Alexey Miller's column

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”

Signing of Agreement on Major Terms and Conditions for Azerbaijani natural gas purchase and sale, foto by RIA “Novosti”

Final Press Conference with the participation of the Board of Directors Chairman and Management Committee Chairman of Gazprom

Alexey Miller and Viktor Zubkov

Alexey Miller and Viktor Zubkov

Gazprom – a flexibility test. Speech by Alexey Miller at the Annual General Shareholders Meeting

“Crises come and go, but Gazprom keeps moving forward!”

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!

Speech by Alexey Miller at the European Business Congress

“The questions ‘How much should oil cost?’ and ‘What will be the oil price in the foreseeable future?’ are not rhetoric. The energy sector is the cornerstone of the world economy. Therefore, the question whether we will reach what many people call the ‘fair price’ for oil will determine to a major extent 1) When and 2) How the economic crisis will be overcome.”

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

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 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 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 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

Alexey Miller

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

Karen Karapetyan and Alexey Miller