Gazprom Export News Gazprom Export News Wed, 03 Oct 2018 18:32:33 +0400 gazpromexport en "Europe – China" Natural Gas Vehicles Rally Participants Arrived to Saint-Petersburg Wed, 03 Oct 2018 18:32:33 +0400 The crews of NGV participating in the “Europe – China” natural gas motor rally organized by Gazprom, CNPC and KazMunaiGaz, arrived to St. Petersburg, completing the Russian stage of the route. Here, within the framework of the 7th St. Petersburg International Gas Forum, its ceremonial finish will be attended by the representatives of the management of the companies-organizers of the rally. 

The length of the Russian stage of the rally amounted to 2,688 km. The route crossed Orenburg, Almetyevsk, Ufa, Kazan, Nizhny Novgorod, Vladimir, and Torzhok. The participants of the rally took part in the ceremony where buses fueled by natural gas were handed to transport enterprises of Kazan. The rally participants also attended a ceremonial beginning of construction of the first Gazprom’s LNG fueling station on the highway “Moscow – St. Petersburg”. In Nizhny Novgorod, gas-fueled vehicles, including those used in the rally, were demonstrated to public. 

Along the Russian part of the route, two Lada Vesta CNG biofuel vehicles have joined the caravan of 13 gas-powered trucks. 

After the ceremonial finish, the participants of the rally, as well as manufacturers of the related equipment and of transport companies will take part in the conference “Clean Energy of Silk Road” – the Future of International Transcontinental Natural Gas Motor Corridors”, where regulatory, infrastructural, technological and economical aspects of natural gas as motor fuel will be discussed.

Forum on promotion of natural gas use as a motor fuel took place in Chinese city of Xian Fri, 07 Sep 2018 15:22:00 +0400 The participants of the NGV rally along the Europe — China transport route have driven 1390 kilometers from the starting point in Rudong and arrived to Xian, the ancient capital of China. Here, on September 7th, the Forum on promotion of natural gas use as a motor fuel took place. Besides the top management and experts of the rally organizers, Gazprom, CNPC and KazMunayGas, representatives of the Chinese central and local governments authorities, vehicle manufactures, industry associations and potential consumers of natural gas as a motor fuel also took part in the forum. All in all, the forum gathered over 160 participants.

In his welcome speech, vice-mayor of Xian Jiang Xiaoan mentioned that city administration promotes use of clean energy for environment protection. He supposed that natural gas fueling infrastructure along the ‘Europe — China’ transport route will create green energy channel that connects Europe and Asia.

Vice-President of Petrochina company Ling Xiao said that China takes great efforts to meet goals of COP21, and in this, counts with gas as the main energy source for the country. He stressed that government of China supports use of natural gas in transport industry, and the local market positively responds on these measures, showing sustainable growth.

NGV crews continued their way towards Saint-Petersburg on Saturday, September 8th. The next ‘round table’ on promotion of CNG and LNG use on transport will take part in Almaty, Kazakhstan on September 16th.

Pipelay of the Nord Stream 2 Pipeline Has Started in Finland Wed, 05 Sep 2018 19:09:22 +0400 Today the Solitaire vessel started the pipelay for the Nord Stream 2 natural gas pipeline in the Gulf of Finland.

Before the start of pipelay, the vessel was tested to meet the project’s strict requirements. Nord Stream 2’s construction plan takes into consideration different construction conditions, in particular environmental requirements. For example,

Solitaire uses a dynamic positioning system with thrusters to position itself accurately. Thus, it is only the pipeline that touches the seabed. Vessel operating without anchors ensures additional safety in the congested Gulf of Finland.

Pipe supply vessels (PSV’s) will deliver the 12-metre pipes used to build Nord Stream 2 to the Solitaire from the project’s nearest logistics hubs, such as Kotka or Hanko, to keep the necessary pipe stock avaliable.

The pipes are welded together on board the vessel, then welds are tested and finally the pipeline is lowered down to the seabed. A survey vessel will perform surveys prior to and after pipelay to verify that the pipeline is located at its correct position.

All safety operations within the Finnish EEZ have been agreed in cooperation with the Finnish Transport Agency and Border Guard. Pipelay works are carried out in compliance with the national permit provisions and overseen by the national authorities.



The Longest NGV Rally in the World Started in China Tue, 04 Sep 2018 17:06:02 +0400 On Tuesday, September 4th, the official start of the natural gas vehicles rally along the Europe — China transport route took place in the Chinese town of Rudong, that lies on the coast of the Yellow Sea. Around one hundred guests took part in the festive ceremony. The similar number of guests joined the event from Beijing via live broadcast, where the top management of the rally organizers, Gazprom, CNPC and KazMunayGas, welcomed the rally participants.

The main actors of the ceremony were LNG and CNG fuelled vehicles, which will drive nearly ten thousand kilometeres through China, Kazakhstan and Russia on their way to the finish ceremony in St. Petersburg on October 4th. The rally crew includes NGV heavy-duty trucks, buses and passenger cars produced by Russian and Chinese manufactures, among them a veteran of such kind of NGV rallies, the Volkswagen Passat of German company Uniper, that took part in the Blue Corridor NGV rallies before. All in all around 15 vehicles take part in the rally.

In his welcome speech, Vice-President of CNPC Qin Weizhong emphasized that development of natural gas fuelling infrastructure along the Europe — China transport route could boost economic growth of the neighboring territories, and would make a significant contribution to natural environment protection.

Deputy Chairman of the Gazprom Management Committee Vitaly Markelov in his video message expressed his confidence that the rally will demonstrate economical and ecological benefits of natural gas as a motor fuel, especially for long distance heavy-duty trucks, and will become another important step in developing trade and economic cooperation of these three countries.

Chairman of the Board, General Director of JSC KazTransGas Rustam Suleimanov in his speech highlighted that expansion of environmentally friendly transport was one of the state priority for Kazakhstan on the transition to the ‘green’ economy.

Next public event within the rally is the Forum on promotion of natural gas use as a motor fuel, which will take place on September 7th in the city of Xian, the ancient capital of China.

The World’s Longest Natural Gas Rally Will Start on September 4th in China Wed, 29 Aug 2018 18:16:00 +0400 The official start of the natural gas vehicles rally along the Europe – China international transport route will take place on September 4th in Chinese Rudong (Jiangsu province). The rally route goes through China, Kazakhstan and Russia. Its total length is more than 9.8 thousand kilometers. The festive finish of the NGV rally will take place on October 4th in St. Petersburg during St. Petersburg International Gas Forum.

The rally organizers are energy majors of Russia, Kazakhstan and China – PJSC Gazprom, JSC NC KazMunayGas and China National Petroleum Corporation (CNPC). The German company Uniper SE – Gazprom Group’s traditional partner in organizing The Blue Corridor NGV Rally across Europe – will take part in the rally as well.

This year the rally’s goal is to demonstrate the advantages of natural gas as a motor fuel. The route of the rally follows the Europe – China international transport corridor. The development of natural gas filling infrastructure along this route is realized within cooperation between Gazprom, KazMunayGas and CNPC. Companies have signed a Memorandum of Understanding on cooperation in promoting use of natural gas as a motor fuel and development of infrastructure along the Europe – China international transport route on October 5th at the 7th St. Petersburg International Gas Forum.

Almost 20 trucks and passenger cars, as well as buses using liquid (LNG) and compressed (CNG) natural gas will participate in the rally, including trucks and cars produced by Russian manufactures – KAMAZ, GAZ Group, AVTOVAZ, UAZ, and vehicles of RariTEK company.

During the rally a series of round tables with participation of NGV manufactures and dealers, LNG and CNG vehicles users and service providers, as well as government officials is planned.

All Permits for Construction of Nord Stream 2 Gas Pipeline in Russia Received Tue, 14 Aug 2018 18:58:16 +0400 Nord Stream 2 AG, the developer of Nord Stream 2 gas pipeline, received a permit from Russia’s Federal Agency for the Supervision of Natural Resources Use (Rosprirodnadzor) for the installation of a 114 km length underwater pipeline section in the territorial sea of the Russian Federation. Its construction will begin in the near future, as stated by Nord Stream 2 AG.

Before that a construction permit for the Nord Stream 2 pipeline was issued by Ministry of Construction and Utilities of the Russian Federation. Thus, all the permits necessary for construction of the Russian section of the Nord Stream 2 pipeline were received on 14 August, 2018.

Along with Russia, Germany, Finland and Sweden have granted all the permits necessary for construction of the planned pipeline within their jurisdictions. The national permitting procedure in Denmark is ongoing.



The Nord Stream 2 Pipelaying Preparatory Works Started in Germany Wed, 25 Jul 2018 17:11:23 +0400 The offshore installation barge “Castoro 10” (C10) has started preparatory works for future pipelaying for the Nord Stream 2 project at the German shore.

On 24 July, the C10 assumed its starting position with the help of its eight anchors in the shallow waters of Lubmin. Pipe segments are welded together on board the vessel and pulled ashore by a high-performance winch, to connect the landfall facilities of Nord Stream 2 with the new offshore pipeline.

Simultaneously, preparatory works for the subsequent pipelaying continue in the Bay of Greifswald. Five excavators are currently working on the 29-kilometer long pipe trench. Nord Stream 2 expects to complete works in the Bay of Greifswald by the end of this year.



In Turkey Nearshore Works Started for the TurkStream Gas Pipeline Mon, 23 Jul 2018 19:05:22 +0400 On Sunday 22 July, nearshore works started for the TurkStream Offshore Gas Pipeline near the Turkish town of Kiyiköy. The nearshore component in Turkey involves constructing seabed trenches for around 2.4 kilometers length from the shoreline into the sea in order to bury the pipes for protection against wave action and avoidance of fishing interaction. The process of offshore trenching is expected to last 4 to 8 weeks. 

According to the Environmental Impact Assessment (EIA) prepared by independent third party experts, the nearshore work will have small, temporary and localized effects for the local fishing industry. After a thorough consultation process with various Turkish stakeholders, including local community representatives and fishing groups, the Turkish Ministry of Environment and Urbanization approved the EIA in September 2017. 

“We are pleased to be in line with our construction schedule to ensure that gas deliveries start by the end of 2019. We will try and make sure to minimize and mitigate the disturbance to the local residents during the nearshore works, " Sander van Rootselaar, TurkStream spokesperson, said.

TurkStream project company is engaging with local fishermen over a voluntary compensation scheme for potential loss of income during the period of nearshore works within the framework of its commitment to remedy any local impacts to be experienced. The compensation scheme is part of TurkStream’s corporate responsibility and good neighborhood policy.

In parallel, Pioneering Spirit is progressing since the offshore construction of the second line resumed on 26 June. The landfall facilities on the Russian side of the Black Sea, near the city of Anapa, is in the final stages of construction and will be completed in 2018.


TurkStream is the project for a gas pipeline stretching across the Black Sea from Russia to Turkey and further to Turkey’s border with neighbouring countries. The first line of the gas pipeline is intended for the Turkish consumers, while the second line is designated for the Southern and South-Eastern Europe. Each line will have the throughput capacity of 15.75 billion cubic meters of gas per year. South Stream Transport B.V. is responsible for the construction of the gas pipeline’s offshore section.



Gazprom's Exports to the European Market in the 1st Half of 2018 is to exceed 100 bcm Fri, 29 Jun 2018 18:05:15 +0400 In the first half of 2018, Gazprom is to supply 101.2 bcm of gas to the European market, which is 5.7% (5.5 bcm) more than in the same period of 2017. This was stated by the Chairman of the Management Committee of the company Alexey Miller in his speech at Gazprom’s annual meeting of shareholders. 

It is expected that by the end of 2018, Gazprom’s exports to the Far Abroad will renew the historical record and exceed 200 bcm. The previous record, 194.4 bcm, was set in 2017, when Gazprom’s share in gas consumption in Europe reached 34.2%.

According to Alexey Miller, Gazprom is striving to increase its own gas storage capacities in Europe to 5% of the annual export volumes. In addition, the company is exploring the opportunities to participate in new underground storage facilities in Austria, Slovakia, as well as in China and other countries. 

In order to increase the flexibility of supply to its foreign partners, Gazprom Group develops its activities in the global market of liquefied natural gas (LNG). In 2017, LNG from the Group’s portfolio was delivered to nine countries, and most of the trading operations were related to Asia-Pacific Region. Among the LNG buyers in Europe, Spain became a new client of Gazprom in 2017, said Alexey Miller.

IEA forecasts global gas consumption pass 4 trillion cubic meters mark by 2022 Thu, 28 Jun 2018 18:56:04 +0400 The International Energy Agency (IEA) has published a gas market outlook through 2023. According to this forecast, global gas demand will grow with average annual growth rates of 1.6% over the reviewed period. Therefore, global natural gas consumption will grow to 4.1 trillion cubic meters in 2023, from 3.74 trillion cubic meters in 2017. The symbolic mark of 4 trillion cubic meters will be passed by 2022.

China will remain the main driver for global gas demand growth. By 2023, China’s gas consumption will have grown by 60%, which will correspond to 37% of the global gas demand growth. In 2019, China will replace Japan as the world’s largest gas importer.

IEA indicates that the role of LNG on the global gas markets is gaining momentum. Today, LNG corresponds to 1/3rd of the global gas trade and its share will grow to 40% by 2023. Asia will remain the key market for LNG supplies as the region in contrast to Europe doesn’t enjoy an extensive network of import pipelines. China together with such emerging markets as India and Pakistan will make up 90% of global LNG demand growth in the coming six years.

IEA analysts predict 40% of the global gas demand growth will fall on industry sector and 26% on electricity generation.

Pioneering Spirit vessel resumes pipelaying for TurkStream Tue, 26 Jun 2018 16:48:43 +0400 The Pioneering Spirit vessel today resumed the pipelaying operations for the second string of the TurkStream offshore gas pipeline, moving towards the Kiyikoy settlement in Turkey. After entering the Black Sea on June 20, the vessel conducted a set of preparatory works, including stinger deployment and pipelaying equipment check-ups. The pipeline head of the second string was recovered from the bottom of the Black Sea on the border of Russian and Turkish exclusive economic zones (EEZs) at a depth of 2,170 meters. The 224-kilometer section of the pipeline leading to the EEZ border was built in 2017.

In April 2018, pipelaying for the first string of TurkStream’s offshore section was completed, with a total of 1,161 kilometers (62 per cent of the overall gas pipeline length) of pipes laid along the two strings.


TurkStream is the project for an export gas pipeline stretching across the Black Sea from Russia to Turkey and further to Turkey’s border with neighboring countries. The first string of TurkStream is intended for Turkish consumers, while the second string will deliver gas to southern and southeastern Europe. Each string will have the throughput capacity of 15.75 bcm of gas per year. South Stream Transport B.V., a wholly-owned subsidiary of Gazprom, is responsible for the construction of the gas pipeline’s offshore section.



Sakhalin Energy offloaded the 1500th LNG cargo Mon, 25 Jun 2018 17:23:29 +0400 The 1500th LNG cargo since the launch in 2009 of Russia’s first liquefied natural gas plant, Sakhalin 2, was shipped from Prigorodnaya seaport. The buyer of the cargo, which will be delivered to Japan by Energy Navigator tanker is Japan’s largest natural gas company Tokyo Gas. It is symbolic that Tokyo Gas was one of the buyers of the first Russian LNG cargo in March, 2009.

In August 2015 the 1000th LNG cargo was offloaded to the same tanker and Tokyo Gas, together with Tokyo Electric, were among the buyers.

The majority of products of Sakhalin Energy are exported to Japan. In 2017, 64.31% of the LNG produced by the company (more than 7.4 mln t) was shipped to Japanese energy companies.  In addition, there are also companies from South Korea, China, Taiwan, India, Kuwait and Thailand who buy Sakhalin LNG. 

Currently Sakhalin Energy contributes over 9% of Asia-Pacific LNG supply and about 4% of global LNG supplies. Since the beginning of production, Sakhalin Energy plant has by now offloaded 97.5 mln t of LNG.

Construction and Operation Permit for Nord Stream 2 Granted by Sweden Thu, 07 Jun 2018 19:22:45 +0400 The “Nord stream 2 AG” company has received permission to build and operate the Nord Stream 2 gas pipeline in the Exclusive Economic Zone (EEZ) of Sweden. The permit was granted by the Ministry of Enterprise and Innovation, which is in charge of the application. This was announced by Mikael Damberg, the head of the Ministry, on 7 June.   

Pipe laying of this section in the Swedish EEZ is scheduled to start later this year. 

The permits required for the construction and operation of the Nord Stream 2 pipeline have already been obtained in Germany and Finland. The national permitting procedures in Russia and Denmark, other countries along the route, are proceeding as planned.

More information is available at Nord Stream 2 AG website.

Gazprom’s Exports to the Far Abroad Reached 86 bcm within Five Months of 2018 Fri, 01 Jun 2018 17:12:41 +0400 From January to May, 2018, Gazprom produced 217.3 bcm of gas, which is by 9.5% (18.8 bcm) more than in the same period of 2017. In particular in May, 40 bcm of gas was produced. This is the maximum result for the last seven years (since 2012).

Gazprom increased the volume of gas sales on the domestic market from national gas transportation network: from 1 January to 31 May, the increase amounted to 5.8% (6.8 bcm).

Exports of gas to the Far Abroad countries in five months reached 86 bcm. This demonstrates a 5.8%, or 4.7 bcm, increase over the same period of the record year of 2017. In particular, supply increased to Germany by 13.4% (3 bcm), to Austria — by 63.9% (2 bcm), to the Netherlands — by 78.4% (1.4 bcm), to France — by 8.1% (0.4 bcm), to Croatia — by 48.9% (0.4 bcm), to Greece — by 35.3% (0.4 bcm), to Czech Republic — by 10.7%, to Denmark — by 9.5%,  to Poland — by 5%.

Gazprom demonstrates strong IFRS financial results for the 1st quarter of 2018 Wed, 30 May 2018 17:22:41 +0400 Gazprom PJSC issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) for the three months ended March 31, 2018.
Total sales (net of excise tax, VAT and customs duties) increased by RUB 323,030 million, or 18%, to RUB 2,138,331 million for the three months ended March 31, 2018 compared to the same period of the prior year. The increase in sales revenues was mainly due to an increase in sales of gas and refined products.

Net sales of gas to Europe and other countries increased by RUB 164,428 million, or 28%, to RUB 758,307 million for the three months ended March 31, 2018 compared to the same period of the prior year. The change was mainly due to the increase in average Russian Ruble prices (including excise tax and customs duties), by 17% and the increase in volumes of the gas sold by 9%, or 5.9 bcm.

Net sales of gas to Former Soviet Union countries increased by RUB 9,344 million, or 9%, to RUB 111,479 million for the three months ended March 31, 2018 compared to the same period of the prior year. The change was due to the increase in volumes of gas sold by 13%, or 1.6 bcm, that was partially compensated by the decrease in average Russian Ruble prices (including customs duties) by 3%.

Profit attributable to the owners of PJSC Gazprom for the three months ended March 31, 2018 totalled RUB 371,623 million which is by RUB 38,170 million, or 11%, more than for the same period of the prior year.

More information about Gazprom’s IFRS Q1 results available at Gazprom’s website.

Belgrade is interested in natural gas supply via TurkStream Tue, 29 May 2018 18:53:57 +0400 Minister of Mining and Energy of Serbia Alexandar Antić said that Serbia was interested in natural gas delivered to Europe via TurkStream. He told this journalists on the sidelines of SPIEF – 2018. 

Antić highly appreciated energy cooperation between the two countries and also stressed that Serbia “puts great hopes on TurkStream” and is ready to perform transit for this natural gas transportation route on its way further to Europe.  

Gazprom Gas Exports to Europe Rise 6.3% Since Start of 2018 Tue, 17 Apr 2018 19:00:00 +0400 Gas production and deliveries of Gazprom continue to grow even after the end of the winter heating season. According to PJSC Gazprom, from April, 1 to April, 15 the company produced 21.9 billion cubic meters of gas, by 22.4% more than in the first half of April 2017. The cumulative production for the first three and a half months of this year is by 7.5% higher compared to the same period of the last year.

The reason for this notable increase in production is  the steady growth of consumption of the Russian “blue fuel” both in domestic market and abroad. According to the company’s operational data, from January, 1 to April, 15, 2018, Gazprom supplied 62.2 billion cubic meters of gas to the Far Abroad countries, which is by 6.3% or 3.7 billion cubic meters more than in the first three and a half months of 2017. During this period, Russian imports increased within the potential markets of “Nord stream 2” project in Western Europe. For example, supplies to Austria increased by 74.5%, to the Netherlands — by 108.9%, to France — by 9.5%. 

“The largest increase in absolute terms — by 2.1 billion cubic meters — was demonstrated by the leading importer of Russian gas, Germany. Since the beginning of the year, Gazprom has supplied 18.6 billion cubic meters of gas to the country. In annual terms, this would make 64.7 billion cubic meters, which, for comparison, exceeds the capacity of Nord Stream gas pipeline,” said Alexey Miller, Chairman of the Gazprom Management Committee.

Nord Stream 2 Receives Full Set of Permits in Finland Thu, 12 Apr 2018 13:00:00 +0400 Project developer Nord Stream 2 AG received the second permit issued by the Regional State Administrative Agency of Southern Finland in accordance with the Water Act, required to construct and operate the planned Nord Stream 2 gas pipeline, thus completing the permitting procedure in Finland. The first permit received last week was the Government’s consent for the construction of the pipeline in the Finnish Exclusive Economic Zone.

“This is an important day for our project: following a very thorough analysis and extensive engagement the Finnish authorities have approved our detailed plans to construct and operate the 374-kilometre Finnish section of the Nord Stream 2 Pipeline. We look forward to continuing the constructive co-operation with the authorities during the construction and subsequent operation phases of the project as they monitor the implementation of our plans,” said Tore Granskog, Permitting Manager Finland at Nord Stream 2 AG.

The permitting procedure in Finland was initiated in autumn 2017. It was based on the environmental impact assessment (EIA) phase and feedback received during the public consultations. Nord Stream 2’s Finnish EIA report was highly appraised by the Finnish Association for Impact Assessment in March 2018 for the inclusion of an extensive amount of information about the project’s route alternatives and their potential environmental impact.

Nord Stream 2 AG has already received the necessary set of approvals in Germany. The project company emphasizes that national permitting procedures in the other three countries along the route — Russia, Sweden and Denmark — are also proceeding as planned.

Read more on Nord Stream 2 AG website.

Government of Finland Gives Consent to Nord Stream 2 Construction Fri, 06 Apr 2018 14:00:00 +0400 On April 5, 2018, the Finland’s Ministry of Economic Affairs and Employment gave the Government’s consent on the use of the Finnish Exclusive Economic Zone (EEZ) for the construction of the Nord Stream 2 gas pipeline.

As noted in a press release of the Cabinet of Ministers of Finland, 374 kilometers of the 1,220 km-long pipeline will pass through the Finnish EEZ. Among the consent terms and conditions, the Finnish Government states that the project must be carried out without harm to the environment, and also should allow the implementation of potential other infrastructure projects in Finland’s EEZ at a later stage.

“We are very pleased to have obtained this permit after an extensive and thorough permitting process. It marks yet another important milestone for the Nord Stream 2 project,” said Tore Granskog, Permitting Manager in Finland at Nord Stream 2 AG.

The second permission, required from the regional administration of Southern Finland in accordance with the Water Act, is expected in the coming weeks. The necessary environmental research done for this purpose was highly appraised by the Finnish Association for Environmental Impact Assessment (FAIA).

Nord Stream 2 AG has already received the necessary set of approvals in Germany. The project company states that national permitting procedures in the other three countries along the route — Russia, Sweden and Denmark — are proceeding as planned.

Read more on Nord Stream 2 AG website and on Finnish Government Media Service Portal.

Gazprom Sets Another Record in Monthly Gas Supplies Tue, 03 Apr 2018 17:00:00 +0400 Gazprom reports a growth of production and supply despite the end of calendar winter. According to preliminary results of Q1 2018, an absolute monthly record of 19.6 bcm was set for gas supplies in March to the Far Abroad countries. The previous record of 19.1 bcm was set in January 2017.

Within Q1 2018, Gazprom supplied a total of 54.4 bcm to the Far Abroad countries. The increase amounts to 3.3 bcm or 6,6% compared to the same period of 2017. According to the Q1 results, supplies increased to Germany by 12.2%, to France by 11.1%, to Austria by 83.5%, to the Netherlands by 127%, to Finland by 15.5%, to Greece by 36.4%.

Gazprom also increased gas production. In March 2018, 46.5 bcm were produced, which is higher than Gazprom’s production in January and February of this year and also 20.5% (7.9 bcm) more than in March 2017. This is the maximal volume of gas production for this month over the last six years.

EU Gas Demand Hits Six-Year Record in 2017 Sat, 31 Mar 2018 12:00:00 +0400 The total consumption of natural gas in the countries of the European Union (EU) in 2017 amounted to 491 bcm, which is 6% more than in 2016. This is the highest level of demand for the “blue fuel” since 2010, the Market Observatory for Energy of the European Commission (EC) states in its Quarterly Energy Report on European Gas Markets for Q4 2017, published on March 26.

The volume of EU gas imports in 2017 amounted to about 360 bcm, exceeding the value of 2016 by 10%. As noted in the EC report, all major gas suppliers — Russia, Norway and Algeria — registered a year-on-year growth in Q4 2017, while Russia retained the largest market share, having increased the pipeline supply by 12%.

The EU’s own gas production in 2017 amounted to 128 bcm, which is 3% less than in the previous year. In particular, in 2017 the Netherlands became a net importer of gas for the first time in history. The annual gas consumption in this country exceeded the volume of its own production.

Read more on the Market Observatory for Energy page of the European Commission website.

Nord Stream 2 Receives Full Set of Permits in Germany Tue, 27 Mar 2018 17:11:29 +0400 On 27 March 2018 the Federal Maritime and Hydrographic Agency of Germany issued the Nord Stream 2 AG the permit for the construction and operation of the 30-kilometres-long pipeline section in the German Exclusive Economic Zone in accordance with the Federal Mining Act (BBergG).

The Stralsund Mining Authority had on 31 January 2018 approved the construction and operation of the pipeline in the German coastal waters (within 12 nautical miles) as well as its landfall area.

“We are pleased that all necessary permits are now in place for the 85 kilometers-long German route section,” said Jens Lange, Permitting Manager for Germany at Nord Stream 2 AG.

The extensive process for the approvals was carried out in accordance with German national law since April 2017. The national permitting procedures in the other four countries along the pipeline route — Russia, Finland, Sweden and Denmark — are proceeding as planned. Nord Stream 2 AG expects the remaining permits to be issued in the coming months.

Read more on Nord Stream 2 AG website.

The Federal Maritime and Hydrographic Agency of Germany press release (in German language).

“Good Environmental Impact Assessment” Award for Nord Stream 2 in Finland Fri, 23 Mar 2018 18:00:00 +0400 Environmental Impact Assessment (EIA) submitted by Nord Stream 2 AG was awarded a “Good EIA Award” at the annual EIA Day held in Helsinki, Finland on March 22, 2018. The EIA was drafted by Nord Stream 2’s environmental consultancy company Ramboll Finland.

“We are very pleased with this recognition and I would like to thank Ramboll for their excellent work. Their experience gained from the previous Nord Stream project was a good starting point for the development of Nord Stream 2’s EIA. Nord Stream 2 has taken into consideration the feedback received from various stakeholders in the implementation of the project as much as possible. We are committed to constructing the pipelines in such a way that the impacts will remain as limited as possible”, says Tore Granskog, Nord Stream 2’s permitting manager for Finland.

The Environmental Impact Assessment material is used as the basis for decision-making in the permitting procedure in Finland, where Nord Stream 2 requires two permits for the planned pipelines running 374 km through the country’s exclusive economic zone (EEZ): the government’s consent for the use of the EEZ, and a Water Permit for the construction and operation of the pipeline. These are expected to be received in the next weeks.

Nord Stream 2 AG has already received permits to start construction of the pipeline offshore section in the waters of Germany and the receiving terminal on its territory. Apart from Finland, also Sweden, Denmark and Russia are expected to grant permits.

Read more on Nord Stream 2 AG website.

European UGS Reserves Down to Record Lows Thu, 22 Mar 2018 11:00:00 +0400 The withdrawal of gas from European underground gas storage facilities, where the reserves have decreased down to the record low rates, is continuing.

As of 19 March, according to the Gas Infrastructure Europe Association, 61.9 bcm of gas have been withdrawn from gas storages in Europe. Therefore, even before the end of heating season the overall offtake volume has reached its maximum amount in the history of GIE records.

By March 20, European storages were filled at 20.5% on average. In some countries, such as Belgium and France, storage facilities are emptied by 94-96%. 


Gas Infrastructure Europe association has been keeping records since 2011.
According to GIE statistics, during the preparation to the 2017/2018 heating season, avolume of 59.8 bcm of gas has been injected into European gas storages.

Gazprom’s Exports Continue to Grow Fri, 16 Mar 2018 18:00:00 +0400 Cold weather in Europe continues to drive demand for Russian gas. According to Gazprom, in the first half of March 2018, exports to the Far Abroad countries grew by 29.4% compared to the same period of 2017, up to 9.7 bcm.

From January 1 to March 15, 2018, 44.4 bcm of gas were delivered to the consumers in the Far Abroad, which marks the growth of 3.4% or 1.5 bcm compared to 2017. In particular, in the first two and a half months of this year exports to Germany grew by 11.1% (1.3 bcm), to Austria — by 90.5% (1.3 bcm), to the Netherlands — by 114.2% (1 bcm).

According to current data by Gas Infrastructure Europe Association, the reserves in the European gas storages are now significantly depleted against the backdrop of severe colds and rapidly increasing demand for gas. As of March 13, 2018, the overall volume of gas withdrawn from the UGS over the current heating season totaled to 60.1 bcm which is higher than the volume of 59.8 bcm pumped into the storages during the injection period. By March 13 the storages were filled at 23.15%, which is the lowest level for the entire history of records since 2011.

Russian Gas Export Sets New Records Mon, 05 Mar 2018 17:00:00 +0400 Through late February and early March 2018, Gazprom has been breaking records for ten consecutive days, setting new historical maximums of daily gas supplies. A new record level of 713.4 mcm was reached on March 2. In 2017, the maximum value was set on December 19 at 640 mcm.

In addition, this February broke a record for the total exports volume: Gazprom exported a total of 17.4 bcm, which is 6.8% (or 1.1 bcm) higher than in February 2017, and the absolute maximum for this month in the entire history of deliveries to the Far Abroad.

Compared to February 2017, gas exports to Germany in February 2018 went up by 8.5%, to Austria by 115,8% and to the Netherlands by 146,8%.

“These figures are more than impressive. They are indicative of the huge, unique opportunities available to Gazprom and, by extension, to our consumers in Europe. We are a responsible supplier. Yet again, we are doing something only Gazprom can do in the European market, by promptly responding to the sharp rise in demand and providing consumers with the required amounts of gas”, said Alexey Miller, Chairman of the Gazprom Management Committee.

The growth in demand for Russian gas in Europe was also noted by market participants. Bloomberg newswire quotes meteorologist Giacomo Masato from brokerage company Marex Spectron Group: “We see the coldest end of the winter in years, and Russia is the first supplier with enough spare capacity to meet an extreme surge in demand.”

Nord Stream 2 Project Receives Permit for German Territorial Waters Wed, 31 Jan 2018 14:00:00 +0400 Nord Stream 2 AG today received the construction and operation permit for the planned pipeline in German territorial waters and the landfall area in Lubmin, near Greifswald. The Stralsund Mining Authority issued the official approval for this approximately 55-kilometre-long section of the pipeline in accordance with the Energy Industry Act (EnWG).

“This is a key decision, which now makes it possible to begin construction of the most important section of the new Nord Stream 2 offshore gas pipeline in German territorial waters and receiving terminal in Greifswald” — said Alexey Miller, Chairman of the Gazprom Management Committee.

“This permit is the result of an extensive planning and consultation process. Nord Stream 2 is aware of its responsibility towards this sensitive natural habitat and has taken this into account in the planning phase. In addition to the environment, these considerations also include the interests of other parties concerned, such as the shipping and tourism industries,” said Jens Lange, Permitting Manager Germany at Nord Stream 2 AG. “This permit is an important milestone in the complex permitting process for the project as a whole.”

In early November 2017, Nord Stream 2 received the Stralsund Mining Authority’s approval of mining activities for the Nord Stream 2 Pipeline in the area of the German continental shelf (equivalent to the German Exclusive Economic Zone, or EEZ). This is a necessary precondition for the Federal Maritime and Hydrographic Agency (BSH) to issue its permit for the German EEZ, which is expected in the first quarter of 2018.

The national permitting procedures in the other four countries along the route — Russia, Finland, Sweden and Denmark — are also proceeding as planned. Nord Stream 2 has fulfilled all requirements and expects the permits to be issued in time for the scheduled start of construction in 2018.

See original message and get more info at the Nord Stream 2 website. 

About Nord Stream 2

Nord Stream 2 is a planned pipeline through the Baltic Sea, which will transport natural gas over 1,200 km from the world’s largest gas reserves in Russia via the most efficient route to consumers in Europe. Nord Stream 2 will largely follow the route and design of the successful Nord Stream pipeline.
With Europe’s domestic gas production projected to halve in the next 20 years, Nord Stream 2’s twin pipeline system will help Europe to meet its future gas import needs, with the capacity to transport 55 billion cubic metres of gas per year, enough to supply 26 million European households. This secure supply of natural gas with its low CO2 emissions will also contribute to Europe’s objective to have a more climate-friendly energy mix with gas substituting for coal in power generation and providing back-up for intermittent renewable sources of energy such as wind and solar power.

Media Contact:
Jens D. Müller
Media Relations Manager
+41 41 418 3636

Eurogas comments on European Commission’s proposal to amend EU Gas Directive Fri, 12 Jan 2018 18:00:00 +0400 The Eurogas industry association, representing the interests of 43 European gas market players, has published its position on the European Commission’s initiative to amend the Third Energy Package, which would extend to existing and future gas pipelines from outside the borders of the EU jurisdiction.

The European Commission submitted proposal to amend the Gas Directive 2009/73 / EC in November 2017 claiming that the decision to introduce them is being adopted "to improve the functioning of the EU internal energy market and enhance solidarity between Member States".However, according to Eurogas, this initiative could harm the industry, threatening both existing gas pipelines and new projects, including pipelines from the Eastern Mediterranean and the Caspian region.

Eurogas also notes that any changes in the Third Energy Package regarding the status of offshore gas pipelines still need to be assessed against potential incompatibilities with UNCLOS (UN Convention on the Law of the Sea).

Association believes that applying the Third Energy Package rules to the gas pipelines from third countries creates uncertainty for both the participants and consumers, and carries a potential threat to the existing contractual obligations. Retroactive changes in EU law affect the interests of existing and future gas suppliers and buyers who have concluded deals under the current legal regime.

If the European Commission initiative is implemented, a review of existing intergovernmental agreements will be required without guarantees that renewed agreements would still be mutually beneficial, and the sovereignty of EU member states in concluding future intergovernmental agreements will be curtailed.

Eurogas gives examples of existing pipelines, which legal regime will be affected by the European Commission’s initiative. These are: Medgaz (Algeria-Spain), TransMed (Tunisia-Italy), Green Stream (Libya-Italy), Maghreb-Europe Pipeline (Morocco-Spain), Europipe I+II, Norpipe (Norway-Germany), Nord Stream (Russia-Germany), Transmed Pipeline (Tunisia-Italy) and the United Kingdom pipelines (after Brexit).

Eurogas believes that the European Commission initiative aims to create benefits for the LNG import against the pipeline gas transportation. This creates risks for diversification of supply as well as for suppliers competition.

The full text of Eurogas view on the modification of the Gas Directive can be found on Eurogas website.