Goals and indicators
LUKOIL demonstrates a sustained upward trend in reducing GHG emissions and intends to continue active work to step up efforts in this area.
In 2019, the Company surpassed its direct GHG emissions reduction target for Russian entities by two percentage points – GHG emissions were reduced by 3.3% against the 2016 level. An upward trend in reducing GHG emissions was achieved even with the growth in hydrocarbon production and refining volumes at Russian entities observed since 2016 (+1% and +6%, respectively). In the 2019 reporting year, the Company committed to determining future GHG emissions reduction targets, with progress to be reported by the Company on a regular basis.
In 2019, direct GHG emissions amounted to 37.2 million tonnes of СО2E, of which Russian entities accounted for 81%, and foreign entities for 19%.
LUKOIL Group entities that have a material impact through GHG emissions are included in the reporting: 29 RussianThe reporting boundaries include five power generation entities and one equipment operating company (LLC LUKOIL-ENERGOSETI), seven oil and gas producing entities, four oil refineries, one gas processing plant, two petrochemical plants, four oil product supply entities and one air bunkering entity, as well as four transportation entities. and four foreign entities (three oil refineries in Italy, Romania and Bulgaria, and one operating company in Uzbekistan).
In 2019, the data collection scope was defined more precisely. Unlike in previous years, emissions of natural gas used for LUKOIL-Komi’s in-house needs were taken into account in the reporting year, which had a significant influence on the dynamics of gross and specific indicators for exploration and production entities in Russia. Emission calculations for foreign entities included additional emission points of a power complex within a Romanian oil refinery (which became part of the refinery in 2019) and a catalytic cracking and reforming unit at a Bulgarian oil refinery (included as recommended by HSB Solomon Associated LLC according to the methodology appliedHSB Solomon Associated LLC (Solomon, the official company’s website.).
In Russia, the main contribution (around 80%) to the total direct emissions is made by fixed fuel combustion sources. Flaring made up about 10% of the total emissions and was at the same level as emissions from production processes.
By virtue of projects on efficient APG use, methane emissions reduced almost twofold (45.6% against the 2016 level). Almost the entire volume (more than 90%) of methane emissions comes from oil and gas production processes (in the process of APG extraction, during preventive maintenance work on equipment and in cases of equipment failures).
|1. Direct gross GHG emissions (Scope 1), million tonnes of СО2E|
|LUKOIL Group, including||38.02||37.85||36.44||37.22|
|1.1. Russian entities||31.29||31.14||29.99||30.26|
|By types of activity:|
|Exploration and production||10.83||8.85||8.07||10.07|
|Oil processing and petrochemicals||8.27||10.13||10.05||8.88|
|Electrical energy sector, including||12.07||11.80||11.66||11.11|
|Transportation and sales||0.09||0.09||0.09||0.09|
|1.2. Foreign entities||6.73||6.71||6.45||6.96|
|By types of activity:|
|Exploration and production||NA||0.24||0.37||0.33|
|Oil processing and petrochemicals||6.73||6.47||6.08||6.63|
|Share of emissions accounted for by countries where the regulation of GHG emissions has been implemented (Romania, Bulgaria, Italy), %||18||17||17||18|
|3. GHG composition (Russian entities)|
|Carbon dioxide, million tonnes of CО2E||29.85||29.87||29.02||29.48|
|Methane, million tonnes of CО2E||1.44||1.27||0.97||0.78|
|Share of methane, %||4.8||4.2||3.2||2.6|
|4. Specific GHG emissions|
|4.1. Specific GHG emissions in Russia|
|Exploration and production, tonnes of СО2E / tonne of oil equivalent in produced hydrocarbons||0.108||0.088||0.079||0.099|
|Processing, tonnes of CО2E / tonne of processed raw materials||0.173||0.209||0.204||0.183|
|Petrochemicals, tonnes of CО2E / tonne of processed raw materials||0.352||0.370||0.322||0.301|
|Electrical energy sectorThe indicator excludes LLC LUKOIL-ENERGOSETI (due to the specifics of the activity and the inability to bring the specific indicator to a single denominator) and LLC LUKOIL-Ekoenergo (due to the «zero» volume of direct greenhouse gas emissions). (tonnes of СО2E / MWh of generated electrical and heat energy)||0.339||0.332||0.326||0.335|
|4.2 Specific GHG emissions abroad|
|Exploration and production, tonnes of СО2E / tonne of oil equivalent in produced hydrocarbons||NA||0.025||0.024||0.020|
|Processing, tonnes of CО2E / tonne of processed raw materials||NA||0.339||0.319||0.333|
|5. Specific methane emissions in Russia, tonnes of СО2E/tonne of oil equivalent in produced hydrocarbons||0.015||0.013||0.009||0.008|
|6. Total energy consumption (purchased and internally generated), million GJ||NA||497.5||489.3||487.5|
|7. Flaring emissions, million tonnes of СО2E||4.64||3.54||2.21||2.52|
Notes. (1) GHG emissions by LUKOIL Group’s Russian entities were calculated in accordance with the calculation methodology prescribed by the Ministry of Natural Resources of the Russian FederationOrder No. 300 of the Ministry of Natural Resources of the Russian Federation dated 30 June 2015 (registered with the Ministry of Justice of the Russian Federation as No. 40098 on 15 December 2015) “On Approving Methodological Instructions and Guidelines for the Quantitative Determination of the Volume of Greenhouse Gas Emissions by Organizations Engaged in Business and Other Activities in the Russian Federation.”. Emissions by LUKOIL Group’s foreign entities were calculated in accordance with the national methodologies of the countries of operation. The indicator “Volume of direct GHG emissions” was checked as a part of the audit of the present Report (auditor — JSC KPMG). (2) The value presented in the “Share of emissions accounted for by countries where the regulation of greenhouse emissions has been implemented” line item is calculated as the ratio of GHG emissions released by European oil refineries (PETROTEL-LUKOIL S.A., LUKOIL Neftochim Burgas AD, ISAB S.r.l.) to the total GHG emissions released by LUKOIL Group. Information on LUKOIL Uzbekistan Operating Company LLC is not taken into account when calculating the above value, as no regulation of GHG emissions has been implemented in Uzbekistan at a national level. (3) Fluctuations in specific indicators for oil refining and petrochemical entities are due to changes in the production volumes of end products. (4) The figures for direct greenhouse gas emissions for 2016 are presented without taking into account data for LUKOIL Uzbekistan Operating Company LLC; for the period 2017-2019 boundaries are unified.