The Gazprom headquarters hosted today a meeting of the Coordinating Committee for Environmental Protection and Energy Efficiency. The meeting was moderated by Alexander Ananenkov, Deputy Chairman of the Company’s Management Committee, Chairman of the Coordinating Committee.

Participating in the meeting were Members of the Gazprom Management Committee – Viktor Ilyushin, Head of the Department for Relations with Regional Authorities of the Russian Federation, Vsevolod Cherepanov, Head of the Gas, Gas Condensate and Oil Production Department; as well as heads of the Gazprom Administration specialized subdivisions and the Company’s subsidiaries – Gazprom VNIIGAZ, Gazprom gaznadzor and Gazprom dobycha Yamburg.

The Coordinating Committee reviewed the issues relevant to Gazprom’s execution of the environmental decisions made by the State Council Presidium on May 27, 2010.

The meeting participants addressed the outcomes of Gazprom’s environmental activities. It was noted that the Company had cut CO2 emissions by 17.6 per cent and increased the area of remediated soils by 5 per cent as compared to 2008. Greenhouse gas emissions reduction was above 11.3 million tons. In 2009 Gazprom allocated nearly RUB 18.9 billion for environmental purposes.

Gazprom’s key targets in streamlining the environmental activities in 2010 involve, inter alia, compliance with the corporate environmental requirements, shaping of the Comprehensive Purpose-Oriented Environmental Program, as well as preparing the Gazprom Environmental Management System for the certification procedure.

The Coordinating Committee addressed the implementation of the Company’s 2007–2010 Energy Saving Program in 2009. The amount of saved fuel and energy resources in Gazprom’s subsidiaries totaled 2.6 million tons of fuel equivalent including some 2.2 billion cubic meters of natural gas, 171.6 million kWh of electricity, 181.4 thousand Gcal of heat and nearly 5.2 thousand tons of fuel equivalent of diesel fuel.

The Company’s specialized subdivisions were tasked to develop the Gazprom Energy Saving Concept for 2011–2020 and the Gazprom Energy Saving Program for 2011–2013.

The Coordinating Committee discussed the performance results and the action plans of Gazprom’s Environmental Inspectorate.

The Inspectorate performed over 1.5 verifications of compliance with regulatory requirements, corporate standards and rules for environmental protection and efficient utilization of natural gas, as well as examined over 10.7 thousand industrial facilities at 54 subsidiaries.

The Coordinating Committee ordered the Environmental Inspectorate to assure the comprehensive audit of subsidiaries’ environmental management systems in parallel with the review of meeting the environmental legislation requirements. In addition, the decision was taken to develop the corporate regulatory documents aimed at improving the Gazprom Environmental Inspectorate performance.

The Committee looked at the issues of environmental safety assurance related to the Severo-Kamennomysskoye field pre-development. The Committee approved the design technological solutions stipulating selection of the most environmentally efficient equipment, as well as the low-toxic water-based drilling fluid utilization and the technical and biological remediation of lands.

The Committee tasked Gazprom’s subsidiaries to arrange the Industrial Environmental Monitoring Program implementation when constructing and operating the Severo-Kamennomysskoye field infrastructure facilities offshore and onshore.

Background:

On May 27, 2010 the State Council Presidium held a meeting dedicated to improving the state regulation of environmental protection. The meeting, inter alia, took the decisions on determining the maximum possible values of industrial impacts on the environment. It was noted that compliance with the prescribed limits would only be possible if modern equipment and energy saving technologies were adopted in domestic companies. The State Council Presidium also decided to develop the economic motivation measures for environmental activities promotion in companies.

The Gazprom Coordinating Committee for Environmental Protection and Energy Efficiency was established in October 2007 in order to secure an integrated approach and coordinate the environmental activities of the Company’s structural units and subsidiaries.

The Committee’s major goals are as follows:

- comprehensively evaluating the effectiveness of the Gazprom Group environmental activities;

- introducing comprehensive environmental, energy saving and energy efficiency management;

- coordinating Gazprom’s interaction with environmental authorities and public entities.

At present, Gazprom is implementing the 2007–2010 Energy Saving Program that will save in the order of 11 million tons of fuel equivalent including 9.3 billion cubic meters of natural gas, some 1.3 billion kWh of electricity, 1.2 million Gcal of  heat and 30 thousand tons of fuel equivalent of diesel and boiler/furnace fuel.

In March 2010 the Coordinating Committee for Environmental Protection and Energy Efficiency approved Gazprom’s Corporate Environmental Targets. These include:

- cutting down methane and nitrogen oxide emissions;

- reducing waste dumping;

- saving natural gas consumed for the corporate technological needs;

- introducing the environmental management system complying with the ISO 14001 standard.

The Gazprom Environmental Inspectorate was set up in May 2007 following the decision by the Company’s Management Committee. Its main objectives are raising the efficiency of environmental activities and natural gas utilization in Gazprom’s subsidiaries.

The Severo-Kamennomysskoye field is located within the Ob Bay (Cape Krugly).

Based on the geological exploration results, two deposits have been discovered in the field – the gas and gas condensate ones. The explored gas reserves exceed 400  billion cubic meters.

The field is being developed relying on cutting-edge technical solutions including application of ice-resistant platforms and submerged gas pipelines under the complex hydrogeological conditions of the Ob Bay.