Alexey Miller's column

South Stream construction starts in Bulgaria

“A landmark event has taken place today: construction started on the Bulgarian section of the South Stream gas pipeline – the most large-scale and important project in Europe. This project is a key element of energy security of the whole European continent. Gas will be supplied directly from Russia to Bulgaria, from Russia to the European Union, bypassing transit countries, thus providing for the most reliable and uninterrupted supplies. South Stream will eliminate transit risks for ever. South Stream will accelerate the economic development of Bulgaria, attracting EUR 3.5 billion of direct investments to the country and creating over 2,500 jobs. A new gas transmission infrastructure will increase the investment attractiveness of Bulgaria. Bulgarian consumers will receive gas at a lower rate as the gas pipeline runs directly from Russia via the Black Sea. The construction follows a strict schedule: before the year's end construction will start in Serbia, then in Hungary. Therefore, South Stream is steadily running ahead. Bulgarian consumers will receive first gas via South Stream in December 2015.”

South Stream gas pipeline construction starts in Bulgaria

Russia’s first subsea production facility successfully tested in Kirinskoye field within Sakhalin III project

“For the first time in the Russian gas industry a subsea production facility was constructed to develop a field in the Russian continental shelf. The experience gained by Gazprom at the Kirinskoye field will be used for developing other Russian offshore fields.

Subsea production technologies proved to be efficient, reliable and safe. Their application makes it possible to considerably mitigate environmental impacts.”

Kirinskoye field subsea production facility

Kirinskoye field subsea production facility

About negotiations with Chinese partners

“I would like to particularly stress that a very important provision of the Agreement on gas supply to China was approved. We finally agreed to apply in the contract a multiplicative formula tied to petroleum product prices.

We defined the next large area of our joint activities, namely, we decided that once the contract on the eastern route was signed, the talks would start regarding gas supply via the western route.”

Europe shows high demand for Russian gas

“In the first half of October we will supply Europe with 6.8 billion cubic meters of gas, up 30 per cent as compared to the same period last year.

This confirms our forecasts – Europe continues showing high demand for Russian gas and the upward trend of gas supplies to foreign markets will persist.”

Background

Gas supplies to Western Europe:

First half of 2013 – 79.5 billion cubic meters or +9.6 per cent by 2012,

Nine months of 2013 – 119.4 billion cubic meters or +15.5 per cent by 2012.

Gazprom launches gas production in Vietnam

“The implementation of such large-scale joint projects will make it possible to bring the cooperation between our companies to a new level of strategic importance. I am sure it will make a significant contribution to developing the fuel and energy sector of Vietnam and providing its consumers with an environmentally friendly fuel over the long term.”