Gazprom gains RUB 20.7 billion from its 2016–2018 import substitution efforts

The Gazprom Management Committee took note of the information about the engagement of Russian industrial and machine-building enterprises in the implementation of the Company’s strategic goals.

Gazprom is actively employing various organizational mechanisms to enhance its cooperation with domestic enterprises. These mechanisms include long-term contracts with manufacturers for batch production, supply and maintenance of hi-tech equipment; roadmaps signed with Russian regions to increase involvement of local enterprises; agreements and cooperation programs with leading metal and pipe companies, state-run corporations and the military-industrial complex. In total, Gazprom signed more than 60 instruments of this kind.

It was pointed out at the Management Committee’s meeting that the comprehensive effects from the systematic steps Gazprom has made in this direction are evident. The Company is further improving its operational efficiency – the economic effect from the import-substituting technologies, equipment and materials applied at Gazprom’s facilities in 2016–2018 is estimated at RUB 20.7 billion. In addition to that, the investments made by Russian companies in upgrading and creating new production facilities have already reached RUB 17.8 billion under long-term contracts with Gazprom alone.

A prominent result of the steps taken is the creation of the first domestic equipment prototypes for subsea hydrocarbon production systems through joint efforts of Gazprom, the Russian Ministry of Industry and Trade, research institutes and machine-building enterprises. A full range of the key equipment for operating offshore fields was presented at the St. Petersburg International Gas Forum in October 2019.

The relevant units were instructed to maintain further cooperation with Russian industrial and machine-building enterprises.

The Management Committee also took note of the Company’s ongoing efforts on the implementation of the Process Safety Management System Development Strategy until 2021.

It was noted that maintaining a high level of industrial safety and protecting the health of employees are absolute priorities for Gazprom. The Company has an efficient Integrated System of Process Safety Management, the compliance of which with the OHSAS 18001:2007 international standard is verified on an annual basis via recertification audits.

Gazprom is implementing comprehensive measures to improve working conditions and adopting the best domestic and international practices. As a result, the share of workplaces in harmful and dangerous work environments at the Company’s subsidiaries went down from 23.3 to 14.5 per cent in the last five years (2014–2018).

Efforts continue to be made in this field. The relevant units were tasked to devise the Process Safety Management System Development Strategy until 2031.

Issues concerning the engagement of Russian industrial and machine-building enterprises in the implementation of the Company’s strategic goals and the status of efforts in the field of process safety will be submitted for review by the Gazprom Board of Directors.