Gazprom Neft outlines net zero plans

Gazprom Neft has announced plans to reduce the carbon intensity of its products by 30% by 2030. Speaking at a conference on 21 September, Sergey Vakulenko, Head of Strategy and Innovations, said that beyond this goal, the company will be striving towards net zero, including changing its product mix and further reducing its carbon footprint.

However, to achieve this, support from government policies and changes in consumer choices will be required. Vakulenko said that energy transition and decarbonisation represent a unique challenge as this process requires effort by every country in the world. He expects there to be a call for the establishment of global institutes overseeing taxation, investment and compliance with regulation – but said he doubted whether the world is ready to set them up just yet.

According to Vakulenko, new oil and gas will still be required in the future to compensate for production decline, particularly in developing countries. There will still be demand for natural gas, he said, stating that Gazprom Neft would strive to meet this demand. He noted that even if demand began to stagnate or decline, it would not be vanishing for a long time.

Gazprom Neft plans to supply hydrogen to areas, uses and industries that are difficult to electrify, such as the steel industry and long-distance transport. According to Vakulenko, steam methane reforming and carbon capture and storage (CCS) is by far the most attainable low carbon mass production of hydrogen in sight. He believes policies related towards hydrogen should primarily focus on emissions and not on raw materials or the processes involved.

Vakulenko also said that the company looks forward to developing its CCS capabilities and offering CCS service to power generation companies and heavy industries. However, he noted that carbon capture, utilisation and storage currently costs –and, as a mature technology, potential cost reductions are limited.