Sustainable Development

Energy Efficiency and Energy Saving

Fuel and Energy Consumption

Rosneft is a major fuel and energy consumer in the Russian Federation, accounting for 4.8% of the country’s energy mix. In 2019, the Company’sInformation on the most energy-intensive assets operated directly by Rosneft, for 2019. fuel and energy consumption totalled 20 million tonnes of coal equivalent (mmtoe)Natural units of electricity and heat are converted into tonnes of coal equivalent in accordance with GOST R 51750-2001, and those of fuel — in accordance with Resolution of the Federal State Statistics Service (Rosstat) No. 46., or RUB 236,963 mln.

For energy consumption and costs by business segment in 2019, see the table below.

Segment Fuel and Energy Consumption In ktce / RUB mln Share, %
electricity, th. kWh / RUB mln heat, th. Gcal / RUB mln Fuel, kt / RUB mln
Oil and gas production 41,050,481 / 140,843 2,759 / 6,878 1,801 / 3,210 7,848 / 150,931 38.4
Oil refining 6,161,367 / 19,698 20,405 / 19,957 4,328 / 22,174 10,324 / 61,828 50.5
Petrochemicals and gas processing 2,569,257 / 6,608 7,483 / 6,180 427 / 1,122 2,004 / 13,910 9.8
Gas production and distribution 59,949 / 344 26 / 64 15 / 25 32 / 432 0.2
Marketing and distribution 376,687 / 1,941 89 / 96 5 / 34 65 / 2,071 0.3
Services 597,274 / 5,683 329 / 502 33 / 1,605 166 / 7,790 0.8
Total 50,815,016 / 175,117 31,090 / 33,677 6,609 / 28,170 20,438 / 236,963 100
Energy Saving Programme

Energy Saving Programme

In 2019, the Company embarked on its 2019–2023 Energy Saving Programme approved by the Board of Directors in March 2019. The Programme aims at a more efficient use of electricity and heat, as well as boiler and furnace fuel across key business lines. For actual fuel and energy savings in 2019, see the table below.

To update the Programme, Rosneft developed a 2020–2024 Energy Saving Programme expected to deliver 2.6 mmtoe, or RUB 38,753 mln in total energy savings over five years.

Segment Savings in 2019 In ktce Share, %
electricity, th. kWh heat, th. Gcal Fuel, tce
Oil and gas production 1,826,693 87 8,702 240 27.4
Oil refining 159,580 1,118 392,154 568 64.8
Petrochemicals and gas processing 36,281 325 15,246 65 7.4
Gas production and distribution 575 4 746 1 0.1
Marketing and distribution 12,092 0 278 2 0.2
Services 1,428 2 399 1 0.1
Total 2,036,650 1,536 417,526 877 100

Energy Efficiency and Energy Saving Policy

In accordance with its Energy Efficiency and Energy Saving Policy and the Energy Management System: Requirements and Use Guidance Standard, the Company took the following steps in 2019:

  • amended the list of Group Subsidiaries covered by the 2020–2024 Energy Efficiency Programme, adding the following assets: Kharampurneftegaz, Rospan International and RN-Arkhangelsknefteprodukt. Given asset combinations and divestments and with no new energy saving initiatives planned for 2020–2024, two assets were excluded from the Programme;
  • updated the standard organisational structure of energy efficiency units in oil and gas production subsidiaries to take into account the need for regular on-site audits in this area;
  • arranged for corporate training in energy efficiency. In 2019, 352 employees took training in the dedicated corporate training centre, with another 61 educated by an external provider with an international track record in launching and developing energy management systems at productions sites;
  • drafted and put into effect the Regulations on Planning and Measuring the Actual Energy Saving Effect from Energy Saving Programmes at In-House Service and Marketing and Distribution Group Subsidiaries and Marine Terminals;
  • performed an internal energy efficiency assessment at 19 oil and gas production and oil refining Group Subsidiaries, with individual roadmaps drafted to address the identified gaps in 2019–2021. Another assessment is scheduled for 2020;
  • had Sorovskneft, Bashneft-Polyus, Ufaorgsintez, and integrated refinery in Ufa (Ufaneftekhim, Bashneft-Novoil, and Bashneft-UNPZ) certified for compliance with ISO 50001 (Energy Management Systems). All in all, 41 Group Subsidiaries accounting for over 95% of the Company's total energy consumption in 2019 hold ISO 50001 certificates.

Power Generation Development

The reporting year saw the following generating facilities built or commissioned to help meet the projected Group energy needs:

In-house power plants:

  • an 18 MW gas turbine power plant commissioned at Kondaneft's Zapadno-Erginskoye field;
  • main construction and installation operations completed and pre-commissioning started at:
    • a 105 MW gas turbine power plant at the Vostochno-Urengoysky licence area of Rospan International;
    • a 50 MW gas turbine power plant at the Srednebotuobinskoye field of Taas-Yuryakh Neftegazodobycha;
    • a 153 MW gas turbine and thermal power plant at the Tuapse Refinery (Phase 2).

220 kV grid facilities:

  • three 220 kV substations and a 220 kV power transmission line built and commissioned at RN-Uvatneftegaz;
    • a 320 km 220 kV overhead line;
    • a 220/110/10 kV 2×63 MVA Pikhtovaya substation;
    • a 220/110/10 kV 2×125 MVA Lyantinskaya substation;
    • a 220/110/35 kV 2×63 MVA Protozanovskaya substation.

The project helped eliminate the capacity shortage, reduce energy costs through no further use of diesel generators, improve the reliability of energy supply to the existing oil and gas production facilities of RN-Uvatneftegaz and Slavneft-Megionneftegaz, and ensure the required capacity margin to put on stream new oil and gas fields.

110 kV grid facilities:

  • commissioned:
    • a 14 km 110 kV Protozanovskaya – Taltsiyskaya overhead line at RN-Uvatneftegaz;
    • a 60 km 110 kV Donetsko–Syrtovskaya – Rybkinskaya overhead line at Orenburgneft.

In 2019, the Company commissioned 220 kV 502 MVA transformer capacities and a 394 km 220/110 kV overhead line, adding 18 MW of generating capacities.

Rosneft also completed the construction and started pre-commissioning of 10 kV main substations (distribution station No. 55 and central distribution station No. 2) with a design load of 22.6 MW to supply energy to Phase 2 and extended Phase 2 production facilities of the Zvezda Shipyard.

On top of that, the Company reconstructed a 0.8 km CHP – Okha heat main, a socially important facility for the Sakhalin Region.

Improved Energy Supply Reliability

Every year, the Company takes a number of steps to ensure uninterrupted energy supply of the existing and prospective production assets. In 2019, as part of its efforts to improve the supply efficiency and reliability, the Company conducted eight technical audits to check the quality of power facility management and drafted a remedial action plan to eliminate the gaps. The reporting year saw 908 remedial actions completed, with deadlines for another 916 not yet expired. This helped achieve a 5% year-on-year reduction of oil production shortages caused by power failures in in-house electricity networks.

As part of technical audits, the Company also checks if its sites operate equipment in compliance with health and safety requirements.