Energy Efficiency and Energy Saving

Fuel and Energy Consumption

Rosneft is a major consumer of fuel and energy resources in the Russian Federation, accounting for more than 4% of the country’s energy mix.

In 2017, the Company’s fuel and energy resourcesAssets consolidated under Rosneft’s 2017 Energy Saving Program. consumption totalled 25,322 thousand tonnes of coal equivalent (tce).

25.3 mln tce in the Company’s fuel and energy consumption during 2017
Energy Consumption by Business Segment in 2017
Segment Fuel and Energy Consumption In thsd tce Share, %
electricity, thsd kWh heat, thsd Gcal fuel, thsd tonnes
Oil and gas production 36,937,553 2,834 1,652 15,471 61.1
Oil refining 4,096,125 13,543 3,036 7,577 29.9
Petrochemicals and gas processing 1,787,791 6,062 249 1,868 7.4
Gas production and distribution 53,074 59 27 0.1
Marketing and distribution 321,402 68 127 0.5
Services 566,197 380 252 1.0
Total 43,762,143 22,946 4,937 25,322 100
Energy Consumption by Business Segment

The Energy Saving Program

In 2017, the Company launched its 2017–2021 Energy Saving Program approved by the Board of Directors in December 2016; it is aimed at more efficient use of electricity and heat, as well as boiler and furnace fuel across key business lines.

Actual Fuel and Energy Savings in 2017
Segment Savings in 2017 In thsd tce Share, %
electricity, thsd kWh heat, thsd Gcal fuel, tce
Oil and gas production 1,707,600 18 22,793 613 51.2%
Oil refining 134,598 1,117 322,200 535 44.7%
Petrochemicals and gas processing 17,156 144 11,273 39 3.2%
Gas production and distribution 100 5.5 141 1.0 0.08%
Marketing and distribution 17,434 4 753 7.4 0.6%
Services 2,063 1.0 878 1.7 0.1%
Total 1,878,951 1,290 358,039 1,196 100%

Rosneft’s 2018–2022 Energy Saving Program was developed and approved by the Board of Directors in 2017 within efforts to update the Energy Conservation Program. Over five years, the Company’s total fuel and energy savings under the Program will amount to 5,822 thousand tce, or RUB 42,899 mln.

Energy Efficiency and Energy Saving Policy

In accordance with the Company’s Energy Efficiency and Energy Saving Policy and the Company’s Standard, “Energy Management System. Requirements and Use Guidance,” the following steps were taken in 2017:

  • The Company’s Commission for Energy Efficiency approved the 2018–2022 Roadmap for Enhancing Energy Efficiency and Implementing and Developing the Energy Management System at Rosneft
  • The acquired Bashneft assets were incorporated in Rosneft’s consolidated 2018–2022 Energy Saving Program, comprising three oil production enterprises, four oil refining, gas processing, and petrochemical enterprises, and one marketing and distribution enterprise
  • Amendments were made to the job descriptions of Group Subsidiaries personnel having direct or indirect influence on energy efficiency, totaling 5,659 employees – 4,013 of which are shop floor personnel
  • Competence requirements were developed for technical personnel in oil production, oil refining, marketing, and distribution, along with competence assessment methods based on tests containing close to 2.5 thousand questions
  • The Company’s Reference Guide, “Best Available Technologies, Technical Solutions, and Equipment for Enhancing Energy Efficiency and Energy Saving in Hydrocarbon Processing” was initiated, and a similar Reference Guide for upstream operations was adopted in 2016
  • The ISO 50001 international standard was incorporated into the Energy Management System, and certification of Bashneft’s energy-intensive facilities has been included in the plan for 2018–2019.

Major power generating facilities were built and commissioned within projects to meet the projected demand at oil and gas producing Group Subsidiaries:

  • 110/35/6 kV 2х40 MVA substation, Cluster Pumping Station in the Prirazlomnoye field’s south-east (RN-Yuganskneftegaz);
  • 10/35/110 kV 2х63 MVA Center substation (Taas-Yuryakh Neftegazodobycha);
  • 110/35/10 kV 2Х40 MVA North substation (Taas-Yuryakh Neftegazodobycha).

Transformer capacity in the 110 kV voltage class was increased by 286 MVA.

In meeting the projected heat demand at the FEY Zvezda shipbuilding plant, phase one construction of boiler house No. 1, with installed heat capacity of 30 Gcal/h, was completed.