PJSC Gazprom Environmental Report Gazprom in Figures 2014–2018 2018 Factbook A Strategic Resource A Strategic Resource PJSC Gazprom Environmental Report 2 018 Introduction by Deputy Chairman of the Gazprom Management Committee 5 Introduction 6 Environmental Protection Management 8 Environmental Management System 8 Environmental Targets and Programs 14 Financing of Environmental Protection 15 Adverse Environmental Impact Fee 18 Environmental Performance and Energy Saving 22 Impact to the Atmosphere 22 Greenhouse Gas Emission 25 Utilization of Associated Petroleum Gas 29 Improving Environmental Performance of Transport 31 Water Use 33 Waste Management 35 Land Use 40 Protection of Biodiversity 42 Energy Savings and Increasing Energy Efficiency 44 Use of Renewable and Secondary Sources of Energy 48 Environmental Performance and Energy Saving Abroad 50 Preventing Negative Impact on the Environment 56 Environmental Assessment of Projects 56 Operational Environmental Monitoring and Control 57 Prevention of Accidents 60 Environmental Risk Insurance 61 State Environmental Supervision 62 Scientific and Technical Support of Environment Protection 63 Scientific Research and Development 63 Use of the Best Available Techniques 64 Gazprom’s Science and Technology Prize 66 International Cooperation 70 Information Disclosure 72 Voluntary Environmental Responsibility 73 Glossary of Main Terms and Abbreviations 76 Addresses and Contacts 78 Appendix 79 Introduction by Deputy Chairman of the Gazprom Management Committee Dear readers, On behalf of the Gazprom Management Committee Being faithful to the sustainable development principles, I present you the 2018 edition of Gazprom’s Environmental the Gazprom Group continued reducing its environmental Report. impact throughout 2018. In the reporting year, Gazprom Environmental responsibility is a key element in the became the first Russian energy company to conduct Gazprom Group’s sustainable development strategy, based an independent audit (certification) on the corporate dis- on the corporate Environmental Policy and effective environ- closure of greenhouse gas emissions under ISAE 3410 mental management system. Assurance Engagements on Greenhouse Gas Statements, The current year will be remembered for robust hydro- thus increasing the level of stakeholder confidence in the carbon resources development of the Yamal Peninsula, the corporate carbon reporting and demonstrating the environ- construction work for the linear part of the Power of Siberia mental benefits of Russian natural gas supplies to domestic gas pipeline, the development of the Chayandinskoye field, and foreign consumers. meant to provide first natural gas to the Chinese market, Today, the environmental aspect of production signifi- the expansion of Russian gas transmission systems of the cantly affects the technology development assessment North and North-West. of a company. Through the use of best available and pro- In 2018, natural gas came to more than 200 localities mising high-tech solutions, the Gazprom Group companies of our country thanks to the Russian Regions Gas Infrastruc- are demonstrating good leadership in the energy market. ture Expansion (Gasification) Program implementation. The Gazprom Group’s large-scale environmental cam- Pipelay works in the Baltic Sea for the Nord Stream 2 paigns in Russian regions and abroad are by now a good project are currently underway; two strings of the TurkStream tradition. In 2018, they were successfully held under the Year offshore gas pipeline were built ahead of the deadline. of Volunteers in Russia. Natural gas is the most environmentally friendly fossil The high scores of independent public rankings prove fuel, so Gazprom’s efforts to increase the natural gas share the effectiveness of the company’s Environmental Manage- in the energy and transport sectors virtually revitalize Russian ment System. and European lands. The Gazprom Group will maintain high level of corporate environmental responsibility and energy efficiency. Vitaly A. Markelov Member of the Gazprom Board of Directors, Deputy Chairman of the Gazprom Management Committee, Chairman of the Gazprom Coordinating Committee for Environmental Protection and Energy Efficiency 5 PJSC Gazprom Environmental Report 2018 Introduction The present Environmental Report has been formed in The Report presents data on environmental management accordance with the Decree of the Gazprom Management and funding of fundamental studies and production complex Committee on Organization of Work Related to Preparation technical modernization aimed at ensuring the environmental and Holding of the Annual General Shareholders Meeting safety of the Gazprom Group operating facilities. of PJSC Gazprom. The data are provided in respect of the Gazprom Group The present report is based on the data of “Environmen- on the whole, PJSC Gazprom (including retrospective data tal impact of industrial activity” corporate periodical reporting for 5 years) and some companies from the Group that con- statistics drafted by using corporate information and manage- tribute greatly to the activities aspects covered in the report. ment system, and other data contained in the reports on The term PJSC Gazprom used in this Report refers environmental activities, corporate web resources, articles to the parent company of the Gazprom Group, Public Joint of the Group published in Russia and abroad. Stock Company Gazprom and its fully owned subsidiary The 2018 Environmental Report provides information companies and organizations involved in hydrocarbons about the Gazprom Group activities in the Environmental exploration, production, transportation, underground storage Policy implementation, including the current performance and processing activities, as well as maintenance of Unified on air, water and land resources, waste management and Gas Supply System (UGSS): measures undertaken to mitigate the environmental impact. OOO Gazprom dobycha Astrakhan OOO Gazprom transgaz Tomsk OOO Gazprom dobycha Irkutsk OOO Gazprom transgaz Ufa OOO Gazprom dobycha Krasnodar OOO Gazprom transgaz Ukhta OOO Gazprom dobycha Kuznetsk OOO Gazprom transgaz Tchaikovsky OOO Gazprom dobycha Nadym OOO Gazprom transgaz Yugorsk OOO Gazprom dobycha Noyabrsk AO Tchetchengazprom OOO Gazprom dobycha Orenburg OOO Gazprom UGS OOO Gazprom dobycha Urengoy OOO Gazprom pererabotka OOO Gazprom dobycha shelf Yuzhno-Sakhalinsk OOO Novy Urengoy gas chemical complex OOO Gazprom dobycha Yamburg OOO Gazprom energo OOO Gazprom geologorazvedka OOO Gazprom tsentrremont OOO Gazprom transgaz Volgograd OOO Gapprom geotekhnologii OOO Gazprom transgaz Yekaterinburg OOO Gazprom georesurs OOO Gazprom transgaz Kazan OOO Gazprom gazomotornoye toplivo OOO Gazprom transgaz Krasnodar OOO Gazpromavia Aviation Company OOO Gazprom transgaz Makhachkala OOO Gazpromtrans OOO Gazprom transgaz Moscow OOO Gazprom flot OOO Gazprom transgaz Nizhny Novgorod OOO Gazprom invest OOO Gazprom transgaz Samara OOO Gazprom sotsinvest OOO Gazprom transgaz Saint Petersburg OAO Gazpromtrubinvest OOO Gazprom transgaz Saratov AO Tsentrgas OOO Gazprom transgaz Stavropol OOO Gazprom transgaz Surgut 6 PJSC Gazprom Environmental Report 2018 Introduction The terms Gazprom Neft Group or Gazprom Neft comprise (PAO Mosenergo, PAO MOEK, PAO OGK-2, PAO ТGС-1, PAO Gazprom Neft and its subsidiary companies. PAO Murmanskaya CHPP, AO Saint Petersburg Heating The terms Gazprom neftekhim Salavat comprise Grid). OOO Gazprom neftekhim Salavat and its subsidiary The Gazprom Group, Gazprom or the Group will stand companies. for PJSC Gazprom (all above mentioned 100% subsidiaries) The terms Gazprom energoholding comprises and the following companies: OOO Gazprom energoholding and its subsidiary companies Gazprom Neft Group as well as PJSC Gazprom subsidiary companies Gazprom energoholding conducting their activities abroad: Gazprom neftekhim Salavat OAO Gazprom transgaz Belarus Vostokgazprom Group (OAO Tomskgazprom) ZAO Gazprom Armenia OOO Gazprom mezhregiongaz OsOO Gazprom Kyrgyzstan AO Daltransgaz Gazprom EP International B.V. Sakhalin Energy Investment Company Ltd. (Sakhalin Energy) OAO Severneftegazprom PAO Spetsgazavtotrans ZAO Purgaz The Gas business companies of the Gazprom Group OAO Severneftegazprom, ZAO Purgaz, and PAO Spetsgaz- comprises PJSC Gazprom (and all its 100 per cent subsidiary avtotrans. companies and organizations involved in hydrocarbons The environmental impact indicators and the economic production, transportation, underground storage and refining indicators are given for the Gazprom Group operations in the activities, as well as maintenance of UGSS), OOO Gazprom Russian Federation. The environmental performance abroad mezhregiongaz, Vostokgazprom Group (OAO Tomskgazprom), is reviewed separately. AO Daltransgaz, Sakhalin Energy Investment Company Ltd., 7 PJSC Gazprom Environmental Report 2018 Environmental Protection Management Environmental Management System PJSC Gazprom adheres to the principles of sustainable Top Administrative Body of PJSC Gazprom in the Environ- development, which means a balanced and socially accept- mental Protection Management System is PJSC Gazprom able combination of economic growth and preservation of Management Committee. a conducive environment for future generations. The Coordination Committee on environmental protec- PJSC Gazprom’s Environmental Policy is a fundamental tion and energy efficiency exercises complex administration document of The Environmental Management System (EMS). and general coordination of activities for