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For more than 40 years Russia has been a reliable gas supplier to Europe |
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Gazprom Group’s gas sales to European countries in 2006, bcm |
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Changes in average prices of natural gas sold in FSU and Europe,
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Layout of UGSF being operated by Gazprom Group in Europe
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Mission
Gazprom’s mission is to provide maximally efficient and balanced gas supply to the Russian Federation consumers as well as to secure a high degree of reliability when implementing long-term contracts and intergovernmental agreements for gas exports.
Unified Export Channel
The unified gas export channel represents a fundamental element of the Company’s export strategy. In 2006 a Federal Law “On Gas Export” was adopted providing Gazprom with an exclusive right to export gas, thus enabling it to carry out a coordinated production and marketing policy and granting supplementary legal guarantee to the reliability of the Russian gas export.
European Gas Market
Owing to its geographical proximity to Russia and a dominant position of Russian gas, the European gas market continues playing an important role in the export policy of Gazprom.
In 2006 Gazprom’s natural gas sales to European countries accounted for RUR 161.5 bln giving an increase of 3.5 per cent as compared to 2005.
Gazprom supplies approximately one third of Western Europe’s total gas imports. The major consumers of Russian gas are Germany, Italy, Turkey and France.
System of Long-Term Contracts
Gazprom exports gas to Central and West European countries mainly under long-term, 25-year agreements that typically derive from intergovernmental treaties. Long-term contracts underlie steady and reliable gas supplies. Only long-term deals can guarantee returns on the producer and the exporter’s multibillion dollar investments in major gas export projects and steady and reliable gas flow for the importer in the long term.
Diversification of Routes
The major gas pipeline routes from West Siberian gas fields to West European export markets run across Ukraine (over 80 per cent of overall gas exports).
To enhance the reliability and diversification of the Russian “blue fuel” export routes, Gazprom is implementing large gas transportation projects.
At present, the Yamal – Europe gas pipeline has been completed (the pipeline annual capacity exceeds 30 bcm). Blue Stream commissioned in late 2002 and intended for direct gas supplies to Turkey across the Black Sea (annual capacity – up to 16 bcm) has become another important export through-passage of Gazprom.
The Nord Stream gas pipeline will be a fundamentally new export route for Russian gas to Europe (the annual design capacity of two lines will account for 55 bcm). The gas trunkline will cross the Baltic Sea with no transit countries involvement, thus enabling to reduce transportation fees and to rule out probable political risks.
The South Stream project (annual design capacity – 30 bcm) is also aimed at strengthening the European energy security. The offshore section is to run under the Black Sea from the Russian coast to the Bulgarian coast. Two possible routes are under review for the South Stream onshore section from Bulgaria – one, northwestwards and the other, southwestwards.
More details on gas sales to Europe:
OAO Gazprom, Annual Report 2006
(Pdf, 2.81 Мb)
Gazprom in Questions and Answers
Press Conference on Gas Export
The Gazprom Group companies operating in the European gas market: