06/02/2019

Press release: Gazprom continuing to adopt advanced digital technologies

The Gazprom Board of Directors took note of the information about the ongoing implementation of advanced digital technologies within the Gazprom Group.

It was highlighted that Gazprom considered digital technologies to be one of key aspects of further improving the Company's corporate governance and strengthening its market positions, as well as a vital tool for achieving its strategic goals.

Systematic work in this area is underway as part of the Informatization Strategy adopted in 2008. This includes the creation and constant expansion of the Gazprom Group's Integrated Information Environment (IIE) with a Corporate Data Bank based on key performance indicators.

 

As many as 46 information management systems that automate the most important business processes are already in operation at Gazprom and its core subsidiaries. Those business processes include supervisory control along with management operations in such areas as maintenance and repairs, investments, procurement, logistics, finance, budgeting, accounting and taxes, marketing and sales, and property and human resources. The Gazprom Group's Data Processing Center was built to meet the computational needs of all new systems. The Center operates in compliance with the existing requirements for information security, performance, scalability, integration, and accessibility.

The progress made in the area of information system development laid the groundwork for the widespread introduction of digital solutions at the Gazprom Group. To that end, the Company is pursuing the 2018–2022 Comprehensive Target Program for the Development of the IIE. One of the Program's basic principles – innovativeness – provides for the partial use of an advanced business management model (Industry 4.0 concept).

It is planned, inter alia, to use high-speed computation and artificial intelligence technologies to generate digital models of operational facilities (digital twins). In order to achieve cohesion and consistency in the digital versions of all facilities, a new all-encompassing digital model of Russia's Unified Gas Supply System will be built and put into use. There are also plans to create a single virtual data storage that will automatically collect real-time data from the facilities (using the so-called Industrial Internet of Things). The Company intends to use high-performance tools to conduct in-depth analyses across the entire data set.

The use of digital technologies is expected to have a significant economic impact. For instance, it will be beneficial in production due to the optimization of equipment operation modes, which will improve its performance and streamline inventory management with regard to repairs.

In supervisory control, digital technologies have the potential to reduce the unit costs of gas transmission and cut down maintenance spending at gas transmission facilities by optimizing gas flows and minimizing the use of fuel gas and electricity.

As far as financial management and marketing is concerned, new digital solutions could contribute to, among other things, increasing the interest income from the management of temporarily available funds and the income from energy sales.

The Management Committee was instructed to carry on with the deployment of advanced digital technologies within the Gazprom Group.

Background

The Industry 4.0 (fourth industrial revolution) concept envisages a wide use of digital technologies and application of proactive management tools to operational facilities and processes across the entire value-added chain for maximum business profitability.

The use of digital twins in line with the concept will, inter alia, result in a more integrated approach toward assessing the potential of such facilities, finding new opportunities to achieve greater efficiency, and optimizing capital and operating expenses.


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