Unprecedented growth of Gazprom’s exports named one of key events of 2017
The Gazprom Board of Directors took note of the information about the impacts of the events of 2017 on the long-term outlook for the global energy market.
It was highlighted that 2017 had been particularly successful for Russian gas exports. Last year, Gazprom exported a record 179.3 billion cubic meters of gas to Europe. The upward trend continued this year: as early as December 8, 2017, last year’s record was beaten, with total exports reaching 179.8 billion cubic meters of gas.
2017 marked a recovery in China’s gas consumption, which grew by 18 per cent in the first three quarters of the year thanks in large part to the rise in gas-fired power generation and the environmental benefits of natural gas over coal. Another of this year’s important developments in this connection was the signing of the supplementary agreement between Gazprom and CNPC for Russian gas to be supplied to China via the Power of Siberia gas pipeline starting from December 20, 2019.
Attention at the meeting was also paid to renewable energy. It was pointed out that bad weather in the winter months of 2016–2017 had disrupted the operations of wind and solar power plants in Germany. In order to prevent power losses and offset the risk of blackouts, it was required to use the full capacity of all gas and coal power plants in the country, including those decommissioned or slated for decommissioning. Moreover, electricity had to be imported from the neighboring countries to fully meet the consumer demand. That situation clearly demonstrated the technological downsides of excessively rapid integration of renewables into Germany’s energy supply system.
The main trends in the LNG market persisted in 2017, with investment activity dwindling and North American LNG flowing to Latin America and Asia-Pacific. Since the year started, only one investment decision was made with regard to building an LNG plant.
It was stressed at the meeting that 2017 had not affected the long-term outlook for the global energy market in any major way. Gazprom is expected to remain the largest and most reliable gas supplier in Europe amid the decline in the region’s indigenous gas production. The Company is bound to strengthen its foothold in the promising market of Asia-Pacific as well.
The Management Committee was tasked to continue monitoring and assessing the impact of emerging trends on the long-term outlook for the global energy market.
The Board of Directors approved Gazprom’s Long-Term Development Program.