worker productivity. The technology combines early disease detection with rehabilitative and remedial treatment based on a new research and methodological framework involving a purpose-built hardware and software package.

 

Questions from Stakeholders

GRI102-44

What digitalization projects were successfully implemented at the Company in 2019?

In 2019, the Company implemented a number of digitalization projects.

  • While testing the use of digital data models (DDM) for the design documentation development and the construction of investment projects of PJSC Gazprom, the following DDMs for pilot projects were developed: BCS-3C of the Zapolyarnoye oil, gas and condensate field (OGCF) and pre-development of the Chayandinskoye OGCF.
  • The project to create a digital twin for the Yuzhno-Russkoye field was under implementation.
  • A prototype of the Industrial safety remote monitoring system for hazardous production facilities was being developed jointly with the Federal Environmental, Industrial and Nuclear Supervision Service of Russia (Rostekhnadzor) in four subsidiaries of PJSC Gazprom for the purpose of real-time collecting, recording and analysing the parameters of production equipment status and processes.
  • The project on the digital transformation of the Gas Sales to Russian Consumers business process was launched, implying end-to-end integration of automated systems in gas supplies using advanced digital technologies. Development of a billing system at Gazprom Mezhregiongaz LLC is planned as a pilot project.

Innovation and R&D Results

RUB 498.7 million

spent on digitalization at the Gazprom Group in 2019

RUB 1.2 billion

is the planned expenditure for digitalization in 2020

In 2019, the overall number of R&D agreements in force rose by 30% and amounted to 243 agreements for a total of RUB 6,991.9 million. 44 contractors were working under R&D agreements as ordered by PJSC Gazprom. 80% of the main scope of work was performed by the Gazprom Group entities.

In the current period, 289 R&D results were implemented at PJSC Gazprom for the amount of RUB 3.147 billion.

In 2019, R&D financing at the Gazprom Group grew by 34% against 2018 and totalled RUB 12.1 billion.

R&D investments and actual economic benefit, 2016-2019, RUB billion

* Including pre-investment studies.

** According to the information provided by the subsidiaries of PJSC Gazprom.

In 2019, PJSC Gazprom and its subsidiaries received 260 patents on previously submitted applications, including four foreign patents. The economic benefit from using the patented solutions in production operations amounted to RUB 14.5 billion. As compared to 2018, the overall number of patents increased by 5% and amounted to 2,674 patents, 35 of them protecting technical and technological solutions abroad (including in the Republic of Belarus).

 

For more information on the use of patents by PJSC Gazprom’s subsidiaries and affiliates see Appendix 4

Innovations and R&D Plans

The number of implemented R&D results is expected to reach 300–330 in the year 2020. In order to determine further strategic perspectives of digitalization at PJSC Gazprom, a Digital Transformation Strategy of PJSC Gazprom is to be developed until the end of 2021 along with a roadmap for its implementation. The amount of investment in digitalization allocated for 2020 stands at RUB 1.2 billionThe planned amount may be adjusted following the development of the Program’s documents defining the prospects of digital technologies development at the Gazprom Group.