6.2.Environmental Protection

In accordance with the Transneft Integrated Policy in Occupational Safety, Energy Efficiency, Industrial and Environmental Safety, the Company’s key principles are prevention and reduction of its negative environmental impact; rational use of natural resources; involvement of employees in improvement of the environmental management system and disclosure of environmental activities. In accordance with the requirements of ISO 14001, the Environmental Management System (hereinafter referred to as the EMS) has been developed and introduced at Transneft and all its subsidiaries; the system is being improved continuously.

In 2019, the Company and its subsidiaries carried out 28 EMS audits, which confirmed its compliance with the requirements of ISO 14001: 2015.

An effective system for monitoring air, water and soil quality is in place at all operating facilities of Transneft. 53 environmental analysis laboratories staffed with highly skilled specialists and outfitted with state-of-the-art analytical equipment ensure that the system works; all the laboratories have been accredited by RusAccreditation. In 2019, about 680 thousand environmental tests were performed, of which 600 thousand were performed by the Company’s laboratories. The tests revealed no violations of permissible limits.

In pursuance of the Federal Laws On Environmental Protection and On Protection of Atmospheric Air and the UN Framework Convention on Climate Change, in 2019 the Transneft Long-Term Development Programme provided for a 1% reduction in the specific air pollutant emissions. As a result, this indicator went down by 0.01038 kg/t (6.9%) vs the previous year and reached 0.14102 kg/t in the reporting year. The plan for specific air pollutant emissions reduction for 2019 was delivered to the full extent.

The gross emission of air pollutants decreased by 5 thousand tonnes compared to 2018 and amounted to 73.72 thousand tonnes.

Overall, 12.396 thousand tonnes of harmful pollutants were caught and decontaminated during the reporting year, including 12.253 thousand tonnes of pollutants via JAOVRU (jet absorption oil vapour recovery unit) of Transneft Volga Region and VRU (vapour recovery unit) of Transneft Kozmino Port.

Water consumption came to 11.1 million m3 in 2019, wastewater disposal — to 8.8 million m3.

In 2019, 20 wastewater treatment plants were commissioned: 14 water treatment plants for utility water, 5 production and storm wastewater treatment plants and 1 wastewater treatment plant for combined wastewater. 9 of them were manufactured, assembled and upgraded to reach the design performance through the effort of Tyumen Machinery and Repair Plant of Transneft Siberia.

The set of water protection measures taken in 2019 resulted in the reduction of insufficiently treated wastewater discharged to water bodies by 3% year-on-year which reached 106.93 thousand m3.

In accordance with the Transneft Long-Term Development Programme, the discharge of insufficiently treated wastewater discharged to surface water bodies was completely stopped in Q4 2019.

The main volume of greenhouse gas emitted from operating facilities is attributable to stationary fuel combustion in boiler houses to generate thermal energy for own needs. The boiler equipment is manufactured by Transneftemash, a Transneft Upper Volga’s factory. This equipment ensures minimum fuel consumption along with high efficiency, thus achieving the lowest CO2 emissions possible.

In 2019, greenhouse gas emissions decreased by 65.5 thousand tonnes compared to 2018 and amounted to 387.7 thousand tonnes.

Innovative environmental safety and sustainable nature management projects in the pipeline transportation of oil and petroleum products addressing the topics of the Technological Platform were implemented in 2019, including:

1. Technical Solution “Developing the Technology of Using Aquatic Organisms for Environmental Monitoring of the Water Area in the Gulf of Finland of the Baltic Sea to Detect the Potential Footprint of Transneft Primorsk Port’s Operating Facilities”

The successful experience of additional environmental monitoring in the bay of the Sea of Japan where another oil port of the Company — the Kozmino port — is located, was replicated in the Bjorkosund Strait.

Technical Solution “Developing the Technology of Using Aquatic Organisms for Environmental Monitoring of the Water Area in the Gulf of Finland of the Baltic Sea to Detect the Potential Footprint of Transneft Primorsk Port’s Operating Facilities”
2. Technical Solution “Developing the Technology of Using Aquatic Organisms for Environmental Monitoring of the Water Area in Tsemes Bay of the Black Sea near Chernomortransneft’s Operating Facilities”

A similar project for additional environmental monitoring is to be implemented in the water area of Tsemes Bay of the Black Sea, where operating facilities of Chernomortransneft are located. Hydrological, hydrochemical and hydrobiological studies were carried out, a workflow for building the farm and the specifications for its construction were developed. Materials are being prepared for state environmental appraisal of the documentation for the facility: A Biological Test Site for Monitoring the Impact of Oil/Petroleum Products Loading Facilities on the Ecosystem Condition of Tsemes Bay of the Black Sea. The site will be home to Black Sea mussels, giant oysters, green and brown algae.

Technical Solution “Developing the Technology of Using Aquatic Organisms for Environmental Monitoring of the Water Area in Tsemes Bay of the Black Sea near Chernomortransneft’s Operating Facilities”
3. Development “Preparing Documents for the Manufacture of Flotation Plants for Wastewater Treatment at the Facilities of Oil and Petroleum Products Trunk Pipelines”

Engineering documentation conforming to the requirements of GOST 2.102-2013 was developed for flotation plants to be used as part of production and storm wastewater treatment facilities to arrange their manufacture at TMRP of Transneft Siberia.

Development “Preparing Documents for the Manufacture of Flotation Plants for Wastewater Treatment at the Facilities of Oil and Petroleum Products Trunk Pipelines”
4. Research “Analysing the Efficiency and Developing Recommendations on the Introduction of Membrane Bioreactors in Technological Layouts of Utility Water Treatment at the Operating Facilities of Transneft Subsidiaries”

As part of introducing innovative wastewater treatment technologies involving membrane bioreactors, expert appraisal of design and engineering documentation was conducted in 2019 for revamping of treatment facilities at the Yefimovka LODS of Transneft Volga Region; expert appraisal is being conducted for treatment facilities at the Kuzmichi LODS of Transneft Volga Region.

5. Research “Researching the Ways to Reduce Oil and Petroleum Products Vapour Emissions into the Environment and Developing Proposals for their Improvement and Implementation at Transneft Subsidiaries Facilities. Developing a Methodology for Instrumental Measurements of Oil and Petroleum Products Vapour Emissions at Transneft Subsidiaries”

In 2019, a mathematical model of oil and petroleum products vapour recovery processes was tested, and technical solutions to improve the system were developed. Monitoring studies were carried out at loading facilities of Transneft Primorsk Port; data and recommendations for designing VRU at the port were generated.

Transneft is successfully implementing the 2019-2021 Programme for Biodiversity Conservation in the areas near its facilities. In 2019, the following key measures were taken:

1. Reproduction of Aquatic Fauna

The Company maintains the ecosystem balance in the areas where its oil trunk pipelines run. Fish juveniles (raised at fish farms and hatcheries specifically for the purpose) are released into rivers and water bodies to compensate for the environmental impact. In 2019, over 6 million juveniles of various species were released into water bodies all across the country.

2. Use of Aquaculture for Environmental Monitoring of Marine Water Areas near Transneft Facilities

In 2020, the pilot mariculture test farm at Kozmino Bay will celebrate its 10th anniversary. Over the years, it has evolved and developed. Now, on the area of 7 hectares, sea scallops, Pacific mussels, Japanese kelp and trepangs are used for environmental monitoring of the water area. A comprehensive analysis of their condition was conducted, and it showed that the operations of Transneft Kozmino Port did not have any negative human impact on the adjacent waters, and the growth rate of the population indicated a favorable environmental situation. The test farm facilitates both preservation of biodiversity in the bay and reproduction of valuable fauna species through creation of favourable conditions for their living and spawning, as well as for maintaining the spawning population of valuable commercial species. In order to enhance the biodiversity of Nakhodka Bay in the Sea of Japan and acting in pursuance of the adopted Plan for Artificial Reproduction of Marine Biological Resources in Water Bodies Used for Commercial Fishing in Primorye Territory, employees of Transneft Kozmino Port released 10,000 juvenile species of Japanese scallop into the sea in 2019. In 2019, the Company commissioned its second mariculture test farm — in the water area of the Bjorkosund Strait in the Gulf of Finland, which was populated with 900 Baltic whitefish and 600 trout; the fish are monitored by ecologists. A similar project is being developed in the water area of Tsemes Bay, where operating facilities of Chernomortransneft are located.

Use of Aquaculture for Environmental Monitoring of Marine Water Areas near Transneft Facilities
3. Support of the European Bison Population Restoration Programme in Vladimir and Ryazan Regions

Transneft has been helping restore the bison population in Vladimir Region since 2014 by providing financial support to Meshchera National Park. The Company manages four protected areas (PAs) of federal significance, across which its trunk pipelines run: the Meshchera and Meshchersky national parks in Vladimir and Ryazan Regions respectively, as well as Murom Reserve and Klyazma Reserve. In recent years, a steady bison population has formed, the number of bison in Murom Reserve increased from 47 in 2014 to 101 in 2019 and reached the highest possible number within the reserve area. In 2019, Transneft financed a project to relocate calves to the Meshchera and Meshchersky national parks, which are provided with sufficient forage and adequate protection. In 2019, with the help of charitable funds, an enclosure with feeders which allows for capturing animals was built at Murom Reserve in Gorokhovetsky District of Vladimir Region, and so was a nursery enclosure for reproduction and temporary keeping of bison at Meshchera National Park, which can also serve as a demonstration site for tourists. In 2020, two males and about six females are to be transported there; the animals will start a bison herd in the new enclosure.

4. Reforestation, Afforestation and Coasts & Banks Clean Up Activities

In 2019, employees of Transneft traditionally took part in environmental campaigns and planted more than 140 thousand trees, 150 thousand herbs and 1.3 thousand bushes, as well as cleaned water bodies and water protection zones from waste.

Reforestation, Afforestation and Coasts & Banks Clean Up Activities Rendering Financial Support to the Amur Tiger Centre Autonomous Non-Profit Organisation for Research and Conservation of the Amur Tiger Population
5. Rendering Financial Support to the Amur Tiger Centre Autonomous Non-Profit Organisation for Research and Conservation of the Amur Tiger Population

The Amur tiger has been on the verge of extinction and thus listed on the Red List of the International Union for Conservation of Nature and its Russian counterpart for a long time. Thanks to a great deal of effort, the population was restored, and the species was removed from the list of critically endangered animals. The next important target was to preserve and increase the population of these rare animals. Transneft has also made a contribution: Transneft partners with the Amur Tiger Centre non-profit organisation established in 2013 by the Russian Geographical Society at the initiative of Russian President Vladimir Putin.

6. Measures to Prevent and Reduce the Risk of Birds’ Death due to Contact with Current-Carrying Wires of ETL Supports.

Using ETL supports for rest and hunting, birds are at risk and can cause technological failures of power equipment. In 2019, the Company began to improve the environmental safety of its power grid facilities: route electric power transmission lines are being equipped with bird protection devices, and bare wires of overhead transmission lines with voltages of 0.4 and 6-10 kV are being replaced with aerial bundled cables. More than 28.12 km of route electric power transmission lines have been reequipped in this manner. The Company helps develop zoological parks, special protected zones and natural monuments, landscapes public gardens and park zones, promotes environmental culture and ecotourism. The Company sponsored the setup of 12 stork nests in Aistiny Reserve of regional significance intended for conservation and restoration of the Far East Stork population in the interfluve between the Khor and Podkhoryonok Rivers. Together with ornithologists from the Zapovednoye Priamurye state budgetary institution, the nests of Far Eastern storks were monitored in the territory of the reserve. In order to improve nesting conditions, restore lost nesting places and increase the population of rare bird species, 87 artificial nests were installed in Nizhny Novgorod Region. In 2019, monitoring revealed nests of the Ural owl and the red-listed Boreal owl and Osprey. In 2020, the nesting monitoring will continue.