Energy Efficiency

​As a large and prosperous company, Rusneftegaz both produces large quantities of fuel whilst also consuming great amounts of energy in all areas of our operations. This extends from combusting bituminous coal in our power plants, to utilizing electricity for the equipment in our offices. Consequently, this accrues significant costs for our organization, both environmentally and in terms of financial expenses borne. Therefore, our management is constantly reviewing our current practices to ensure that these resources are used efficiently, and makes improvements accordingly when possible. At a minimum, this includes not only complying with all the relevant laws and regulations of the Russian Federation in regard to the efficient use and saving of energy, but also adhering to any subsequent legislation. Currently, this entails following the terms of Federal Law No. 261-FZ, although our company also acts in accordance with local and international requirements when applicable. In all areas of our operations, Rusneftegaz has recently updated our best practices in accordance with ISO 50001, a code meticulously detailing how to manage energy use and consumption efficiently.

​For our organization, this involves implementing a variety of technical and operational measures to simultaneously reduce our resource usage, whilst also increasing our levels of productivity to align with our other strategic goals. These efforts, when in unison, should guarantee the sustainable development of Rusneftegaz both in the short and long term. For example, our company is actively reducing our energy consumption and usage, primarily through decreasing the fuel consumption in our electricity production business. Such cuts are being executed via our current regeneration of our existing generation assets, with the recent overhaul of our steam generators improving the heat efficiency of the combusted coal, whilst also reducing fuel consumption and therefore the corresponding costs. In the future, this will also lead to a decline in maintenance expenses, in addition to an enhanced capacity to monitor the performance indicators of the equipment, namely fuel usage. Similarly, the wider modernization and reconstruction of our power plants will also provide opportunities to improve the sites technologically, including the introduction of new equipment and processes, and optimize the supply and consumption of electricity.

​Whilst Rusneftegaz has an extensive plan to increase energy efficiency in individual areas of our operations, our board of directors is also focusing on implementing schemes that will impact our organization more widely. For instance, Rusneftegaz conducts periodical surveys of our energy usage, with the data collated being amalgamated with other information and resources to make observations regarding both electricity and fuel consumption. The review is then utilized to review short and long-term trends, review indicators of future use, and calculate new objectives based upon these results. These statistics are then analyzed by management as a reference point when making decisions regarding investments, and also when delegating responsibility for energy efficiency and savings among our staff. The former has served a crucial basis in the implementation of our current five-year spending program, with a significant impetus placed upon energy conservation technologies. This ranges from sensors to monitor usage, apparatus to retain heat, and modernized electrical machinery that requires less power. Whilst this expenditure should improve efficiency significantly, the primary onus of our investments remains to acquire safe, reliable, productive assets that are in the best interests of Rusneftegaz.

​However, regardless of circumstances the procurement of material that is energy efficient will remain a major priority for our organization, not merely from an ecological perspective, but also from an economic aspect. This extends from our smallest to our largest assets, where any new facilities that are constructed in the near and distant future shall be designed to fulfil the highest standards of energy efficiency. Fundamentally, this is important with regard to maintaining the potential longevity of a site, and whilst this will primarily entail deploying superior quality insulation and the latest appliances, it may also include utilizing automation to monitor energy usage and withdraw power from devices accordingly. In lieu with modern metering of electricity consumption, such contemporary technologies should yield continual and consistent savings in terms of both power usage and cash spent. Thereafter, the rise in performance targets that have been set by Rusneftegaz for almost a decade should be sustained in the months and years ahead.

​Despite the fact our management often searches and selects for this equipment with relative ease, in some instances the technologies and systems that minimize power consumption are not yet commercially available or do not represent a worthwhile investment at present. Thus, Rusneftegaz occasionally finds it necessary to collaborate with other companies, institutions and organizations to implement research and development programs to work on this emerging science. Rusneftegaz also maintains the capacity to cooperate with both local and regional authorities on the application of energy efficiency measures, and actively promotes their use in both domestic and professional settings. At a corporate level, this includes training and developing all our staff to understand the complexities of saving electricity and fuel, and to be capable of managing their use efficiently. Consequently, Rusneftegaz intends to begin using a system of accounting for energy in the near future, with the intention that the consumption of these resources will be economically and technologically justified.