The Gazprom Board of Directors expressed contentment with the energy saving programs implementation by the gas production and gas transmission subsidiaries of the Company between 2002 and 2010.

The Board of Directors took notice of the information about the Energy Saving and Energy Efficiency Improvement Concept 2011–2020 and the Energy Saving and Energy Efficiency Improvement Program 2011–2013.

The Management Committee was tasked to meet the energy efficiency targets envisaged by the said documents.

It was highlighted that the Energy Saving Concept stipulated a decline in specific natural gas consumption for process needs by at least 11.4 per cent and greenhouse gas emissions – by at least 486 million tons of CO2.

Background

Gazprom performs large-scale and methodical energy efficiency work. Comparing with the world energy leaders such as ExxonMobil, BP, Shell, Total, Eni, Statoil, Chevron, ConocoPhillips andPetroChina – Gazprom is specific with the above average energy efficiency.

The energy saving programs implementation by the Gazprom subsidiary companies between 2002 and 2010 allowed saving fuel and energy resource in the amount of 29.8 million tons of fuel equivalent including 25 billion cubic meters of natural gas and some 3 billion kWh of electricity. The main energy saving effect (over 85 per cent) was produced by gas transmission while the economic effect of the activity reached RUB 24.4 billion.

In December 2010 Gazprom adopted the Energy Saving and Energy Efficiency Improvement Concept 2011–2020 and the Energy Saving and Energy Efficiency Improvement Program 2011–2013.

The Concept of the Company is primarily aimed at the maximum use of energy saving potential in any activity thus reducing the environmental impact. This objective will be met through cutting-edge technologies and equipment utilization as well as through energy saving management streamlining. The energy saving potential for 2011–2020 is defined at 28.2 million tons of fuel equivalent including 25.7 billion cubic meters of natural gas, 1.6 billion kWh of electricity and 956 thousand Gcal of heat.

Implementation of the Energy Saving and Energy Efficiency Improvement Program 2011–2013 will allow Gazprom saving 6.4 million tons of fuel equivalent within the mentioned period with over 5.4 billion cubic meters of natural gas, 459 million kWh of electricity and 511 thousand Gcal of heat.