3.7. Quality Management and Customer Relations at the Gazprom Group

• Quality Assurance Policy of PJSC GazpromApproved by order of PJSC Gazprom No. 643 dated September 20, 2017;
• Regulation on the Quality Management System of PJSC GazpromApproved by order of PJSC Gazprom No. 696 dated November 8, 2016;
• STO Gazprom 9000-2018 Management Systems. Quality Management Systems. Main Provisions and Glossary;
• STO Gazprom 9001-2018 Management Systems. Quality Management Systems. Requirements.

In accordance with the requirements of the Regulation on the Quality Management System of PJSC Gazprom and the ISO 9001:2015 international standard, the Company sets quality targets on an annual basis. All measures aimed at reaching the 2020 targets were implemented. 

The key element of the quality management framework is PJSC Gazprom’s Quality Management System (QMS). The QMS covers 14 departments and 70 subsidiaries of PJSC Gazprom and applies to the following lines of businessExport sales of gas and marketing of gas in the foreign countries are not covered by the QMS:

• Production, transportation, processing and storage of natural gas, gas condensate, and oil
• Prospecting, exploration and appraisal works, development of gas, gas condensate, oil, and oil, gas and condensate fields
• Construction of new gas supply facilities; expansion, reconstruction, technical upgrade, overhaul and diagnostics of the existing facilities
• Natural gas supply and sale
• Metrological support of hydrocarbon production and supply
• Electricity and heat generation
• Design and expert review of field development projects; drilling of wells
• Sale of CNG and LNG as a vehicle fuel

In 2020, the QMS (with an expanded scope) was re-certified for compliance with the requirements of the ISO 9001:2015 international standard.

PJSC Gazprom has in place a set of corporate QMS standards: STO Gazprom 9000 and STO Gazprom 9001. As of December 31, 2020, a total of 26 subsidiaries of the Gazprom Group and 327 suppliers of materials, equipment, works and services were certified for compliance with STO Gazprom 9001. Additionally, 61 subsidiaries were certified for compliance with the requirements of ISO 9001:2015.

PJSC Gazprom has been systematically initiating the implementation of quality management systems compliant with STO Gazprom 9001 by its suppliers to ensure that they meet Gazprom’s requirements to the quality of products, works and services, as well as specific requirements to safe operation of the Group’s facilities.

As part of the QMS development, PJSC Gazprom is working to create a vertically integrated corporate QMS to align the QMS of PJSC Gazprom and those of its subsidiaries on the basis of a common methodology, thus improving the efficiency of the Gazprom Group as a whole.

The Gazprom Group controls the quality of its products, works and services at all stages of their life cycle. Thus, all of its marketable products have product safety certificates with the details of their key properties and applicable safe handling rules.

Gasoline of various grades and diesel fuel produced by the Group meet the latest requirements, i.e., Class 5 of the Technical Regulation of the Customs Union On Requirements to Automotive and Aviation Gasoline, Diesel and Marine Fuel.

Gazprom Gazomotornoye Toplivo LLC is working with Gazprom Mezhregiongaz LLC natural gas supplier and obtains combustible natural gas quality certificate compliant with GOST 5542-2014.

At Gazprom Neft, research centers and technical control laboratories control the quality of petroleum products along the entire the value chain, from oil refineries to sales to end consumers. All quality control processes exercised with regard to petroleum products are documented by reports certifying the mandatory compliance of the products with the quality requirements of relevant production standards (GOST, STO, technical specifications)

The reporting period saw no legal incidents with the Gazrpom Group’s products affecting consumer health and safety.

No incidents of non-compliance with electric and thermal power quality regulations concerning the health and safety impacts of products and services were recorded in 2020.

The Gazprom Group’s products are both used as feedstock for further processing or sold to end consumers without further processing.

• Transportation industry (motor fuels, jet fuels, bunker fuel, natural gas vehicle (NGV) fuel)
• Power and heat generation industry (gas, fuel oil)
• Plastics industry (polyethylene, polystyrene)
• Petrochemical industry (gasoline, natural gas liquids (NGLs), ethane, isopentane, ethylene, propylene, benzene, styrene, alcohols, etc.)
• Oil refining and heat generation industry (gas, stable gas condensate)
• Agriculture (mineral fertilizers — carbamide, ammonia)
• Chemical industry (sulphur, ammonia)
• Road construction (bitumen materials)
• Aerospace, nuclear, medical, and entertainment industries (helium)
• Population, state-owned entities (gas, electricity and heat)

In Russia, natural gas is supplied to consumers via Gazprom Mezhregiongaz LLC, a subsidiary of PJSC Gazprom. 

The key gas consumers include the power generation industry, agrochemical industry, agroindustrial sector, metals industry, petrochemical industry, cement and other industries, heating suppliers, and the general population.

The Gazprom Group sells refined hydrocarbon products to 77 constituent entities of the Russian Federation, while the export sales cover 42 countries. 

Liquefied petroleum gases (LPG) are sold to petrochemical enterprises, traders, owners of retail gas filling station networks and other retail infrastructure facilities, as wellas to retail customers (owners of LPG-powered vehicles, individual entrepreneurs and enterprises using LPG for production purposes). 

The Gazprom Energoholding companies operate in 17 Russian regions and supply heat to at least 20 million people.

Electricity is sold both at regulated prices (21.8%) and free prices (78.2%). The key electricity consumers in the regulated market are guaranteeing suppliers and power supply companies.

The key consumers of heat energy are the residential sector, state-owned entities, heating suppliers, and the general population.

The Group’s heat supply companies have been shifting to direct supply contracts with residents of apartment buildings. In 2020, the number of direct supply contracts grew by 16%. More than 326,000 personal accounts have been opened.

In 2019, the Gazprom Group’s average customer satisfaction level was 4.61 out of 5.00.

In 2020, the COVID-19 pandemic encouraged a widespread use of contactless customer feedback tools for monitoring customer satisfaction with the Gazprom Group’s products. The results of the 2020 customer satisfaction assessment will be available in August 2021.

In 2020, the inclusion of the following metrics into PJSC Gazprom’s strategic target indicators (STIs) was initiated:

• customer satisfaction index for the power generation business;
• customer satisfaction index for the gas business;
• customer satisfaction index for the NGV marketing business.

Currently, work is in progress to integrate these target indicators into the strategic planning system of PJSC Gazprom. The first actual indices will be calculated in 2021.

Gazprom Mezhregiongaz LLC has been actively developing its customer services in the gas distribution and sales segments. Many of regional gas selling companies (RGCs) and gas distribution organizations (GDOs) offer one-stop service for customers to file an application for connection and receive a full package of necessary documents, including a gas supply contract.

In 2020, the company actively developed remote customer services, such as online customer accounts, a common toll-free GDO phone number covering the whole serviced area, and auto-notification systems.

Gazprom Neft relies on a multichannel approach in its relations with retail consumers of petroleum products, which includes communication at filling stations and in the mobile app; publication of information materials in the media and official social media communities of the Gazpromneft Filling Stations Network; providing feedback in social networks and through the Unified Customer Support Center (UCSC); face-to-face communication with customers during BTL promotional activitiesBTL (below-the-line) means all marketing activities other than direct advertising; and the use of traditional and digital advertising. In 2020, the total coverage by all communication channels was more than 118 million of contacts in the media and social networks.

All customer calls to Gazprom Neft are recorded in the unified call registration and processing system and classified by specific types and topics. End customer satisfaction is assessed at all stages of the services provision process. Gazprom Neft also runs the Quality 360˚ program to coordinate the work of PR and marketing units, in-house and external experts, as well as the personnel of the Gazpromneft Filling Stations Network to improve the retail consumer perception of fuel quality.

In 2020, the Gazprom Energoholding companies collected customer feedback to assess customer satisfaction on a regular basis. Customer surveys demonstrated high levels of customer satisfaction with the support and services offered. In 2021, Gazprom Energoholding will revise its satisfaction index calculation methodology to incorporate new STIs introduced at the Gazprom Group.

Gazprom Neftekhim Salavat relies on annual customer surveys, analysis of media and web publications and review of customer complaints (in accordance with STO 14.02-2020-ISO Claims Handling, which regulates claim preparation and handling procedures) to measure and control customer satisfaction levels. The results of customer satisfaction assessments are used to improve the QMS.

Gazprom Gas-Engine Fuel launched a customer Hot Line. In 2020, the Hot Line received 29,722 calls, including information requests, business queries, and complaints.

The results of call handling are recorded in an approved register. Extracts from the register are also sent to managers to be used in managarial and HR decision-making.

The company does not monitor the quality of CNG at the Gazprom Group’s CNG filling stations in foreign countries. In the reporting period, there were no complaints about the CNG quality at Gazprom’s CNG filling stations from foreign customers.