Gazprom Neft supports implementation of the Paris Agreement on Climate ChangeAn agreement signed on 22 April 2016 as part of the United Nations Framework Convention on Climate Change (UNFCCC) to regulate carbon dioxide emissions starting from 2020. and the Russian Government’s concept for putting in place a greenhouse gas emissions monitoring and measurement system. The Company fully complies with the national laws on reduction of greenhouse gas emissionsOrders of the Russian Ministry of Natural Resources and Environment No. 300 dated 30 June 2015 and No. 330 dated 29 June 2017. and the guidelines on measurement of such emissionsGuidelines on Indirect Greenhouse Gas Emissions Volume Measurements approved by Decree of the Russian Ministry of Natural Resources and Environment No. 20-r dated 30 June 2017.. Gazprom Neft has in place a corporate standard on GHG emissions control, which was drafted based on the principles contained in applicable Russian laws and international guidelines.
The standard is fully in line with the GHG Protocol Corporate Accounting and Reporting Standard developed by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI), as well as GOST R ISO 14064-1-2007, which are recognised worldwide and do not contradict Russian laws. The standard also incorporates additional recommendations of the IPIECA, API and OGP Petroleum industry guidelines for reporting greenhouse gas emissions and the G4 Sustainability Reporting Guidelines.
Gazprom Neft is building a dedicated system to manage hydrocarbon regulation risks, with GHG emissions assessment as its key element. The Company measures:
direct GHG emissions from burning of hydrocarbon fuels and substances, facilities operation, and technological losses;
indirect emissions from consumption of electricity, heat, steam or cooling.
The growth of direct GHG emissions in 2018 was due to an increase in APG flaring and oil refining volumes. The increase in APG volumes came as a result of growing intensity of oil exploration and production.
Gazprom Neft is implementing a programme to increase APG utilisation rates across all of its production assets. The Board of Directors set a goal to reach a 95% APG utilisation rate at the fields with developed gas infrastructure by 2020, and across all of the Company’s assets (including the newly acquired ones) – by 2022.
In 2018, the APG utilisation rate across the Company’s subsidiaries operating in Russia stood at 78.4%, while for mature fields with developed gas infrastructure this indicator was at 92–99% since 2016.
The rise in APG flaring volumes since 2016 was attributable to new projects where the utilisation infrastructure is at the construction stage, which is almost completed at the Archniskaya group of fields, as well as the Southern block of the Priobskoye field and the Novoportovskoye field. The production growth at these fields was the main driver of the increase in APG flaring in 2018.
In total, in 2018 the APG utilisation rate across the Company’s subsidiaries operating in Russia increased by 29.6% y-o-y, which was achieved thanks to:
Ensuring high utilisation of gas processing equipment;
Maintaining high APG utilisation at the fields with developed gas infrastructure;
Launching commercial operation of stage 2 of the comprehensive gas treatment unit (CGTU) at the Novoportovskoye field run by Gazpromneft-Yamal and of the compressor station of the 4th production train at the Eastern block of the Orenburgskoye oil and gas condensate field run by Gazrpomneft-Orenburg.