For over 40 years Europe has been the most important consumer of Russian gas. More than 20 countries of Central and Western Europe account for above 65 per cent of the total gas exports by Gazprom.
Gazprom values its customers and makes great efforts to secure steady gas supplies for a long-term period. Gazprom signed multi-year gas supply contracts with major customers, which helps make long-term fuel production and transportation plans.
Gazprom owns the world’s largest gas transmission system capable of continuous gas delivery over long distances to consumers in the Russian Federation and abroad.
In order to improve the reliability of supplies and provide capabilities for increasing them and reducing transit risks, Gazprom together with its European partners implements new gas transmission projects, namely, the Nord Stream and the South Stream.
The underground gas storage (UGS) facilities located in European countries help increase reliability and flexibility of exports.
In its collaborative effort with the European partners, Gazprom is seeking to form a value chain from production to end consumer.
Thus, partnerships with the German Wintershall Holding and E.ON Ruhrgas include gas production (Achimov deposits in the Urengoy and Yuzhno-Russkoye fields), transmission (the Nord Stream gas pipeline) and distribution (gas supplies through a joint venture with Wintershall Holding – Wingas, as well as projects with E.ON in power generation).
Gazprom’s partners from Italy participate in the SeverEnergia production project, the South Stream project, and joint projects in third countries.
In order to strengthen the Group positions abroad, Gazprom neft acquired a 51 per cent stake in the NIS oil company.
The CIS and Baltic states are traditional consumers of Russian gas. The Group’s strategy aims to preserve the attractiveness of Russian gas to consumers in the region.
Gazprom’s pricing policy with regard to the CIS and Baltic states provides for a phased adjustment of contractual terms and pricing mechanisms in accordance with the current situation on the European gas market.
One of the elements of the Company’s strategy in the CIS and Baltic states is to increase access to end users. Gazprom sbyt Ukraine, a subsidiary of Gazprom, is in charge of direct gas supplies to industrial consumers in Ukraine, whereas ArmRosGazprom supplies and distributes gas on the Armenian domestic market.
Using their presence on the markets of the CIS and Baltic states, Gazprom’s joint ventures actively participate in the equity capitals of local gas distribution and transmission companies.
Gas purchases in Central Asia are an important element of building Gazprom’s overall resource base that would meet the market needs in Russia, as well as in the CIS and beyond.
The American and Asia-Pacific countries are new and promising sales markets for Gazprom.
Liquefied natural gas (LNG) supplies buildup is among the priorities in the gas sales development on the new markets.
In 2005 Gazprom started making LNG spot and swap deals. In 2009 as part of the Sakhalin II project the Company commissioned Russia’s first LNG plant and launched Russian LNG supplies to foreign consumers. Also in 2009, Gazprom Marketing & Trading, a member of the Gazprom Group, began to deliver gas to the North American market.
In order to expand its LNG business, Gazprom is considering several options to build gas liquefaction plants, particularly on the basis of the Shtokman field on the Yamal Peninsula in the Russian Far East.
Currently, talks are underway with companies from Asia-Pacific on exporting Russian natural gas and LNG to South Korea, Japan and China.
The development strategy of Gazprom as a global energy company is targeted at building the entire chain from production to marketing of hydrocarbons on new markets based on the production facilities located beyond Russia. Under this strategy, Gazprom conducts exploration on the Venezuelan shelf and negotiates access to oil and gas projects in Bolivia.
– In the current talks with China we are focused on the western route. The contract under development provides for supplying 30 billion cubic meters of gas a year. The gas pipeline project for the western route is all set for transiting to the construction phase. We are moving ahead in a good pace in the commercial talks.
Ekaterina Rodina, VTB Capital
Alexander Kornilov, Alfa Bank
Pavel Sorokin, Morgan Stanley
Andrey Gromadin, JP Morgan
The Board of Directors resolved to hold the annual General Shareholders Meeting of Gazprom on June 26, 2015 in Moscow.
China’s rating agency Dagong assigned the highest credit rating to Gazprom.
Gazprom held the Investor Day for the first time in Asia – in Hong Kong and Singapore.
- Pavel Krylov was put in charge of a new Department of Gazprom;
- Vladimir Krokha was appointed Director General of Gazprom Dobycha Shelf Yuzhno-Sakhalinsk;
- Vladimir Kiyayev was named Director General of Gazprom Dobycha Orenburg;
- Oleg Arno was appointed Director General of Gazprom Dobycha Yamburg;
- Alexander Koryakin was promoted to Director General of Gazprom Dobycha Krasnodar.
The Gazprom Arbitration Court was awarded a medal of the Femida international legal prize.