Gazprom Today

Largest Gas Company

Gazprom is a global energy company basically focused on geological exploration, production, transportation, storage, processing and marketing of gas and other hydrocarbons as well as electric power and heat energy production and distribution. The state owns a 50.002 per cent controlling stake in Gazprom.

Mission and Strategic Goal

Our mission is to provide maximally efficient and well-balanced gas supply to Russian consumers as well as to secure a high degree of reliability when implementing long-term gas export contracts.

Gazprom’s strategic goal is to take the leading position among global energy companies by entering new markets, diversifying business activities and ensuring reliable supplies.

Reserves and Gas Production

Gazprom Group possesses the world’s largest natural gas reserves. As of December 31, 2008 the Group’s A+B+C1 resources were estimated at 33.1 trillion cubic meters. According to the international PRMS standards the Group’s proven and probable hydrocarbon reserves are estimated at 27.3 billion tons of fuel equivalent and valued at USD 230.1 billion.

With 17 per cent of the global gas production, Gazprom Group is the leader among the world’s oil and gas companies. In 2008 Gazprom Group produced 549.7 billion cubic meters of gas.

Reliable Gas Supplier to Russian and Foreign Consumers

Gazprom owns the world’s largest gas transmission system capable of uninterrupted and long-distance gas delivery to Russian consumers and abroad. Gazprom gas trunklines stretch 159.5 thousand km. The Company’s 165 gas distribution companies maintain 445.3 thousand km of gas distribution pipelines and secure transportation of 164.3 billion cubic meters of natural gas.

Gazprom exports gas to the countries within and beyond the FSU, and continues reinforcing its positions on conventional international markets. In 2008 the Company sold 184.4 billion cubic meters of gas to European countries along with 96.5 billion cubic meters to the CIS and Baltic states.

Diversifying Transmission Routes and Reinforcing European Energy Security

Increasing the security of gas supplies to European consumers is one of Gazprom’s strategic targets. For this purpose Gazprom has initiated the new gas transmission projects – Nord Stream and South Stream – that will make it possible both to diversify export routes of Russian gas and to secure additional opportunities for raising gas export.

Preparations are underway for the Shtokman field development project offshore the Barents Sea. The project will become the resource base for Russian gas export to Europe via the Nord Stream.

Market and Product Diversification

Gazprom is implementing a staged strategy of expanding its presence on the liquefied natural gas (LNG) market. This helps to extend the Company’s business geography. In 2005 Gazprom supplied its first LNG cargo to the USA, in 2006 – to the Great Britain, Japan and South Korea. Gazprom’s entry in the Sakhalin II project gives a strong impetus for the completion of a large-scale project targeted at supplying energy carriers to Asia-Pacific and North America. In 2009 the first Russian LNG plant was launched in Sakhalin. 

Business Priorities

A business priority of Gazprom is the development of the Yamal Peninsula, Arctic continental shelf, Eastern Siberia and the Far East.

According to the assignment of the Russian Federation Government, Gazprom coordinates the implementation of the Development Program for an integrated gas production, transportation and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia-Pacific countries (Eastern Program). Russia’s East is planned to see the development of a gas processing and gas chemicals industry that will enable to rationally use substantial reserves of helium and other valuable components of Eastern Siberia’s gas.

Business Diversification

Oil business development and competitive presence in the power generation industry are the strategic goals of Gazprom on its way to become the leading global energy company.

The strategy of oil business development stipulates the growth of annual oil production to 90–100 million tons by 2020. It is projected to achieve this level through phased development of all the proven oil fields of Gazprom neft and other Gazprom’s companies as well as through acquisition of new licenses.

Gazprom has outlined the following strategic targets in the power generation sector: diversification of tariff regulation risks, fuel balance optimization and obtaining the synergy effect through combination of gas and power generation businesses.

Environment and Social Responsibility

Gazprom carries out business activities in strict compliance with the international and Russian environmental legislation. The Company has adopted the Environmental Policy and the List of paramount environmental activities until 2010.

Environmental Policy implementation of the will result in the cost reduction and increase in efficient resource utilization, minimized specific indicators of environmental impacts, optimized corporate management system for environmental protection, Gazprom’s well-balanced innovative development combining production expansion and modern and efficient approaches to the environmental protection.

The major socially oriented project of Gazprom is the Gasification Program for the Russian Federation regions, which was implemented in 64 Russian constituents in 2008. 153 inter-settlement gas pipelines with the total length of 2,700 km have been constructed in 47 Russian constituents. In 2009 the Gasification Program will be implemented in 69 constituents.

Gazprom on Global Market

In 2008 the average capitalization of the Company dropped by 7 per cent down to USD 241.1 billion (USD 259 billion in 2007). Despite the capitalization decrease in 2008 Gazprom during that period retained the leading position among European companies by market capitalization and was among the top ten largest energy companies of the world.