Gazprom Export News Gazprom Export News Fri, 17 Nov 2017 18:00:00 +0400 gazpromexport en IEA Forecasts Rise of Natural Gas Use by 45% to 2040 Fri, 17 Nov 2017 18:00:00 +0400 The International Energy Agency (IEA) presented its newest forecast of the world energy industry development up to 2040 — the World Energy Outlook 2017 (WEO).

The baseline New Policies Scenario, which takes into account the implementation of all existing and announced measures of economic and political transformation of the energy sector, assumes that gas consumption will increase by 45% to 2040. The main area of consumption growth will be industry rather than power generation. In general, natural gas will account for a quarter of the world’s energy consumption.

The most significant growth will be demonstrated by the developing economies of China, India and other Asian countries. The forecast authors believe that China will provide a quarter of the growth in the world gas demand. Its annual imports by 2040 will top 280 bcm of gas. At the same time, coal consumption in China willdecrease by 15% to 2040.

In Europe, gas demand will be primarily generated by the need of greenhouse gas emissions reduction and coal generation withdrawal, as well as to weaken the positions of the nuclear energy.

According to the WEO, natural gas becomes a global commodity, and the role of LNG in world trade will grow. The number of countries that import LNG increased from 15 in 2005 to 40 in 2017, and their number will continue to grow. In 2016, the world gas trade amounted to 706 bcm, of which 39% was delivered in the form of LNG — and in 2040 the global gas trade, according to the forecast, will amount to 1.23 trillion cubic meters, and 59% of it will account to LNG.

The number of LNG plants will double by 2040. Major part of the new volumes will come from the USA, Australia, Russia, Qatar, Mozambique and Canada.

In turn, the growing share of LNG in the world gas trade will change the pricing system — most of the contracts will be linked to hubs, and the importance of inter-fuel competition in the gas prices formation will decrease. The gas trading system will become more flexible and reliable. “The natural gas market is becoming increasingly global and interconnected than ever before,” — says Tim Gould, one of the forecast authors.

The IEA forecast also considers the alternative Sustainable Development Scenario, which envisages the UN Sustainable Development Goals (SDGs). Under this scenario, a more moderate increase in gas consumption is projected: by 20% to 2030, and maintaining this level of consumption until 2040. In absolute terms, this growth will amount to 580 bcm of additional gas demand by 2040.

Russian Gas Export in January-October 2017 Tops the Figures of Previous Years Fri, 03 Nov 2017 18:00:00 +0400 According to Gazprom PJSC operative data, Gazprom Group supplies to the Far Abroad countries from January to October 2017 increased by 13.2 bcm and reached 157,15 bcm, exceeding the relevant figures of the same period of 2016 by 9.2%. Comparatively, throughout 2015 Gazprom Export sold in foreign markets a total of 158.6 bcm of gas.

Since January to October, 2017, Gazprom increased its exports to the Western and Central Europe countries which will be able to receive gas from Nord Stream 2 gas pipeline. Supplies to Germany increased by 8.6%, to France — by 5.9%, to Austria — by 42.7%, to Slovakia — by 26%, to the Czech Republic — by 28.7%.

The increase in demand for the Russian gas is also observed in the markets of the future TurkStream gas pipeline. The supplies to Turkey increased by 22,5%, to Hungary — by 25,9%, to Serbia — by 27,6%, to Bulgaria — by 7,4%, to Macedonia — by 50%, to Greece — by 12,5%, to Bosnia and Herzegovina — by 13,2%.

Related sections:
Delivery Statistics, Nord Stream 2, TurkStream

German politicians and businessmen expressed support for the use of LNG in transport Fri, 22 Sep 2017 18:36:20 +0400 On September 19, 2017 in Wolfsburg, Germany, Volkswagen Group presented the advantages of new LNG—powered freight trucks for at the specialized event of LNG Trucks Day. The event brought together representatives of automotive, transport and energy companies, as well as political circles. Following the event, the Federal Ministry of Transport, industry associations and representatives of 18 North German regional freight forwarders expressed their support for the commitment to develop LNG use in commercial transportation. Scania plans to bring more than 100 new LNG trucks to the German roads. To achieve this objective, logistics companies are to receive support package from the state for the purchase of trucks.

Frank Bonaldo, spokesperson for the Federal Ministry for Economic Affairs and Energy, stressed the role of LNG in transport sector: “Germany urgently needs to catch up in order to reach its greenhouse gas targets by 2030: reductions of 40 percent in the traffic sector compared with 1990. This is why the Federal Ministry of Transport and Digital Infrastructure, the Federal Ministry for Economic Affairs and Energy and the ‘Zukunft Erdgas’ Association support this commitment. The Federal Ministry of Transport and Digital Infrastructure has announced public support for manufacturers so that LNG trucks can be offered at competitive conditions.

In addition to environmental benefits, the use of LNG positively affects the metal content of vehicles, increasing their carrying capacity and range. As expected, the freight segment will become a key consumer of LNG as a motor fuel in Europe and Russia.

Gazprom Group, represented at the LNG Trucks Day by Gazprom NGV Europe and Gazprom Germany employees, has long been actively involved in the implementation of LNG technologies, and has accumulated experience in the use of LNG as fuel for commercial transport and municipal passenger vehicles.

Since 2013 in Poland, Gazprom joined Solbus in commissioning Europe’s first LNG-powered city buses and setting up the refueling infrastructure on their routes. In Germany in 2016, Gazprom NGV Europe (NGVE) was established, focused on further development of NGV sector in Europe. Currently, NGVE is the operator of 49 automatic gas-filing compressor stations (AGFCS).

Since 2008, Gazprom Group in cooperation with Uniper (previously E.ON Global Commodities) regularly organizes Blue Corridor rally to promote the use of natural gas as a motor fuel. This Monday the “Blue Corridor-2017: Iberia-Baltia” rally started in Lisbon, and it is focused exactly on the use of LNG as a motor fuel for trucks.

Gazprom Global LNG Limited signs gas sales agreement with Ghana National Petroleum Corporation Mon, 18 Sep 2017 11:00:00 +0400 Gazprom Global LNG Limited (GGLNG), part of the Gazprom Marketing & Trading Group, can confirm it has signed a Gas Sales Agreement (GSA) with Ghana National Petroleum Corporation (GNPC). ​

The deal provides GGLNG with a sustainable and long-term partner in GNPC and will see cooperation for an initial period of 12 years, with activity due to commence from 2019.

This GSA is the first stage in a planned series of partnerships between GGLNG and GNPC, with both companies working to develop the infrastructure and services required to manage and market the projected gas flows from the region.

Vitaly Vasiliev, Chief Executive Officer, Gazprom Marketing and Trading Group (GM&T) said: “We are really excited about this collaboration as it sees GM&T entering a new market, located in a rapidly developing part of the world. This gas sales agreement is for us the first part of a much larger partnership. One that will allow GM&T to utilise its expertise in the LNG market, to maximise the commercial opportunities for the wider Gazprom Group and our partners at GNPC.”

Related sections:
LNG, New Markets

German house owners prefer natural gas for heating Tue, 12 Sep 2017 20:00:00 +0400 According to German media, more households of the country choose gas as a source for house heating. According to the Federal Union of Energy and Water Resources, in 2016 about 50% of households received thermal energy from natural gas, and further 25% from oil products. In 2015, according to the Federal Ministry of Economy, the share of gas in heating reached only 21.1%while oil products heating had 33.8% share.

The reason for the popularity of gas heating in Germany is in its low price. Over the past five years, the wholesale price of gas in spot markets declined by 36%, and fell at the German border by 45%. Although only one-third of this decline has reached the end user, retail gas prices in the last four years have decreased by 16%, reaching the 12-year minimum in 2017.

Neighboring Austria experiences a similar situation. According to a study performed by the Austrian Energy Agency, natural gas remains the cheapest fuel for heating in winter 2016-2017, same as in the previous heating season. All other fuels became more expensive since 2016.

As reported by the media, modern gas boilers have reached almost 100% efficiency. In their production of thermal energy, CO2 emissions are only 250 g / kWh, which is 12% lower than with oil products. Moreover, gas-fired boilers are relatively cheap: heating equipment costs per household are around 4000-8000 euros for gas installations, while oil equipment costs reach 9,000 euros, and installing alternative types of heating (heat pumps, fuel cells, etc.) can cost up to 9000-20000 euros.

The market potential is huge: of 19.1 million gas and oil boilers in the country, 2.2 million units are over 26 years old, and 7 million units are over 17 years old. And many customers vote with their money by choosing gas-fired installations as new equipment.

The results of the annual poll conducted by the Forsa Institute and published in June 2017 show that 29% of owners of houses and apartments will give preference to gas boilers as a new heating system. A further 25% of respondents prefer gas heating in conjunction with solar or geothermal energy. At the same time, 58% of respondents believe that natural gas should complement the use of alternative energy sources.

Beside the commercial appeal, modern gas heating units fully meet the ambitious climate targets set in German National Climate Protection Plan. According to the Federal Union of Energy and Water Resources assessment, just replacing the heating equipment older than 15-20 years with modern gas boilers will achieve two thirds of the 2030 goal of CO2 emissions reduction in the municipal sector.

First Pipes Delivered for the EUGAL Pipeline Mon, 04 Sep 2017 19:00:00 +0400 The first batches of pipes for the construction of the EUGAL, the eastern trunkline of the future Nord Stream 2 pipeline, were delivered to Lubmin, Drogeheide and Prenzlau in Mecklenburg — West Pomerania and stored at pipe storage points along the planned route, as GASCADE Gastransport GmbH informs.

GASCADE is to start the construction in mid-2018, once the necessary permissions are issued. By that moment all pipes are to be delivered at the temporary storage warehouses.

485 kilometer-long EUGAL gas pipeline with the planned capacity of 51 bcm will be laid parallel to the existing OPAL pipeline which runs from Greifswald to Olbernau, connecting the first “Nord Stream” subsea pipeline to the European gas networks. EUGAL will enable the Russian natural gas from Nord Stream 2 to reach the gas transportation systems of Germany and the countries of Western and Central Europe through the shortest way possible.

GASCADE stresses that the expansion of gas transport capacity is caused by the growing demand for gas in Europe. The company notes that, according to recent European network development plan forecasts, import gap of up to 183 bcma is possible by 2035. And the Europe-wide “more capacity” market survey showed that the long-term gas transport requirements between Germany and neighboring countries are well above the available capacities.

Read more on GASCADE, EUGAL pipeline and “more capacity” project.

Related sections:
Nord Stream 2, Gas Transportation

Factory-Produced CNG Car is More Advantageous Compared to Gasoline One Fri, 25 Aug 2017 20:00:00 +0400 ADAC, the German Automobile Association Club, published the results of the test drive conducted by the Motorwelt editorial team over a year and a good 50,000 kilometers with a gas-fueled Skoda Octavia G-Tec. The car showed significant benefits compared to its conventional fuel counterparts. This CNG version of Octavia is only 100 euros more expensive than diesel, has a lower total cost of ownership, and, importantly, wins in terms of ecology — the model received a full five star rating in the ADAC EcoTest.

The official ADAC magazine found that natural gas is a “clean” and cost-effective alternative to diesel. It is noted that electric cars still underperform in terms of both costs and range while gas motor technology is so developed that there is practically no difference in operation from cars on traditional fuel.

Octavia G-Tec is fitted with three fuel tanks: two CNG tanks for a total of 15 kg of CNG and one 50-litre for gasoline. This provides a driving range of up to 1200 kilometers without refueling. For over 50 thousand kilometers the test car used 2134 kg of CNG and only seven times it had to refuel gasoline — only 352 liters, which particularly indicates the maturity and accessibility of European NGV infrastructure.

100 kilometers on CNG cost the owner of 110-hp gas-fueled production Skoda only 4.4 euros — a result unattainable for gasoline and diesel counterparts. This benefit will remain at least until 2026, while natural gas is tax-favored as a fuel in Germany.

Related sections:
Gas Motor Fuel, Germany

Russian Gas Export Sets New Records Thu, 17 Aug 2017 12:00:00 +0400 On August, 16th, against the background of an increased demand for the Russian natural gas in the far abroad countries, Gazprom has set an absolute record of the daily utilization of transport gas exports capacities in the history of the company for August, amounted to 586.5 mcm. This is also significantly higher than the maximum daily load in winter 2015/2016 which was 539 mcm.

High demand for Russian gas persists throughout the year. According to preliminary data, from January, 1st to August, 15th, 2017, Gazprom Group extracted 283,8 bcm of gas which is by 47 bcm, or by 19.8% more than in the first seven and a half months of 2016.

The export of the Russian gas to the far abroad countries in this period amounted to 118,3 bcm, which is 12.7 bcm, or by 12% more compared to the same period of the last year. For example, the supplies to Germany increased by 14.5%, to Austria — by 66.7%, to Slovakia — by 28%, to the Czech Republic — by 27.9%, to Turkey — by 22.4%, to Greece — by 13.2%, to Serbia — by 40.8%, to Bulgaria — by 11.1%, to Hungary — by 24.4%.

Related sections:

Contract on Baltic LNG feasibility study is signed Thu, 10 Aug 2017 19:00:00 +0400 Gazprom and Shell continue the work on an implementation of Baltic LNG, a project of natural gas liquefaction plant in the Leningrad region. Following the Heads of Agreement to set up a joint venture and the Joint Study Framework Agreement on the Baltic LNG project that had been signed in July 2017, Gazprom LNG Saint Petersburg and Shell Gas & Power Developments B.V. on August, 8th in Saint Petersburg have signed a contract on a feasibility study of the project.

As part of the study the companies will also scrutinize the principles of harmonization of Russian and international LNG standards, and analyze possible measures to maximize participation of Russian suppliers in the project. Special attention will be paid to labor and industrial safety and social responsibility. On the basis of the study main technical solutions for Baltic LNG project will be appraised and chosen, and concept schedule and plan of project implementation will be worked out.

Preparation Works for Laying the Nord Stream 2 Continue Thu, 20 Jul 2017 19:00:00 +0400 The first concrete weight coated pipes for the planned Nord Stream 2 pipeline arrived by rail at the Port of Koverhar in Hanko, Finland on July 17, 2017. Approximately 200 km of concrete coated pipes will be transported by train to Koverhar port between mid-July and the third quarter of 2017 for temporary storage.

The Port of Koverhar became one of the four logistics hubs to be used for the Nord Stream 2 project. Altogether 30% of the 204,000 pipes needed to construct the pipelines will be stored at Koverhar before being transported to the pipe-laying vessels during construction of the pipeline in 2018.

These consignments of concrete weight coated pipes are produced by ChelPipe in Russia. Pipes from the manufacturer are being transported to Wasco concrete coating plant in Kotka on trains with 63 wagons each carrying three of the 12-metre, 24-tonne pipes. Then the coated pipes are delivered to the temporary storage warehouse at the port of Koverhar.

At another logistics site, located in the port of Mukran on the island of Rügen in the Baltic Sea, the contractors of the Nord Stream 2 AG have since July 13, 2017 begun to apply a concrete coating to the pipes from the Europipe factory in Mülheim an der Ruhr. Currently 39,000 pipes are already at a specially prepared storage area of the Rügen island.

A portion of the finished pipes will be kept at an interim storage facility in Rugen. The remainder will be transported for storage in the Swedish port of Karlshamn. When construction of the pipeline strings begins, the pipes will be transported by the shortest route possible to the pipe-laying vessels.

Read more on Nord Stream 2 AG website.

Related sections:
Nord Stream 2

Gazprom Exports for the First Half of July Grew by 11% Compared to Last Year Tue, 18 Jul 2017 14:00:00 +0400 According to Gazprom operative data, Russian gas exports to non-CIS countries in the first 15 days of July 2017 amounted to about 7.2 bcm, which is 11% more than in the same period in 2016.

The total volume of Russian gas exports to non-CIS countries in the six and a half months of this year amounted to 102.9 bcm of gas, which is 11.3 bcm or 12.3% higher compared to the same period last year. In particular, supplies to Turkey increased by 22%, to Germany — by 16.7%, to Austria — by 77.2%, to Czech Republic- by 24.8%, to Slovakia — by 25.8%, to Hungary — by 26.6%, to Serbia — by 47.9%, to Bulgaria — by 12.6%, to Greece — by 10%.

Gas supplies in July correspond to the export dynamics of the previous months — May and June, in spite of the current repair works on European gas pipelines.

Gazprom Exports to Europe Increased by 13.2% in the First Half of 2017 Wed, 05 Jul 2017 12:00:00 +0400 In his speech at the annual General Shareholders Meeting held in Moscow on June 30, 2017, Alexey Miller, Chairman of the Gazprom Management Committee, noted that the total volume of company’s natural gas exports in January-June of 2017 amounted to 95.7 bcm. Thus, in six months of this year, the volume of exports increased by 10.5 bcm, or 12.3%, compared to the same period last year.

In absolute figures, Germany experienced the biggest increase in gas supplies, being the largest recipient of Russian gas. In the first half of 2017, Gazprom delivered 26.5 bcm of gas to this country, which is 16.7% or 3.8 bcm more than in the first six months of 2016.

Alexey Miller added that over the past year and a half the total volume of Gazprom supplies to the European market increased by 30.4 bcm, which is comparable to the annual capacity of the TurkStream or represents more than a half of the Nord Stream 2 capacity. „This growth occured in just one and a half years”, he stressed.

According to Alexey Miller, Europe continues to be in need of imported gas because of increased demand and falling indigenous production. Foreign partners also note the growing demand for gas in Europe and consequent need for expansion of the gas transportation infrastructure. Therefore, European companies are ready to participate in the projects of new gas trunklines from Russia in partnership with Gazprom.

Related sections:
Germany, Delivery Statistics, Gas Market News


50 Years of Russian Gas Supplies to Europe! Fri, 30 Jun 2017 17:00:00 +0400 This day, June 30, 2017, marks the 50th anniversary since natural gas began its flow from the Soviet Union through the first export gas pipeline — Brotherhood — to Czechoslovakia.

The contract for the construction of the Brotherhood pipeline was signed in December 1964, and just two and a half years later the first gas was delivered to Czechoslovakia. In the second half of 1967, natural gas supplies to the country amounted to 265 million cubic meters and had been growing steadily. The 10 billion cubic meters milestone was passed in 1984, and by the time the country was divided into the Czech Republic and Slovakia in 1993 the annual volume of natural gas exports from Russia reached almost 14 billion cubic meters.

Over the past half-century, the volumes and the geography of Russian gas supplies have expanded manifold. In 1980, more than 50 billion cubic meters of gas were exported to European countries, and a 100 billion cubic meters milestone was crossed in 1989. Last year, the volume of Gazprom Export supplies to Far Abroad countries amounted to 178.3 billion cubic meters. The total volume of deliveries for half a century has reached over 4.5 trillion cubic meters. Today Gazprom Group supplies natural gas to more than 20 countries in Europe and expands its presence in the Asia-Pacific region.

The Brotherhood pipeline, formerly the first Soviet gas export route, is now part of the Urengoy-Pomary-Uzhgorod Central gas transport corridor. For delivery to Western Europe, Gazprom Export also uses newer gas transportation routes — the Yamal-Europe and Nord Stream gas pipelines.

Gazprom continues to ensure the reliability of natural gas supplies to Europe, through new routes and optimizing transport costs. The Northern gas transport corridor, being currently implemented, includes state-of-the-art onshore and offshore gas pipelines of the new generation. Estimated gas delivery costs through the Northern Corridor via the Nord Stream 2 are up to two times lower than the existing Central Corridor, and the pipeline fuel gas costs — and carbon dioxide emissions, respectively — are up to 6 times lower.

Despite all the geopolitical changes that have taken place over these 50 years, Gazprom Group remains a reliable supplier of the vital resource for our partners in Europe and around the world.

Related sections:
Gas Transportation, New Markets, Nord Stream 2, Czech Republic, Slovakia

European Gas Transmission System Operators Support Nord Stream 2 Wed, 28 Jun 2017 17:00:00 +0400 Six gas transmission system operators from Germany, Austria and Czech Republic expressed their support of the Nord Stream 2 project in a letter addressed to the President of the European Commission Jean-Claude Juncker. The authors noted that the Nord Stream 2 pipeline will encourage competition on the European gas market and strengthen the security of supply.

In their letter, Gas Connect Austria, Fluxys Germany, ONTRAS, NET4Gas, Gascade and Gasunie Germany also expressed their concerns about the planned European Commission negotiations with Russia on the key principles of the gas pipeline operation. The letter warns that the European Commission’s special approach towards the Nord Stream-2 project, which differs from that to other pipelines, may create legal uncertainty for future projects.

The authors of the letter underlined that investing into onshore part of the pipeline has already begun, and any delay may lead to significant economic damage to these companies and create a hurdle for such investments in the future.

Related sections:
Nord Stream 2

The Laying of the TurkStream Deep-Water Section Started Sat, 24 Jun 2017 19:30:00 +0400 The docking of the shallow and deep-water parts of the TurkStream gas pipeline by the Pioneering Spirit Pipeline Layer took place on June 23, 2017 at the Russian Black Sea coast in the presence of the President Vladimir Putin. The docking marks the completion of the shallow-water part of the project and the beginning of works in the deepwater part of the Black Sea.

Gazprom CEO Alexey Miller reported the pipeline parameters and environmental monitoring details to the Russian president, who arrived aboard the pipe-laying vessel. According to Alexey Miller, the construction of the first string of the TurkStream gas pipeline will be completed in March 2018, and the commissioning of both lines is scheduled for 2019.

According to him, TurkStream is already in high demand: “If we talk about the Turkish market, we can see that demand for Russian gas is increasing, even now our deliveries account for 53% of Turkey’s domestic market. Since the beginning of 2017, the growth of supplies compared to the same period of 2016 already amounts to 2 billion 630 million,” said Alexey Miller. — “For Turkey natural gas is the key energy source accounting for 38 per cent in the country’s power generation and used for heating and cooking in over of 12 million households. TurkStream will substantially contribute to energy security of the region”.

Gazprom CEO also noted the growth of energy consumption in the countries of South and South-Eastern Europe. The declining indigenous gas production and the necessity to reduce coal’s share in electricity generation create the potential for sustainable growth in natural gas demand in that part of Europe. From early 2017 to mid-June, compared with the same period last year, the growth of gas supplies to Europe amounted to an additional 10.5 bcm of gas.

Related sections:
TurkStream, Turkey

Gazprom Signed a Number of Agreements on the Gas Infrastructure Development Thu, 08 Jun 2017 19:00:00 +0400 Within the framework of the St. Petersburg International Economic Forum, Gazprom Group management representatives held a number of meetings with business partners and European authorities. Among the main discussion topics were the prospects of cooperation in view of the growth in natural gas consumption in Europe and implementation of the Russian gas transportation projects, including the TurkStream and Nord Stream 2 pipelines.

During the working meetings between Alexey Miller, Chairman of the Gazprom Management Committee and heads of partner companies, it was noted that, like last year, Gazprom continues to increase the volume of pipeline gas exports to the Far Abroad countries. The active growth of demand for Russian gas in Europe was also discussed during negotiations with officials from Bulgaria, Hungary, Greece and Serbia. In particular, Russian gas deliveries to the Austrian market in January-May 2017 compared to the same period in 2016 increased by a record 79.5%. During the first 5 months of 2017, the volume of supplies to Bulgaria increased by 14.5% compared to the first five months of 2016, to Hungary — by 37.3%, to Serbia — by 42.2%. And Greece in May 2017 imported 49% more Russian gas than in May 2016.

During a working meeting between Alexey Miller and Hans-Ulrich Engel, Member of the Board of Executive Directors of BASF, Chairman of the Supervisory Board of Wintershall Holding, the participants touched upon the increasing performance of the Nord Stream pipeline. In 2016 the pipeline transported 12 per cent more gas than in 2015. The flow rate in the January—May period of 2017 climbed by 13.5 per cent compared to the previous year. Given the successful operation of the Nord Stream gas pipeline and growing demand for Russian gas in Europe, the parties emphasized the importance of implementing the Nord Stream 2 project. The topic of Nord Stream 2 was also discussed at the working meetings of Alexey Miller with the Chairman of the Management Board of OMV AG Rainer Seele and the Chief Executive Officer of Fluxis Pascal de Bück.

At the meetings, the Group’s management and European companies signed a number of documents in regards to the further development of the gas transportation infrastructure in the south of Europe. For one, Gazprom, DEPA, and Edison inked Cooperation Agreement on southern route for Russian gas supplies to Europe. The document envisages joint efforts aimed at establishing a southern route for Russian gas supplies from Russia to Europe, which will run across Turkey to Greece and further to Italy. The basis for the supplies should be TurkStream pipeline, the laying of its first line has already begun in the Black Sea. Also, Gazprom and OMV signed a Memorandum of Understanding in coordinating efforts aimed at developing the gas transmission infrastructure required for providing natural gas supplies to Central and Southeastern Europe, further expanding the strategic cooperation between the companies.

In addition to the gas transport infrastructure, Gazprom Group pays great attention to the expansion of capacities for natural gas storage in Europe. Thus, within the framework of the SPIEF, Gazprom Export and Srbijagas signed a Memorandum of Understanding on the Banatsky Dvor UGS expansion project to increase the daily capacity and active storage volume to 750 million cubic meters.

Also, a number of documents were signed on the implementation of joint projects in the field of liquefied natural gas (LNG). Alexey Miller and Ben van Beurden, Chief Executive Officer of Royal Dutch Shell, signed the Heads of Agreement to set up a joint venture which will secure financing for and carry out the design, construction and operation of the Baltic LNG plant in the Leningrad Region. The parties also signed the Joint Study Framework Agreement on the Baltic LNG project, which will allow the companies to start developing preliminary project documentation as soon as possible. Beyond that, Gazprom and OMV signed a Framework Agreement to collaborate in the small-scale LNG sector, aimed at implementing a joint integrated construction project for a small-scale LNG terminal in the area of the Russian coast of the Black Sea.

In addition to projects in Europe and the European part of Russia, Gazprom is actively working to attract foreign partners to the construction of the Amur Gas Processing Plant (GPP). At the SPIEF, Gazprom Group has entered into EPC contract with the Italian Maire Tecnimont Group and Sinopec Engineering Group for the design, procurement and construction of the Amur GPP off-site facilities.

Related sections:
Delivery Statistics, Nord Stream, TurkStream, Gas Storage, LNG, Oil & Oil-products

Haidach UGS celebrates 10 years of successful work Wed, 07 Jun 2017 18:30:00 +0400 Today in Austria a festive event on the occasion of the 10th anniversary of the Haidach gas storage facility operation took place. Deputy Chairman of Gazprom Management Committee Alexander Medvedev, Chief Executive Officer of the company-technical storage operator RAG Markus Mitteregger and senior representatives of Gazprom Export participated in the celebration.

The Haidach facility performs a strategic task of securing the reliability of Russian natural gas export supplies in the direction of Baumgarten, thus addressing the needs of consumers in a range of countries, including Slovenia, Croatia, Hungary, Austria, Germany, Slovakia and Italy.

The total volume of active gas in the storage amounts to 2.8 bcm, the daily output — 28 mcm (at 20°C). The Gazprom Group companies are the system operators of the whole storage volume.


The Haidach storage facility is a joint project of Gazpom Group companies and RAG, which signed Protocol of Intents stipulating the Haidach field conversion and operation as a UGS facility in 2003. In January 2005 the UGS facility construction was launched. The UGS Phase 1 was completed in 2007, Phase 2 — in 2011.

Related sections:
Gas Storage, Austria

Gazprom Export and Srbijagas sign Memorandum to expand UGS capacity in Serbia Mon, 05 Jun 2017 13:00:00 +0400 Elena Burmistrova, Director General of Gazprom Export, and Dusan Bajatovic, Director General of Srbijagas, signed a Memorandum of Understanding for the expansion of the Banatski Dvor UGS facility on June 3, 2017, during the St. Petersburg International Economic Forum 2017.

Earlier, the Parties came to a principle conclusion on the possible increase of the active UGS volume and daily production. The signed Memorandum provides for the preparation of the technological project and financial feasibility study for the expansion of the Banatski Dvor UGS facility. As expected, the studies carried out within the framework of the Memorandum will allow the Parties to make a final investment decision on the implementation of the UGS expansion project. It is determined that as a result of the expansion the facility will reach an active volume of at least 750 mcm with the withdrawal rate of at least 10 mcmd.

Banatski Dvor UGS, a joint venture of Gazprom Group (51%) and Srbijagas (49%), was commissioned in Serbia in October 2011 at the site of the same-named depleted natural gas field. Active gas volume is currently 450 mcm, maximum withdrawal rate is 5 mcmd and maximum injection rate is 3 mcmd.

Banatski Dvor UGS has continually shown its efficiency as a gas storage facility and compensation means of gas demand fluctuations since the first gas withdrawal season during abnormal frosts in the winter of 2011-2012 and until winter 2017 when gas withdrawal exceeded designed level of 5 mcmd.

Related sections:
Gas Storage, Transportation, Serbia

Gazprom Export and GasTerra agreed to terminate the arbitration proceedings Thu, 01 Jun 2017 13:00:00 +0400 Gazprom Export and GasTerra have managed to reach a mutually acceptable solution in relation to the contractual price review. The solution foresees a termination of the ongoing arbitration proceedings and will form the basis for the continuation of the constructive long-term cooperation.


GasTerra is the main importer of Russian natural gas to the Netherlands. In 2016 Gazprom Export supplied to the country 4.2 bcm of gas (adjusted to the calorific value of Russian gas). Compared to the previous year, this figure grew by 77.1%.

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Gazprom provided reliable gas deliveries to consumers throughout winter season of <nobr>2016-2017</nobr> Thu, 25 May 2017 21:00:00 +0400 The Gazprom Management Committee reviewed the operating results of the Company’s subsidiaries and organizations over the 2016–2017 autumn/winter period. During its meeting on May 24, 2017, it was noted that in the past winter Gazprom had provided reliable gas deliveries to consumers during past winter’s surge in demand in Russia and Europe.

Gas exports to Europe reached 103.6 billion cubic meters between October 2016 and March 2017, adding 18 per cent versus the same period of 2015–2016. For four consecutive months from October 2016 through January 2017, Gazprom set new records for monthly gas exports to the European market. In addition, the Company hit a record high of 636.4 million cubic meters in daily gas deliveries on January 27, 2017.

In 2016, Gazprom Export supplied 178.3 billion cubic meters of gas to European countries, which is 19.7 billion cubic meters higher than 2015 figures (158.6 billion cubic meters) and is also a record high figure in the history of Russian gas exports.

The system of underground gas storages (UGS) is of special importance for ensuring uninterrupted supply of „blue fuel” to foreign consumers in periods of high demand. Potential storage facilities should be located near the pipelines that transport Russian gas. The reliability of the Company’s gas supplies to European consumers during the past peak periods can be attributed to, among other things, ample gas reserves in UGS facilities and their increased deliverability.

Gazprom Group is constantly developing its UGS network in Europe. In Damborice, Czech Republic, the underground facility was put into operation in 2016 with a maximum designed active volume of 456 million cubic meters. On May 23, 2017, the Katharina UGS was commissioned in Germany, with a maximum designed active volume of more than 650 million cubic meters.

For the past 10 years from 2006 to 2016, Gazprom Export’s available gas storage capacity in Europe has increased from 1.4 to 5.0 billion cubic meters of active gas and the total daily output grew from 18.2 to 84.7 million cubic meters.

Related sections:
Gas Storage, Delivery Statistics

A roundtable on oil and gas cooperation was held in Beijing Mon, 22 May 2017 20:00:00 +0400 A roundtable on oil and gas cooperation was held on May 16th by China National Petroleum Corporation (CNPC) at the Belt and Road International Forum in Beijing. The event was attended by more than 20 executives of energy companies, officials and international experts.

In his opening keynote speech, CNPC Chairman Wang Yilin pointed out that deepening of international oil and gas cooperation is an important part of the Belt and Road Initiative. Head of Chinese company put forward five suggestions — to integrate industry policies and standards for strengthen coordination; to achieve facilities connectivity; to establish open trading platforms; to promote financial integration and investment mechanisms; to encourage exchange of best practices between different companies’ employees to improve the level of competence locally.

Gazprom delegation at the forum was led by Alexey Miller, Chairman of the Gazprom Management Committee. In his speech at the roundtable, Alexey Miller noted that natural gas formed the basis for building an effective hi-tech economy. Thanks to its abundant availability, competitive prices, flexible supply channels, and diverse fields of application, gas is a perfect energy source that can help ensure the sustainable development of the energy industry for decades to come.

China is one of the world’s biggest natural gas consumers. At the same time, the share of gas in the country’s energy mix is a mere 6%. State Council of the PRC intends to raise that figure to 8.3–10% by 2020. In the context of China’s economy, even a 1% increase for gas in the energy balance could mean tens of billions of cubic meters in gas imports. Such amounts cannot be secured by the growing indigenous production alone. With its tremendous capabilities and unique competencies in the gas sector, Gazprom is committed to help China bring its ambitious plans in gas market development to fruition.

Gazprom’s cooperation with Chinese companies is not limited to gas supplies. Construction of underground gas storage facilities, gas-fired power generation facilities and other joint cooperation projects are negotiated. Alexey Miller underlined the enormous potential of Russian-Chinese interaction in the use of liquefied natural gas as a vehicle fuel. The Silk Road Economic Belt initiative proposed by the Chinese Government entails the creation of the Europe — Western China international transport corridor. Russia and China also continue to expand their collaboration through such projects as the Silk Way international rally initiated by Gazprom.

“Gas pipelines not only bring heat to homes, but also serve as a common thread for different economies, helping them thrive and develop. There is no doubt that the steel arteries of our gas trunklines, along with transport corridors running for thousands of kilometers, will become a symbol of the ever-growing strategic cooperation and connectivity between Russia and China in the 21st century, a shining example for the rest of the world,” said Alexey Miller in conclusion of his speech.

Sauat Mynbayev, Chairman of KazMunaiGas, expressed hope that oil and gas cooperation between countries of the region will expand further. Alisher Sultanov, Chairman of Uzbekneftegaz, called for the construction of transnational oil and gas trunks to meet energy demand of different countries and regions. In his concluding remarks, CNPC President Zhang Jianhua said that principle of the Belt and Road — implementing projects through consultation following mutual benefit and common development to meet the interests of all — could contribute to oil and gas cooperation development.

Related sections:
China, New Markets, Gas Motor Fuel

Construction of TurkStream’s offshore section commenced Sun, 07 May 2017 19:00:00 +0400 Construction of the TurkStream gas pipeline commenced in the Black Sea. The works started near the Russian coast. Pipelaying is carried out by the Audacia vessel owned by Allseas, the contractor for both strings of the pipeline’s offshore section. Deep-water area construction of the pipeline will be performed by the Pioneering Spirit pipe-laying vessel.

„The project is implemented strictly according with the plan. By late 2019, our Turkish and European consumers will have a new reliable source of Russian gas imports”, said Alexey Miller, Chairman of the Management Committee of Gazprom.

Gazprom is ready to begin the laying of the TurkStream gas pipeline Thu, 04 May 2017 17:00:00 +0400 Gazprom is ready to begin the laying the offshore section of the TurkStream gas pipeline in the next few days, said the head of the company Alexey Miller at the meeting with President of Russia Vladimir Putin.

„We have already fully completed the preparatory and mobilization works, and I now can inform that we are ready to start laying the offshore section of the TurkStream pipeline within the next few days”, said Alexey Miller.

The head of Gazprom also said that Gazprom’s supplies to the European market keep growing and have increased by 15 percent since the beginning of 2017 compared to the same period last year. In absolute terms, this corresponds to additional 8.6 billion cubic metres. Such an increase in demand supports our plans to carry out new big gas transportation projects, in particular, the TurkStream, Alexey Miller stressed.

OMV Expects to Increase Gas Purchases from Gazprom Wed, 03 May 2017 23:00:00 +0400 During his visit to Russia on April 28, 2017, the Chairman of the Executive Board and CEO of the OMV oil and gas concern Rainer Seele held a working meeting with Russian President Vladimir Putin. The meeting was also attended by the Chairman of the Management Committee of PJSC Gazprom Alexey Miller.

Rainer Seele said that OMV is planning not only to extend the current contract with Gazprom, but also to agree on the purchase of additional gas volumes. «Fifty years after we signed our marriage contract, it is surprising that our companies, OMV and Gazprom, are still so much in love with one another that we want to buy even more gas from Gazprom», the Chairman of the OMV Executive Board joked.

Seele also stressed that it was a great honor for OMV to be invited by Gazprom to invest in projects in Russia. «We have teamed up with Gazprom to launch joint gas production in Siberia. For this purpose, we intend to jointly build the required infrastructure», he said.

«OMV has been our long-time and very reliable partner. The first contracts with your company were signed 50 years ago, and our current contract is valid until 2028. I would like to note that we are satisfied with our cooperation, and we are ready to expand our ties for the benefit of our countries, Europe and Russia» — said the Russian President Vladimir Putin.

In this regard, Rainer Seele invited Vladimir Putin to visit Austria for the celebrations dedicated to the 50th anniversary of his company’s cooperation with Gazprom.



Austria’s largest company, OMV AG, has been the Russian gas industry’s main business partner for almost half a century.
In 1968, OMV became the first Western company to sign a long-term natural gas purchasing contract with the USSR.
From the start of supplies to January 1, 2017, Austria received over 196 bcm of Russian natural gas, including 6.08 bcm in 2016.


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«Blue Corridor-2017» LNGV Rally Kicks Off in Lisbon Late September Fri, 10 Mar 2017 18:00:00 +0400 The 11th annual NGV Rally «Blue Corridor 2017: Iberia-Baltia» will start its engines in late September 2017 in Lisbon. This time the participants will drive on liquefied natural gas (LNG). This aims to highlight the growing importance of LNG use for new applications, especially as a fuel for heavy duty on-road transport.

The Rally will drive through Portugal, Spain, France, Italy, Germany, Poland, Lithuania, Latvia, Estonia to finish in the city of Saint Petersburg. The festive finish will be collocated with the 7th St. Petersburg International Gas Forum.

The round tables along the Rally’s route are planned to take place. Their aim is introducing multiple benefits of LNG as a fuel for transport to politicians, automakers, equipment manufacturers, transportation and logistics companies as well industry experts and journalists. LNG offers an ideal combination of environmental and economic bonuses, allowing to save fuel costs and meet emission standards.

«International experience convincingly proves that in the mid-term future, LNG will remain the only feasible alternative to diesel for heavy duty vehicles to efficiently and economically meet environmental challenges», — said Eugene Pronin, Gazprom Export’s Rally coordinator.

The Blue Corridor Rally was originated by Gazprom Group in 2008. Since then several prominent European gas and auto-market stakeholders joined the project, expanding this branded event internationally. During the recent decade of the Blue Corridor project over 150 factory built natural gas vehicles have driven over 40,000 kilometers across 22 European countries from Yekaterinburg to Brussels and from Helsinki to Sochi.

The rally is traditionally coordinated by Gazprom Export LLC and Uniper SE (former part of E.ON).

Related sections:
Gas Motor Fuel

First regasification unit for Russian LNG commissioned in Astana Mon, 13 Feb 2017 15:00:00 +0400 The Global Gas Group has put into operation the first LNG regasification unit in Astana. The unit called Turan is using Russian fuel produced by Gazprom Transgaz Yekaterinburg and supplied under the contract with Gazprom Export by road transport.

The capacity of the Turan unit amounts to 25 Gcal/h, which allows to supply heat for premises of 500 thousand square meters.

“Today we are commissioning the new source of gas supplies on the basis of innovative LNG technology, which allows to substantially decrease harmful emissions compared to coal and diesel — by 70-90%. We will implement all the planned projects and will be able to solve the issue of emissions reduction in Astana”, — akim of Kazakhstan’s capital Aset Isekeshev said during the ceremony of the regasification unit’s commissioning.

The first site to use Russian LNG is the Nazarbayev University in Astana. The institution is supplied with gas from the Turan regasification unit via the dedicated 5 kilometers-long underground pipeline.

It is planned that in the future Russian LNG will be used for gasification of further sites of the Kazakhstan’s capital.

Gazprom Export and Georgian party have agreed on transit terms Fri, 13 Jan 2017 11:00:00 +0400 2017-2018 in the volume of 2.0 — 2.2 bcm per year as well as supplying Georgia with natural gas on flexible terms.]]> Gazprom Export and Georgian party have reached an agreement on terms of Russian gas transit to Armenia through Georgia. In particular the parties agreed on shifting to currency transactions when paying for gas transit services.

In accordance with the reached agreement, the Russian side guarantees paying for services of transiting Russian gas through the Georgian territory to Armenia in 2017-2018 in the volume of 2.0 — 2.2 bcm per year as well as supplying Georgia with natural gas on flexible terms at the price which is by $30 per 1000 cubic meters lower than in 2016.

„As a result of series of meetings and longstanding negotiations, together with our Georgian partners we have managed to find commercial conditions which are optimal for both sides, and to reach an agreement on the terms of gas transit”, — Director General of Gazprom Export LLC Elena Burmistrova said.


Gas transit from Russia to Armenia is carried out via the territory of Georgia. Earlier the services of transiting gas via the territory of Georgia were paid in kind, by physical supplies equivalent to 10% of natural gas transported through Georgia to Georgian consumers
In the global gas trade the practice of paying for transit with commodity has not been used for many years already. The Russian side offered its Georgian partners to shift to cash transactions based on rates which are used in the EU countries.

A meeting between Gazprom Export and Georgian partners took place Wed, 11 Jan 2017 12:00:00 +0400 A meeting between Director General of Gazprom Export LLC Elena Burmistrova and the Deputy Prime Minister and Minister of Energy of Georgia Kakha Kaladze took place on January 10, 2017, in Minsk. The terms of gas transit to Armenia through the territory of Georgia, as well as gas supplies to Georgia were discussed at the meeting.

“Gazprom Export made to the Georgian side a package proposal based on favourable and mutually beneficial conditions, which will provide the Georgian side with a guaranteed income flow from gas transit services and increase the security of gas supply of Georgia”, — Director General of Gazprom Export LLC Elena Burmistrova said.


Gas transit from Russia to Armenia is carried out via the territory of Georgia. Earlier the services of transiting gas via the territory of Georgia were paid in kind, by physicalsupplies equivalent to 10% of natural gas transported through Georgia to Georgian consumers
In the global gas trade the practice of paying for transit with commodity has not been used for many years already. The Russian side offered its Georgian partners to shift to cash transactions based on rates which are used in the EU countries.

Gazprom sets new records in daily gas supplies to Europe Mon, 09 Jan 2017 19:00:00 +0400 Gazprom on 8 January achieved a new — by now this year’s third historical record of daily natural gas supplies to Far Abroad countries — 621.8 mcm, the company informed. Importantly, the peak of supplies was reached on Sunday, when foreign customers’ consumption usually declines to the week’s lowest indicators. The previous record — 615.5 mcm of gas per day — was set on 6 January.

In addition, for five days in a row (4-8 January) deliveries via Nord Stream have been performed on the level of 165.2 mcm per day, which exceeds the design capacity of the pipeline by 10%.