Alexey Miller's column
“This agreement was achieved only because both parties – Russia and China – made concessions. The talks were quite difficult. Of course, for all this time we’d been in direct touch with Russian President Vladimir Putin, reporting to him on the progress of the talks. I’ll stress it once again, this contract could be signed under such conditions only within a visit. The contract volume: we’ll earn USD 400 billion in 30 years, having spent only USD 55 billion.”
Statement by Alexey Miller at the “Gas Motor Fuel for European Environment” Conference within the European Business Congress
“When we mention the diversification of our markets we also mean the product range diversification and we will surely enhance our activities in the NGV segment.
Despite the ambitious goals of the EU for diversifying energy sources in all the areas of consumption, the highest dependence on a single type of fossil fuel (95 per cent of the market) is still observed in the transportation sector. We consider a unified approach and adequate regulatory measures to be essential for establishing a solid foundation for the evolution of the NGV fuel market.
All in all, the vehicle manufacturing industry and the gas industry may become our natural allies to promote the use of natural gas in the transportation sector. Gazprom already closely cooperates with the key players of this industry, and these are not just Russian manufacturers, but well-known international brands as well, including Volkswagen, Mercedes, Fiat, Opel and many others.”
“Our strategic goal lies in diversifying the markets, increasing the reliability of hydrocarbon supply and our operating efficiency. Gazprom is committed to retaining and, if possible, increasing its share in the European market, while at the same time expanding its presence in the Asia-Pacific region.
The NGV segment is among our priority lines of business. At present, natural gas occupies an inadequately small niche in the vehicle fuel market. Our aim is to change that. We consider a unified approach and adequate regulatory measures to be essential for establishing a solid foundation for evolution of the NGV fuel market.
The vehicle manufacturing industry and the gas industry may become natural allies to promote the use of natural gas in the transportation sector. Gazprom already closely cooperates with the key players of this industry. We are sure that wider use of natural gas will partially resolve the most pending issues of the European community, that is, it will provide support to the economic competitive ability and at the same time contribute to environmental protection.”
In cooperation with Verbundnetz Gas we will increase the stability of gas supply to our European consumers in the autumn-winter period
“Our contract signed over 40 years ago provided the basis for developing new enormous fields in Russia, creating the largest gas transmission system in the world as well as a transportation and distribution system in Germany. VNG was the first company to start supplying Russian natural gas to Germany. In a manner of speaking, Gazprom and Verbundnetz Gas are the originators of the Russian-German energy dialogue. Today more than ever the issues of energy security are especially crucial for the European gas market. In this context we and Verbundnetz Gas are in step with the times. We are developing projects for underground gas storage. This issue is most relevant today given the relations with Ukraine in the gas sector. There is no doubt that cooperation with Verbundnetz Gas will allow us to create new gas storage capacities in Europe and therefore to increase the reliability and stability of gas supply to our European consumers in the autumn-winter period.”
“The whole potential of Gazprom is engaged today. Our aim is the East. Our aim is China. Let’s set to work!”
“What the signed contract [with China] can result in and in which way? One may suppose that entering this contract will influence European market prices. This is first. Secondly, the competition for Russian gas resources started yesterday. We have already noted that the EU lost its battle for global LNG. Another competition started yesterday – the competition for the Russian gas resources. Undoubtedly, this deal will have an impact upon very costly LNG projects in Eastern Africa, Australia and Western Canada. Therefore, the contract with China is not just the biggest deal with our neighbours, not just the biggest contract in Gazprom’s history, but the agreement, which is going to influence gas markets.”
Gazprom Marketing & Trading Singapore and Yamal Trade sign agreement to supply up to 3 million tons of LNG
“This Heads of Agreement will significantly reinforce the long-term LNG portfolio of Gazprom. It is an additional way to expand the global trade and use our own fleet of LNG carriers.”
“We go on developing our mutually beneficial strategic cooperation with LUKOIL. Further implementation of the ongoing projects and creation of new ones will substantially increase the economic potential of our companies.”
“Russia and China have signed the biggest contract in the entire history of the USSR and Gazprom – over 1 trillion cubic meters of gas will be supplied during a whole contractual period. Russian gas will be sold at a brand new market with a huge potential.
The arrangement of Russian pipeline gas supplies is the biggest investment project on a global scale. USD 55 billion will be invested in the construction of production and transmission facilities in Russia. An extensive gas infrastructure network will be set up in Russia’s East, which will drive the local economy forward. Great impetus will be given to entire economic sectors, namely metallurgy, pipe and machine building.
Today we started the first page of a big book, a fascinating story of the Russian-Chinese cooperation in the gas industry, and many more essential chapters are yet to be written in it.”
“Gazprom is a socially responsible company. And Russian state owns the majority stake. And problems we solve are very complex. First of all, certainly, it is about securing the reliable gas supply to customers across Russia and our partners abroad and passing through the autumn/winter peak consumption. Winters here are cold, we live in the northern country. I would like to remind you that every second each bulb in the country is fed by Gazprom’s gas. In parallel, we address other matters. Among them, to boost our contributions to the state budget and, by all means, the growth of our shareholders’ income from dividends. And no doubt that the Company should meet all these challenges, but to achieve the main objective – the reliable gas supply to all our customers during the winter and summer periods across Russia and abroad.”
“Tomorrow Gazprom will issue, in line with our contract, an advance invoice for gas to be delivered in June and will also forward a letter of notification to Naftogaz of Ukraine on issuing the advance invoice. The Ukrainian party is obliged to pay for June supplies before June 2, due to June 1 being Sunday. In case if Ukraine fails to pay for June deliveries, then Gazprom – before 10 a.m. on June 3 – will report to the Ukrainian party on the gas volumes to be supplied to Ukraine according to the prepayment. If the prepayment is not made, then zero cubic meters of gas will be supplied to Ukraine in June. Once again, of course, one should be aware that this is not about halting the supplies, it is about supplying Ukraine with gas in strict compliance with the prepayments, i.e. how much gas Ukraine will buy for June.”