Climate impact management
The company complies with the national legislation on greenhouse gas (GHG) emissions measurement.Order of the Ministry of Natural Resources and Environment of the Russian Federation No. 300 of 30 June 2015; Order of the Ministry of Natural Resources and Environment of the Russian Federation No. 330 of 29 June 2017
The assessment of GHG emissions is a key element of the climate risk management system used by the company. For this purpose, Gazprom Neft has adopted a corporate standard on GHG emission monitoring and accounting that is aligned with the applicable Russian legislation and international recommendations.
The approaches used in the corporate standard are fully aligned with the GHG Protocol Corporate Standard of the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI), and the ISO 14064-1:2006 (GOST R ISO 14064-1-2007) standard, which are widely recognised in the industry and consistent with the Russian legislation. This methodology also takes into account additional recommendations included in the IPIECA/API/OGP Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions, and the Global Reporting Initiative (GRI) Standards.
Expansion of the company’s geographical footprint as it prospected for and assessed hydrocarbon reserves, and the development of its upstream and transport infrastructure led to there being a greater number of facilities that are sources of additional GHG emissions; that, in turn, resulted in an increase in direct and indirect GHG emissions in 2019.
The company is constantly searching for technically feasible and economically viable tools to reduce GHG emissions, principally by implementing projects to increase APG utilisation.
Gazprom Neft is working to increase the APG utilisation rate, while simultaneously starting commercial development of greenfields, and increasing hydrocarbon production. The company’s Board of Directors has set the goal of achieving an APG utilisation rate of at least 95% by 2022 in the context of growing production.
In 2019, APG utilisation reached 89%, an increase of 11 percentage points year on year, across the company’s assets in Russia. Moreover, at mature fields with well-developed gas infrastructure, the APG utilisation rate has ranged between 92% and 99% since 2016.
APG flaring decreased considerably, by 42% year on year, as the company completed the construction of gas infrastructure at the Novoportovskoye field and the Archinskaya group of fields. Previously, since 2016, APG flaring had been increasing, as greenfields were being developed and APG utilisation infrastructure there was still under construction.
Measures to reduce GHG emissions
Gazprom Neft endorses the key provisions and goals of the 'Zero Routine Flaring by 2030' Initiative, which aims to completely eliminate routine APG flaring by 2030.
The company is implementing projects to increase APG utilisation; these offset any increases in GHG emissions. Without these projects, GHG emissions would have significantly exceeded the current level.
Key projects rolled out in 2019 include:
- commissioning gas infrastructure for an integrated gas treatment unit at the Novoportovskoye field operated by Gazpromneft-Yamal (with APG utilisation increasing by 23.3% year on year);
- a gas compression and transportation project initiated by Gazprom Neft Orenburg at the Vostochny licence block, which forms part of the Orenburgskoye oil and gas-condensate field (with APG utilisation increasing by 6.2% year on year);
- commissioning gas infrastructure at the Urmano-Archinskaya group of fields operated by Gazpromneft-Vostok (with APG utilisation increasing by 5.0% year on year).
As the most environmentally-friendly of the fossil fuels, natural gas has an important role to play in the development of the low-carbon economy of the future and in meeting climate targets. GHG emissions can be reduced by the use of natural gas in power generation.
Gazprom Neft has already launched a number of natural gas production projects. The company will contribute to sustainable development by further increasing the proportion of gas projects in its production portfolio.