Key Sustainability Events in 2021
Major events
- On January 1, Gazprom started supplying gas to Serbia and Bosnia and Herzegovina via a new route – the TurkStream gas pipeline across the Black Sea and the national gas transmission systems of Bulgaria and Serbia. Supplies to Hungary and Croatia through the same route commenced on October 1.
- In April, the Svobodny thermal power plant came onstream in the Amur Region. The main purpose of the plant is to provide the Amur Gas Processing Plant with thermal energy (steam) and electricity.
- In May, we launched the construction of the Complex for Processing Ethane-Containing Gas (CPECG) near Ust-Luga, Leningrad Region, a unique cluster combining capacities for gas processing, gas chemistry, and natural gas liquefaction.
- In June, the first production train of the Amur Gas Processing Plant (GPP), one of the largest of its kind in the world, was put into operation.
- In September, we launched the world’s biggest Logistics Center for servicing helium containers (helium hub) in the Primorye Territory. It will be used to deliver liquid helium to the global market. The first of three helium separation, liquefaction and packaging units at the Amur GPP came onstream.
Innovations
At Gazprom, we eagerly use innovations and take part in their development. Every year, the Company invests heavily in research and development (R&D). For R&D activities, we engage corporate research institutes as well as leading Russian scientific institutions, including universities, and small and mediumsized innovative companies. The R&D activities are aimed at developing and delivering high-tech domestic equipment and unique sophisticated technological complexes, and creating high-potential scientific and technical solutions.
Gazprom conducts annual corporate R&D competitions. In 2021, 16 works took part in the competition, with ten receiving awards. The economic effect from implementing the innovative technologies that won the corporate award totalled over RUB 102 billion. The first prize went to the membrane technology of helium recovery from natural gas.
Environmental projects
We achieved the following corporate environmental targets while implementing Gazprom’s Comprehensive Environmental Program for 2020–2024:
- reduced greenhouse gas emissions (–5.52% compared to the 2018 baseline);
- cut excessive pollutant discharges into surface water bodies (–5.17 p.p. compared to the 2018 baseline);
- decreased considerably the share of waste sent for burial (–24.02 p.p. compared to the 2018 baseline);
- reduced the share of subsidiaries whose fees for excessive negative environmental impact are above 5% (–21,49 p.p. compared to the 2018 baseline);
- cut nitrogen oxide emissions in the atmosphere during transportation of natural gas (–3.78% compared to the 2018 baseline).
The creation in 2021 of the Sustainable Development Committee of the Board of Directors and the approval of the relevant regulation was the next major step in improving the corporate governance in the area of sustainable development.
The reporting year saw the development of the Gazprom Group’s Digital Transformation Strategy.1 It is designed to markedly increase the efficiency of production and management processes through extensive use of digital technologies and formation of an environment for creating new business lines.
For more details on the Policy, see Gazprom’s website
For more details on the Regulation on the Sustainable Development Committee of the Board of Directors, see Gazprom’s website
Improving energy efficiency
The Group is working consistently to increase the energy efficiency of its operations and reduce greenhouse gas emissions. In 2018–2021, Gazprom saved 15.68 mmt of reference fuel and energy resources, including 13.67 bcm of gas, 1.37 billion kWh of electricity and 0.93 million Gcal of thermal energy. Savings in fuel and energy resources totalled RUB 54.9 billion.
The energy-saving projects leveraging cutting-edge technologies to save gas during repair works play an important role in improving energy efficiency and reducing GHG emissions.
In 2020–2021, MCS helped save more than 1 bcm of gas during pipeline repairs. This is comparable to the annual gas consumption of cities like Penza or Ryazan, or a major thermal power plant supplying energy to more than a million people. By using just 10 MCS, the Company was able to reduce GHG by 17 mmt of СО2 equivalent. Gazprom is working to increase its MCS fleet to minimize methane emissions and further reduce the carbon footprint of gas supplies to Russian and foreign consumers.
Gas infrastructure expansion in russia
Gas infrastructure expansion in Russia is Gazprom’s key social project. In 2021, the Group accelerated the implementation of programs to develop gas supply and expand gas infrastructure in Russia for 2021–2025, building about 2,700 km of gas pipelines. Over 83,600 houses and apartments, as well as 285 boiler houses in 342 localities were connected to the gas network. In December, the Company agreed work schedules for 2022 with 68 Russian regions to align the effort with local authorities.
Simultaneously, in line with President Vladimir Putin’s instructions, we carry on with the project to connect households to the gas network in the areas with existing gas supplies.
Gazprom’s efforts to expand gas infrastructure and convert vehicles to natural gas provide for a significant reduction in pollutant and GHG emissions.
Natural gas vehicle fuel market development
Gazprom is working consistently to facilitate the conversion of vehicles to natural gas and is actively building gas filling stations. This is paralleled with the expansion by Russian manufacturers of the gas-powered vehicle fleet. As of today, more than 300 models of natural gas vehicles (NGV) are produced in Russia. Gazprom is also supporting pilot projects aimed at converting water and rail transport to gas. In 2021, Gazprom was behind an initiative to create an LNG-powered switching locomotive TEMG1 to help reduce the environmental impact.
Pilot projects seeking to accelerate the development of the natural gas motor fuel market are being implemented in various Russian regions, including Belgorod and Rostov, as well as the Republic of Tatarstan.
Russian and global experience demonstrates that natural gas is the most cost-effective and environmentally friendly fuel.
In 2021, Gazprom’s new compressed natural gas (CNG) filling stations opened in the republics of Adygea, Bashkortostan, and Tatarstan, the Astrakhan, Kemerovo, and Rostov regions, and in St. Petersburg. Cryo-1 and Cryo-2 cryogenic gas filling stations opened on both sides of the M-11 Neva highway in Okulovka, Nizhny Novgorod Region.
Low-carbon technologies
Gazprom is working hard to implement the best available technologies, improve energy efficiency, and reduce its carbon footprint year after year, contributing significantly to the low-carbon development of Russia and the countries importing Russian gas.
To build stakeholder confidence, Gazprom prepares corporate carbon reporting in line with international practices and conducts international independent verification of its GHG emissions on a regular basis.
Gazprom invests in hydrogen and other innovative gas-based energy technologies with a view to contributing to the Paris Climate Agreement and unleashing the potential of natural gas.
On October 13, 2021, the Russian Government and PJSC Gazprom signed a Letter of Intent aimed at advancing the development of hydrogen energy and decarbonization of the industry and transport using natural gas (hi-tech area of activity). Based on this document, Gazprom has drafted a roadmap, which has been approved by the Government.
Process safety
PJSC Gazprom and its subsidiaries have implemented an Integrated System of Process Safety Management (ISPSM). It seeks to protect the lives and health of the Group’s employees, ensure safe working environment, reliable operation of hazardous industrial facilities, and compliance with fire and road safety.
In December 2020, Gazprom’s ISPSM was certified for conforming to ISO 45001:2018, an international occupational health and safety management standard. The document verifies that the Company’s ISPSM complies with new international requirements.
Response to covid-19 pandemic
Protecting the health of employees is a major priority of Gazprom’s social policy.
Gazprom closely monitors the COVID-19 incidence rate at the Group’s facilities. We constantly collect and analyze the data at the Company’s emergency task force. Mandatory anti-pandemic measures continue to be in place across the Group. Voluntary vaccination and revaccination is readily available to all employees. The special stations set up at our corporate medical facilities and remote production sites maintain a constant and sufficient supply of vaccines.
The production facilities of Russia’s Unified Gas Supply System are operating in a normal mode.
Building employee skills and competencies
Gazprom has an effective HR management system in place and works continuously to further develop it. Our HR services focus on long-term headcount planning, staffing, as well as training, development and motivation of the Company employees. Major emphasis is placed on nurturing young talent, recruiting highly skilled professionals for Gazprom’s strategic projects, and meeting the HR management KPIs.