Gazprom: Natural gas to play major role in satisfying growing energy demand during energy transition
The Gazprom Board of Directors took note of the information about the development and implementation of projects designed to reduce the negative impacts brought about by energy transition processes.
It was highlighted that Gazprom is constantly monitoring energy transition processes and the associated risks and opportunities in order to take them into consideration in the long-term planning of the Company’s activities. The current stage of the energy transition is characterized by the growing use of renewable energy sources (RES) and has a number of negative effects on both consumers and producers of energy.
The main negative effect for consumers is that energy systems become less predictable and less stable as the share of RES in their structure grows bigger. Generation of power from RES depends on weather and lacks stability. For instance, this factor had a significant influence on the European energy market in 2021.
It was noted that natural gas is the most promising of conventional fuels, as its environmental advantages are considerable and the technologies of its use are well-developed and affordable. Natural gas is projected to make a major contribution to satisfying the rising energy demand during energy transition, inter alia, as a reliable and efficient fuel for backing up RES capacities. As per up-to-date assessments, the growth in global gas demand may reach 15 per cent by 2030 and 25 per cent by 2040 as compared to the year 2021.
Gazprom continues to develop its gas business and provides stable gas supplies to its key markets under long-term contracts. The Company actively works to diversify the pool of its gas consumers and implements gas processing projects to expand the portfolio of its products.
A critical requirement to energy producers in terms of energy transition is to reduce the carbon intensity of their products. Gazprom implements a set of measures aimed at further reducing the carbon intensity of its products, in particular, in the gas transmission segment. For instance, the Nord Stream, TurkStream and Nord Stream 2 gas pipelines are designed to, inter alia, achieve a considerable reduction of greenhouse gas emissions as compared to alternative but less advanced gas pipeline systems on the one hand and the imports of liquefied natural gas into the region on the other hand.
The Company works jointly with Russian enterprises to adopt the use of modern large-diameter pipes and gas turbine drives for gas compressor units with enhanced environmental safety characteristics.
With a view to further enhancing its environmental performance, Gazprom also implements measures to reduce emissions in the production segment of business and develop hydrogen technologies on the basis of natural gas. To achieve comprehensive adaptation to energy transition processes, the Company is preparing sustainable development scenarios up to 2050.
The projects and activities being implemented not only allow Gazprom to efficiently develop its business during the energy transition, but also contribute to the Company’s strategic goal of strengthening its leading position among global energy companies.