Power Engineering

G4-9, DMA,
G4-EN3, G4-EN5,
G4-EN6, G4-EC7, GRI G4 OG3

LUKOIL is both a major consumer and producer of electrical energy. The Company produces electrical and thermal energy for external consumers (commercial generation) and for internal needs (support power).

Commercial and support power generation

General indicators G4-9
Power output, million kW*h
Thermal energy output, million GCal
Note. Support power is excluded. The data are provided for the following assets: OOO LUKOIL-Volgogradenergo, OOO LUKOIL-Rostovenergo, OOO LUKOIL-Stavropolenergo, OOO LUKOIL-Kubanenergo, OOO LUKOIL Astrakhanenergo, S.C.LUKOIL ENERGY & GAS ROMANIA S.R.L., OOO LUKOIL ENERGIA I GAZ KALUSH, Lukoil Energy & Gas Bulgaria EOOD, LUKOIL-Ekoenergo.

The Group’s commercial generation assets include those located in the Southern and Northern Caucasus federal districts of Russia: 12 thermal power stations, four hydroelectric power plants (HPP) and two power plants with boilers using gas-piston units. In 2015, the Company completed a large-scale program aimed at commissioning its power generation facilities as provided by the applicable capacity supply agreements.

The development of support power generation contributes to the greater use of APG, and partly satisfies the LUKOIL Group’s need for power. The support power output more than doubled in the reporting period due to the commissioning of the first part of the Usa power center (the Komi Republic) and the power center at the V. Filanovsky field.

Support Power Generation in Russia
2014 2015 2016
Installed capacity of power stations Taking into account the 2016 launch of the 100 MW unit at the Usa center, selling of Volgograd CHP 2 at the Volgograd Refinery (225 MW), and the launch of the Filanovsky OIRP (49.6 MW)., MW 678 1,164 1,539
Power output, million kW*h 3,273 3,897 5,339
Power Engineering

The Usa power center project has made provisions for the construction of eight steam plants by 2019.

Energy saving and energy efficiency activities

Efficient management of fuel and energy is one of the main priorities of the LUKOIL Group. The Company has approved its 2017 and 2018–2019 Energy Conservation Program of LUKOIL Group entities.

The activities are expected to save over 3,000 million RUB and decrease the energy consumption of: DMA
Electric power

> 240 million kW*h
Thermal energy

> 400 thousand GCal
Boiler and furnace fuels

> 480 thousand tons of reference fuel
Energy Resource Consumption at Russian LUKOIL Group entities G4-EN3
Types of energy resources consumed 2014 2015 2016
Electric power consumption (purchase and generation), billion kW*h 19.2 20.2 20.8
Thermal energy consumption (internal generation, purchase from external suppliers), million GCal 14.6 16.4 20.7
Other types of resources, boiler and furnace fuels, million tons of reference fuel 6.7 7.7 8.3
Energy resources supplied under purchase and sale agreements in Russia
Purchased electric power Excluding transfers. , billion kW*h
Purchased thermal energy Excluding transfers. , million GCal
Specific power consumption during production of fluids in Russia, kW*h/tons
G4-EN5
Note. The indicator reflects energy consumption for oil pumping, water injection into reservoirs to maintain reservoir pressure, oil treatment, oil gathering and transportation, and general needs.
Energy Savings from Implementation of the Energy Conservation Program in the LUKOIL Group Entities in Russia G4-EN6
Period Electric power, mln kW*h Thermal energy, thousand GCal Boiler and furnace fuels, thousand tons of reference fuel Financial savings, million RUB
2014 92 119 55 526
2015 108 168 49 764
2016 82 57 76 708
Note. The data are provided for the entities specializing in upstream activities, processing, petroleum chemistry, gas processing, product marketing, and transport.
Energy Savings from Implementation of the Energy Conservation Program in LUKOIL Group Entities in Russia G4-EN6
Period Electric power, mln kW*h Thermal energy, thousand GCal Boiler and furnace fuels, thousand tons of reference fuel Financial savings, million RUB
2015 15.7 122 13.6 597.7
2016 5.2 43 6.6 365
Note. The data are provided for the following entities: PETROTEL-LUKOIL S.A., LUKOIL Neftochim Burgas AD (Bulgaria) and product marketing entities.

Renewable Energy Sources

The cumulative capacity of power generating assets operating on renewable energy, including four HPPs, stood at 390 MW in 2016.

The first renewable pilot projects were the construction of solar parks at three filling stations located in Serbia and Russia in 2009. Over the reporting period, several projects were implemented, using renewables to generate energy for the internal consumption of the Company’s entities. G4-EC7

As of the Report date, construction of the 10 MW solar plant was ongoing at the Volgograd refinery.

A Competence Center on renewables has been created in OOO LUKOIL-Ecoenergo for the benefit of LUKOIL Group entities that might be interested in implementation of renewable energy facilities and systems.


Solar collectors

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Several filling stations are equipped with solar collectors to provide hot water and heat pumps for air conditioning and heating.
Solar park in Bulgaria

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A 1.25 MW solar park was commissioned in 2011 at the Bulgarian refinery. The power it generates is supplied to the national grid and is subject to a preferential payment rate.
Solar park and wind farm in Romania

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A 9 MW solar park was commissioned in 2014 at the Romanian refinery, along with the 84 MW Land Power wind farm. The power generated by solar parks and wind farms is supplied to the grid and is subject to market rate payment. “Green certificates” are issued based on energy generation volumes and are traded in a specialized market.

Power generation (all sources) and the share of power generated from renewable sources in Russia GRI G4 OG3
Indicator 2014 2015 2016
Power output (excluding small-scale generation), million kW*h 16,810 17,580 17,885
Share of electric power generated from renewable energy sources, % 5 3 4
Renewable Power Generation Abroad GRI G4 OG3
Renewables in other countries 2015 2016
Installed electric power, MW
Solar parks 10.25 10.25
Wind farms The 84 MW Land Power wind station was owned by a joint venture with Erg Renew in 2015, and was not reflected in the index. 84
Power engineering

The cumulative capacity of power generating assets operating on renewable energy, including four HPPs, stood at 390 MW in 2016.

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