Alexey Miller: “We are focused on implementing top-priority projects which will, for decades ahead, benefit Russia and millions of Russian people.”
“The Shareholders Meeting of Gazprom was held today. It took stock of the main results of the year 2023 and rendered decisions on all agenda items.
Gazprom is confidently moving forward. We are primarily focused on implementing the large-scale top-priority projects which will, for decades ahead, benefit Russia and millions of Russian people.
Of course, our projects are designed so that to fully reflect the prospects of the global energy market.
Energy consumption will grow across the world. This fact is related objectively to population growth, development of economies and the accelerating digitalization. According to leading experts, the global primary energy consumption will increase by 20 per cent by 2050. And natural gas, owing to its efficiency, availability from the technological point of view and eco-friendliness, will be the most sought-after of energy sources. Its share in the global energy mix will reach 26 per cent, or even more under some scenarios.
For Russia, natural gas is an essential resource that facilitates the growth of economy, industrial production and house building sector, and improves the quality of life. Gazprom strives to make this resource available to as many consumers as possible.
To that end, we perform extensive gas infrastructure expansion in cities and villages across Russia. We create new infrastructure: solely in 2023, we laid gas pipelines to 412 localities. And we are steadily moving towards achieving a 100 per cent technically possible gas grid coverage in Russia.
We are actively performing additional gas grid expansion. As of the end of 2023, a total of 874,000 contracts concluded with individuals for bringing pipeline gas to the boundaries of their households were executed. Today, the figure is already nearing 1 million.
New consumers mean a steady long-term growth of gas demand. We can attest that this is already happening now, as evidenced by the numerous records set in terms of winter and summer daily gas deliveries across Gazprom's gas transmission system.
As for foreign countries, there is no doubt that China, with its dynamic economy, will remain the leader in terms of the gas consumption growth rate. I would like to note that, according to experts, including Chinese ones, gas consumption in China is expected to double by the middle of the century.
Gazprom systematically increases its gas supplies to China via Power of Siberia. As soon as next year, their volumes will reach the pipeline's design capacity. Power of Siberia will start functioning at its design export capacity of 38 billion cubic meters of gas per year.
Russian gas is in demand in China. In 2023, our supplies to China were 700 million cubic meters above our contractual obligations. In the beginning of 2024, we continued setting new all-time highs for our daily exports of gas to Chinese consumers.
In 2027, the Far Eastern route with a capacity of 10 billion cubic meters of gas per year will be launched. After Power of Siberia and the Far Eastern route reach their full capacity, Russia will become the largest supplier of gas to China.
We can also observe economic growth in the countries of Central Asia and a high demand for energy resources which is associated with this growth. That is the reason why we are making comprehensive efforts jointly with our partners. Our common goal is to expand gas transmission capacities and ensure reliable long-term gas supplies to the consumers in Central Asia.
One of the important developments of 2023 was the launch of reverse-flow supplies via a number of strings within the Central Asia – Center gas trunkline system. We have started the first-ever supplies of Russian gas to Uzbekistan via this new route.
Gazprom sees that there is a great potential for strengthening relations with all countries that are interested in stable functioning of the energy sector on the basis of a clean and efficient energy resource. Our company has all the possibilities for this.
At the core of Gazprom's stability is its unique production complex and the world's largest resource base, which is replenished by the Company every year.
In 2023, we again achieved gas reserve additions, maintaining the reserve replacement ratio above 1, and launched new production facilities in Yamal, Eastern Siberia and the Far East. The Company increased the deliverability of its underground gas storage facilities to new record-high levels. In early 2024, Gazprom commenced the implementation of the project that will make it possible to connect the gas transmission systems in the west and in the east of Russia. This project will increase the flexibility of gas supplies to Russian consumers and create new possibilities for expanding gas infrastructure.
An important line of Gazprom's activities is gas processing, which ensures the output of additional products being in demand in many industries, both in Russia and abroad. At present, three production trains of the Amur Gas Processing Plant are already in commercial operation and the fourth one is about to be launched. The Gas Processing Complex near Ust-Luga, which is currently under construction, is 32 per cent complete. These enterprises will rank among the largest in the world.
Of course, we focus not only on gas projects. Gazprom is actively upgrading the existing power plants. In the east of Russia, we build a new TPP that is necessary for the development of the Eastern Polygon of the Russian Railways network. The Company builds up its production capacities in the oil sector.
Gazprom's ambitious projects ensure the strengthening of the energy and technological sovereignty of Russia. These projects create new jobs, generate significant payments to budgets of all levels, and give a powerful impetus for the development of science, industry and the social sector.
The projects that we are implementing today make a contribution to the future of our country and many generations of Russians.”