5.2. GHG Emissions Management
In managing its GHG emissions, Gazprom is guided by the following goals and objectives:
- Russia’s 2050 Social and Economic Development Strategy with Low Greenhouse Gas EmissionsApproved by resolution of the Russian Government No. 3052-r dated October 29, 2021.;
- Climate Doctrine of the Russian FederationApproved by resolution No. 861-rp of the President of the Russian Federation dated December 17, 2009.;
- decree No. 666 of the President of the Russian Federation On Reducing Greenhouse Gas Emissions dated November 4, 2020;
- Federal Law No. 296-FZ On Limiting Greenhouse Gas Emissions dated July 2, 2021;
- Concept for the Formation of a Monitoring, Reporting and Verification System for Greenhouse Gas Emissions in RussiaApproved by resolution of the Russian Government No. 716-r dated April 22, 2015..
Key documents
In 2022, PJSC Gazprom developed its Climate Roadmap through 2050, which sets out targets and steps to reduce and offset GHG emissions and describes activities to adjust PJSC Gazprom’s production activities to climate change in the short, medium and long term.
The Climate Roadmap is designed to reduce direct and indirect GHG emissions and put the Gazprom Group on a low-carbon trajectory that is financially and environmentally sustainable.
The Group’s climate change management policy is underpinned by commitment to improve energy efficiency and technology level of operations.
The most effective technologies to reduce GHG emissions into the air include:
- repairs, replacement or upgrade of gas pumping units;
- increased venting of residual gas ahead of pipeline maintenance;
- utilisation of gas to meet internal process needs;
- use of pipes with smooth internal coating in gas transportation;
- implementation of telemetry to monitor and manage operational processes;
- reduction of gas losses during repairs that use mobile compressor stations.
Corporate GHG Emission Reduction Targets
KPI targets, including GHG emission reduction target, are set out in the Long-Term Development Program of PJSC Gazprom (Gazprom Group) and the innovative development program. The baseline year is year 2018.
Reduction of specific GHG emissions in CO2 equivalent (KPI 4) and reduction of specific fuel and energy consumption for internal process needs and losses (KPI 3) are included into the annual bonus system for the PJSC Gazprom management.
In addition, PJSC Gazprom’s Climate Roadmap through 2050 defines target levels of Scope 1, 2 and 3 GHG intensity for Gazprom through 2050.
Corporate progress against the Climate Roadmap will be monitored annually. If needed, experts will be engaged with relevant experience in monitoring GHG emissions. The Climate Roadmap may also be updated as necessary.
55.3 tons of CO2 equivalent / bcm • km
reduction of GHG emissions during natural gas transportation in terms of volumes of gas transportedThe 2020–2022 corporate environmental target for GHG emission reduction during natural gas transportation in terms of volumes of gas transported has been set relative to the level of 55.3 tonnes of CO2 equivalent / bcm • km.
Control and Accounting of GHG Emissions
All Gazprom Group companies perform control and accounting of GHG emissions using the same procedure based on the Methodology for the Quantification of Greenhouse Gas EmissionsApproved by order of the Russian Ministry of Natural Resources and Environment No. 371 dated May 27, 2022..
| Indicator | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Total Gazprom Group GHG emissions (Scope 1), incl.: | 210.32 | 243.28 | 213.53 | −12.2 |
| PJSC Gazprom, incl.: | 100.97 | 119.87 | 91.03 | −24.1 |
| production | 14.27 | 17.95 | 15.63 | −12.9 |
| transportation | 77.61 | 93.09 | 66.03 | −29.1 |
| processing | 6.83 | 5.90 | 6.82 | +15.6 |
| underground storage | 1.13 | 1.66 | 1.22 | −26.5 |
| Other | 1.13 | 1.27 | 1.32 | +3.9 |
The reduction in GHG emissions was due to energy saving efforts, innovations, greater reliance on resource-saving solutions, and decreases in natural gas consumption for fuel purposes and in product transportation volume as a result of lower gas supplies.
| Indicator | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Total Gazprom Group GHG emissions (Scope 2), incl.: | 12.4 | 13.8 | 11.11 | −19.4 |
| PJSC Gazprom, by key types of activities, incl.: | 4.7 | 6.08 | 4.02 | −33.9 |
| production | 0.35 | 0.35 | 0.31 | −11.4 |
| transportation | 2.47 | 3.33 | 1.84 | −44.7 |
| processing | 1.83 | 2.34 | 1.83 | −21.8 |
| underground storage | 0.05 | 0.06 | 0.04 | −33.3 |
The Gazprom Group Russian entities’ specific GHG emissions (Scope 1), kg of CO2 equivalent / toe of sold products
| Entity | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| The Gazprom Group’s gas business | 239 | 253 | 249 | −1.6 |
| Gazprom Neft | 218 | 220 | 218 | −0.9 |
| Gazprom Energoholding | 3,490 | 3,552 | 3,675 | +3.5 |
Specific GHG emissions (Scope 3) for the Gazprom Group’s sold products, kg of CO2 equivalent / boe of sold products
| Indicator | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Specific GHG emissions (Scope 3) | 301.4 | 301.2 | 302.6 | +0.5 |
In 2022, methane emissions from PJSC Gazprom’s production facilities decreased by 171,000 tons compared to 2021. The reduction was due to energy saving efforts, innovations, greater reliance on resource-saving solutions, and decreases in natural gas consumption for fuel purposes and in product transportation volume as a result of lower gas supplies.
The growth in methane emissions during gas production was caused by an increase (of more than five times) in the volume of repairs on the back of operational need to overhaul interfield pipeline sections.
The increase in methane emissions during refining was due to the need to carry out a process safety audit of communications between workshops at the Surgut Condensate Stabilization Plant (conducted once in eight years). For audit purposes, gas pipelines had to be emptied, with gas flared or burnt on venting pipes. The equipment of the Astrakhan GPP and the Orenburg Helium Refinery was also prepared for scheduled maintenance and commissioning after repairs. In 2022, the Plant for Condensate Preparation for Transportation in Novy Urengoy put new facilities in operation.
In 2022, Gazprom Transgaz Yekaterinburg tested an innovative system to utilize flue gas of gas turbine engines of gas pumping units. With the novel technology, exhaust heat is utilized and emissions of carbon dioxide are reduced as some of it is converted into waste energy sources such as dimethyl ether and methanol.
In other operations, the increase in methane emissions was attributable to the commissioning of new facilities of Gazprom Gazomotornoye Toplivo.
| Segment | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Production | 47.72 | 59.84 | 82.09 | +37.2 |
| Transportation | 952.65 | 897.34 | 706.11 | −21.3 |
| Processing | 1.25 | 1.10 | 2.84 | +158.2 |
| Underground storage | 16.63 | 19.98 | 14.95 | −25.2 |
| Other | 2.43 | 2.80 | 4.17 | +48.9 |
When used as motor fuel, gas contributes to considerable reductions in pollutant emissions and environmental footprint across Russia. The NGV fuel market is a focus area for Gazprom.
As motor fuel, natural gas is used in two forms: compressed and liquefied.
Compressed natural gas (CNG) is sold through CNG filling stations, where it is treated, dried, pressurized in a compressor and sent to a vehicle’s tank at a pressure of 200 atm.
Key consumers of CNG are passenger vehicles, light trucks, light-duty vehicles and municipal service vehicles.
Liquefied natural gas (LNG) is natural gas cooled down to 162 °С. Upon cooling, gas takes liquid form, with its volume reduced 600 times. LNG is transported and stored in cryogenic tanks and sold to consumers via cryogenic filling stations or CNG filling stations with cryogenic equipment.
Key consumers of LNG are long-distance motor vehicles, railways, water transport, and quarry and agricultural machines.
Gazprom Gazomotornoye Toplivo is the single operator responsible for the development of the NGV fuel market in Russia. The company sells gas as motor fuel and develops a retail network of CNG filling stations across Russia under the Gazprom and EcoGas brands.
The existing gas filling network of the Gazprom Group entities and Gazprom Gazomotornoye Toplivo covers 64 Russian regions in eight federal districts.
As of December 31, 2022, the Gazprom Group entities and Gazprom Gazomotornoye Toplivo owned 423 CNG filling stations with a capacity of 3.14 bcm per year.
In 2012–2022, the Russian gas filling network tripled in size, with annual NGV sales expanding 3.8 times. The fleet of vehicles running on NGV grew by 275% between 2013 and 2022. In 2022 alone, a total of 26,500 vehicles were added to the fleet. Of them, 11,100 vehicles were converted to gas under marketing programs of Gazprom Gazomotornoye Toplivo, with the remaining 6,440 vehicles made by Russian automotive producers.
A strong incentive that helped increase the number NGV vehicles and boost commissioning of gas filling infrastructure came from a federal project to develop the market for natural gas as motor fuel, which is run as part of the Energy Sector Development federal state program. The project offers subsidies to convert vehicles to NGV and construct CNG filling stations so as to bring total consumption of natural gas as motor fuel to at least 2.72 bcm as at the end of 2024.
In the reporting year, we put together lists of prioritized regions in terms of retail network and sales growth effortsAs per resolution of the Board of Directors of Gazprom Gazomotornoye Toplivo No. 282 dated August 22, 2022..
| Regions prioritized for retail network expansion | Regions prioritized for sales growth |
|---|---|
| Altai Territory | Volgograd Region |
| Krasnodar Territory | Leningrad Region |
| Leningrad Region | Moscow |
| Moscow Region | Republic of Bashkortostan |
| Novosibirsk Region | Republic of Tatarstan |
| Orenburg Region | Rostov Region |
| Primorye Territory | Samara Region |
| Samara Region | St. Petersburg |
| St. Petersburg | Sverdlovsk Region |
| Sverdlovsk Region | Tula Region |
| Tambov Region | |
| Tver Region |
In 2020, the Gazprom Group adopted the Highway Strategy — the Gazprom Group’s Federal Highway CNG/LNG Infrastructure Development ProgramApproved by order of PJSC Gazprom No. 447 dated October 28, 2020.. Under the document, Gazprom Gazomotornoye Toplivo is collaborating with the Federal Road Agency (Rosavtodor) and the Russian Highways State Company (Avtodor) to set up gas filling infrastructure facilities along highways managed by Rosavtodor and Avtodor. In early 2023, PJSC Gazprom updated the Strategy, providing for 274 new facilities to be added to the Gazprom Group’s gas filling infrastructureIn accordance with instruction of the Chairman of the Management Committee Alexey Miller No. 01-105 dated January 13, 2023..
In the reporting year, the CNG filling network of Gazprom and Gazprom Gazomotornoye Toplivo grew by 9.6% to 423 stations.
As of December 31, 2022, total capacity of CNG filling stations owned by the Gazprom Group entities and Gazprom Gazomotornoye Toplivo and its subsidiaries stood at 3.14 bcm per year. In 2022, the volume of CNG sales by CNG filling stations of the Gazprom Group and Gazprom Gazomotornoye Toplivo increased by 3.3%, with another 77.8 mcm of CNG sold by Gazprom Gazomotornoye Toplivo under a resale model via partner facilities that are not included in the retail network of Gazprom Gazomotornoye Toplivo.
The Gazprom Group’s CNG filling stations operate in Belarus (27 stations), Armenia (7 stations), and Kyrgyzstan (4 stations). In 2022, total CNG and LNG sales through these stations grew by 3.1% vs. 2021 to 85.87 mcm.
Transition of Gazprom’s Vehicles to NGV Fuel
Since 2014, PJSC Gazprom has been working to make sure the fleet of its subsidiaries engaged in the Group’s core activities transitions to NGV fuel. In the reporting year, we approved the Program to Expand the Use of Natural Gas as Motor Fuel at Own Fleet of the Gazprom Group Entities for 2023–2025Order of PJSC Gazprom No. 388 dated September 29, 2022..
As at the end of 2022, subsidiaries engaged in the Group’s core activities operated a total of 14,050 vehicles running on NGV fuel. Those make up 63% of all Company vehicles that can potentially be transitioned to NGV fuel.
Also, in-house programs to expand the use of natural gas as motor fuel in 2023–2025 have been developed and put in place at Gazprom GNP Holding, Gazprom Mezhregiongaz, Gazprom Energoholding and Gazstroyprom.
By the end of 2025, the Gazprom Group plans to grow its gas-powered fleet to 23,326 vehicles. Between 2014 and 2025, total consumption of NGV fuel is expected to reach 836 mcm.
In 2022, PJSC Gazprom and KAMAZ signed two agreements on cooperation. Under the two documents, the car maker will develop pilot motor vehicles running on NGV fuel and tailored to meet the needs of Gazprom and its subsidiaries.
The pilot vehicles will be tested in real life conditions at Gazprom’s production facilities. The Group will select the testing sites and will be involved in both the testing process and approval of the results.
Development of Low-Tonnage LNG facilities
Gazprom is actively working to set up new low-tonnage LNG facilities. They serve as strong drivers that help develop Russian regions, diversify business activities, and reduce Gazprom’s carbon footprint. In 2022, the LNG production infrastructure included seven LNG production, storage and shipment terminals.
Three projects to construct such terminals are currently at the implementation stage in the Amur, Tver and Tomsk Regions. Also, as part of the Gas Infrastructure Expansion Program of the Sakhalin Region, a feasibility study is currently underway for LNG production and shipments to the Kuril Islands to define optimal technical, process and logistics solutions.
In the reporting year, Gazprom Group subsidiaries sold 24,200 tons of low-tonnage LNG, an 8.5% increase vs. 2021.