1.5. Innovations at the Gazprom Group

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

 

RUB 24.6 billion

investments in R&D in 2021

 

RUB 12.8 billion

economic benefit from the use of R&D results by PJSC Gazprom’s subsidiaries (gas business) in 2021

 

Documents Regulating the Gazprom Group’s Innovative Activity

  • PJSC Gazprom’s Innovative Development Program until 2025Approved by resolution of the Board of Directors of PJSC Gazprom No. 3513 dated December 1, 2020
  • R&D Program of PJSC Gazprom and its Subsidiaries
  • Procedure for Managing R&D Activities at PJSC Gazprom and its Subsidiaries
  • A set of PJSC Gazprom’s standards pertaining to the Intellectual Property group of standards
  • PJSC Gazprom’s Patent Strategy until 2025
  • Key Provisions for Managing Intellectual Property Rights of PJSC Gazprom and its Subsidiaries

Innovative Development Program

PJSC Gazprom’s Innovative Development Program (the “Program”) until 2025 is Gazprom’s tool for the long-term planning and management of innovative activities which is part of the Group-wide strategic planning framework. It has a ten-year planning horizon and covers gas, oil and power generation businesses of the Gazprom Group. To deliver on the technological and organisational priorities of the Program, there are relevant R&D initiatives (plans) in place at PJSC Gazprom, PJSC Gazprom Neft, Gazprom Energoholding LLC and other subsidiaries and affiliates.

 

The Program is mainly aimed at improving technological and organizational capabilities of PJSC Gazprom to cement its position as a global energy company and a reliable energy supplier.

 

The Program prioritizes technological development with a focus on prospecting and exploration, and enhancing development efficiency, including greenfield, offshore, and unconventional resources. Gazprom also monitors and develops technologies for enhancing the efficiency of gas transportation and storage, hydrocarbon processing, LNG production, gas marketing and utilization.

 

Elena Mazurina

Deputy Head of Division at PJSC Gazprom PhD in Economics, Associate Professor

Elena is responsible for import substitution projects. She supervised the creation of Russia’s first LNG-powered TEMG1 switching locomotive which was delivered to Gazpromtrans in 2021. Powered by natural gas, the engine is much less detrimental to the environment than conventional diesel-fueled vehicles.

1.5. Innovations at the Gazprom Group "

Implementing Advanced Technologies

Innovation Management

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PJSC Gazprom has an advanced innovation management framework in place. It also has a standing R&D Commission (the “Commission”) which considers whether and how PJSC Gazprom and its subsidiaries should implement R&D projects based on the principles of transparency, objectivity, and independence. In the reporting year, it saw the number of its members increase from seven to ten following the decisionOrder of PJSC Gazprom No. 473 dated November 9, 2021 to enhance its capabilities.

 

In November 2021, amendmentsOrder of PJSC Gazprom No. RD 489 dated November 11, 2021 were made to the Procedure for Managing R&D Activities at PJSC Gazprom and its SubsidiariesApproved by Order of PJSC Gazprom No. 254 dated April 20, 2017, driven by the need for better R&D activity management. The Company strengthened the role of the R&D Department as the center of responsibility for managing R&D activities at PJSC Gazprom and its subsidiaries, updated the roster of R&D activities and results, and provided for electronic (paperless) management of records and reports.

In 2021, despite the restrictions introduced to combat the spread of COVID-19, key R&D metrics significantly grew year-on-year as follows:

  • Number of R&D initiatives reviewed by the Commission — by 21%
  • Number of R&D initiatives approved by the Commission and included in the R&D Program of PJSC Gazprom and its Subsidiaries — by 76%.

For more details on innovation management at PJSC Gazprom, see Gazprom’s website

 

UNCTAD A.3.3
Gazprom Group’s R&D investments and actual economic benefit, RUB billion
Indicator 2019 2020 2021 Change 2021/2020, %
R&D investments1 12.1 21.4 24.6 +15.0
Economic benefit from the application of R&D results2, 3 10.5 11.2 12.8 +14.3

1 Including pre-investment studies.

2 According to the information provided by PJSC Gazprom subsidiaries (gas business.

3 The methodology for calculating the economic benefit from using the R&D results is formalized in a document of PJSC Gazprom standardization system and relies on the generally accepted approach to calculating the benefit based on the difference between cash inflows and outflows.

Number of patents received by the Gazprom Group
Indicator 2019 2020 2021 Change 2021/2020, %
Patents 2,674 2,786 2,901 +4,1

The Year of Science and Technology

Gazprom supported the government initiative and announced the Year of Science and Technology in 2021 with a view to making science and technology more attractive to young talent, raising awareness about innovative opportunities of the gas science among broader audiences, and engaging the professional academic community in tackling the gas industry challenges.

The initiative saw more than 350 dedicated events promoting PJSC Gazprom as a socially responsible business with its own technical capabilities that supports science and education. Among these events were topical conferences and workshops, exhibitions and information boards demonstrating the Company’s latest achievements in R&D and import substitution, including four exhibitions and showrooms as part of the 10th Anniversary St. Petersburg International Gas Forum. PJSC Gazprom went public about its R&D activities on federal TV channels, periodicals, as well as its own and its partners’ web resources. The Company also held profession-oriented awards and competitions, video lectures on science and technology, etc.

Examples of Innovative Projects Being Implemented

All investment projects of the Gazprom Group are implemented using the latest available sci-tech solutions, including those developed jointly with Gazprom.

In the reporting year, Gubkin Russian State University of Oil and Gas, hired by PJSC Gazprom to develop digital technologies, continued to work on creating a structural and tectonic model for better trap prediction on the north-eastern shelf of Sakhalin using domestic cloud IT technologies.

Driven by cutting-edge solutions are PJSC Gazprom’s new technological projects and field development plans for such existing fields as Astrakhanskoye, Urengoyskoye, Severo-Urengoyskoye, Medvezhye, Yamburgskoye, Chayandinskoye, etc.

We completed the development of an integrated solution to increase working gas volume and reduce time for starting up cyclic operation of underground gas storage facilities in structurally complicated water formations.

In addition to technological innovations, PJSC Gazprom extensively develops and uses organizational innovations. The year 2021 saw active work on enhancing the system of long-term forecasting, cost management, and UGSS modeling.

Collaboration with R&D Centers and Universities

PJSC Gazprom cooperates with partner universities as part of its Innovative Development Program until 2025.

 

Partner Universities of PJSC Gazprom

Anchor Universities of PJSC Gazprom

Kazan National Research Technological University

 

St. Petersburg State Marine Technical University

 

Bauman Moscow State Technical University (National Research University)

 

Peter the Great St. Petersburg Polytechnic University

 

Lomonosov Moscow State University

 

St. Petersburg State University of Economics

 

National Research Tomsk Polytechnic University

 

Industrial University of Tyumen

 

National Research University Higher School of Economics

Ufa State Petroleum Technological University

 

Gubkin Russian State University of Oil and Gas (National Research University)

 

Ukhta State Technical University

 

St. Petersburg Mining University

 

Universities Enjoying Special Partnership with PJSC Gazprom

St. Petersburg University Graduate School of Management

 

Admiral Makarov State University of Maritime and Inland Shipping

 

St. Petersburg Electrotechnical University LETI

 

Ammosov North-Eastern Federal University

 

PJSC Gazprom engages anchor universities in conducting R&D projects on all core areas of the Company’s technological chain such as software development, and digitalization of production and management functions. Many of them contribute to sustainable development.

In 2021, Gubkin Russian State University of Oil and Gas completed the following projects:

  • predicted development and properties of reservoir rocks in Senonian sediments of the Nadym-Pur-Taz Region using digital lithological and petrophysical models and lithofacies simulation; solutions for creating import-substituting chemicals, materials and technologies to produce drilling muds and cement slurries;
  • framework and requirements for information tools to support economic evaluation of Gazprom’s investment projects;
  • integrated solution to increase working gas volume and reduce time for starting up cyclic operation of underground gas storage facilities in structurally complicated water formations.

In the reporting year, Gazprom and Lomonosov Moscow State University completed their joint research project on upgrading the technology to identify and assess geological processes and phenomena jeopardizing the construction of oil and gas facilities on the Far Eastern shelf of Russia. The advanced technology for engineering and geophysical survey was tried out on a deep water area of the Sakhalin shelf located at the Kirinsky license block of PJSC Gazprom. The obtained results will help the Company optimize the development of the Kirinskoye field, implying much lower risks associated with the design and construction of deep wells.

In addition to the anchor universities, the Company cooperates with other universities. In 2021, under the Cooperation Agreement between the Government of the Republic of Tatarstan and PJSC Gazprom, the Innopolis University completed the development of software for one-dimensional and threedimensional geomechanical modeling and a set of robotic tools to diagnose the technical condition of compressor stations and transmit data in real time. The University presented software architecture solutions for creating, editing and simultaneously visualizing 1D and 3D geomechanical models and diagnosing the technical condition of the Company’s gas transportation facilities. The parties decided to continue collaboration under the new Agreement on Scientific and Technical Cooperation between the Government of the Republic of Tatarstan and PJSC Gazprom, which was signed in the reporting year.

As part of its cooperation with the anchor universities, PJSC Gazprom is participating in building an innovative scientific and technical center for energy and oil and gas production at St. Petersburg State Marine Technical University (Primorskaya Dolina Science and Technology Center). The project will also involve other partner universities of PJSC Gazprom, including Gubkin Russian State University of Oil and Gas, Peter the Great St. Petersburg Polytechnic University, and St. Petersburg Electrotechnical University LETI. PJSC Gazprom’s representatives also sit on the working group in charge of developing a blueprint for the center.

Fostering and Supporting the Russian Science and Young Scientists

In order to promote innovative activities and introduce innovations into its routines, Gazprom holds an annual competition for PJSC Gazprom Science and Technology Prize. In 2021, the competition saw 16 projects, with the total number of authors reaching 148, including 105 employees of PJSC Gazprom’s subsidiaries, 27 employees of PJSC Gazprom’s structural units, and 16 third-party employees.

In 2021, the top prize went to the project by Gazprom Proyektirovaniye on Scientific Rationale, Development and Implementation of a Membrane Technology for Helium Recovery from Natural Gas in Eastern Siberia and Russia’s Far East. The work entailed close cooperation with the relevant structural unit of PJSC Gazprom, Gazprom Dobycha Noyabrsk, Gazprom Dobycha Irkutsk, and Grasys. The innovative membrane technology of helium recovery makes it possible to adjust helium content in produced multi-component gas directly at the field before it is supplied to the pipeline for transportation.

Digital Transformation

Dmitry Sevastyanov

Director General of Gazprom Space Systems PhD in Engineering Honored Communications Specialist of Russia

Dmitry is in charge of a national satellite operator that provides telecommunications and geographic information services to consumers in Russia and a significant part of the Eastern Hemisphere. He oversees the operation of PJSC Gazprom’s Yamal satellite constellation and other sophisticated telecommunications systems, as well as development of digital multichannel television relayed by a communications satellite.

1.5. Innovations at the Gazprom Group "

Developing Digital Infrastructure

Gazprom is an industrial leader in developing and using digital technologies in Russia.

 

253 projects

included in the Digital Transformation Strategy of PJSC Gazprom (the Gazprom Group)

 

RUB 11.4 billion

spent on software development and digital transformation (DT)2021 data is provided for PJSC Gazprom and the Gazprom Group companies covered by the Digital Transformation Strategy of PJSC Gazprom (the Gazprom Group), as well as the subholding companies pursuing their own digital transformation strategies, specifically Gazprom Neft, Gazprom Mezhregiongaz, and Gazprom Energoholding

4,562 employees

received further professional training in digital technology

 

Digital Transformation Strategy

The Company implements new digital technologies enabling it to enhance the efficiency of its existing processes and identify prospective business segments in line with the Digital Transformation Strategy of PJSC Gazprom (the Gazprom Group)The “Strategy”. Approved by resolution of the Board of Directors of PJSC Gazprom No. 3709 dated January 25, 2022.

 

The Strategy draws from the following documents:

  • Decree No. 203 of the President of the Russian Federation On the Strategy for the Development of the Information Society in the Russian Federation for 2017–2030 dated May 9, 2017
  • Russian Government’s Directives No. 3438p-P13 On Ensuring the Development (Updating) of the Digital Transformation Strategy (Program) through 2024 (inclusive) dated April 14, 2021
  • Resolution of the Board of Directors of PJSC Gazprom No. 3600 On Ensuring the Development (Updating) of the Digital Transformation Strategy (Program) of PJSC Gazprom through 2024 (inclusive) dated June 1, 2021

The Strategy is compliant with the Digital Transformation Guidelines for State-Owned Corporations and Companies approved by the Presidium of the Government Commission on Digital Development on November 6, 2020, and conforms to federal laws, decrees and instructions of the President of the Russian Federation, decrees of the Government of the Russian Federation, and other federal regulations pertaining to digital transformation.

The Strategy:

  • is a long-term planning and management document which is part of the Group’s strategic planning framework;
  • covers the gas business of the Gazprom Group;
  • contains a set of interconnected initiatives aimed at developing and implementing advanced digital technologies;
  • provides for the Group’s transition to a platform-based business model.

The Gazprom Group’s digital transformation (DT) provides for a transition to a single integrated platform-based business model of the Gazprom Group, which involves gradual implementation of its strategic digitalization goals and the development of existing business segments.

As we see it, digital transformation is a continuous process covering automation, IT penetration and digitalization, and involving all business units of PJSC Gazprom and the Gazprom Group companies.

PJSC Gazprom’s digital transformation aims to:

  • increase the operating efficiency through extensive use of end-to-end digital technologies, markedly increase the efficiency of specific business processes, and promote new business lines, products and services;
  • increase the competitive capacity through adaptive digital management practices, including the creation of digital platforms and ecosystems;
  • ensure sustainable development and process reliability based on proactive (accelerated) import substitution of digital technologies.

The key objective of Gazprom’s digital transformation is to markedly increase the efficiency of production and management processes through extensive use of digital technologies and promote new business lines.

Digital Transformation KPIs

In line with our digital transformation objectives and upon review of the KPI list proposed by the Russian Ministry for Digital Technology in the Digital Transformation Guidelines for State-Owned Corporations and Companies1 and their relevance for the Gazprom Group, we determined the following digital transformation KPIs:

  • Investment in digital transformation, including import substitution
  • Reduction in unit opex following digitalization
  • Share of revenue in digital channels
  • Number of active users of digital solutions (Gazprom Group employees)
  • Share of managers, specialists and other white-collar staff skilled in digital transformation
  • Share of digital transformation spending in total investments
  • Increasing investment in domestic IT solutions
  • Reduction in the accident rate following digitalization
  • Improving labor efficiency through digitalization
  • Share of digitalized business processes in support functions
  • Share of digital transformation initiatives using artificial intelligence
  • Share of spending on Russian-made software

The Company regularly assesses the effects achieved and their impact on its performance when updating the Strategy and monitoring its initiatives.

Digital Transformation Priorities

PJSC Gazprom’s IT Department identifies the priorities and realigns them when updating the Strategy.

The Strategy initiatives include:

  • digital transformation projects;
  • projects enabling basic IT and digitalization required to make digital transformation possible;
  • DT initiatives focusing on financial and business performance;
  • DT initiatives focusing on production and technology;
  • DT initiatives focusing on communications;
  • action plan for 2022–2024 providing for PJSC Gazprom’s and the Gazprom Group entities’ increased reliance on domestic software.

Digital Transformation in 2021

In 2021, the Gazprom Group continued to implement its 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, including the following projects:

• electronic management system for accounting documents and contracts at PJSC Gazprom, its subsidiaries and entities;

• gas and condensate transportation information management system (Stage 1) at PJSC Gazprom’s gas transportation subsidiaries (Phase 1).

The Group continued to develop its integrated IT infrastructure by meeting Gazprom’s needs for servers and hardware.

The Strategy provides for the respective IIE projects to continue into 2022 and for PJSC Gazprom and the Gazprom Group to consistently work towards digitalization and digital transformation.

In 2021, we launched a routine to collect data from our subsidiaries on proposals to the Gazprom Group’s Digital Projects and Technologies Bank which seeks to provide up-to-date and exhaustive information to the Group’s employees, identify opportunities for the rollout, licensing, and commercialization of the best products both within and beyond the Group. The project provides for consolidation, analysis, support and selection of best practices based on the experience of PJSC Gazprom’s subsidiaries.

The COVID-19 pandemic in 2021 had no direct impact on the Gazprom Group’s accelerated digitalization.

Digital Transformation Plans

The first stage of the Strategy includes creating the Gazprom Group’s Integrated Reference Data and Knowledge Model, a corporate repository containing information about the Group’s key assets and business processes, its suppliers and contractors, existing and prospective consumers, current regulatory requirements, etc.

This model will leverage digital platforms to build digital ecosystems for gas, oil and electric power businesses, which will be integrated with digital services into the Gazprom Group’s digital eco-environment going forward.