Improvements in 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 2018, the Company’s1 fuel and energy resources consumption totaled 20,501 thousand Data are given from 100% for the most energy-intensive assets under the direct operating management of Rosneft over 2018. tonnes of coal equivalent (tce)2, or RUB 227,483 mln in monetary terms. Physical units of electrical power and heat power are converted into nominal units as per GOST R 51750-2001, units of fuel – as per Resolution No.46 of the Federal State Statistics Service.

Потребление топливно-энергетических ресурсов
Breakdown of Energy Consumption and Energy Expenditures in 2018 by the Segments of Operations
Segment Fuel and Energy Consumption In thsd tce/RUB mln Share of fuel and energy resources, %
Electrical power, thsd kWh / RUB mln Heat power, thsd Gcal / RUB mln Fuel, thsd t / RUB mln
Oil and gas production 40,533,890 / 130,632 2,808 / 6,254 1,769 / 3,048 7,748 / 139,934 37.8%
Oil refining 6,209,655,/ 18,809 20,059,/ 20,863 4,532,/ 24,174 10,550,/ 63,847 51.5%
Petrochemicals and gas processing 2,528,491 / 5,935 7,662 / 6,169 402 / 1,295 1,990 / 13,399 9.7%
Gas production and distribution 54,778 / 287 29 / 55 – / – 11 / 342 0.1%
Marketing and distribution 387,574 / 1,909 70 / 94 6 / 37 64 / 2,039 0.3%
Services 542,455 / 6,049 168 / 168 34 / 1,718 138 / 7,934 0.7%
TOTAL 50,256,843 / 163,620 30,796 / 33,603 6,743 / 30,260 20,501 / 227,483 100%

Energy Saving Program

In 2018, the Company launched its 2018–2022 Energy Saving Program approved by the Board of Directors in December 2017. It is aimed at more efficient use of electricity and heat, as well as boiler and furnace fuel across key business lines.

Moreover, Rosneft’s 2019–2023 Energy Saving Program was developed 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 4,351 thousand tce, or RUB 49,099 mln.

Actual Savings of Fuel and Energy Resources in 2018
Segment Savings in 2018 In thsd tce Share, %
Electrical power, thsd kWh Heat power, thsd Gcal Fuel, tce
Oil and gas production 1,765,425 66 23,876 642 55.2%
Oil refining 108,438 994 260,422 445 38.3%
Petrochemicals and gas processing 26,420 268 19,265 68 5.9%
Gas production and distribution 205 6 468 1.4 0.1%
Marketing and distribution 13,101 1 760 5.4 0.5%
Services 1,877 1 322 1.1 0.1%
TOTAL 1,915,466 1,136 305,112 1,163 100%

Implementation of the 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 2018:

  • the list of Group Subsidiaries under Rosneft’s 2019–2023 Energy Conservation Program has been revised; new gas and oil producing assets - LLC Taas-Yuryakh Neftegazodobycha, JSC Kondaneft, and JSC Suzun - have been added; five enterprises have been excluded from the Energy Conservation Program, following the consolidation/disposal of assets and considering the absence of new energy-saving activities within 2019–2023;
  • the standard corporate structure of the business units has been updated according to the energy efficiency of the oil and gas production plants based on the energy consumption criteria, number of production facilities, and their remoteness;
  • the internal energy efficiency training has been streamlined; training materials have been prepared, with the Energy Efficiency Managers of Group Subsidiaries appointed as in-house coaches (the in-house training target for Q4 2018 – 2019 is 1,580 employees);
  • The Company’s Reference Guide «the Best Available Technologies, Technical Solutions, and Equipment for Enhancing Energy Efficiency and Energy Saving in Crude Hydrocarbon Processing» was developed, it describes and outlines the recommendations for applying 629 energy efficiency technologies in the project activities and optimizing the current technological and support processes;
  • In 2018, LLC Bashneft-Dobycha was certified by ISO 50001 International Standard for Energy Management Systems; the certification of LLC Sorovskneft, LLC Bashneft-Polyus, PJSOC Bashneft branches (Bashneft-Ufaneftekhim, Bashneft-Novoil, Bashneft-UNPZ), and PJSC Ufaorgsintez is scheduled for 2019.

Power Generation Development

In 2018, major power generating facilities were built and commissioned within the scope of projects intended to meet the projected demand at oil and gas producing Group Subsidiaries:

  • 110/35/6 kV 2х40 MVA Ugutskaya-2 and 110/35/6 kV 2×40 MVA Ombinskaya-2 substations with 110 kV feeders (23 km) to LLC RN-Yuganskneftegaz;
  • 110/35/6 kV 2×40 MVA substation of Vstrechnoye field, 2×40 MVA Sredneugutskaya-2, Argo 2×25 MVA with 110 kV feeders (21.5 km) built for LLC RN-Yuganskneftegaz under the grid connection agreements with JSC Tyumenenergo;
  • 110/35/10 (2×25 MVA) at PWDU of the Titov field with 110 kV overhead power line (81 km) from 220/110/35 substation (2×63 MVA) of LLC Bashneft-Polyus;
  • the Company finished the construction and started pre-commissioning operations of 220 kV facilities comprising three 220 kV substations (220/110/10 kV 2×63 MVA Pikhtovaya substation, 220/110/10 kV 2×125 MVA Lyantinskaya substation, 220/110/35 kV 2×63 MVA Protozanovskaya substation) and 220 kV overhead lines with 320 km total length for LLC RN-Uvatneftegaz;
  • 36 MW gas turbine electric power plant of the Kondinskoye field of JSC Kondaneft.

The transformer capacity in the 220-110 kV voltage class was increased by 922 MVA in 2018. Generating capacity was increased by 36 MW.

In meeting the projected heat demand at the FEY Zvezda Shipbuilding Plant, construction of boiler house No. 1 (phase one and two), with installed heat capacity of 165 Gcal/h, was completed in 2018.

In accordance with the instructions of the Russian President, Vladimir Putin, the Company constructed and commissioned 10 kV submarine cable duct of 5 km long on the bottom of Lake Ladoga from the Vladimirskaya Bay to the Konevets Island, and 10/04 kV 2×2 500 kVA central distribution transformer substation.

Improvement of Power Supply Reliability

With a focus on higher reliability and efficiency of power supply for the existing and projected production facilities, the Company conducted technical audits of power equipment maintenance and management. In 2018, eight technical audits were conducted, with the elaboration of actions on improving power supply reliability.

In 2018, 1038 corrective actions were carried out, the scheduled time for 1875 actions is not expired yet. The corrective actions allowed a 23% reduction year-on-year of the number of power-generating equipment emergency shutdowns in own networks of oil and gas producing subsidiaries in 2018 that resulted in a 26% decrease of the specific oil underrun index at emergency shutdowns over 2018.

The technical audits also include checks of health and safety regulatory requirements observation during the equipment operation. The injury rate during power-generating equipment operation declined by 33% year-on-year due to execution of corrective actions in 2018.

In the same year, the number of power-generating equipment emergency shutdowns in own networks of oil and gas producing subsidiaries reduced by 23% year-on-year.

In 2018, the injury rate during power-generating equipment operation declined by 33% year-on-year.

Повышение надежности энергоснабжения
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