Low-Carbon Development
In October 2023, Russian President Vladimir Putin approved the Climate Doctrine of the Russian Federation to be used as a basis for developing and implementing Russia’s climate policy.
In October 2023, the Board of Directors approved PJSC Gazprom's Climate Strategy through 2050Approved by resolution of the Board of Directors of PJSC Gazprom No. 3990 dated October 24, 2023.. The strategy is designed to reduce carbon intensity in the production, transportation, storage, and processing of natural gas and to set the stage for increasing the share of natural gas used in the energy, industry, and transportation sectors.
The Climate Strategy is integrated into PJSC Gazprom’s corporate planning system. It sets out plans for reducing GHG emissions, which are then incorporated into corporate programs on long-term and innovative development in the form of strategic targets and key performance indicators.
Key provisions of the strategy were formulated based on the findings of scientific research, expert analysis, forecasts, and scenario analysis using comprehensive economic and mathematical models. The strategy outlines climate conservation priorities with due account of the national economic conditions and peculiarities, fundamental objectives pursued by PJSC Gazprom, and low-carbon development trends in target international markets.
PJSC Gazprom’s low-carbon development priorities through 2050
- Gas infrastructure expansion in Russian regions and conversion of vehicles to natural gas;
- reduction of direct (Scope 1) and indirect (Scopes 2 and 3) GHG emissions across the process chain;
- improved energy efficiency of production operations, fullest possible prevention of methane emissions in line with best practices, and APG utilization;
- development of a climate risk management system, implementation of measures to adapt PJSC Gazprom to potential climate changes;
- improvement of the GHG accounting and monitoring methods, including by using space technologies;
- introduction of low-carbon development innovations and best available technologies;
- responsible selection of suppliers and contractors, engagement with product manufacturers and consumers, and involvement of other stakeholders to reduce the carbon footprint;
- participation in climate initiatives designed to reduce the carbon footprint, reliance on renewable and secondary energy resources, implementation of climate projects;
- broader stakeholder engagement, bolstering of low-carbon development partnerships, participation in climate ratings;
- digitalization and optimization of process management systems, development of IT-driven low-carbon development systems;
- support for scientific research on climate and climate change adaptation, use and promotion of modern carbon footprint calculation methods, including the Global Temperature change Potential, to assess the role of methane in an unbiased manner;
- implementation of educational and outreach projects on climate and climate change adaptation issues;
- implementation of initiatives to offset GHG emissions (reforestation, preservation of natural ecosystems, carbon capture, burial, and utilization, contribution to the carbon credit market);
- creation of new sectors focused on the consumption of natural gas, including hydrogen energy and non-energy use of natural gas.
Climate Change Management
PJSC Gazprom’s Board of Directors reviews climate risks and approves climate goals.
Chairman of the Management Committee ensures general management of the Gazprom Group’s climate efforts and determines development priorities with due account of climate aspects. The Management Committee of PJSC Gazprom reviews climate risks, signs off climate goals, and approves initiatives to reduce GHG emissions.
The Gazprom Group regularly assesses climate risks in two key areas:
- physical risks, i.e. risks associated with physical changes in the environment, and unfavorable weather conditions and natural disasters caused by climate change;
- transition risks, i.e. risks associated with transition to low-carbon economy, including the public, government, and investor response to climate change.
The Gazprom Group evaluates the impact of each risk on its operations and develops measures to prevent risk materialization or to minimize its negative consequences.
In December 2023, the delegation of PJSC Gazprom led by Oleg Aksyutin, Deputy Chairman of the Management Committee and Head of Department, participated in the 28th session of the Conference of the Parties (COP 28) to the UN Framework Convention on Climate Change (UNFCCC), central event on the global climate change agenda. COP 28 assessed the interim results of the Paris Agreement. An important outcome of the Conference was the first-ever inclusion in the UNFCCC documents of clauses recognizing the role of transition fuels (including natural gas) as a decarbonization tool.
GHG Emissions Management
All Gazprom Group entities perform control and accounting of GHG emissions using the same procedure, which is based on the Methodological Guidance on the Quantification of Greenhouse Gas Emissions by Entities Engaging in Business and Other Activities in the Russian FederationApproved by order of the Russian Ministry of Natural Resources and Environment No. 371 dated May 27, 2022..
Gazprom Group entities’ GHG emissions (Scope 1), mmt of CO2 equivalent
| Indicator | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Total Gazprom Group GHG emissions (Scope 1), incl.: | 243.28 | 213.53 | 209.55 | –1.86 |
| PJSC Gazprom, incl.: | 119.87 | 91.02 | 85.06 | –6.55 |
| • production | 17.95 | 15.63 | 14.12 | –9.66 |
| • transportation | 93.09 | 66.03 | 60.10 | –8.98 |
| • processing | 5.90 | 6.82 | 7.74 | +13.49 |
| • underground storage | 1.66 | 1.22 | 1.19 | –2.46 |
| • other | 1.27 | 1.32 | 1.91 | +44.7 |
In 2023, natural gas, APG, and gas condensate processing increased by nearly 30% year-on-year, driving all environmental impact indicators up across the processing segment. Higher emissions in other operations are due to increased fuel consumption during transportation.
Gazprom Group entities’ GHG emissions (Scope 2), mmt of CO2 equivalent
| Indicator | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Total Gazprom Group GHG emissions (Scope 2), incl.: | 13.8 | 11.11 | 11.33 | +2.0 |
| PJSC Gazprom, by key types of activities, incl.: | 6.08 | 4.02 | 4.17 | +3.7 |
| • production | 0.35 | 0.31 | 0.34 | +9.7 |
| • transportation | 3.33 | 1.84 | 1.90 | +3.3 |
| • processing | 2.34 | 1.83 | 1.90 | +3.8 |
| • underground storage | 0.06 | 0.04 | 0.03 | –0.25 |
Scope 2 GHG emissions went up in the reporting year due to changes in the methodology for calculating emissions from purchased electricity. The change is related to the application of emission factors considering the territorial affiliation of subsidiaries with different price zones within the energy system of the Russian Federation.
PJSC Gazprom’s specific GHG emissions (Scope 1), kg of CO2 equivalent per ton of reference fuel
| Segment | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Production | 32.564 | 35.964 | 37.445 | –9.68 |
| Transportation | 114.724 | 95.893 | 92.301 | –8.98 |
| Processing | 93.645 | 106.730 | 92.481 | +13.40 |
Specific GHG emissions went up in 2023 because gas production decline (down 13.4% year-on-year) did not match the decrease in GHG emissions (down 9.7% year-on-year).
| Emissions | Total | СО2 | СН4 |
|---|---|---|---|
| Total GHG emissions | 85.06 | 62.55 | 22.51 |
| Stationary fuel combustion | 53.96 | 53.96 | 0.00 |
| Flaring | 3.35 | 3.20 | 0.15 |
| Fugitive emissions | 26.98 | 4.63 | 22.35 |
| Other industrial processes | 0.00 | 0.00 | 0.00 |
| Fuel combustion by transport | 0.74 | 0.74 | 0.00 |
|
Processing, incineration, and burial of solid waste | 0.03 | 0.02 | 0.01 |
CO2 utilization
Introduction of CO2 utilization technologies helps reduce GHG emissions. Experts from the Gazprom Group are exploring opportunities for utilization of flue gases and carbon dioxide at the gas compressor units of the UGSS and natural gas production and treatment facilities.
The experts are considering creation and use of molten-carbonate fuel cells. High-temperature molten-carbonate fuel cells enable effective production of electricity and heat energy and capture of carbon dioxide from gas infrastructure facilities.
The Gazprom Group is developing new technologies in gas production, transportation, and underground storage, as well as in gas processing and gas distribution. These technologies are primarily focused on increasing the efficiency of fuel and energy consumption.
Thanks to the use of such technologies in initiatives scheduled for implementation, PJSC Gazprom expects to prevent emission of 32.185 mmt of CO2 equivalent in 2025, including:
For more details on energy efficiency technologies and projects of the Gazprom Group, see the Energy Saving Technologies subsection.
To reduce methane emissions, the Gazprom Group implements innovations and resource-saving measures, while also developing and applying technologies for preserving gas during maintenance. These include using distribution stations to deliver gas to customers, blowing natural gas from the section under repairs into an active pipeline, and using gas from a compressor shop’s process pipelines for internal needs.
Additionally, PJSC Gazprom is introducing mobile compressor stations (MCS) designed to prevent methane releases into atmosphere during gas trunkline repairs.
Furthermore, for detecting methane in the atmosphere, the Gazprom Group employs 24/7 monitoring systems equipped with remote laser methane detectors providing automated alerts about excess gas concentration levels.
Methane detection at Gazprom facilities is also addressed by employing detectors installed in helicopters or unmanned aerial vehicles. Moreover, PJSC Gazprom is introducing cutting-edge methods of monitoring methane emissions by leveraging satellite technologies.
All these initiatives allow the Gazprom Group to minimize methane emissions across the natural gas production and supply chain. Methane emissions at Gazprom facilities are extremely low: 0.04% of produced gas at the production stage, 0.21% of transported gas at the stage of pipeline transportation, and 0.03% of stored gas at the stage of underground storage.
In 2023, PJSC Gazprom reduced bleeding of natural gas used for process needs by more than 2 bcm thanks to gas conservation through the deployment of mobile compressor stations (764.75 mcm of gas), using distribution stations to deliver gas to customers (654.5 mcm of gas), and blowing natural gas from the section under repairs into an adjacent pipeline section (450 mcm of gas). Taking into account initiatives implemented in the gas transportation segment, prevented methane emissions in 2023 came in at 34.4 mmt of CO2 equivalent.
Increasing the number of mobile compressor stations used in gas trunkline maintenance
MCS is one of the most effective modern technologies for preventing releases of natural gas typical of traditional maintenance methods. Mobile compressor stations are used at the preparatory stage to pump most of the gas from the disconnected pipeline section into an operational section or parallel string. This technique eliminates up to 80% of methane releases into the atmosphere.
| Segment | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Production | 59.84 | 82.09 | 71.58 | –12.8 |
| Transportation | 897.34 | 706.11 | 782.02 | +10.75 |
| Processing | 1.10 | 2.84 | 7.28 | +156.33 |
| Underground storage | 19.98 | 14.95 | 16.93 | +13.24 |
| Other | 2.80 | 4.17 | 22.62 | +442.45 |
The increase in methane emissions during gas processing came on the back of the Amur GPP and the gas liquefaction plant of Gazprom Portovaya LNG reaching full production capacity. Higher methane emissions in other operations are due to the commissioning of new facilities at Gazprom Gazomotornoye Toplivo (41 facilities).
The Gazprom Group’s pilot project in the carbon credit marketOne of the tools used by companies for reducing their GHG emissions under Russia’s 2050 Social and Economic Development Strategy with Low Greenhouse Gas Emissions approved by resolution of the Russian Government No. 3052-r dated October 29, 2021.
In 2023, the Carbon Unit Register of the Russian Federation registered the climate project of Gazprom MKS titled “Prevention of Greenhouse Gas (Methane) Emissions through the Use of Mobile Compressor Stations during Preparation of Trunkline Sections for Maintenance”.
The planned reduction in GHG emissions is 49.9 million units.
The climate project timeline spans the period from October 1, 2019 to December 31, 2029.
The project will be rolled out across all trunkline sections scheduled for maintenance within Russia’s UGSS, from Yamal Peninsula in the northeast of European Russia to the Kazakhstan border in the south.
This is the largest project registered in the Russian Carbon Unit Register in the reporting year.
The Gazprom Group takes an active part in the development of the Russian NGV fuel market and works towards expanding the use of natural gas as fuel.
Environmental benefits
Specific GHG emissions from NGV fuel are 1.7 times lower than in the case of diesel, and 2 times lower than in the case of gasoline (throughout the entire fuel life cycle, from extraction to production). Emissions of toxic substances from NGV fuel are significantly lower. For example, carbon oxide emissions are 30% lower compared to diesel. Using NGV fuel instead of petroleum fuels reduces nitrogen oxide and hydrocarbon emissions, decreases smoke pollution, and eliminates soot generation typical of diesel engines.
Economic benefits
The price of natural gas as a motor fuel is maintained at less than 50% of the price of diesel fuel sold in the region. The cost per kilometer of methane-powered transport is on average two times lower compared to vehicles running on traditional fuels.
Environmental effect from using NGV fuel for refueling across the fuel life cycle (from extraction to production) in Russia
| Indicator | 2021 | 2022 | 2023 |
|---|---|---|---|
| Reduction of emissions | |||
| • GHG, thousand tons of CO2 equivalent | 2,545 | 2,853 | 2,774 |
| • Pollutants, thousand tons | 41.7 | 46.7 | 46.7 |
In 2023, sales of natural gas used as a motor fuel reached 1,444 mcm, which helped reduce GHG emissions by 2,774 thousand tons of CO2 equivalent. Over the past three years, methane has helped reduce GHG emissions by nearly 8,172 thousand tons of CO2 equivalent.
Gazprom Gazomotornoye Toplivo is the single operator responsible for the development of the NGV fuel market in Russia. The company sells gas as a motor fuel and develops a retail network of CNG filling stations across Russia under the Gazprom and EcoGas brands.
PJSC Gazprom continues to champion accelerated development of the gas filling network. By the end of 2023, the number of CNG filling stations operated by the Gazprom Group increased by 9.7% due to the commissioning of new facilities. As of December 31, 2023, there were 452 facilities engaged in commercial sales and shipments of CNG. Furthermore, in the reporting year there were 22 third-party CNG filling stations operated under franchise agreements and 12 stations used for refueling the Gazprom Group's own vehicles.
Number of CNG filling stations owned by the Gazprom Group entities and Gazprom Gazomotornoye Toplivo in Russia as of December 31, 2023
In the reporting year, CNG sales by the Gazprom Group entities and Gazprom Gazomotornoye Toplivo through own network of CNG filling stations in Russia reached 919.0 mcm. This figure goes further up to 1,023 mcm if sales through partner facilities are included.
CNG sales by CNG filling stations of the Gazprom Group entities and Gazprom Gazomotornoye Toplivo in Russia, mcm
Gazprom Gazomotornoye Toplivo continued active efforts to increase the number of NGVs in Russia under the People’s Fuel project. This initiative allows owners to convert their vehicles to methane without additional investments, helping them reduce conversion costs to zero and achieve additional savings on fuel purchases. To implement the People's Fuel project, PJSC Gazprom approved a dedicated roadmap and modified incentive programs designed to increase vehicle conversion rates by enabling the project participants to convert their vehicles at no cost and use any certified gas cylinder equipment.
In the reporting year, PJSC Gazprom and Russia’s Ministry of Agriculture signed a cooperation agreement to promote natural gas as motor fuel in the Russian agricultural sector, and to establish a long-term mutually beneficial business partnership for developing state support measures for agricultural producers and manufacturers of gas-powered agricultural machinery and mobile gas filling trucks, and for expanding the range of gas-powered agricultural machinery and mobile gas filling infrastructure facilities.
PJSC Gazprom continues to collaborate with the leading automotive manufacturers to increase the number of available models for gas-powered vehicles and machinery. In 2023, more than 230 models of cars, buses, and special-purpose machinery running on natural gas were launched into mass production. Simultaneously, PJSC Gazprom is exploring the use of gas in other types of transport (for example, rail and water). At the request of the Gazprom Group, Russia’s first LNG-powered TEMG1 switching locomotive was developed. Furthermore, the Gazprom Group supervises the creation of LNG-powered passenger ship models intended for use in the waters of St. Petersburg.
In 2023, PJSC Gazprom signed a cooperation agreement with Russian Environmental Operator, a company responsible for solid waste management in Russia. The company’s regional entities operate about 17,500 garbage trucks, of which only 3% run on NGV fuel. The Gazprom Group began assessing the feasibility of converting these vehicles to NGV fuel.
The Gazprom Group continues converting the fleet of its subsidiaries engaged in the Gazprom Group’s core activities to NGV fuel. As of December 31, 2023, 14,700 vehicles of the Gazprom Group entities used gas as fuel. Additionally, in the reporting year the Gazprom Group acquired 1,501 NGVs.
| Indicator | Result |
|---|---|
| Total consumption of natural gas as fuel, mcm | 510 |
| Savings related to replacement of liquid motor fuel with natural gas, RUB billion | 12.069 |
| Reduction of pollutant emissions into atmosphere, thousand tons | 241 |
For more details on the Gazprom Group’s contribution to the NGV fuel market, see the Gazprom Annual Report 2023.
To address challenges associated with autonomous gas supply in communities located far away from the trunkline, PJSC Gazprom is developing low-tonnage LNG production. In 2023, the Gazprom Group launched two new low-tonnage LNG facilities, each with a capacity of 12,600 tons per year, in the Svobodnensky District of the Amur Region and in the Volgograd Region. Apart from that, the Gazprom Group completed construction and installation works under the projects to build LNG facilities in Konakovo and Tobolsk.
For more details on the Gazprom Group’s NGV fuel market regulations, see Appendix.
Hydrogen Energy Development
Hydrogen is an efficient and environmentally friendly energy source contributing to reduction in GHG emissions. Production of low-carbon hydrogen energy from natural gas without additional GHG emissions can enhance the role of natural gas in the new hydrogen-based energy model.
PJSC Gazprom is Russia’s hydrogen energy leader. In 2023, the Government of the Russian Federation and PJSC Gazprom signed a letter of intent to develop hydrogen industry. The Gazprom Group seeks to create competitive domestic technologies and is working on hydrogen energy pilots.
PJSC Gazprom collaborates with Russian companies to identify priority development areas for hydrogen technologies and to deliver on joint projects. R&D cooperation with Russian and international organizations is expected to yield joint hydrogen energy pilots. PJSC Gazprom maintains an ongoing technical dialog with the leading Russian academic and applied research institutes, including as part of its R&D cooperation with Rosatom State Corporation.
In terms of international cooperation, the Gazprom Group continues to strengthen relations with hydrogen producers and consumers from friendly countries, while also liaising with its R&D partners.
Young experts on hydrogen technologies
In 2023, PJSC Gazprom joined forces with St. Petersburg State University of Economics and Vernadsky Non-Governmental Environmental Foundation to hold the Hydrogen Championship for young professionals and students.
The participants included 73 students from 28 Russian universities enrolled in environmental geoscience, hydrogen energy, oil and gas engineering, physics, chemistry, and materials science.
The students developed a concept for a hydrogen cluster in Russia, proposing ideas for the production and use of hydrogen.
On December 15, the 8th Environmental Safety in the Gas Industry international conference hosted the finale of the Hydrogen Championship. Six teams made it to the final, with top three winning the prizes. The authors of the best solutions were invited for internships at Gazprom VNIIGAZ and Gazprom Hydrogen in 2024. They will seek solutions for innovative research projects as part of the hydrogen business incubator.
In 2024, PJSC Gazprom will continue to implement the Hydrogen Energy Development roadmap through 2030, specifically in the area of Hydrogen Energy Development and Industry and Transport Decarbonization Driven by Natural Gas. The Gazprom Group plans to make headway in various R&D areas, including the development of a technology for hydrogen generation from hydrogen sulfide with limited GHG emissions, and the creation of an experimental demonstration facility to foster solutions for hydrogen generation from natural gas. PJSC Gazprom plans to launch a comprehensive assessment of hydrogen's impact on the integrity and sustainability of gas supply system to explore potential transportation and storage of methane and hydrogen mixtures. Additionally, PJSC Gazprom will assess progress on developing materials for storing and transporting hydrogen in the form of metal hydrides. Experts of the Gazprom Group will focus on a project involving use of underground gas storage facilities for stockpiling gaseous hydrogen-containing mixtures in a porous environment. Apart from that, they will evaluate the potential for creating and applying molten-carbonate fuel cells, and will develop R&D solutions for membrane technologies and extraction of natural hydrogen.
PJSC Gazprom strives to save energy resources and increase the energy efficiency of its operations.
The Energy Efficiency and Energy Saving Policy of PJSC GazpromApproved by resolution of the Management Committee of PJSC Gazprom No. 39 dated October 11, 2018. (the “Policy”) is the fundamental document establishing corporate goals and suggesting improvements in energy saving and energy efficiency. The Policy reflects the official position of PJSC Gazprom's management as regards lean use of energy resources, enhancement of operational energy performance, and reduction of the environmental impact, while also demonstrating PJSC Gazprom's commitment to implementing consistent solutions in energy efficiency management and application of energy-saving technologies.
To deliver on the strategic commitments defined in the Policy, PJSC Gazprom develops three-year energy saving and energy efficiency improvement programs, which set corporate energy targets for entities with a significant impact on overall fuel and energy consumption that are included in PJSC Gazprom’s energy efficiency management system.
The three-year programs cover all key operations of the Gazprom Group, including hydrocarbon production and transportation, underground storage, processing, and distribution of natural gas, power, and water supply, and the operation of UGSS power-generating equipment.
The current version of the ProgramThe Energy Saving and Energy Efficiency Improvement Program of PJSC Gazprom for 2023–2025 approved by resolution of PJSC Gazprom No. 89 dated March 16, 2023. was approved in 2023. Its priorities and targets remained the same as in the previous programs: further reduction of natural gas and electricity consumption in compression processes and prevention of natural gas bleeding during maintenance at UGSS facilities. The Program sets out annual corporate energy targets, with the following initiatives planned to deliver on them:
- 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 to reduce gas consumption and 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.
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, and the operation of UGSS power-generating equipment. It meets GOST R ISO 50001-2023 and is aligned with PJSC Gazprom’s energy saving and energy efficiency commitments, regulations, directives, and procedures.
Progress against PJSC Gazprom’s corporate energy targets in 2023
| Target | Baseline (2018) | 2021 | 2022 | Plan (2023) | Actual (2023) | Reason for change | Plan (2024) |
|---|---|---|---|---|---|---|---|
| Reduced specific consumption of fuel and energy in transportation | 100% | +1.8 | –13.5 | –1.2% | –13.9 | The significant reduction is due to decline in product transportation volumes by 24.6% vs 2018 and successful implementation of energy saving initiatives | –12% |
| Natural gas savings, mcm | 2,951.9Adjusted pursuant to corporate documents, which provide for adjustment of initially planned indicators. The adjustment was needed because of changes in production targets during the year, changes in the overhaul plans for UGSS facilities and, consequently, in the number of facilities carrying out resource-saving initiatives, implementation of additional energy-saving measures, and changes in their cost used for calculating the economic benefit under Program planning. | 4,009.0 | 4,015.5 | 3,550.2 | 3,719.7 | Excessive actual fuel and energy savings versus the target are due to more efficient fuel and energy saving measures | 3,027.4 |
| Electricity savings, million kWh | 364.2 | 377.8 | 407.2 | 367.9 | 389.3 | Excessive actual fuel and energy savings versus the target are due to more efficient fuel and energy saving measures | 383.3 |
| Heat savings, thousand Gcal | 235.9 | 185.8 | 227.9 | 339.2 | 346.0 | Excessive actual fuel and energy savings versus the target are due to more efficient fuel and energy saving measures | 328.1 |
| 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 the energy efficiency management system | Certification of conformity within the scope and perimeter of the energy efficiency management system | Certification of conformity within the scope and perimeter of PJSC Gazprom’s energy efficiency management system | The energy efficiency management system meets GOST R ISO 50001-2023 (ISO 50001:2018) and is aligned with PJSC Gazprom’s energy saving and energy efficiency commitments, regulations, directives, and procedures | The energy efficiency management system meets GOST R ISO 50001-2023 (ISO 50001:2018) and is aligned with PJSC Gazprom’s energy saving and energy efficiency commitments, regulations, directives, and procedures, as confirmed by the internal audits of PJSC Gazprom. Targets achieved | The energy efficiency management system meets GOST R ISO 50001-2023 (ISO 50001:2023) and is aligned with PJSC Gazprom’s energy saving and energy efficiency commitments, regulations, directives, and procedures |
The Gazprom Group developed a number of corporate targets for 2024–2026:
- 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.
For more details on the Gazprom Group’s energy saving regulations, see Appendix.
Energy consumption by the Gazprom Group, million GJ
| Indicator | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| 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. | 3,102.5 | 2,495.8 | 2,448.2 | –1.9 |
| Total consumption of fuel from non-renewable sources at the Gazprom GroupFor more details, see the table below. | 3,917.0 | 3,357.8 | 3,299.2 | –1.7 |
|
Total consumption of energy from renewable sources at the Gazprom Group | 47.3 | 47.3 | 45.7 | –3.3 |
| Electricity, heating, cooling, and steam purchased for consumption by the Gazprom Group’s entities | 197.7 | 197.2 | 204.7 | +3.8 |
| Own electricity, heating, cooling, and steam productionOwn generation for internal needs. | 123.2 | 130.6 | 128.7 | –1.5 |
| Electricity, heating, cooling, and steam sold | 1,059.5 | 1,106.5 | 1,101.4 | –0.5 |
2023 marked a decrease in most energy consumption indicators of the Gazprom Group. The 3.8% increase in electricity, heating, cooling, and steam purchased for consumption was driven by production growth at Gazprom Pererabotka Blagoveshchensk and Gazprom Neft Group. Total consumption of energy from renewable sources decreased by 3.3% due to the decline in electricity output at the hydro power plants of Gazprom Energoholding.
Renewable energy consumption
| 2021 | 2022 | 2023 | Change 2023/2022, p.p. | |
|---|---|---|---|---|
| Share of renewable energy in total energy consumption, % | 1.53 | 1.90 | 1.87 | –0.03 |
Total heat and electricity consumption by the Gazprom Group for internal process needs
| Energy type | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Electric power, thousand kWh | 38,422,954.3 | 38,459,094.3 | 39,425,232.0 | +2.51 |
| Heat, GJ | 182,596,941.9 | 188,930,725.9 | 187,879,201.8 | –0.6 |
Total consumption of fuel from non-renewable sources at the Gazprom Group, million GJ
| Energy type | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Crude oil fuels (gasoline, jet kerosene, fuel oil, LNG) | 407.4 | 294.1 | 294.4 | +0.1 |
| Natural gas | 3,409.3 | 3,014.6 | 2,883.0 | –4.4 |
| Coal | 100.3 | 49.1 | 63.2 | +28.8 |
| Other resources | 0.0 | 0.0 | 0.0 | 0.0 |
| Total from non-renewable sources | 3,917.0 | 3,357.8 | 3,240.6 | –3.5 |
Total consumption of energy from non-renewable sources declined by 3.5% as a result of changes in production indicators across core operations. Coal consumption increased due to a higher share of coal burning at the power plants of OGK-2 (Novocherkasskaya GRES, Ryazanskaya GRES).
Energy intensity of PJSC Gazprom’s core operations
| [Translate to en:] Показатель | 2021 | 2022 | 2023 | Изменение 2023/2022, % |
|---|---|---|---|---|
| Gas productionNatural gas and electricity consumed for internal process needs of production operations are taken into account to calculate the indicator., kg of reference fuel per thousand m3 | 23.13 | 25.12 | 27.41 | +9.1 |
| Gas transportationNatural gas and electricity consumed for internal process needs of gas trunkline transportation are taken into account to calculate the indicator., kg of reference fuel per mcm•km | 28.34 | 24.08 | 23.96 | –0.5 |
| Underground gas storageNatural 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., kg of reference fuel per thousand m3 | 7.74 | 7.47 | 7.13 | –4.5 |
| Gas processingNatural gas, electricity, and heat consumed for internal process needs of natural gas processing are taken into account to calculate the indicator., kg of reference fuel per ton of reference fuel | 49.75 | 48.21 | 50.12 | +4.0 |
The increase in energy intensity in gas production is due to higher fuel and energy consumption for gas compression to offset a decrease in formation pressure at several fields. Energy intensity in gas transportation decreased as a result of improvements in energy saving initiatives, 10.7% reduction in product transportation volumes, and 11.1% decline in fuel and energy consumption compared to 2022. In underground gas storage, energy intensity decreased due to the implementation of energy saving initiatives, 8.6% reduction in fuel and energy consumption, and 4.2% drop in the volume of gas taken and injected. Energy intensity in gas processing increased by 4% driven by growing consumption of natural gas (up 8.1%) and electricity (up 2%) amid a rise in natural gas processing volumes (up 2.5%).
Energy Saving Technologies
The Energy Saving and Energy Efficiency Improvement Program of PJSC Gazprom sets out more than 2 thousand initiatives designed to enhance energy efficiency and savings. In 2023, the Gazprom Group began to attract more investments from energy service companies to finance current and future energy saving projects and to build up relevant portfolio.
Total investments in the largest and most needed energy saving projects in 2023 amounted to RUB 7.06 billion, with economic benefits expected to exceed RUB 20 billion.
The Gazprom Group's energy saving projects
Deployment of ejectors at compressor stations to minimize releases of gas into atmosphere during maintenance operations
Gas ejection is a promising method for preserving gas within process infrastructure and the circuit of gas compressor units (GPA). The Gazprom Group plans to invest RUB 211.4 million in rolling out this technology to four pilot gas transportation subsidiaries. Total savings from this project over the equipment's lifetime are estimated at RUB 961.2 million.
Upgrade of air coolers
The Gazprom Group intends to invest RUB 827 million in upgrading air coolers at compressor stations as a way to significantly reduce electricity consumption. Fan wheels of the air coolers will be replaced with new ones made of composite materials. Additionally, it will install air inlet collectors with a more advanced aerodynamic design. Savings over the lifetime of the equipment installed in five participating gas transportation subsidiaries are estimated at RUB 5.3 billion.
Equipment of draft control systems in boiler stations with variable frequency drives
To cut electricity consumption, PJSC Gazprom plans to renovate two boiler stations by furnishing their draft control systems with variable frequency drives. Renovation investments will amount to RUB 17.6 million, with savings on the back of reduced electricity consumption estimated at RUB 20.3 million over the equipment's lifetime.
Creation of a waste gas heat recovery facility leveraging an ORC technologyORC (Organic Rankine Cycle) is an alternative to the traditional steam turbine technology. Instead of relying on steam, the ORC technology uses organic or synthetic substances with a low boiling point as the working fluid. to generate electricity for the needs of own compressor station
Total investments come in at RUB 1.0 billion, with savings over the equipment’s lifetime estimated at RUB 14.9 billion.
Replacement of removable flow parts of centrifugal compressors
Replacement of removable flow parts ensures optimal operating conditions for gas compressor units by increasing their efficiency and reducing fuel gas consumption. In 2023, savings from the newly installed removable flow parts amounted to RUB 461.5 million.
Gas distribution stations are designed to reduce high pressure in gas coming from the trunkline to meet the requirements for gas supplied directly to consumers. The potential energy of compressed gas is usually lost irretrievably during the operation of gas distribution stations, but the Gazprom Group has found a way to use it for the needs of own facilities.
The Gazprom Group will build a turboexpander power unit (TPU) at the Dobryanka-2 gas distribution station (Dobryansky District, Perm Territory). In the phase of pressure reduction, natural gas will pass through the unit and rotate its blades attached to a shaft with a power generator to produce electricity. The gas will then be supplied to consumers, while the Gazprom Group’s facilities in the Perm
Territory will use electricity generated by the TPU.
RUB 2.3+ billion
total investments in the project
RUB 18.9 billion
overall savings of the
Gazprom Group
More than half of natural gas savings in 2023 (2.21 bcm, or 59%) were achieved by preventing gas bleeding during maintenance at UGSS facilities. Measures listed in the chart below proved highly effective in preserving natural gas during repairs on linear sections of gas trunklines.
Thanks to progressive efforts in this area in 2023, the share of gas preserved during maintenance continued to go up.
Fuel and energy savings resulting from the Gazprom Group’s energy saving programs remained 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.
Fuel and energy savings resulting from the Gazprom Group’s energy saving programs
| Indicator | 2021 | 2022 | 2023 | Change 2023/2022 |
|---|---|---|---|---|
| Natural gas, mcm | 4,778.6 | 4,791.4 | 4,623.5 | |
| Natural gas, million GJ | 161.7 | 162.2 | 156.5 | –3.5% |
| Electric power, million kWh | 653.0 | 714.3 | 737.2 | |
| Electric power, million GJ | 2.4 | 2.6 | 2.7 | +3.2% |
| Heat, thousand Gcal | 786.5 | 631.7 | 714.3 | |
| Heat, million GJ | 3.3 | 2.6 | 3.0 | +13.1% |
| Fuel and energy, million GJ | 167.4 | 167.4 | 162.1 | –3.2% |
| Reduction factorShare of fuel and energy economy under energy saving programs in total energy consumption., % | 5.4 | 6.7 | 6.6 | –0.1 p. p. |
Electricity produced by the Gazprom Group from renewable and secondary energy resources
| Indicator | 2021 | 2022 | 2023 | Change 2023/2022, % |
|---|---|---|---|---|
| Electricity produced by the Gazprom Group from renewable and secondary energy, million MWh | 13.2 | 13.2 | 12.7 | –3.8 |
In the reporting year, electricity produced from renewable energy sources slightly decreased due to a decline in hydropower generation at Gazprom Energoholding.
In 2023, TGC-1 (part of Gazprom Energoholding), Mosgortrans, Sber, and the Moscow Transport Innovations Foundation signed a partnership agreement to use electricity generated by the hydro power plants of TGC-1. As part of the agreement, Mosgortrans signed a contract with TGC-1 to purchase green certificates issued by Sber's voluntary low-carbon energy certification system. These certificates confirm that Moscow's electric buses use electricity generated by the hydro power plants of TGC-1 without GHG emissions.
