5.3. Energy Saving
Improving Energy Efficiency
Improving energy efficiency is a strategic priority for PJSC Gazprom. Our efforts in this direction will facilitate the Group’s competitiveness in the Russian and global markets, help us reduce our impact on the environment and climate and enhance the economic efficiency of production.
Energy-saving Management
PJSC Gazprom is developing a three-year Energy Saving and Energy Efficiency Improvement Program (the “Program”) for its core activities such as hydrocarbons production and transportation, underground storage, processing, distribution of natural gas, power and water supply to the Unified Gas Supply System facilities and the operation of UGSS power-generating equipment. The Program’s current edition (for 2022–2024) was approved in 2022.
Its short-term priorities include lower natural gas and electricity consumption associated with compression and prevention of gas bleeding during repairs at UGSS facilities.
To achieve the Program’s targets, we will do the following:
- build new high energy efficiency facilities;
- upgrade gas pumping units to significantly cut fuel gas consumption and GHG emissions;
- introduce technologies and develop solutions to streamline the operation of energy equipment at UGSS facilities and reduce gas losses;
- implement natural gas saving measures, perform well surveys without releasing gas into the atmosphere, use mobile compressor stations (MCS) for natural gas evacuation during repairs, detect and eliminate gas leaks on process equipment.
Energy Efficiency Management System
The energy efficiency management system embraces business units of PJSC Gazprom’s Administration and 28 subsidiaries engaged in production and transportation, gas underground storage and processing, power and water supply to the Unified Gas Supply System facilities and the operation of UGSS power-generating equipment.
The Company approved the following corporate energy targets for 2023–2025:
- improve PJSC Gazprom’s energy efficiency;
- save fuel and energy resources in natural gas production, transportation, underground storage, processing and distribution;
- improve PJSC Gazprom’s management of energy efficiency.
Energy performance indicators used to assess 2023 achievements are:
- reduction in specific consumption of fuel and energy for internal process needs of gas trunkline transportation versus the 2018 level — by 10%;
- natural gas savings — 3,472.6 mcm;
- electric power savings — 427.9 million kWh;
- heat savings — 384.5 Gcal;
- NGV fuel savings — 12.0 thousand tons of reference fuel;
- alignment of PJSC Gazprom’s energy efficiency management system with government and corporate requirements in energy efficiency.
| Baseline (2018) | 2020 | 2021 | Target (2022) | Actual (2021) |
|---|---|---|---|---|
| Reduce specific consumption of fuel and energy in transportation | ||||
| 100 % | −10.8 % | +1.8 % | −1.2 % | −13.5 % |
| Natural gas savings, mcm | ||||
| 2,951.9 | 3,273.8 | 4,009.0 | 3,866.3 | 4,015.5 |
| Electricity savings, million kWh | ||||
| 364.2 | 305.9 | 377.8 | 400.5 | 407.2 |
| Heat savings, thousand Gcal | ||||
| 235.9 | 251.9 | 185.8 | 239.6 | 227.9 |
| The lower figure is due to a 15.47% decrease in product transportation versus the 2018 level and energy-saving measures. | ||||
| Certification of conformity within the scope and perimeter of PJSC Gazprom’s energy efficiency management system | ||||
| No certificate. | Certification of conformity within the scope and perimeter of PJSC Gazprom’s energy efficiency management system. | Certification of conformity within the scope and perimeter of PJSC Gazprom’s energy efficiency management system. | Certification of conformity within the scope and perimeter of PJSC Gazprom’s energy efficiency management system. | Certification of conformity within the scope and perimeter of PJSC Gazprom’s energy efficiency management system. |
| Certification of the energy efficiency management system covers production and treatment of natural gas and gas condensate, transportation of natural gas, energy, heat and water supply, operation of the power-generating equipment at the UGSS facilities, underground gas storage, and hydrocarbon feedstock processing.. | ||||
| Indicator | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Total energy consumption at the Gazprom GroupThe sum of the lines, except for the line indicating own production (“Volume of own electricity, heating, cooling and steam production”) less electricity, heating, cooling and steam sold. | 2,590.8 | 3,102.5 | 2,495.8 | −19.6 |
| Total energy consumption from non-renewable sources at the Gazprom GroupFor more details, see the table below. | 3,287.5 | 3,917.0 | 3,357.8 | −14.3 |
| Total energy consumption from renewable sources at the Gazprom Group | 47.8 | 47.3 | 47.3 | −0.01 |
| Electricity, heating, cooling and steam purchased for consumption by the Group companies | 188.4 | 197.7 | 197.2 | −0.3 |
| Own electricity, heating, cooling and steam productionOwn generation for internal needs. | 123.0 | 123.2 | 130.6 | +6.0 |
| Electricity, heating, cooling and steam sold | 932.9 | 1,059.5 | 1,106.5 | +4.4 |
RES power consumption and electricity, heating, cooling and steam sold are recalculated to include electricity generation and supply at Gazprom Energoholding’s hydro power plants.
| Energy type | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Electric power, thousand kWh | 36,182,406.7 | 38,422,954.3 | 38,459,094.3 | +0.09 |
| Heat, GJ | 180,968,527.2 | 182,596,941.9 | 188,930,725.9 | +3.5 |
| Energy type | 2020 | 2021 | 2022 | Change 2022/2021, % |
|---|---|---|---|---|
| Crude oil fuels (gasoline, jet kerosene, fuel oil, LNG) | 367.2 | 407.4 | 294.1 | −27.8 |
| Natural gas | 2,811.9 | 3,409.3 | 3,014.6 | −11.6 |
| Coal | 108.4 | 100.3 | 49.1 | −51.0 |
| Other resources | 0.0 | 0.0 | 0 | 0 |
| Total from non-renewable sources | 3,287.5 | 3,917.0 | 3,357.8 | −14.3 |
Consumption of natural gas for internal process needs during trunkline gas transportation shows a steady slowdown. The downward trend in 2022 is mainly attributable to a set of measures aimed at reducing natural gas consumption for internal needs and improving the energy efficiency, as well as a decline in production.
PJSC Gazprom’s target is to reduce specific consumption of fuel and energy in gas trunkline transportation (under comparable operating conditions) by 12% by 2024 and by 17% by 2035 versus the 2018 levelIn accordance with the Russian Energy Strategy through 2035 approved by order of the Government of the Russian Federation No. 1523-r as of June 9, 2020..
| Indicator | 2020 | 2021 | 2022 | Change 2022/2021, % | Reason for change |
|---|---|---|---|---|---|
| Gas production, kg of reference fuel per thousand m3 | 20.99 | 23.13 | 25.12 | 8.6 | Natural gas and electricity consumed for internal process needs of production operations are taken into account to calculate the indicator. The increase is due to higher fuel and energy consumption for gas compression to offset a decrease in formation pressure at several fields. |
| Gas transportation, kg of reference fuel per mcm • km | 24.86 | 28.34 | 24.08 | −15.02 | Natural gas and electricity consumed for internal process needs of gas trunkline transportation are taken into account to calculate the indicator. The lower figure is due to energy-saving measures and a decrease in product transportation versus the 2021 level. |
| Underground gas storage, kg of reference fuel per thousand m3 | 7.04 | 7.74 | 7.47 | −3.5 | Natural gas and electricity consumed for internal process needs of natural gas injection and withdrawal from underground storage are taken into account to calculate the indicator. The decrease in specific consumption of fuel and energy comes as a result of energy-saving measures. |
| Gas processing, kg of reference fuel per ton of reference fuel | 50.45 | 49.75 | 48.21 | −3.1 | Natural gas, electricity and heat consumed for internal process needs of natural gas processing are taken into account to calculate the indicator. The lower figure is attributable to energy-saving measures and a decrease in gas processing. |
Energy Saving Technologies
To improve energy efficiency and saving, we implement over 2,000 initiatives, including solutions to streamline the operation of energy equipment, technology to reduce gas losses during operation and repairs, installation of LED lighting, replacement and upgrade of gas pumping units to enhance their efficiency and cut fuel gas consumption, well surveys using the telemetry systems without releasing gas into the atmosphere, modernization of air cooling units, deployment of ejectors at PJSC Gazprom’s compressor stations, and more.
The following measures proved highly effective in preserving natural gas during repairs on the linear section of gas trunklines:
- using mobile compressor stations (energy saving effect of over 870 mcm, up 17% versus the 2021 level);
- using distribution stations to deliver gas to customers (635.0 mcm);
- blowing natural gas from the section under repairs into an adjacent pipeline section (231.2 mcm);
- using hot tapping and installing reinforcing coupling (44.6 mcm).
Overall, in 2022, the Company was able to prevent the release of over 2.32 bcm of gas and preserve over 70% of natural gas during repairs.
In 2022, we continued with the deployment of energy saving projects under energy service agreements. We moved to an active stage of the project to replace the removable flow parts of centrifugal compressors at facilities operated by Gazprom Transgaz Yugorsk. Thanks to the installation of 21 removable flow parts, the Company was able to save over RUB 33 million. We are expanding other energy saving initiatives, including the installation LED lighting, deployment of ejectors, and upgrade of air cooling units.
1 The Company is continuously working towards better energy efficiency and energy saving by developing and rolling out energy saving programs and energy saving measures. Gazprom Neft, Gazprom Energoholding and Gazprom Neftekhim Salavat are not covered by PJSC Gazprom’s energy saving programs and implement their own energy saving and energy efficiency programs in line with the federal laws and corporate standards of the Gazprom Group.
Fuel and energy savings resulting from the Gazprom Group’s energy saving programs remain unchanged from the previous year. The redistribution of savings by fuel and energy type is due to changes in production at the Gazprom Group entities.
| Region | 2020 | 2021 | 2022 | Change 2022/2021 |
|---|---|---|---|---|
| Natural gas, mcm | 3,819.7 | 4,778.6 | 4,791.4 | +0.3% |
| Natural gas, million GJ | 129.3 | 161.7 | 162.2 | +0.3% |
| Electric power, million kWh | 677.7 | 653.0 | 714.3 | +9.4% |
| Electric power, million GJ | 2.44 | 2.4 | 2.6 | +8.3% |
| Heat, thousand Gcal | 649.6 | 786.5 | 631.7 | −19.7% |
| Heat, million GJ | 2.7 | 3.3 | 2.6 | −21.2% |
| Fuel and energy, million GJ | 134.4 | 167.4 | 167.4 | +0.003% |
| Reduction factorShare of fuel and energy economy under energy saving programs in total energy consumption., % | 5.2 | 5.4 | 6.7 | +1.3 p.p. |
1 Data for all Gazprom Group entities that have energy saving programs in place, including Gazprom Neft, Gazprom Energoholding and Gazprom Neftekhim Salavat.
For more details on fuel and energy savings, see appendix.