Alexey Miller's column
On potential establishment of a joint venture by Gazprom and NAK Naftogaz Ukrainy
“At the first stage a joint venture may be set up on a parity basis between the companies – 50 by 50 per cent. At the moment, it is necessary to outline the list of assets that can be contributed to the JV by each party.”
On the track record of Klaus-Ewald Holst as Executive Board Chairman of Verbundnetz Gas AG
“Verbundnetz Gas attained considerable success under your chairmanship, reinforced its position in Germany and entered new untapped markets. At the same time, the business partnership and friendship ties grew stronger between our companies. Thank you for the years of fruitful cooperation, during which we achieved much and laid a cornerstone for the future joint victories.”
On merging Gazprom and NAK Naftogaz Ukrainy
“On April 30 Vladimir Putin, Prime Minister of the Russian Federation made a proposal to the Ukrainian party in Sochi that Gazprom and NAK Naftogaz Ukrainy should merge. Today this proposal has been discussed in detail.
The idea of merging Gazprom and Naftogaz Ukrainy is absolutely pragmatic. It is stipulated by the common development history of the gas industry in our countries, in particular – a single gas transmission complex dating back to the USSR. Therefore, it is natural that the Ukrainian gas transmission system (GTS) upgrade should be closely linked to Russia’s Unified Gas Supply System development.
The GTS was initially set up for the purpose of Russian gas transmission to Europe. As you know, the pipe is a valuable asset in case it is filled with gas.
However, the merger proposal is not related to the idea of creating a trilateral gas transmission consortium embracing Russia, Ukraine and European companies. This proposal is different and more global, it is of a larger scale.
I am sure that the merger of the two companies will become an important step towards the European energy security enhancement and diversification of the routes for Russian gas supply to Europe. Therefore, our plans to construct the South Stream are intact. It is planned that until December 31, 2015 considerable gas transmission capacities will be created for Russian gas delivery via a new export corridor.”
On involvement of Austria in the South Stream project
“Today is an important day in the South Stream history. By acknowledging on the inter-governmental level its commitment to take part in the development of an additional route of transportation of Russian gas to Europe, Austria became the seventh country participating in the onshore part of the project. Gazprom and its partner entered into a framework agreement on the implementation of South Stream in Austria.
According to currently achieved arrangements the basic gas pipeline will be laid via at least seven European countries and stretch for thousands of kilometers. Once the gas pipeline is constructed South and Central Europe will be forever safe from and secured against transit crises and cold winters.”
From left to right: Alexey Miller, Vladimir Putin, Wolfgang Ruttenstorfer. Photo by RIA Novosti
On steady improvement of the gas market
“Gazprom has not only ensured reliable and uninterrupted gas supplies to Russian and foreign consumers, but also considerably increased the supply amount. Over the last autumn–winter period our Company provided the domestic and the foreign markets with additional 15.8 and 20.9 billion cubic meters of gas, respectively, as compared to the identical period of 2008–2009. This is another vivid demonstration of the gas market improvement.”
On signing the addenda to contract on gas supply to Ukraine
“The changes have been introduced in the contract in pursuance of the intergovernmental agreements and don’t have a negative effect on Gazprom’s economics.”
Russian and Ukrainian Presidents Dmitry Medvedev and Viktor Yanukovich during the signing of contract addenda by Gazprom and Naftogaz Ukrainy CEOs Alexey Miller and Evgeny Bakulin. Photo by RIA Novosti
On Gazprom’s participation in promoting sports and a healthy lifestyle
“The Company is traditionally active in arranging amateur and professional competitions in Russia. They considerably promote sports activities and a healthy lifestyle. It should be noted that the Vitaly Fatyanov Competition is a crucial stage in the struggle for the right to host the 2016 World Biathlon Championship. I am sure that, if decently arranged and successfully held, the Competition will get us closer to this cherished goal.”
Victorious finish by Ivan Cherezov
On launching the Nord Stream gas pipeline construction
“I am sure that connecting the gas pipeline systems of Russia and Europe is a fundamentally new approach to ensuring the continent's energy security. The Nord Stream pipeline will not only ensure the highest reliability of supply, but will also make it possible to continue to meet Europe's growing demand for natural gas. Our collaboration with major European energy companies on the Nord Stream project will no doubt become a model of international cooperation for other large-scale gas transmission projects.”
Alexey Miller
On securing the injection of necessary gas volumes into Ukraine’s UGS facilities by the autumn/winter 2010–2011 period startup
“‘We should proceed from the fact that NAK Naftogaz Ukrainy has to replenish its UGS facilities with the required gas volumes by the beginning of the 2010–2011 autumn/wither period in order to smoothly overcome this peak load period,’ said Alexey Miller. He emphasized that this challenge had to be met both for securing gas supplies to Ukraine’s consumers and for performing reliable Russian gas transit to Europe.”
On completion of Phase I financing for Nord Stream
“The completion of Phase I financing is a landmark event in the development of Nord Stream and helps take the project from concept to reality. Nord Stream solidifies the long-standing energy relationship between Russia and Europe, a relationship that has lasted nearly forty years. Gazprom is delighted to be part of a venture that will provide reliable supplies of Russian energy to Europe for many decades to come.”
From Alexey Miller's speech delivered at the meeting on Yakutia gas production center creation
“Addressing the meeting, Alexey Miller underlined that the Eastern Gas Program implementation was among Gazprom’s strategic priorities at the moment. He particularly mentioned the tough deadline set by the Government for bringing onstream the prioritized facilities in Yakutia: launching the Yakutia – Khabarovsk – Vladivostok gas transportation system (GTS) construction in 2012, starting oil and gas production from the Chayanda field – 2014 and 2016, accordingly. In parallel, the top-priority gas processing and gas chemical facilities are to be put onstream in 2016. When completed, these facilities will make a great contribution to the efficient development of the Chayanda field with its multi-component gas containing helium.
Alexey Miller and Vyacheslav Shtyrov (center)
Creation of the Yakutia gas production center within the state-run Eastern Gas Program will demand coordinated efforts of Gazprom, federal and regional authorities. When creating the Yakutia gas production center, Gazprom focuses on the comprehensive approach involving the synchronized commissioning of facilities. To achieve this goal, a particular detailed plan of cooperation between Gazprom and Yakutia’s Government is to be worked out.
Alexey Miller stated that Gazprom was intensively exploring the Chayanda field and had already completed a great scope of seismic survey and drilled initial wells. The schedule of activities on the Chayanda field development was adopted.
The Gazprom Management Committee Chairman highlighted that engineering of hydrocarbons production, transportation and processing facilities had to be stepped up. That is also required to ensure synchronization with a series of Yakutian infrastructure projects partially funded from the federal budget. At the moment, a new energy supply, network and transportation infrastructure is being intensively shaped in the Republic and the project decisions being adopted should be optimal and meet the needs of gas workers, inter alia.
‘Federal support could contribute significantly to the progressive development of the gas industry in Eastern Russia. This is especially important during the payback period,’ said Alexey Miller.
Optimal loading of the Yakutia – Khabarovsk – Vladivostok GTS with at least 30 billion cubic meters of gas per annum will be very important for efficient development of the Yakutia Center through involvement of all regional gas resources. In this regard, Gazprom submitted requests to the Federal Subsoil Resources Management Agency for obtaining the right to use the subsoil resources of the Srednetyungskoye, Tas-Yuryakhskoye, Sobolokh-Nedzhelinskoye and Verkhnevilyuchanskoye fields listed as the fields of federal significance.
‘Developing gas supply to and gasification of Yakutia is a crucial issue of the cooperation between Gazprom and the Republic. At the same time, the Company is ready not only to start the gasification of Yakutia’s southern regions from 2016, when the first indigenous gas extraction in the Chayanda field is to be commenced, but to take part in earlier local gasification projects as well,’ stressed Alexey Miller.
He also paid attention to the fact that the Yakutia gas production center creation and development envisaged engagement of highly qualified personnel, who might take pre-training courses in the Republic. In this context, Gazprom supports the decision by Yakutia’s Government to set up in Yakutsk a specialized department in the Northeastern Federal University.”
On energy partnership with GDF SUEZ
“35 years ago the first contracts to supply Russia's natural gas to Gaz de France were signed. Since that time, Russian-French cooperation in the energy sector has rested on a firm will of the parties to build strong, long-term relationship and to develop a partnership based on respect for the balance of interests of suppliers and consumers. As a result, France has been among the five largest buyers of Russian gas for a number of years now and our interaction is not limited to gas supplies any more – it also includes such areas as energy saving, construction and operation of underground gas storage facilities, LNG sales, scientific and technical cooperation, advanced training of specialists. The illustrious cultural and sports projects implemented by Gazprom and GDF SUEZ deserve special attention.
We are confident that the development of our partnership will not slow down – this has been proven by the signing of the Memorandum on additional supplies of Russian natural gas and on the Nord Stream project. Participation of GDF SUEZ in the construction of this gas pipeline confirms its importance for ensuring sustainable energy supply to Europe. Vast experience in joint implementation of energy projects and a creative approach to new challenges give Gazprom and GDF SUEZ every right to call our collaboration the benchmark for energy partnerships.”
On signing Memorandum with regard to additional gas supplies to GDF SUEZ and Nord Stream project
“The Nord Stream is a strategically important pipeline for Europe. The value of the project is difficult to overestimate, as it will be an additional guarantor of energy security for millions of consumers and give them confidence in the future. The Nord Stream is a good example of an offshore gas pipeline complying with stringent international environmental requirements. It has recently received the last approval needed to begin construction this April. Together with our counterparts from GDF SUEZ, we believe that the Nord Stream will not merely strengthen cooperation between our companies, but will also help develop the energy sector of the entire continent and be another factor in the success of the long-term Russian-French partnership in the gas industry.”
Signing Memorandum with regard to additional gas supplies to GDF SUEZ and Nord Stream project
On Vasily Podyuk
“Mr. Podyuk is a real gas worker, people like him are pride and glory of the world’s gas industry. He took part in developing the Vuktylskoye field in the Republic of Komi and was among the pioneers who entered the Yamal Peninsula in the mid-1970s. He supervised pre-development and bringing of the giant Zapolyarnoye field to the projected capacity and the launch of the Achimov deposits and coalbed methane development in Russia. Mr. Podyuk is characterized by broad thinking, rich experience, an intelligent and systematic approach to any complex assignment. There is no doubt his track record, both personal and professional, will serve s an example for many generations of gas workers to come.”
On natural gas supplies in the strategic eastern direction
“Gazprom’s abundant resource base in Western Siberia, to be subsequently accompanied by the new gas production center being formed in the Republic of Sakha (Yakutia), enables to meet the long-term demand for Russian natural gas in Asia-Pacific countries. There is no need to engage additional gas resources for this purpose from other eastern regions of Russia, namely, from the Kovykta gas and condensate field in the Irkutsk Oblast.
Gazprom is consecutively developing in Russia’s Far East the gas production infrastructure that will create a favorable environment for natural gas supplies in the strategic eastern direction. Upon completion of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS) we are going to set to the Yakutia – Khabarovsk – Vladivostok GTS construction in 2012. This will ensure successful gas supply to southern regions of the Far East and will help develop natural gas exports (both by pipeline and by sea) to Asia-Pacific countries, inter alia, through establishing gas liquefaction and compression capacities in the Primorsky Krai.”
On cooperation between Gazprom and Russian Technologies
“Application of high technologies is a significant competitive advantage and an essential part of efficient company development on the global energy market. This is absolutely the case with Gazprom. We deliver unique and sophisticated energy projects utilizing innovative approaches and unparalleled equipment produced domestically and abroad.
Today’s Agreement is a crucial step aimed at considerably increasing the innovative potential of both our Company and Russia. I am convinced that the mutually-beneficial cooperation between Gazprom and Russian Technologies will strongly bolster the domestic science, industry and energy sectors.”
Sergey Chemezov and Alexey Miller
On the launch of the Portovaya compressor station
“We have started building the last facility of the onshore section of the Nord Stream gas pipeline. We will launch construction of the offshore section this spring.
The Portovaya CS will be a unique gas transmission facility in terms of aggregate capacity, working pressure (220 Ata), gas transmission distance and daily gas dehydration volume. The station is unparalleled in the world. This facility is at the forefront of the sci-tech progress in the gas industry. When implementing this project Gazprom will utilize novel equipment and cutting-edge technologies. The station will secure gas transmission over the distance of 1,200 kilometers via the Nord Stream and no extra compressor stations will be built on the German coast.
The CS construction is a crucial stage in Gazprom’s activities aimed at diversifying the Russian gas supply routes and enhancing the European energy security.”
Left – Alexey Miller
On establishing new Department to coordinate South Stream project execution
“The large-scale South Stream project, being of special importance for increasing the reliability of gas supply to Europe and engaging a big number of foreign partners, requires consolidation of Gazprom’s efforts for prompt execution of the most prioritized project of the Company. I am sure the immense experience and credibility of Leonid Chugunov will help build an optimal and efficient structure of the project management.”
On the startup of natural gas procurement from Azerbaijan
“The beginning of 2010 was marked with a very important event – Gazprom has started up natural gas procurement from Azerbaijan for the first time ever. During the last year we held very constructive negotiations with our Azerbaijani counterparts and as soon as in a few months after the contract signing, natural gas was supplied to our system.
It should be noted that we had no doubt these arrangements were achievable. Objectively, Gazprom offered the most competitive conditions of gas purchase from Azerbaijan since we had everything needed for that purpose: the common borders and the gas transmission infrastructure under operation.
A specific feature of the contract signed is that it does not limit the maximum amount of gas purchase. We’ll buy as much gas as the Azerbaijani party will be able to supply. This is unparalleled in any other contract of Gazprom, which additionally proves a high level of our partnership relations.
I believe we have laid the first cornerstone of successful and mutually beneficial cooperation in the gas industry between Russia and Azerbaijan for many years to come.”
On gas price for Belarus
“Pursuant to the Contract, the gas price for Belarus calculated under the formula will stand at around USD 168 per 1,000 cubic meters in the first quarter of 2010. This year the average price for the natural gas supplied to Belarus was 11 per cent lower – around USD 150. Due to the absence of the export duty, natural gas price for Belarus is considerably lower as compared to other purchasers of Russian gas. At the same time, the previously agreed period of transition to higher prices enables the Belarusian economy to adapt to the new conditions.”
Speech by Alexey Miller at the meeting of the Commission for Modernization and Technological Development of Russia’s Economy under the Russian Federation President
“Dear Mr Medvedev! Dear participants of the meeting!
Nowadays, wide application of sci-tech achievements is a prerequisite for the development of any company.
This is even more crucial for Gazprom, which delivers unique and, at the same time, extremely sophisticated projects in hydrocarbon production, transportation and processing sectors.”
At the meeting
Speech by Alexey Miller at pre-holiday conference call
“On behalf of the Gazprom Management Committee and my personal behalf, I would like to congratulate all the subsidiary companies’ heads, employees and gas industry veterans on the coming New Year and Christmas! The expiring year was rather hard for the global and domestic economies. Nevertheless, under the conditions of the global economic crisis our Company demonstrated high reliability, relevant flexibility and ability to promptly respond to market challenges.”
Congratulations on New Year and Christmas
“Dear colleagues!
On behalf of the Gazprom Management Committee and my personal behalf, I would like to congratulate you on New Year and Christmas!
Alexey Miller
The expiring year was rather difficult for the global and national economy. Nevertheless, Gazprom demonstrated high reliability, sufficient flexibility and ability to promptly respond to market challenges in the environment of the global financial and economic crisis.
Bringing onstream Russia’s first LNG plant, launching LNG deliveries to foreign markets, active efforts targeted at executing strategically important projects: the Nord Stream and the South Stream gas export pipelines, intensive development of Russian gas trunklines, natural gas supply to hundreds of population centers, as well as substantial measures to create the gas industry in Eastern Russia – these are Gazprom’s key operating highlights over the expiring year.
The Company steadily keeps establishing itself on the domestic and global markets and successfully advances towards the leadership position among global energy companies.
We bear enormous responsibility as Gazprom ensures Russia’s energy security, socio-economic development and, therefore, the wellbeing of citizens.
Dear colleagues! Let the coming year bring the fulfillment of your most daring plans and ideas. I wish you and your beloved ones robust health, happiness and wellbeing!
Happy New Year and Merry Christmas!”
On strategic partnership with Eni
“Today we are celebrating the 40th anniversary of signing the Agreement on long-term natural gas supplies to Italy, which became a milestone in the contemporary history of Europe. Over this period, Gazprom and Eni, as strategic partners, established unprecedented partnership relations based on mutual trust and efficient commercial decisions.
Thus, the companies jointly constructed a unique gas pipeline, Blue Stream, unparalleled in the global history. Currently, Gazprom and Eni are playing an active role in executing a new large-scale project, South Stream, to become an integral part of the European energy security.
I am sure that further Russian-Italian cooperation in the gas sector will yield new impressive outcomes to promote friendly ties between our countries, as well as economic prosperity of Russia and Italy.”
Gas pipeline placement, Passo di Sella, Italy, 1973. Photo by Eni
On the commissioning of a new modern sports and fitness center for children in Novy Urengoy
"Being a leader in the global energy sector, Gazprom is also a socially responsible company. The Gazprom to Children program is a vivid example of this. Today, on the day of Gazprom dobycha Yamburg’s anniversary we are opening the sports center in the heart of Russia’s gas production region. I think this is the right thing. We care about our employees’ health and support the younger generation of Russians. I hope we will hear about the remarkable success of many students of this sports and fitness center."
Sports and fitness center
On signing General Collective Agreement of Gazprom and its subsidiaries for 2010–2012
"Gazprom gives full attention to observing the socio-economic and labor rights of the Company’s personnel. Despite the global financial and economic crisis we haven’t changed our approach to securing social protection for our employees."
On signing Memorandum of Understanding with Eni on South Stream project
Alexey Miller and Chief Executive Officer of Eni Paolo Scaroni. Photo by RIA Novosti
"The given Memorandum was signed following the agreements reached by Gazprom and EDF last week. It demonstrates intention of Russian and Italian partners engaged in the South Stream project to cooperate with French colleagues in the construction of the large-scale transnational gas pipeline. In general, the emergence of the third partner in the project manifests that Europe recognizes the significance of additional gas supply routes from Russia, the biggest and most reliable exporter of hydrocarbons to the market of the continent."
On cooperation with Electricite de France (EDF)
"We are gaining a new reliable and long-term partner today in EDF. The participation of a French company in the South Stream project underscores the pan-European scale of the pipeline and is additional evidence of its tremendous importance for ensuring stable energy supplies to the continent. We are confident that South Stream, along with Nord Stream, which is being recognized by a growing number of European countries, will ensure the well-being of Gazprom’s customers in terms of energy."
On European Business Congress (EBC)
"Most of the Congress members are the energy companies and the financial institutions having a considerable impact on the European economy. Therefore, we believe it is necessary to use the EBC cooperation opportunities on the international level in a more intense way. Consolidated and balanced positions and proposals of the EBC on serious problems in the energy sector, including conflicts such as transit crises, may have a positive impact on their solution. We have to shape the guidelines for 2010 in a way that focuses the attention of the business and political communities on a globally important issue. The work to be performed on this issue has to make a specific contribution to the energy sector development."
On Nord Stream
"Today, we may definitely say that the Nord Stream project is a success. The initial project stage, being the most difficult one, has been accomplished, the critical amount of preparatory measures have been taken. The joint efforts made by the shareholders of Nord Stream AG, the company’s employee team, the European countries interested in the project implementation are yielding results. Consistent development of the project is a vivid example of cooperation strengthening between Russia and Europe in the energy sector."
The volume of gas supplies in 2010 was adjusted according to Ukraine’s real demand in the crisis environment
"According to the agreements reached between the Prime Minister of Russia and his Ukrainian counterpart in Yalta, talks with the management of NAK Naftogaz Ukrainy have been held today. The final accord was reached on the amount of gas offtake by Ukraine in 2010. The amount was adjusted with due regard to Ukraine’s real demand in the crisis environment. Coordinated gas supply volumes eliminate the risk of penalties to be paid by NAK Naftogaz Ukrainy in 2010 for inability to offtake gas under the contract. Finally, we agreed that Gazprom would not charge the penalties for the gas underconsumption in 2009 making up 13 billion cubic meters for the period of ten months. These accords were executed in writing – an addendum to the contract was signed. I would like to reiterate that we acted in compliance with the political arrangements made between the Prime Ministers in Yalta."
On draft General Collective Agreement for 2010–2012
“Gazprom is a leader of the global energy market. A high status of the Company obliges us to maintain a high level of social responsibility. Nothing, even the influence of the global financial and economic crisis, may change the Company’s attitude to providing its employees with social guarantees.
The draft General Collective Agreement for 2010–2012 submitted today for your consideration reflects the wishes of the bulk of the Company's employees in the most complete way and is provided with a real financial support. I would like to emphasize that observation of the Gazprom employees’ socioeconomic and labor rights has always been and will be a significant objective to be met for efficient operation of the Company.”
Alexey Miller speaking at the Gazprom employees' Conference
On sustainable growth in demand for Gazprom’s gas on key markets
“Since mid-2009 Gazprom has been observing a sustainable gas demand growth on the key markets. This November the amount of natural gas supplies to European consumers was considerably higher than in the same period of 2008. Thus, daily gas offtake exceeded last year's indicators by nearly 50 per cent (170 million cubic meters per day) on certain days. As of November 18, an increase in Gazprom’s gas sales in Europe versus last November averaged over 37 per cent. A sustainable growth is observed in Russia as well. Since early November Russian consumers have been supplied with additional 8 per cent if compared to the same period of the last year. Daily gas consumption was up to 20 per cent higher on certain days.”
On closing the asset swap deal between Gazprom and E.ON AG as part of the Yuzhno-Russkoye field development project
Alexey Miller
"On this remarkable day, having acquired a 25 per cent stake in the Yuzhno-Russkoye field development project, E.ON AG joined Gazprom’s gas production projects. There is no doubt that it is a qualitative breakthrough in cooperation between our companies. Today we may say that our cooperation is of strategic importance. It is gaining pace in every sphere of activities. The point is that E.ON AG has not only joined Gazprom’s production projects. Today we cooperate along the entire production chain from upstream do downstream. From now we cooperate with E.ON in production, transmission and distribution operations. Electric power generation is another promising field of joint efforts.
It should be noted that during today’s meeting with our German counterparts we agreed that we would consider their potential engagement in the Yamal fields development. In addition, there are outstanding prospects in the European electric power industry within joint projects as well.
We are sure that the deal closed today will help further strengthen our friendly ties, and that's the way I put it – our joint efforts are not only cooperation of partners, but colleagues and friends. Over the recent decades the companies have got to know each other very well. The managers and specialists established not only business but friendly ties. E.ON AG is a serious and important partner of us on the European market.
The European gas market is rapidly growing and we are very glad to observe new positive upward trends in demand for Russian gas on the European market, especially over the recent two months. Russian gas supply volumes are constantly growing. There has been an upsurge in the amount of gas deliveries this year if compared to 2008. On a number of days we observed a 15 per cent increase. Meanwhile, the supplies to the European market have exceeded the pre-crises level. In this context, the trends are very positive and the deal in relation to joint development of the Yuzhno-Russkoye field makes our European consumers feel confident that Russian gas will always be delivered on time and in full, that Gazprom is a reliable gas supplier to the European market with spotless reputation. Today I am thankful to our negotiation teams that have been scrupulously working for a number of years on the deal, which is really fundamental. I would like to reiterate that it is a qualitative breakthrough in cooperation with E.ON AG,” said Alexey Miller, Chairman of the Gazprom Management Committee."
On the Kasimovskoye UGS – Voskresensk CS gas trunkline commissioning
"We are commissioning this pipeline before the winter season begins. Moscow and its suburbs annually consume 45 billion cubic meters. The bulk of gas is consumed in winter. Taking into account considerable volumes of gas supplies to the region, spells of extremely cold weather brought about the maximum loading of gas pipelines.
Capable of transmitting up to 130 million cubic meters, the Kasimovskoye UGS – Voskresensk CS trunkline will provide consumers with additional volumes of gas, thus entirely eliminating this problem. The trunkline will provide highly reliable and uninterrupted gas supply to Moscow and its suburbs."
During the celebrations dedicated to the Kasimovskoye UGS – Voskresensk CS gas trunkline commissioning
On additional routes for Russian gas supply to Europe
"We observe an increased demand for Russian gas in Europe over the recent two months. So far, daily gas consumption has already exceeded the level reached before the crisis. Due to gradual depletion of reserves on the continent, it will be impossible to meet the European gas demand in a sustainable manner without additional Russian gas supply routes, including the South Stream."
On importance of South Stream and Banatski Dvor projects for Southeastern Europe and Serbia
"South Stream and Banatski Dvor are the projects of strategic importance to the entire Southeastern Europe. Once constructed, the transnational gas pipeline will diversify the Russian gas export routes and cut the transit risks, while the UGS facility will help optimize the amount of hydrocarbons supply in line with seasonal fluctuations.
Comprehensive execution of the projects will reinforce Serbia’s energy security, provide the financial, resource and technological basis for the country’s industrial development making it a key player on the Balkan gas market."
On cooperation with Electricite de France (EDF)
“Gazprom is interested in developing long-term mutually-beneficial multi-lateral cooperation with EDF, an acknowledged leader of the European energy market. South Stream, being a strategic project in terms of enhancing reliability and stability of natural gas supplies to Europe, will become the basis for this cooperation.”
Shtokman project – a key to industrial development of Northern European Russia. Speech by Alexey Miller at the International Economic Forum in Murmansk
"The project for the Shtokman gas and condensate field development, being implemented in the Murmansk Oblast, is not only a largest project of Gazprom, but a strategic one on the national level."
On signing the purchase and sale contract for Azerbaijani gas
"Gazprom owns the world’s largest contract portfolio for gas supply to the domestic and foreign markets as well as an advanced and flexible gas transmission system; Russia and Azerbaijan have a common border and have already been connected by the unified infrastructure. This enabled Gazprom to propose the State Oil Company of Azerbaijan Republic the most attractive commercial terms and conditions of gas purchase. Our partnership is logically consistent and fully meets our mutual interests. I am confident that in the coming years the volume of Azerbaijani gas supplied to Russia will increase and today’s contract will lay the foundation for the long-term strategic cooperation in the oil and gas sector between Gazprom and SOCAR."
Speech by Alexey Miller at the meeting of Prime Ministers of Russia and China with the business community in Beijing
"Russia and China are strategic partners in various areas, including, first of all, the energy industry. Russia holds abundant hydrocarbon resources in the east, while China’s demand for energy carriers is constantly growing irrespective of the global economic situation. It is obvious that establishing long-term mutually-beneficial and partnership relations in the natural gas supplies sector is a strategic target that, if reached, will promote sustainable development of our countries."
Security of Supply and Related Investments. Speech by Alexey Miller at the 24th World Gas Conference
"Our Forum is taking place at a crucial point – a period in which we are searching for ways to overcome the consequences of the global financial crisis and industrial recession. In this context, the topic of gas supply security being addressed by our session is particularly vital."
Alexey Miller speaking at 24th World Gas Conference
On the appointment of Director General of Gazprom dobycha Krasnoyarsk
"This is not just an ordinary appointment, it’s a structural change in the Company’s activities aimed at raising the efficiency of geological exploration across the entire Group."
On the launch of the Adler CHPS construction
“The Sochi District desperately needs new generating capacities. By 2014 energy consumption in Sochi will rise up to 1,000 MW. The Dzhubga – Lazarevskoye – Sochi gas pipeline opens the way for creating modern power stations that are vitally required for the intensively developing region. With the commissioning of the new gas pipeline and the Adler CHPS, the Krasnodar Krai will have new opportunities for economic growth and living conditions improvement both for the Sochi citizens and for the visitors of this unique region.
The timely and simultaneous launch of two projects by Gazprom is a clear and convincing evidence of the benefits derived from vertical integration and synergy of the adjacent sectors – the gas and the energy ones. Thus, the synergy effect we have always been talking about is becoming tangibly useful for a key Russian region.
Construction of the Adler CHPS is another proof of the fact that Gazprom is nowadays the most effective and reliable investor in the Russian power generation sector. We are sure that Gazprom will successfully meet the assumed obligations and the CHPS will be commissioned within the prescribed deadlines according to the Olympic facilities construction schedule. Sochi is beloved for the sun, sea and mountains. Gazprom will supply Sochi with additional energy, heat and light!”
Alexander Tkachev and Alexey Miller
On the launch of the Dzhubga – Lazarevskoye – Sochi gas pipeline construction
“The Dzhubga – Lazarevskoye – Sochi gas pipeline is a substantial contribution of Gazprom in the preparations for the 2014 Winter Olympic Games, a unique event in Russia’s history. The new gas transmission thoroughfare will ensure a reliable electric energy supply to the host city of the Winter Olympic Games as well as gas supply to the Olympic facilities under construction. Additionally, the gas pipeline construction will give a powerful impetus to the gasification of Sochi and the Tuapse District and will cut the energy deficit on the Caucasian coast of the Black Sea. The gas pipeline will be constructed as soon as possible.
Wide usage of natural gas will become a cornerstone for the clean energy in the region, which is a most climatically attractive and, therefore, a most cherished area of the country.”
Alexey Miller
On a unique bridge crossing over the Yuribey River
“The new railroad thoroughfare designed to connect Yamal’s fields with the transportation infrastructure of northern Ural, will become a crucial component of the national strategic project – the Yamal Peninsula’s fields development. The year-round delivery of cargoes, equipment and workforce to develop Yamal will enable to rapidly form on the Peninsula a new gas production province of a fundamental importance for Russia’s gas industry development over the next decades.
The bridge crossing over the Yuribey River, a part of the Obskaya – Bovanenkovo railroad, was constructed by Gazprom within the shortest time possible under the harsh natural and climatic conditions. This is a unique construction unparalleled in the global practice of bridge building. The crossing with the length of approximately four kilometers is the longest bridge beyond the Polar Circle. Its operating life accounts for 100 years. The crossing is yet another demonstration of the remarkable technical performance and high safety margin in Gazprom’s facilities on Yamal. Their construction involved cutting-edge technologies and provided for a continuous environmental concern for this northern region.”
Alexey Miller
On Gazprom’s power generation business development
“At present, Gazprom Group is implementing a consecutive large-scale program for the construction of new energy capacities and reconstruction of the existing ones, applying state-of-the-art technologies. Nowadays, Gazprom makes the most efficient investments into Russia’s power generation and is determined to develop this business. TGC-1 alone is going to commission over 1,600 MW of new capacities until 2013.”
Valentina Matvienko and Alexey Miller
On the Dzuarikau – Tskhinval gas pipeline
“Construction of the vitally important Dzuarikau – Tskhinval gas trunkline was performed on a tight deadline. I am sure that from this moment the national economy will start to recover at a rapid pace.”
Meeting with the Valdai Club participants
“My opinion is that Gazprom has bright prospects. I will name several factors that give us a clear insight into the future state of the energy market. According to the United Nations, by 2025 the Earth’s population will rise by 25 per cent and reach 8.5 billion. As you know, the main contributors are likely to be China, India, Brazil, and Indonesia. These are the countries with intensively developing economies accompanied by the rapid processes of industrialization, urbanization and growing energy consumption per capita. As for the European Union, natural gas production in Europe by that time will drop approximately by 30 per cent, while gas consumption rates will keep increasing.
Actually, these are only forecasts, but I hope you will agree that the trend is absolutely clear. Therefore, we are optimistic about the future. Gazprom has become a global company and a leader on the global energy market. I think Gazprom will further reinforce its stance in the mid- and long-term”.
“We have been supplying natural gas to Europe for more than 40 years now. Gazprom is known as a reliable supplier, which always meets its obligations in full and in due time, and we value this reputation. Be sure that we will continue running the business in this manner. This is our credo.”
Alexey Miller (center) meeting with Valdai Club participants
Congratulations on Rem Vyakhirev 75th anniversary
“For more than 40 years your labor activity was closely linked to the national oil and gas industry, and you have made a great contribution to its development.
Your name has justly found a place in the history of Russian gas industry. The decision has been taken to award you with Gazprom Highest Mark of Distinction “For Outstanding Services”, No.1.
Dear Rem Ivanovich,
On the occasion of your anniversary, please, accept our best wishes for sound health, happiness, prosperity and active longevity.”
Alexey Miller and Rem Vyakhirev
Speech by Alexey Miller at the meeting on the progress in implementing the assignments by Russian President and the Government regarding the Republic of Sakha (Yakutia) socio-economic development
"Gazprom has considerably intensified its activities in eastern Russia. Large-scale projects are being implemented in the gas production, transportation and processing sectors. Special emphasis is placed on Yakutia, a gas-reach province. The prospective and forecasted gas reserves in Yakutia are estimated at 10.4 trillion cubic meters, while the explored reserves exceed 1.3 trillion cubic meters."
On signing the Agreement on Terms and Conditions for Azerbaijani natural gas purchase and sale
“Owing to the gas transmission infrastructure available, the absence of transit countries between Russia and Azerbaijan and the world’s biggest portfolio of contracts for gas supply to domestic and foreign consumers, Gazprom can propose the most viable conditions for purchasing Azerbaijan’s gas. Gas supplies will start from 500 million cubic meters and gradually increase.”
Signing of Agreement on Major Terms and Conditions for Azerbaijani natural gas purchase and sale, foto by RIA “Novosti”
Speech by Alexey Miller at the Shareholders Meeting. Gazprom – a Flexibility Test
“Crises come and go, but Gazprom keeps moving forward!”
Alexey Miller
On the launch of the new corporate website
“Gazprom is currently a fast growing global energy company. We introduce cutting-edge technologies not only for achieving high performance in hydrocarbon production, transportation and processing, but also for gaining greater transparency and openness in our business activities. Gazprom’s new website is a clear indication of these aspirations. We hope you will like it!”
On signing the Agreement to jointly explore gas supply project with Kogas
“The Sakhalin – Khabarovsk – Vladivostok GTS launched by Gazprom would enable both to meet the prioritized gas demand of Russian consumers and to create the necessary prerequisites for extra gas supplies from Russia to new competitive markets – Asia-Pacific countries including the Republic of Korea.”
On Gazprom Energy House inauguration
“Gazprom consecutively steps up its strategy aimed at establishing itself as a leader among global energy companies. We are convinced that this cannot be achieved without vertical integration and interdisciplinary approach that will unite for instance, oil & gas, gas & power generation sectors.”
Electric power stations consume 37 per cent of the total Russian gas, while the efficiency coefficient of most of them is fewer than 35 per cent. Low gas prices make gas saving unprofitable, and the valuable energy carrier and feedstock actually goes down the drain!
Russian energy sector is in great need of modernization. Gazprom has assumed this task – new generation facilities are being built with the use of cutting-edge technologies and existing electric power stations are being intensively re-constructed.
It should be noted that Gazprom accounted for more than 90 per cent of all the electric power generation capacities commissioned in 2008. Between 2009 and 2013 Gazprom is going to invest in the order of RUB 250 billion in the construction and modernization of electric power stations. This is an unprecedented rate for the national power industry. Gazprom is currently the largest and most reliable investor in Russian power generation sector.
Gazprom’s energy strategy stipulates creating an inextricable chain – from gas production to electric power supply. Gazprom has initiated developing a corporate energy supply company. Mezhregionsbyt has already turned into Russia's largest electric power supplier.
Today we are witnessing a crucial event. Consolidation of Gazprom’s energy assets has been put into practice!”
On signing the Asset Exchange Agreement with E.ON AG
“By implementing this asset exchange transaction, Gazprom and E.ON have once again demonstrated a successful development of long-term Russian-German cooperation in the energy sector. Now our companies are partners in the area of gas production as well. The unique experience of developing the Yuzhno-Russkoye field will not only allow Gazprom and E.ON to strengthen their business ties, but will also serve as further confirmation of our mutual trust and friendship.”
Bernhard Reutersberg and Alexey Miller
On signing the Memorandum of Understanding with StatoilHydro
“The partnership between Gazprom and StatoilHydro is based on long-term experience and advanced technologies possessed by our companies that are capable of guaranteeing success to any of our projects. The development of the biggest of the projects – the Shtokman field – will become a starting point for the development of Arctic hydrocarbon reserves, a catalyst for the design and adaptation of technologies, which will help our companies to operate efficiently in harsh northern climatic conditions.
Rich offshore resources of the Arctic as well as unique experience of Gazprom in implementation of major energy projects open dazzling possibilities for further development of our large-scale partnership.”
On securing reliable energy supply to Europe
“Our counterparts from E.ON Ruhrgas have once again expressed their concern over Ukraine’s capability to timely pay for Russian gas and to ensure failsafe hydrocarbons transit to Europe. A nearly monopolistic position of the country in transmitting blue fuel from Russia helps us to understand why the problems of Naftogaz have become Europe’s headache.
We have discussed this matter today with our German counterparts and come to the conclusion that all the market players – supplier, transit country, consumers – should elaborate a cooperation plan to ensure reliable energy supply to Europe.
The plan should provide for such short-term objectives as searching for the sources of finance to pay for the gas consumed by Ukraine and for the gas to be injected into the country’s underground storage facilities, as well as to upgrade the Ukrainian gas transmission system.
Among the long-term objectives are intensification of the efforts made by Russia and the EU to implement the Nord Stream and South Stream projects aimed at ensuring reliable natural gas supply for decades, thus, anticipating any conflicts among the energy industry players.”
Alexey Miller
On the South Stream project development
“We are satisfied with the progress in the South Stream project implementation. As part of the project Gazprom has managed to reach mutually beneficial agreements with partners from Bulgaria, Serbia, Hungary and Greece, as well as to start developing feasibility studies for the respective sections of the gas pipeline.
The South Stream project attracts the attention of other European countries: we hope Slovenia will take part in it before long. Today we have seen that our Slovenian partners are taking this opportunity seriously and share the opinion that the new gas transmission route is a strategic project providing not only additional natural gas supplies and steady economic growth to a specific country, but energy security for a considerable part of the European continent.”
On Azerbaijani gas purchases
“In addition to the historical ties between our countries we have always been connected via a single gas transmission system. We have all we need to start purchasing Azerbaijani gas in the nearest future. Our cooperation creates good conditions for further successful development of interaction in the energy sector.”
On partnership between Gazprom and Shell
“The Partnership between Gazprom and Shell within the Sakhalin II project is a good example of mutually beneficial cooperation of major energy companies. Owing to this large-scale infrastructure project, a new reliable energy source for Asia-Pacific countries emerged.
I am sure that the experience gained in joint implementation of the Sakhalin II project may lay the basis for further development of cooperation in the LNG sector on the Yamal Peninsula, inter alia.
In view of the announced retirement of Jeroen van der Veer as Chief Executive, this meeting was very special. We are grateful to him for many years of fruitful cooperation when our companies achieved significant results.”
On cooperation with Armenia
“Cooperation between Gazprom and Armenia is evolving pursuant to a very successful formula. Previously, we have agreed upon a gradual transfer to the European pricing system, in a preferential regime for Armenia, while consolidating Gazprom’s positions in the energy market of the Republic by increasing the Company’s stake in ArmRosGazprom. This approach fully conforms to the mutual interests of Russia and Armenia.
Our partnership is of an integrated character and comprises the power generation industry in addition to the gas industry. Such an approach to cooperation resulted in diversification of gas supplies to the Republic and an increase in the Armenian energy security. In particular, for these purposes ArmRosGazprom has constructed the Kajaran – Ararat section of the Iran – Armenia gas pipeline.”
Karen Karapetyan and Alexey Miller
On possible cooperation with ConocoPhillips in Alaska
“The negotiations [between Gazprom and ConocoPhillips] touched upon the cooperation opportunities in the Arctic areas, including Alaska. In order to implement large-scale projects in this region, Gazprom's experience and knowledge are required. We are ready to continue the dialogue with American partners on sci-tech cooperation in integrated field development, gas transmission facilities construction and geological exploration in the Far North.”
On efficiency of major financial investments in the oil business
“Based on the 2008 operational results Gazprom Neft has once again demonstrated high performance rates and retained the leading position among all Russian oil companies in terms of operational efficiency. In general, upon transition under Gazprom management, Sibneft’s economic performance and operational efficiency are growing steadily.”
“Japan has obtained a new energy supply source and Gazprom – a fundamentally new competitive market”
“Execution of the Sakhalin II project and the launch of Russian LNG supplies to Japan brings the cooperation of Gazprom and Japanese companies to a qualitatively new level, which, unlike in previous years, goes beyond the major joint businesses, primarily Japanese equipment, machinery and pipes supplies to Russia. Japan has obtained a new energy supply source and Gazprom – a fundamentally new competitive market. The Sakhalin – Khabarovsk – Vladivostok gas pipeline will be the next large-scale project that will create a favorable environment for expanding Russian natural gas deliveries to Asia-Pacific including Japan.”
“Upon construction of the Sakhalin – Khabarovsk – Vladivostok gas pipeline and meeting the demand of domestic consumers, gas and its derivatives may be supplied from around Vladivostok to Asia-Pacific, Japan inclusive. This will enable to considerably advance our cooperation with the regional countries, supply them with extra energy resources and fortify Gazprom’s positions on these new competitive markets.”
The welcoming speech of Alexey Miller addressed to the Russian National Gas Vehicles Association
“From the first days of its inception the Association has been active in promoting the Russian NGV market and advocating the interests of its players. Special attention should be paid to its activities aimed at introducing legislative initiatives both on the federal and regional levels. The recurrent CNG vehicles rallies arranged by the Association in cooperation with Gazprom vividly demonstrate the advantages of the natural gas used as a vehicle fuel.”
On prospects for joint projects in the USA in cooperation with ConocoPhillips
“Gazprom’s track record will be extremely helpful when implementing new gas projects in the USA.”
On modernization of Salavatnefteorgsintez
“Salavatnefteorgsintez is Russia’s largest complex combining a full hydrocarbon feedstock processing cycle with the recovery of a broad spectrum of globally demanded products (gasoline, diesel fuel, mineral fertilizers, ethylene) at a single site. By launching the Visbreaking unit Salavatnefteorgsintez refinery will raise monthly production of diesel fuel by 10–15 thousand tons.”
“Modernization of such enterprises through advanced and environmentally-friendly technologies and an increase in the high value-added products output will substantially promote the competitiveness of Gazprom as a global energy company.”
Alexey Miller and Murtaza Rakhimov
On signing LNG and natural gas contracts with Royal Dutch Shell
“Gazprom has consistently implemented its strategy of reinforcing the Company’s standing on the LNG market and this deal [the contracts for LNG purchase by Shell Eastern Trading LTD and Gazprom Global LNG from Sakhalin Energy] will enable Gazprom to start LNG shipments from Sakhalin II to the United States, the world’s largest gas market, and other markets of the Pacific Basin, starting from this year.”
On the most urgent issues of interaction between Gazprom and European purchasers of Russian gas
“The declaration [the EU – Ukraine declaration on Ukraine’s gas transportation system modernization] signing behind Russia’s back was a political mistake and it would be impossible to implement it without the gas supplier. This document only added fuel to the flame of the gas conflict that we had recently managed to settle. The declaration contradicts both the cooperation principles established by the January gas agreements between Russia and Ukraine and the cooperation principles between the EU and Russia in the energy sector.”
“At present, Ukraine’s key problem is payment for current supplies of Russian gas. This issue will be even more acute during the forthcoming period of gas injection into Ukraine’s UGS capacities. In this context, a priority task is to search for adequate financial sources in order to pay for consumed gas.”
Alexey Miller meets with leadership of E.ON Ruhrgas, ENI and GDF SUEZ
On the implementation of Gazprom’s Strategy to consolidate positions in the global LNG market
“As long as the LNG market globalization is deepening, the transit risks are increasing significantly and risky documents are signed without regard to the interests of Russia, we believe, it is necessary to take a new look at the LNG strategy and analyze the practicability of launching new projects in this area.”
On launching the first Russian LNG plant
“Today we have launched LNG production in Russia. This will give a powerful impetus to economic development in the Far East of Russia. The Sakhalin II project implementation will make it possible to reinforce Gazprom’s position on the global energy market, promote the trade and economic relations between Russia and Asia Pacific, facilitate diversification of gas supply sources for this region, thus enhancing its energy security.”
Ceremonial inauguration of first Russian LNG plant
On signing the Supplement to the Memorandum of Understanding with Bolivian YPFB
“Gazprom and Bolivia have confirmed once again their mutual aspiration to develop strategic cooperation in the oil and gas sector. I am sure that the partnership will be mutually beneficial: being in a vein of Gazprom’s strategy targeted at expanding its presence on new foreign markets, it will facilitate an accelerated social and economic development of Bolivia.”
About the South Stream
“If the European partners come to us with a proposal to increase the South Stream capacity, we shall consider it.”
On the big gas troika creation
“Russia, Iran and Qatar have taken the decision to form a “big gas troika”. This decision has been driven by the logic of the gas market development. The gas market is becoming ever more global. This is due to the advancement of liquefied natural gas production technologies and an increasingly bigger role of LNG worldwide. LNG allows delivering it to markets located at very remote distances from production sites – these are tens of thousands of kilometers. And, of course, all globalization related developments are naturally reflected in the dialogue between the major producing countries. The decision to set up the troika is absolutely logical given that Russia, Iran and Qatar own altogether some 60 per cent of the global gas reserves. It should also be noted that this tripartite dialogue is primarily based on joint three-way projects. The idea is that the three countries will work on joint projects across the entire gas chain from geological exploration and production to distribution and marketing of gas.”
On the price for Russian natural gas supplied to Europe
“This summer, in July, while visiting Azerbaijan we stated that according to our forecasts the European price for Russian natural gas might reach USD 500 per 1,000 cubic meters by late 2008. As of today, we can assert that the price growth has surpassed Gazprom’s expectations: the price for the gas supplied by Gazprom to Europe exceeded USD 500 already in October.”
Gazprom is able to meet any solvent consumer’s demand for gas
“Energy – Global Players and Referees (Interdependence, Partnership and Competition)” as part of XII St. Petersburg International Economic Forum.
“Our international business ties and our joint projects have turned Gazprom into a global company. We will rigorously abide by all of our long-term contractual obligations. The size of our reserves permits us to confidently state that Gazprom is able to meet any solvent consumers’ demand for gas, in domestic and foreign markets alike.”
The process of Gazprom’s conversion into a global energy company has completed
“Contemporary business is experiencing rapid globalization and is going beyond industry and national market boundaries. Two years ago Gazprom decided therefore to start creating a global energy company. It wouldn’t be an exaggeration to say nowadays that the process of Gazprom’s conversion from the “national champion” into a global energy business leader has completed. Over a six-year period the Company’s capitalization grew 25-fold exceeding the USD 270 billion level by the end of last year.”
Gazprom chooses French Total as partner for the initial phase of the Shtokman field development
“Gazprom has made a decision on the choice of a foreign partner to implement the initial phase of the Shtokman field development, and named French Total S.A. as such.”
On the Shtokman field development
“Gazprom will use 100 per cent of the Shtokman field resources. Over the continuous period of time Gazprom has studied the possibility of providing foreign companies with a 49 per cent stake in the Shtokman project. International companies however failed to offer assets matching Shtokman’s reserves in amount and quality. The field will be developed with the use of state-of-the-art technological developments, including for LNG production. Reputable international companies will be invited as project contractors for these purposes. Meeting project deadlines and costs is a prerequisite for prospective contract awards. This decision is an additional guarantee of Russia’s reliable gas supplies to Europe in the long-term and the proof that the European market is of primary significance for Gazprom.”
On the gas market liberalization
“Gazprom proposes to abolish natural gas pricing regulation for industrial consumers starting from the next year.”
“Our proposal is to use commodity trading mechanisms starting from 2006 in order to set the gas supply prices for industrial consumers, and to keep regulated prices exclusively for the housing & utilities sector, state & local budget consumers and the population.
Natural gas is currently the only primary resource, which price regulation is based on historical indicators and is not set by the demand and supply levels. As a result, the gas industry has long been a powerful financial donor for the entire economy, including profitable export-oriented consumers supplied with cheap natural gas.
Natural gas share in Russia’s energy balance has risen to 50 per cent, even to 80 per cent in some regions, and there is a considerable decline in coal, fuel oil and other fuel alternatives utilization. Therefore, there is a slowdown in the development of the corresponding industries on which our country’s energy security also relies.
The proposal to abolish gas pricing regulation may seem to be quite a radical step, but a shift to market relationships in the gas industry should not be equal to an uncontrollable gas prices increase. Gazprom has definitely a dominating position in the gas market, but the independent producers and alternative fuel suppliers, including coal and fuel oil, will compete with us under equal economic conditions.”
On the second phase of Gazprom’s restructuring
“The work done to improve Gazprom’s governance structure makes it possible to set to implementing the second phase of the Company’s restructuring at the subsidiary level under the schedule that is in 2005. Preparations for the restructuring have almost completed.”