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.
– Today the Framework Agreement has been signed for gas supplies via the western route. This legally binding document creates the necessary prerequisites for signing a gas purchase and sale agreement within this top-priority project.
Ilkin Karimli, Credit Suisse
Ivan Khromushin, Gazprombank
Ekaterina Rodina, VTB Capital
Gazprom published its financial information under IFRS for the first six months of 2014.
Natural gas was traded at the St. Petersburg International Mercantile Exchange for the first time.
Gazprom and CNPC signed the Technical Agreement on gas supplies via the eastern route.
The following documents were approved:
- The Regulation on Gazprom’s Key Performance Indicators (KPIs);
- The adjusted Investment Program, Budget and Cost Optimization Program for 2014.
The Katharina UGS capacity was increased 1.5 times to around 170 million cubic meters.
The Company resolved to boost Blue Stream’s capacity to 19 billion cubic meters.
Gazprom set up the Construction Department to be headed by Sergey Prozorov.
Evgeny Shadrin was put in charge of Gazprom Investholding.
International Convention & Exhibition Center ExpoForum constructed by Gazprom was inaugurated in St. Petersburg.
Gazprom was named the general sponsor of the national Olympic Team.