Alexey Miller's column

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  • Alexey Miller

    I am very glad to see here so many representatives of partner companies from different countries and regions of the world. It means that the St. Petersburg International Economic Forum is a key platform for energy discussions.

    The global gas market grew by 5.5 per cent in 2016. In terms of worldwide sales, the ratio of pipeline gas versus liquefied natural gas (LNG) was 69 to 31 per cent. This ratio – 70-to-30 – has been stable in recent times, without any major changes.

    “Import substitution has been part of Gazprom's systemic efforts for many years. It is a powerful impetus for the Russian industry and a crucial component of national energy security. Today, Gazprom buys 95 per cent of its materials and equipment in Russia. On top of that, the Company procures all of the large-diameter pipes used in building gas trunklines from Russian manufacturers.

    Thanks to Gazprom's ambitious gas transmission projects, the demand for pipe products is stable now and is bound to remain strong in the future. What is important is that Russia now has a new pipe producer that meets the rigorous standards of our Company. It means increased competitiveness in the pipe industry, which will lead to higher quality and greater economic appeal.”

    Andrey Vorobyov, Governor of Moscow Region, Alexey Miller, and Denis Safin, Director General of Zagorsk Pipe Plant

    Andrey Vorobyov, Governor of Moscow Region, Alexey Miller, and Denis Safin, Director General of Zagorsk Pipe Plant

    The economy has already made its choice in favor of gas. We have it in our power to prove to the governments of certain countries that natural gas can and must form the basis for the energy of the future. This requires the entire gas industry community to not only prepare a common response and propose solutions to challenges facing the industry, but also get those solutions across to the authorities, the business community, and the general public.

    Dear colleagues, natural gas offers us an exceptional opportunity to develop the economy in a reliable, sustainable, effective and eco-friendly way. Natural gas is the fuel of the 21st century!

    “Natural gas is the energy source that will fill the gaps left by renewable technologies. Gas meets every requirement for energy carriers in today's economy. It means enormous reserves coupled with exceptional reliability and availability. It means market development and sustainable trade models worldwide. Moreover, gas is the cleanest fossil fuel. From a technological and environmental standpoint, gas is perfectly positioned to become the destination fuel for the future in Europe and the world at large.”

    “Gas pipelines not only bring heat to homes, but also serve as a common thread for different economies, helping them thrive and develop. There is no doubt that the steel arteries of our gas trunklines, along with transport corridors running for thousands of kilometers, will become a symbol of the ever-growing strategic cooperation and connectivity between Russia and China in the 21st century, a shining example for the rest of the world.”

    “Today, we started the practical implementation of the TurkStream gas pipeline project: pipe-laying within the offshore section. By late 2019, our Turkish and European consumers will have a new, reliable source of Russian gas imports”.

    The Audacia pipe-laying vessel

    The Audacia pipe-laying vessel

    “Today, we have signed with our Uzbek partners a number of important documents, among which is the first medium-term contract for Uzbek gas to be purchased by Gazprom. Russian-Uzbek cooperation in the gas sector is thriving and expanding to new areas.”

    Gulomzhon Ibragimov, Deputy Prime Minister of Republic of Uzbekistan, and Alexey Miller signing contract for Uzbek gas to be purchased by Gazprom. Photo by RIA Novosti

    Gulomzhon Ibragimov, Deputy Prime Minister of Republic of Uzbekistan, and Alexey Miller signing contract for Uzbek gas to be purchased by Gazprom. Photo by RIA Novosti

    “The Year of Occupational Safety proved to be a success. The main outcome of the initiative is that we have had the lowest number of accidents at work in 17 years. Although the Year is officially closed, our work continues. Our goal is to eliminate workplace injuries.”

    The Gazprom Management Committee reviewed and assessed as fulfilled the goals of the Year of Occupational Safety held in 2016

    The Gazprom Management Committee reviewed and assessed as fulfilled the goals of the Year of Occupational Safety held in 2016

    “Gazprom pursues global projects that look forward into the future, and the F4F project is closely aligned with that goal. In a mere four years, the number of participating countries grew eightfold. This year, St. Petersburg will host young footballers from as many as four continents. It means that the values of our social project are meaningful and relevant to children and teenagers all around the globe.”

    Fifth season of Football for Friendship children’s project launched

    Draw results

    “The strategic partnership between Gazprom and CNPC continues to advance. I am confident that Gazprom’s unique experience and enormous capacities will help China with its ambitious plans to develop the national gas market and secure demand for natural gas as well. By 2020, the share of natural gas in China’s energy mix is expected to grow from 6 per cent to 10 per cent. According to the plan, the need for gas imports may double by late 2020, reaching 150 billion cubic meters. As of today, we have an ongoing project with CNPC for gas supplies from Russia to China via the eastern route. The agenda is to complement it with another project for pipeline gas supplies from Russia’s Far East.”

    Welding of first joint at Power of Siberia gas pipeline. September 1, 2014

    Welding of first joint at Power of Siberia gas pipeline. September 1, 2014

    Alexey Miller briefs Vladimir Putin on Gazprom’s performance in 2016

    Vladimir Putin and Alexey Miller. Photo by www.kremlin.ru

    “Gazprom’s main resource base is shifting northward to Yamal, where we make consistent efforts to develop the new gas production center that will secure gas supplies across Russia in the coming decades. The new gas pipeline, Bovanenkovo – Ukhta 2, commissioned today as part of the northern gas transmission corridor, reshapes the geography of gas flows for both domestic supplies and exports. The northern corridor becomes fundamental to gas supplies throughout European Russia and integral to the shortest, most reliable and efficient new route for gas exports to Europe, stretching from Yamal to Germany across the Baltic Sea. It is the Nord Stream 2 project, whose implementation is running on schedule.”

    “According to the most recent data, Gazprom produced 419.07 billion cubic meters of gas in 2016, which was some 11 billion cubic meters more than planned and 0.57 billion cubic meters more than in 2015. We are always responsive to the market demand and extract as much gas as consumers need. However, our production potential exceeds the actual annual output by over 150 billion cubic meters. This allows us to rapidly boost gas supplies within and beyond Russia so as to meet consumption peaks during the winter months.

    Gazprom’s gas exports to Europe hit an all-time high for the gas industry in 2016, totaling 179.3 billion cubic meters. Compared to 2015, it is an increase of 12.5 per cent, or 19.9 billion cubic meters in absolute terms, which is commensurate with the volumes we delivered to the U.K. last year, namely 17.8 billion cubic meters. This historic achievement is proof of the surging demand for Russian gas in Europe and our capacity to ensure reliable gas exports in the required amounts.”

    Portovaya compressor station, Nord Stream gas pipeline