The Gazprom Group is building a large-scale business both in Russia and abroad. Being keenly aware of our responsibility towards millions of people across the world, we are unequivocally committed to achieving our business goals in a well-balanced and efficient way to maximize positive impacts on society and environment.
Our projects enhance consumer access to clean energy sources, play a major role in boosting energy security, promote social and economic development in Russian regions, and generate additional revenue for the federal budget.
In December 2019, we put into operation the Power of Siberia gas pipeline, marking the start of Russian pipeline gas supplies to the highly promising Chinese market. Importantly, this gas trunkline will give a powerful impetus to gas infrastructure expansion in Eastern Siberia and Russia’s Far East.
In January 2020, Europe and Turkey gained access to another low-carbon-footprint pipeline, TurkStream, which enables natural gas supplies across the Black Sea. Pipeline exports to non-FSU European countries reached 199 bcm in 2019.
A reliable domestic gas supplier, Gazprom is building up infrastructure to provide new consumers with access to gas supplies. In 2019, our domestic gas sales amounted to 235.8 bcm. With 124 new gas pipelines constructed under the Gas Infrastructure Expansion Program, Russia’s gas penetration rate rose from 68.6% to 70.1% by early 2020.
The launch of a new independent source of alternative gas supplies for the Kaliningrad Region was a major milestone in the reporting year. As part of the project, Gazprom built an offshore liquefied natural gas (LNG) receiving terminal and the Marshal Vasilevskiy floating storage and regasification unit.
To meet consumer energy needs for decades to come, we prioritize efficient development of our resource base. In 2019, a new gas production center in the Yamal Peninsula saw the launch of full-scale development at the Kharasaveyskoye field, which is unique in terms of reserves.
Our work towards resource base replenishment continues. In the reporting year, Gazprom’s exploration efforts translated into 556.7 bcm of additional gas reserves, with production standing at 501.2 bcmIncluding the share in production of organizations in which Gazprom has investments classified as joint operations. For 15 years running, we have maintained gas reserves growth above production rates.
The sustainable use of natural resources is an essential part of our Environmental Policy. Gazprom has been progressively reducing its carbon footprint while also pursuing energy efficiency and environmental protection initiatives. In 2019, we achieved all of our Corporate Environmental Targets. Compared to 2018, the Gazprom Group’s water consumption fell by 8.4%, waste generation by 6.1%, and greenhouse gas (GHG) emissions by 1.5%.
We were also working on the solutions designed to promote the goals of the Paris climate accord (adopted by Russia in September 2019) by leveraging the potential of natural gas and gas infrastructure. Taking into account the global shift to a low-carbon economy, we started putting together sustainable development scenarios for Gazprom through 2050. In addition to this, we are currently developing innovative technologies aimed at producing hydrogen from methane without any CO2 emissions.
The key driving force behind Gazprom is its people – professionals at the very top of their game. In 2019, the Group’s headcount increased to 473,800 people. We rigorously uphold employee rights, guarantee safe and comfortable working conditions, and support the professional development of our staff. In 2019, our skills upgrading and professional retraining programs covered a record number of employees at all levels, in no small part thanks to the extensive use of distance learning.
Traditionally, we pay close attention to local communities in the regions where we operate. For example, Gazprom actively promotes local professional and amateur sports. In 2019, we completed the construction of the Avangard Hockey Academy in Omsk and commissioned over 160 sports facilities under the Gazprom for Children program. We are also engaged in close and fruitful dialogue with indigenous minorities of the North. Furthermore, our corporate culture encourages the Gazprom employees to take part in volunteer initiatives.
Our stakeholders’ proposals are very important to us, and we are committed to information transparency and openness. We are implementing best practices to ensure balanced and sustainable growth of Gazprom for years to come. We will continue to do so going forward.