Clean Air: atmospheric emissions

DMA, GRI G4 OG6, G4-EN20 GC 7, 8,
CPI 2.6.1,
G4-EN21 GC 7,8 CPI 2.6

Management Approach DMA

The key measures to reduce atmospheric emissions of pollutants include:

  • upgrading and construction of facilities whose operations increase APG utilization;
  • upgrading and construction of new generation facilities by power generation entities;
  • replacement and upgrading of equipment at industrial sites;
  • adjustment of applied technologies to best suit particular needs.

Utilization of associated petroleum gas

Most atmospheric emissions are attributed to entities engaged in production (85%), with APG combustion products accounting for 65% of the total emissions.

In 2016, Russian LUKOIL Group entities flared 938 million cubic meters of APG.

The Company’s objective is to bring APG flaring to a minimum. For over a decade, LUKOIL has been investing in APG utilization projects, having started its APG flaring reduction effort long before legislators made it mandatory.

Russian entities are currently implementing the fourth Program of Efficient APG Management in LUKOIL Group entities for 2016–2018. Foreign entities are also developing similar programs and activities.

The key activities under the Russian Entities’ Program include APG utilization at power generation facilities and product consumption for production needs, the construction of a gas transport infrastructure, and the search for consumers.

  • Between 2015 and 2016, 43 APG utilization facilities were put in operation.
  • Another 42 projects are currently in their design, building, and reconstruction stages.
  • LUKOIL spends about 20 billion RUB annually on construction of its APG utilization infrastructure

APG is injected into formations at fields to maintain formation pressure, generate electricity at supporting gas-fired power plants or for other production needs. Marketable associated gas is supplied to gas treatment plants and to local consumers.

  • Over 11 years, APG utilization across Russian entities grew from 75% to 91.7%.
  • In 2016, the APG utilization rate of the LUKOIL Group was 92.1% (91.7% in Russia, and 98.1% at Company facilities outside Russia).

The Company expects to reach its target of 95% across Russian entities by 2018, for the most part through renovation of the Usinsk Gas Processing Plant in the Komi Republic and construction of utilization facilities in the North Caspian and other regions. Whether and to what extent such plans will be accomplished, depends on:

  • emergence of the LUKOIL Group’s new assets during the program implementation period;
  • complexity of operations at separate producers within fields that are far away from existing infrastructure and feature minor APG resources, and other similar sites.
APG utilization level, %
Fluctuations of the APG utilization levels, billion cubic meters
Note. These charts show the data of entities operating in Russia.

Atmospheric emissions

Over the reporting period, the reduction of emissions specific to the Petrochemicals business sector was due to an increase in output: in February 2016, the first start-up complex gas processing plant was put into operation at the Stavrolen plant in Budennovsk, processing about 1 million tons of APG supplied from the North Caspian fields.

Reduction of specific emissions across the Midstream business sector was due to contracting out of motor and railroad transportation services to third parties.

A minor emissions growth across the Product Marketing in Russia business sector was due to the changes in the calculation methodology and structure of sold fuels (growth of small-scale wholesale diesel fuel sales).

The growth of specific emissions across the Power Engineering business sector was due to a higher share of fuel oil in the fuel used to power LUKOIL-Volgogradenergo’s CHP (raising to 12% in 2016) accounted for by the economic situation in the petroleum product market of the Volgograd Region. No maximum permitted emissions have been exceeded.

The fluctuations of emissions across the Oil and Gas Production in Russia business segment are due to APG flaring.

A substantial decrease in the SO2 emissions was due to the cessation of flaring of APG with a high concentration of hydrogen sulfide, commissioning of oil treatment units with sulphur generation and granulation capabilities at LUKOIL-Komi’s Bayandynskoye and Vostochno-Lambeyshorskoye fields, the products of which are heavily saturated with hydrogen sulfide. Upgrading of the flaring systems of the LUKOIL Group’s oil and gas producing entities led to a substantial reduction in soot emissions.

Specific emissions broken down into business sectors CPI 2.6.1
Business sector 2014 2015 2016
Oil and Gas Production in Russia, kg/tons of reference fuel of produced hydrocarbons 5.6 4.5 5.5
Oil Refining in Russia, kg/tons of refined oil 0.9 0.9 0.9
Petrochemicals, kg/tons of processed raw stock 3.8 2.3 1.0
Product Marketing and Distribution in Russia, kg/tons of sold petroleum products 0.6 0.7 0.7
Midstream, kg/tons of transported oil and petroleum products 0.2 0.1 0.1
Power Engineering, kg/tons of reference fuel consumed 3.6 2.9 3.7
Atmospheric emissions of NОx, SОx and other major pollutants (net of СО2) in Russia, thousand tons G4-EN21 GC 7,8 CPI 2.6
Indicator 2014 2015 2016
Total atmospheric emissions of pollutants, including: 656.4 541.9 627.5
NОx emissions 34.2 38.9 44.0
SO2 emissions 100.1 58.2 59.7
solids emissions 30.1 25.4 26.9
CO emissions 293.8 232.0 295.9
hydrocarbon emissions The methane emissions detailed in historic reports are incorporated into the Greenhouse gas emissions indicator, calculated separately. 190.7 184.7 199.2
other emissions/discharges 7.5 2.7 1.8
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