Alexey Miller holds meeting marking Oil and Gas Industry Workers Day

Alexey Miller, Chairman of the Gazprom Management Committee, today held a meeting marking Oil and Gas Industry Workers Day.

The heads of Gazprom Dobycha Urengoy, Gazprom Dobycha Orenburg, Gazprom Dobycha Yamburg, Gazprom Transgaz Volgograd, Gazprom Transgaz Saratov, Gazprom Transgaz Ukhta, and NIIgazeconomika made operational performance reports at the meeting.

Shorthand record of Alexey Miller's speech

Esteemed colleagues, dear friends,

I am happy to welcome you at the celebratory meeting! Please accept my heartfelt congratulations on our upcoming professional holiday: Oil and Gas Industry Workers Day!

This is a special year for us to celebrate our professional holiday, as it was in this year's February that Gazprom had its 30th anniversary.

And throughout the three decades of its history, Gazprom has always been working in a reliable and confident manner for the benefit of Russia. We strengthen the energy security and sovereignty of Russia. We make the domestic economy stronger and more stable.

As you know, consumption of energy resources is an important indicator of economic situation.

And we see that, for example, in Europe, there has been a decline in gas consumption for the second year in a row. In 2022, it fell by 56 billion cubic meters. And in the first eight months of 2023, it decreased by 26 billion cubic meters versus the same period of 2022. As for the reasons behind the crisis in Europe, we have discussed them on multiple occasions.

At the same time, we can see that China's gas market is growing. In the first eight months of 2023, China has increased its gas imports. More than a half of this growth in imports to the Chinese market was covered by Gazprom.

I would also like to note that we steadily increase the daily capacity of Power of Siberia, the main line of our gas supplies.

But the most important thing is that we create new gas transmission routes. I am referring, for instance, to the Far Eastern route. We signed the agreement and the relevant gas supply contract with regard to it last year.

Therefore, Gazprom will increase its gas supplies to China. And we know that Gazprom's gas is highly competitive in the Chinese market.

As for the Russian market, Gazprom's domestic supplies from its gas transmission system in the first eight months of 2023 have surpassed those of the last year.

We continue generating opportunities for connecting more and more consumers to the gas grid in Russia. Pursuant to the instruction of Russian President Vladimir Putin, we are actively implementing gas grid expansion activities across the country.

As you know, our five-year gas supply and gas infrastructure expansion programs for Russian regions envisaged significant investments and considerable scopes of works. However, upon request from the regions, we have decided to extend and expand these programs, and now they include even more facilities and envisage even more investments. As compared to what was initially planned, we have raised the bar for Russia's gas infrastructure expansion even higher, to a more ambitious level, and accelerated the speed and pace of our work.

As a result of gas infrastructure expansion, thousands of localities will be provided with the possibility of gas grid connection. Without a doubt, this means a new quality of life. And, of course, it is a very important social aspect of our further development.

As for the urban and rural localities already covered by the gas grid, their residents are included into the additional gas grid expansion program. Pursuant to the decision made by the Russian Government, Gazprom brings pipeline gas to the boundaries of households at no cost to the population. A total of more than one million applications have already been received since the launch of the program.

In addition, more than 660 applications from medical facilities and educational entities wishing to be provided with gas grid connection have been approved in 48 Russian regions.

Without any doubt, the implementation of our plans is very important for the development of the domestic industry and social growth in the regions of the country. That is why our work is based on our Long-Term Development Program. Gazprom's ambitious goals set with regard to the development of gas production activities and gas transmission system extend 10 years into the future. Therefore, it can be said that we do work under two five-year plans at one time now.

We perform our tasks with perfect confidence and complete them in full. What is more, we complete them ahead of schedule. In this connection, I would like to put a special emphasis on the work being carried out to develop the Company's resource base.

Gazprom is developing its major gas production center in Yamal, which is of key importance to Russia, and has commenced the pre-development of the Neocomian-Jurassic deposits of the Bovanenkovskoye field. After this, the Company is going to bring into operation another field in Yamal: Kharasaveyskoye.

We continue to actively implement the projects under the Eastern Gas Program. I would like to express my special gratitude for this work to the large team of Gazprom, because the pace at which the Eastern Gas Program is being implemented is truly impressive. The pace of development is really unprecedented.

The works are proceeding on schedule. This year, the construction of the key infrastructure facilities will be completed at the Chayandinskoye field within the Yakutia gas production center. Before the end of 2024, strictly on schedule, we will bring the field to its planned design capacity.

In the current year, Gazprom will launch the second comprehensive gas treatment unit at the Kovyktinskoye field within the Irkutsk gas production center.

Along with the development of the production capacities, this year we will bring onstream around 800 kilometers of loopings at the Power of Siberia gas pipeline section stretching from the Chayandinskoye field to Blagoveshchensk. We are increasing the capacities of compressor stations at this section.

The unique infrastructure complex created by Gazprom in the east of Russia allows the Company to achieve a wider expansion of the gas grid in the country's eastern regions. And, ultimately, in line with the instructions of the Government, we have set the objective to further connect the gas transmission system of eastern Siberia and the Far East to the national Unified Gas Supply System. And, of course, Gazprom completely guarantees the compliance with its contractual obligations both to the Company's consumers in the east of Russia and to the Chinese partners in terms of the gas exports to China.

Gazprom is actively engaged in gas processing. As of today, the products of gas processing facilities are in very high demand by different sectors of the Russian economy. Large-scale processing clusters will emerge in the west and in the east of Russia. These processing clusters will create a multiplicative effect which will be tangible for the regions, the regional economy and the economy of the entire country.

The construction of gas processing plants is ongoing. As you know, the construction readiness of the Amur gas processing complex is currently almost 90 per cent. And, dear colleagues, I congratulate you in this regard, because the construction works on this complex are performed in very challenging conditions.

Esteemed colleagues,

As always, our professional holiday is also a reminder that the autumn/winter period is approaching. It is the most demanding period of the year for Gazprom. It should also be noted that the injection of gas into Russia's UGS facilities is performed strictly on schedule. As of today, the overall volume of gas injected into the storages is 88 per cent of the target level. It is absolutely certain that all of the target indicators for the injection of natural gas into the UGS facilities will be achieved in due time by the beginning of the season.

I would like to note that a record-high amount of working gas will be injected into the storage facilities by this winter. The potential daily deliverability will also be at record-high levels by the start of the withdrawal season.

Esteemed colleagues, dear friends,

Gazprom performs its work in a reliable, well-coordinated and efficient manner. I wish all of you a happy holiday. Enjoy continued success in your work and achieve all of the goals set.

And, as we say in conclusion, let us go on with our work.