The Gazprom Management Committee appreciated the activity of the Company on implementing the Energy Saving Concept 2001–2010 and the Energy Saving Programs between 2002 and 2010.

It was highlighted that implementation of the mentioned documents over the past decade allowed Gazprom saving fuel and energy resource in the amount of 29.8 million tons of fuel equivalent including 25 billion cubic meters of natural gas and some 3 billion kWh of electric power. The main energy saving effect (over 85 per cent) was produced by the gas transmission while the economic effect of the activity reached RUB 24.4 billion.

The Management Committee took notice of the information on the plans to implement the Gazprom Energy Saving and Energy Efficiency Improvement Concept 2011–2020 and the Energy Saving and Energy Efficiency Improvement Program 2011–2013.

The specialized subdivisions were tasked to expand the target parameters list of Gazprom through the energy efficiency and energy saving indicators of its subsidiaries.

Background

The Gazprom Energy Saving Concept 2001–2010 adopted in 2001 defined the energy saving potential for this period in the amount of 17 million tons of fuels equivalent.

The Company managed to considerably exceed this parameter both through the energy saving efforts and implementation of the Gazprom programs for equipment reconstruction, modernization and overhaul.

The major energy saving effect was produced owing to the activity of Gazprom transgaz Volgograd, Gazprom transgaz Ekaterinburg, Gazprom transgaz Saint Petersburg, Gazprom transgaz Stavropol, Gazprom transgaz Yugorsk, Gazprom dobycha Nadym and Gazprom dobycha Yamburg.

Notably, the energy saving in the field of gas transmission was ensured mainly through the introduction of specialized technology and equipment for the process operations, gas pipelines repair without gas loss and also through the implementation of the energy efficient equipment at the compressor and gas distribution stations as well as at the linepipes.

The resource saving in the gas production sector was ensured through introduction of new well testing and repair technologies, up-to-date gas pumping and treatment units along with new gas utilization technologies.

In December 2010 Gazprom adopted the Energy Saving and Energy Efficiency Improvement Concept 2011–2020 and the Energy Saving and Energy Efficiency Improvement Program 2011–2013.

The Concept of the Company is primarily aimed at the maximum use of energy saving potential in any activity thus reducing the environmental impact. This objective will be met through cutting-edge technologies and equipment utilization as well as through energy saving management streamlining. The energy saving potential for 2011–2020 is defined at 28.2 million tons of fuel equivalent.

The energy efficiency target for 2011–2020 is to reduce specific natural gas consumption for process needs by at least 11.4 per cent (saving no less than 1.2 per cent of natural gas consumed for process needs) and greenhouse gas emissions – by at least 486 million tons of CO2.

The Company will keep using the proven energy saving technologies and equipment to reach the set targets.

In particular, during gas transmission it is planned to widely utilize large diameter flow coated pipes and specialized equipment enabling to avoid gas losses in process and repair operations at the gas transmission system (GTS) facilities; energy efficient equipment for the GTS linear part, compressor and gas distribution stations; and programmed computer systems to simulate and optimize the GTS operation modes.

In the gas production sector Gazprom will continue to actively adopt new well testing and repair technologies as well as improved gas pumping units at booster compressor stations. The efforts will be intensified to optimize the gas field operation modes and to ensure utilization of the power plants specific with low fuel consumption for process needs.

In the field of gas, condensate and oil processing Gazprom, among other things, will go on reconstructing and upgrading process equipment and in the field of underground gas storage – enhancing the UGS facilities operation modes.

Gazprom will also carry on its R&D activities and implementation of cutting-edge technologies that may save considerable energy resources utilized for process needs. The main activity areas are as follows: efficient use of low pressure gas, associated petroleum gas conversion into liquid fuels, renewable energy sources development and waste gas heat utilization at gas turbine units.