Improving Energy Efficiency and Energy Saving
Maximizing the efficient use of energy resources in operations is a cornerstone of Gazprom’s performance enhancement strategy. We continuously develop technical solutions aimed at boosting energy efficiency and reducing the energy intensity of our production processes. These solutions are grounded in the principles of continuous improvement in energy performance, contributing to our competitiveness in both domestic and global energy markets.
Energy Efficiency Management System
Our energy efficiency management system is integral to the Gazprom Group’s corporate management system. It operates and evolves in line with GOST R ISO 50001-2023, as well as legislative requirements, Gazprom’s commitments, regulations, directives, and procedures concerning energy efficiency and energy saving.
Adhering to the logic and principles of continuous improvement, the system fosters communication regarding resource optimization across all management levels. This facilitates the full realization of energy-saving potential within our subsidiaries.
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.
Energy Efficiency and Energy Saving Policy of PJSC GazpromApproved by resolution of the Management Committee of PJSC Gazprom No. 39 dated October 11, 2018.
This document articulates PJSC Gazprom’s position on the efficient use of fuel and energy resources and the enhancement of energy performance. It also showcases the Company’s systematic approach to energy efficiency management, underscoring our commitment to legislative initiatives related to energy efficiency and climate change.
The policy defines the Company’s energy efficiency obligations, which include:
- minimizing specific costs through the efficient utilization of energy resources in our operations;
- enhancing the management of technological processes and the use of innovative technologies; and
- reducing environmental footprint.
Corporate Energy Targets
To achieve the strategic commitments for enhancing operational energy performance as per the Policy, corporate energy targets are established. These targets are based on an annual analysis of fuel and energy resource consumption in previous periods, taking into account the energy efficiency targets set for PJSC Gazprom in the Russian Energy Strategy through 2035.Approved by resolution of the Russian Government No. 1523-r dated June 9, 2020.
At the corporate level, the following energy targets were established for 2024:
- achieve a 12% reduction in specific fuel and energy resource consumption for transportation compared to 2018 levels;
- ensure savings of energy resources in natural gas production, transportation, underground storage, processing, and distribution as follows:
- natural gas savings – 3,897.5 mcm;
- electric power savings – 504.8 million kWh;
- heat savings – 441.5 thousand Gcal.
- align PJSC Gazprom’s energy efficiency management system with government and corporate requirements in energy efficiency.
Achieving corporate energy targets involves implementing a comprehensive set of measures, from enhancing the energy efficiency management system to deploying energy-efficient technologies, modernizing equipment, and utilizing energy-saving materials across all of the Gazprom Group’s core businesses. These include hydrocarbon production and transportation, underground storage, natural gas processing and distribution, power and water supply, and the operation of UGSS power-generating equipment.
Enhancing the Energy Efficiency Management System
All 2024 measures for enhancing the energy efficiency management system, identified through the annual system performance analysis, have been implemented. Key areas of focus for improving system effectiveness in the reporting year were internal audits of subsidiaries, personnel competency development, and the digitalization of the Energy Efficiency Management business process.
The System’s Internal Audits
Audits of the energy efficiency management system were conducted at nine production subsidiaries. These audits confirmed the system’s compliance with GOST R ISO 50001-2023 and provided recommendations for further improvement.
Energy Efficiency Training
Enhancing the competencies of administrative and operational personnel is crucial for the successful implementation of the Energy Efficiency and Energy Saving Policy.
Systematic training of PJSC Gazprom’s subsidiary employees significantly contributes to the development of the energy efficiency management system.
In 2024, 317 employees received training through advanced training programs focused on the operation and enhancement of the energy efficiency management system.
Furthermore, new advanced training programs covering energy-efficient technologies for production, transportation, underground storage, and processing were implemented, with 115 employees participating.
To comply with the professional standard Specialist in Energy Saving and Energy Efficiency ImprovementApproved by order No. 794n of the Russian Ministry of Labor and Social Protection of the Russian Federation dated December 20, 2022., professional retraining was organized for ten employees of PJSC Gazprom’s susidiaries.
Regulatory Framework
To regulate efforts aimed at reducing fuel and energy resource costs for gas transportation subsidiaries related to gas compression, Guidelines for Optimizing Gas Transportation Temperature Regimes have been developed and approved.
Furthermore, to streamline the corporate procedure for engaging energy service contractors for implementing energy-efficient projects, a Procedure for Selecting and Implementing Energy-Saving Projects Using Energy Service Agreements at facilities operated by Gazprom subsidiaries has been established. This document sets forth the process for selecting innovative projects in the field of energy efficiency and energy saving, preparing feasibility studies, holding competitive tenders for contractor selection, implementing projects, and subsequently rolling out successful initiatives.
For more details on the Gazprom Group’s energy saving regulations, see the official website of PJSC Gazprom.
Introducing Modern IT Solutions
As part of Gazprom’s digital transformation strategy, work is underway to develop the Energy Efficiency Management information and management system (IMS). This IMS will consolidate all elements of Gazprom’s energy efficiency management system within a unified digital environment, providing a comprehensive approach to relevant decision-making. In 2024, a prototype of the Energy Efficiency Management IMS was created, and testing has commenced at gas transportation and gas production subsidiaries.
Improving Energy Efficiency and Energy Saving
In 2024, a revised version of Gazprom’s Energy Saving and Energy Efficiency Improvement Program for 2024, with an outlook for 2025–2026, was approved. This Program’s priorities and targets remained the same as in the previous programs: further reduction of natural gas and electricity consumption for gas compression, and prevention of natural gas bleeding during maintenance at UGSS facilities.
Through the implementation of technologies and equipment with best-in-class energy efficiency, optimization of operational processes to minimize energy consumption for internal needs, modernization of energy-consuming equipment, and execution of a range of measures to eliminate unjustified energy losses, as outlined in the 2024 Program, Gazprom has fully achieved its corporate energy targets.
As a result of these efforts, the specific consumption of fuel and energy resources (natural gas and electricity) for the Company’s own technological needs in natural gas transportation reached 24.62 kg of reference fuel per mcm•km in 2024. This represents a 12% reduction compared to the 2018 baseline and aligns with the specific fuel and energy resource consumption reduction target established for Gazprom in the Russian Energy Strategy through 2035.
Total investments in the largest and most significant energy saving projects in 2024 amounted to RUB 5.9 billion, with economic benefits expected to exceed RUB 22 billion
From 2018 to 2024, Gazprom’s subsidiaries and entities achieved a total fuel and energy resource saving of
30.3 million tons of reference fuel,
including
25.15 bcm
of natural gas
2.68 billion kWh
of electric power
1.94 million Gcal
of heat
RUB 120.14 billion
total cost savings from fuel and energy resource optimization
Progress against PJSC Gazprom’s corporate energy targets in 2024
| Target | Baseline (2018) | 2022 | 2023 | Plan (2024) | Actual (2024) | Reason for change | Plan (2025) |
|---|---|---|---|---|---|---|---|
| Reduced specific consumption of fuel and energy in transportation, % | 100 | – 13.5 | – 13.9 | – 12 | – 12 |
The target was achieved. The reduction compared to the 2018 level is attributable to the successful implementation of energy saving measures | – 12.5 |
| Natural gas savings, mcm |
2,951.91Adjusted 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. | 4,015.5 | 3,719.7 | 3,027.4 | 3,897.5 | Excessive actual fuel and energy savings versus the target are due to more efficient fuel and energy saving measures | 3,055.0 |
| Electricity savings, million kWh | 364.2 | 407.2 | 389.3 | 383.3 | 504.8 | Excessive actual fuel and energy savings versus the target are due to more efficient fuel and energy saving measures | 428,.7 |
| Heat savings, thousand Gcal | 235.9 | 227.9 | 346.0 | 328.1 | 441.5 | Excessive actual fuel and energy savings versus the target are due to more efficient fuel and energy saving measures | 614.5 |
| 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 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 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 and is aligned with PJSC Gazprom’s energy saving and energy efficiency commitments, regulations, directives, and procedures |
Energy intensity of PJSC Gazprom’s core operations
| Indicator | 2022 | 2023 | 2024 | Change 2024/2023, % |
|---|---|---|---|---|
| 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 | 25.12 | 27.41 | 26.0 | – 5.1 |
| 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 | 24.08 | 23.96 | 24.62 | + 2.7 |
| 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 | 7.47 | 7.13 | 7.27 | + 2 |
| 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 | 48.21 | 50.12 | 49.48 | – 1.3 |
For more details on energy consumption within the Gazprom Group, see the appendix.
Lower energy intensity in gas production resulted from an uptick in fuel and energy resource consumption due to improved gas pumping unit (GPU) efficiency, coupled with a significant year-on-year increase in production volumes.
In 2024, all production indicators for Gazprom’s subsidiaries and entities grew year-on-year. Gas transported by Gazprom’s gas transportation companies increased by 9%, leading to higher fuel and energy resource consumption for natural gas compression. Specifically, fuel gas consumption rose by 12%, and electricity consumption by 10%.
As regards underground gas storage, the year-on-year increase in specific fuel and energy resource consumption is attributed to a 15.7% rise in volumes of gas injected and a 7.3% increase in volumes of gas taken.
The reduced energy intensity in gas processing stems from a 5.3% decrease in natural gas consumption and a 3.6% decline in electricity consumption, alongside a 3% drop in gas processing volumes.
Implementing Advanced Technologies
Measures implemented as part of corporate programs aim to:
- streamline the operation of energy equipment;
- reduce gas losses during equipment operation and maintenance;
- install energy-saving LED lighting;
- modernize gas pumping units and compressor stations to improve unit efficiency and reduce GPU fuel gas consumption;
- conduct well surveys using telemetry without releasing gas into the atmosphere;
- utilize the potential of GPU exhaust gases for electricity generation;
- upgrade air coolers.
Contribution of key energy-efficient technologies implemented in 2024 to the total savings of all types of fuel and energy resources within Gazprom’s subsidiaries and entities
Savings achieved across different types of production activities within Gazprom’s subsidiaries and entities, and by type of fuel and energy resource in 2024
| Activity | Natural gas, thousand m3 | Electric power, thousand kWh | Heat energy, Gcal | Other fuel and energy resources, ton of reference fuel |
|---|---|---|---|---|
| Gas, gas condensate and oil production | 630,494.4 | 50,116.7 | 13,824.7 | 5.9 |
| Gas transportation | 3,142,591.7 | 421,081.9 | 18,566.5 | 13,255.9 |
| Underground gas storage | 10,082.2 | 5,829.5 | 0 | 0 |
| Gas, gas condensate, and oil processing | 92,462.2 | 18,397.7 | 404,961.0 | 95.7 |
| Gas distribution | 20,035.1 | 5,469. | 927.1 | 1,926.3 |
| Non-core business | 1,796.5 | 3,914.9 | 3,214.3 | 1.7 |
| Total | 3,897,462.1 | 504,810.6 | 441,493.6 | 15,285.4 |
| Total, thousand tons of reference fuel | 4,500.69 | 173.91 | 65.61 | 15.29 |
In 2024, over 2.17 bcm of natural gas were successfully prevented from release into the atmosphere. Measures listed in the chart below proved highly effective in preserving natural gas during repairs at UGSS facilities.
Attracting Investment from Energy Service Companies to Finance Current and Promising Energy-Saving Projects
By the end of 2024, the energy service project portfolio held by Gazprom’s subsidiaries and entities went up to 21 projects at various stages of development. With a total investment of RUB 13.4 billion, these projects are estimated to generate RUB 91 billion in economic benefit for Gazprom’s subsidiaries and entities throughout the equipment life cycle.
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. Since the project’s inception at Gazprom Transgaz Yugorsk, savings in 2024 have reached 315.6 mcm of natural gas and 15.3 million kWh of electricity. The installed removable flow paths generated cost savings of RUB 1.23 billion. In 2024, a similar project commenced at Gazprom Transgaz Tchaikovsky.
Implementation of Energy-Efficient LED Lighting
The projects across ten subsidiaries will bring about over 188,000 energy-efficient lighting fixtures. Total investments from energy service companies come in at RUB 4.2 billion, with savings over the equipment’s lifetime estimated at RUB 7.7 billion. In 2024, the project kicked off in six subsidiaries. Savings from the LEDs installed by year-end reached RUB 16.3 million.
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 pumping units (GPU). Investment in this technology across four gas transportation subsidiaries will amount to RUB 211.4 million, with total savings from this project over the equipment’s lifetime estimated at RUB 961.2 million.
Upgrade of Air Coolers
To reduce electricity consumption at compressor stations, RUB 892.3 million will be invested in upgrading gas air coolers by replacing fan wheels with new ones made of composite materials. Additionally, we will install air inlet collectors with a more advanced aerodynamic design. These enhancements are expected to reduce energy consumption by 45%. Savings over the lifetime of the equipment installed in five participating gas transportation subsidiaries and entities are estimated at RUB 3.3 billion.
Implementation of Aggregate Gas-Oil Units and Gas-Oil Heat Exchangers at Gazprom Compressor Stations
This technology preheats fuel gas by recovering thermal energy from the gas turbine engine and impeller lubricating oil, reducing electricity consumption for oil cooling in oil air coolers and eliminating the need for fuel gas preheaters. Depending on the heat exchanger and GPU type, annual fuel and energy resource savings per GPU range from RUB 3.2 million to RUB 4.4 million.
The 2024 results achieved in enhancing the energy efficiency of operational processes, coupled with the successful implementation of measures to develop and refine PJSC Gazprom’s energy management system, demonstrate compliance with GOST R ISO 50001-2023. These achievements serve as a cornerstone for ongoing efforts to optimize energy consumption and contribute to the realization of the Company’s corporate energy and climate objectives.