The company assesses and adopts measures to minimise environmental risks, while also invests significant resources into various environmental safety programmes.
The company’s environmental management system is certified to ISO 14001:2015 and covers the management of Gazprom Neft’s core production assets.
Environmental safety priorities:
- consistent reduction of environmental impact (including climate) and safe production;
- environmental monitoring and control;
- adoption of global best practices in environmental safety;
- launching environmental protection facilities and programmes;
- developing and deploying green technology;
- training employees and fostering a culture of environmental safety.
Gazprom Neft supports the Paris Agreement on Climate Change and complies with national legislation on measuring GHG emissions. The company acknowledges that if no decisive action is taken today, then dealing with the consequences of climate change will require significantly more effort and costs.
Gazprom Neft continues to implement the Development Strategy to 2030 approved by the Board of Directors, which envisages building APG infrastructure at production assets and upgrading refineries with energy-efficient technology. This approach will improve resource efficiency and cut down on greenhouse gas (GHG) emissions.
Managing climate risks and opportunities
The company participates in the Carbon Disclosure Project (CDP) by disclosing its greenhouse gas emissions data and climate change risks. Registered users can access a questionnaire disclosing Gazprom Neft’s climate risks on the CDP websitehttps://www.cdp.net.
Gazprom Neft identifies several key climate-related risks and opportunities.
The company accounts for both physical risks associated with extreme weather conditions or irreversible changes to the environment, and for transition risks (market, reputational, technology, political and legal).
To minimise systemic physical risks to the company, Gazprom Neft particularly focuses on solutions for construction projects for the permafrost (preventing permafrost degradation, thermal stabilisation of permafrost soils, etc.).
For the company, climate change opportunities include growing gas’ share in total production, monetising APG, improving resource efficiency and using clean energy.
Leadership’s role in managing climate-related risks and opportunities
The Board of Directors determines the basic principles and approaches around climate change.
The CEO and the Management Board are responsible for developing and implementing the company’s corporate climate strategy in line with international and global best practices and standards, while also overseeing projects to reduce GHG emissions.
In 2020, the Board of Directors continued its efforts towards building the company’s approach to climate change by reviewing the assessment and management of climate-related risks and opportunities, and drafting an action plan to build an environment and climate management system at the company.
Targets for specific GHG emissions were set for the company subsidiaries, reflecting the profile of their respective operating regions. We monitor progress against the targets set for assets and the Corporate Centre, with an annual progress review directly contributing to management performance appraisals.
Strategy sensitivity to various climate scenarios
The company uses a scenario approach in its Development Strategy to 2030. The key factors that may impact future scenarios include changes in the climate policy and the decarbonisation of global energy. Since the future of energy is extremely uncertain, the company uses a proprietary methodology to monitor and assess the situation for various signs of different scenarios playing out.
The company’s project portfolio is stress tested against all possible scenarios of how the external environment may develop, including changes in prices, volumes and regulation.
Accounting for greenhouse gas emissions
Gazprom Neft has adopted a corporate standard on GHG emission monitoring and accounting aligned with applicable Russian laws and international guidelines.
Greenhouse gas emissions fell, mainly as a result of lower energy consumption driven by the OPEC-mandated production cuts and changes in the electricity emission factor.
Increase in APG utilisation rate
In 2020, the APG utilisation rate of the company subsidiaries in Russia stood at 91.1% (up 2.1% year-on-year). If greenfields (some of which showed 5.4% growth year-on-year) are excluded, the APG utilisation rate reached 95.1% through gas infrastructure construction projects and gas infrastructure reliability improvement programmes.
Gazprom Neft aims to ramp up its APG utilisation, despite the planned increase in hydrocarbon production.
Gazprom Neft endorses the key provisions and goals of the Zero Routine Flaring by 2030 Initiative.
|Type of emission||2016||2017||2018||2019||2020|
|Greenhouse gas emissions||23.8||22.8||24.5||28.9||26.1|
|Direct emissions (Scope 1)||15.4||16.2||20.0||22.0||21.7|
|Indirect emissions (Scope 2)||8.4||6.6||4.5||6.9||4.4|
Driving energy efficiency
Energy efficiency is one of the key tools to reduce greenhouse gas emissions and climate impact.
Gazprom Neft’s Energy Policy is in place to improve energy efficiency: certified to ISO 50001, it underpins the company’s energy management system (EMS). The EMS is successfully operated at the Gazprom Neft Corporate Centre and 15 Gazpromneft-Khantos, Gazprom Neft Orenburg, Gazpromneft-Noyabrskneftegaz, Gazpromneft-Vostok, Gazpromneft-Yamal, Messoyakhaneftegaz (JV), Naftna Industrija Srbije А.D., Novi Sad (JV), Noyabrskenergoneft (from 2020), Slavneft-Megionneftegaz, Slavneft-YANOS, the Gazprom Neft Moscow Lubricants Plant, the Gazprom Neft Moscow Refinery, the Gazprom Neft Omsk Refinery, the Gazprom Neft Ryazan Bitumen Binders Plant and the Omsk Lubricants Plant. major subsidiaries, as well as upstream and downstream joint ventures.
Production units prepare and implement comprehensive energy-saving and energy-efficiency programmes, which include both technical and organisational initiatives.
The company builds up renewable generation capacity at assets where it brings economic and environmental benefits.
A 1 MW solar power plant is in operation at the Omsk Refinery (Phase 1 of the project). The facility covers 2.5 ha and comprises 2,500 solar panels. The solar power plant at the Omsk Refinery is expected to be upgraded to 20 MW in 2021.
In 2020, the Yaroslavl Oblast became the home of Gazprom Neft’s first solar-powered filling station. In sunlight, the solar power plant is used as the main source of electricity.
The bulk of Gazprom Neft’s pollutant emissions comes from APG flaring; therefore, APG utilisation projects cut the company’s environmental footprint.
The 14.5% reduction in gross emissions was driven by an increase in APG utilisation at the company’s production assets, as well as the decommissioning of some outdated units at the Moscow Refinery following the launch of the Euro+ combined oil refining unit (CORU).
Coupled with other strategies, decreased flaring of hydrogen-sulfide-containing gas at Gazprom Neft Orenburg’s fields reduced SO2 emissions by 52.7% in 2020, as large volumes of gas were transferred to the gas processing plant.
Gazprom Neft is involved in the implementation of the Ecology national project, with the Clean Air federal project being part of it. This project aims for a 20% reduction in emissions (against a 2017 baseline) by the end of 2024 across 12 major industrial cities with poor air quality, including Omsk, where one of the company’s refineries is located.
In order to carry out the Clean Air federal project, the Russian Government has approved integrated action plans designed to reduce pollutant emissions. These plans include nine upgrade projects launched at the Omsk Refinery, which involve introducing environmental technologies and state-of-the-art treatment facilities, building new units and decommissioning outdated facilities. Gazprom Neft plans to invest over ₽100 billion in these projects.
|Type of emission||2016||2017||2018||2019||2020|
|Gross emissions, thousand tonnes, including:||600.8||474.3||508.3||529.4||452.6|
|Volatile organic compounds (VOCs)||128.3||120.3||96.7||102.1||90.7|
The Euro+ CORU is integrated into Moscow’s environmental control system. The automated emission monitoring system operates around the clock and passes data to the city’s environmental monitoring service.
A large-scale programme to modernise and revamp Gazprom Neft’s refineries also aims at reducing emissions.
A new Euro+ CORU was commissioned at the Moscow Refinery in 2020 to increase the oil conversion rate to 85% and reduce emissions by decommissioning outdated units.
Maintaining environmental balance and preserving biodiversity are always given special consideration in Gazprom Neft’s projects.
The company conducts environmental monitoring and assesses its impact on ecosystems while engaging with research institutions and governmental agencies and meeting legal requirements as well as internal corporate standards.
Gazprom Neft has in place a corporate programme to preserve biodiversity, based on a list of plant and animal indicator species for a healthy Arctic marine ecosystem in Russia. The programme includes measures implemented by the company around the Prirazlomnaya offshore ice-resistant stationary platform and Gazpromneft-Yamal assets and providing for wildlife monitoring along oil transportation routes.
Gazprom Neft continues to drive a large-scale research project to study and protect a rare Arctic animal listed in Russia’s Red Data Book of protected species – the narwhal (lat. Monodon monoceros, or “unicorn of the sea”). Through its ambitious high-tech industrial projects in the Arctic, the company studies, protects and puts a spotlight on this marine mammal that is sensitive to environmental changes.
Water resource management
The company views water stewardship, effective wastewater treatment and preventing the contamination of natural water bodies with oil or petroleum products as its priorities.
Internal water consumption decreased, mainly due to the fact that less water was produced from the Cenomanian strata and other groundwaters following a higher water cut in oil produced, coupled with an optimisation of the system for maintaining formation pressure at company fields.
Building Biosphere biological treatment facilities at the Moscow and Omsk Refineries rank among the company’s key water management projects. These facilities feature a multi-stage wastewater treatment system, which includes mechanical, physical and chemical, biological, filtration and ultrafiltration stages, as well as a reverse osmosis unit. Biosphere provides close to 100% wastewater treatment, with over 75% of water reused.
Waste management and land use
The two key pillars of industrial waste management and land use at the company are equipment reliability monitoring and the implementation of new technology. These efforts minimise the risk of soil contamination by crude oil and petroleum products. The company also successfully recycles its production waste.
In 2020, Gazprom Neft continued developing its infrastructure for the safe management of waste. Waste management projects have been completed at two production sites (the Aganskoye and Vostochno-Messoyakhskoye fields). Subsidiary producers have commissioned state-of-the-art waste incinerators and use public consultations to share information about new technologies for waste utilisation, ready to produce marketable products.
The company uses advanced unmanned aerial photography and space surveying methods to conduct comprehensive inspections (monitoring, evaluation and condition forecasting) of production areas on its licence blocks. The area of licence blocks covered by these inspection methods in 2020 totalled about 20,000 sq km.
Gazprom Neft is developing Green Seismic technology, which, thanks to its more compact size, significantly reduces the number of trees felled for seismic lines and cuts fuel consumption for seismic surveys, all while improving safety. This technology saved over 4.5 million trees between 2016 and 2020.