10 Energy Consumption and Efficiency
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10

Energy Consumption and Efficiency

Energy consumption by PAO TMK and its subsidiaries in 2017
Type of energy source
Unit of measurement
Consumption by volume
Consumption by value (thousand $)
Natural gas
thousand cu m
796 719
133 284
Electricity
thousand kWh
3 824 770
195 354
Heat
Gcal
234 975
6 705
Gasoline
tonnes
514
392
Diesel fuel
tonnes
6 172
4 284
Fuel oil
tonnes
21
3
Total
340 022

TMK’s plants implemented a number of initiatives in 2017 to reduce energy consumption and improve energy efficiency, resulting in a lower specific consumption of key energy resources and cost savings of $4.5 million. Overall, the Company invested about $2 million in energy efficiency initiatives.

Selected key initiatives to improve energy consumption and efficiency:

  • Seversky Pipe Plant commissioned an EAF (electric arc furnace) heat recovery unit. Project costs were $0.4 million, while an economic benefit of $0.376 million was achieved in 2017 through reduced natural gas purchases to generate and supply heat to the plant and the northern districts in the town of Polevskoy.
  • Sinarsky Pipe Plant implemented an automated system to meter heat and steam consumed by the plant facilities. The project costs were $0.4 million with a projected 3.5-year payback period.
  • TAGMET completed the renovation of a lighting system at its pipe finishing line. Project costs were $0.09 million, while the economic benefit achieved in just four months since the project completion covered 30% of the costs.
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