Oil and oil-products

Along with natural gas, Gazprom Export LLC sells on foreign markets oil, petroleum products, liquefied petroleum gases, sulfur and a wide range of petrochemical products.

 

Current Activity 

In 2018, Gazprom Export exported 4.8 mln t of liquid hydrocarbon products and refined products, worth a total of around 1.74 $ bn. These commodities were sold under commission contracts with Gazprom, subsidiaries, and independent producers on the different supply terms including FCA, FOB, CPT.

Gazprom Export’s product portfolio included gas-derived sulfur, stable gas condensate (SGC), gas condensate distillate, benzene, diesel fuel, fuel oil, liquefied petroleum gas (LPG) and small-scale LNG (ssLNG), helium, carbon black, and a number of other commodity items. Main producers are the Astrakhan gas refinery, the Orenburg gas refinery, the Surgut condensate stabilization plant (CSP), the Urengoy CTPP, the Sosnogorsk gas refinery and the Salavat oil refinery.

In 2018, the total volume of exported products was comparable to the level of previous years. To maintain strong sales revenues against a volatile market background, the company has taken steps to improve the efficiency of export supplies, including cost cutting with respect to transportation, transshipment and survey services, by optimizing its sales channels and consolidating export flows.
 

Petroleum products and stable gas condensate (SGC)

In 2018, the company exported roughly 2.28 mln t of petroleum products and SGC, worth a total of around 1.34 $ bn. The volume of exported products remained on the previous year level with revenue growth of 23% compared to 2017.
The SGC export volumes has doubled compared to 2017, as well as the range and geography of product supplies has also been expanded. In terms of petroleum products exports, Gazprom export is holding a leading position in the domestic industry. The main export destinations were European region as well as Azerbaijan, Mongolia and Kazakhstan.

Asia-Pacific Region’s oil and oil products markets are being studied amid planning commissioning of the Amur gas processing plant within the Eastern Gas Program and the start of supplying the oil-gas condensate mixture and SGC from the Eastern Siberia fields through the Eastern Siberia — Pacific Ocean pipeline.
 

Sulfur

In 2018, Gazprom Export exported around 2.201 mln t of gas-derived, technical, and granulated sulfur. Sulfur exports to the Far Abroad countries (countries of the North Africa,  Mediterranean region, etc.) and former Soviet states (Lithuania, Belarus) were carried out on a remote basis, including via Russian river and sea ports.

Throughout the 2018, the company managed to maintain Gazprom Group’s sulfur sales on key markets of the Far Abroad (Brazil, Tunisia, Israel and Lebanon) and FSU countries (Lithuania and Belarus). At the same time, in 2018, additional diversification was ensured in the geography of the distribution of goods through exports to consumers in Namibia, Senegal, China, South Africa, Argentina, Uruguay, etc. Thanks to timely concluded deals, the company managed to capitalize the market opportunities and increase the revenue compared to 2017.

 

Helium

Gazprom Export deliver Gazprom Group’ helium to international markets. Today, the commercial helium is produced by the helium plant of Gazprom Dobycha Orenburg in gaseous and liquid forms in total volume of up to 5 mcm annually. Up to 70% of helium produced is consumed on the Russian and Customs Union internal market, and the rest is delivered for export. The traditional export markets of liquid helium are EU countries and Turkey.

After the Amur gas processing plant is commissioned in 2021, with its helium production capacity planned to reach 60 mcm by 2026, the helium export portfolio will be diversified, and Gazprom Group will become one of the leading suppliers for the Asian-Pacific region. The helium produced on the Amur plant will be mostly destined for exports. We expect  Japan, China, South Korea, Taiwan and other Asia-Pacific region countries to become its main customers.

Gazprom Export markets helium, signs long-term export contracts, and, together with other Gazprom Group companies and partners, participates in creation of the logistics infrastructure that secures efficient supplies to international markets. In the Russian Far East a dedicated cryocontainers center will be created for helium logistics. Gazprom Export actively participates in designing the functional responsibilities of this specialized infrastructure object.

 

Liquefied petroleum gas

In 2018, the company exported 202.45 thousand tons of technical propane-butane as well as exported test batches of technical propane (0.6 thousand tons) to the Estonian market and shipped 15 thousand tons of a natural gas liquids to the Republic of Belarus.

Gazprom managed to retain its positions on the major export markets of Hungary, Poland, Bulgaria, Latvia and Estonia. In addition to the traditional directions of deliveries, the company carried out shipments to the markets of Romania and Serbia.
 

Petrochemical products

In 2018, Gazprom Export exports:
• 25.3 thousand tons of carbon black produced by the Sosnogorsk Gas Processing Plant. Its main markets were Europe, Turkey and North America;
• 42.3 thousand tons of petrochemical products produced by LLC Gazprom Neftekhim Salavat to the markets of Europe, Turkey, India, as well as North and South America;
• 600 thousand cubic meters of helium, both liquid and gaseous, as well as 500 tons of natural gas odorant, mainly dedicated to the markets of the CIS countries and Europe.

The traditional foreign markets for petrochemical products supplied by Gazprom Export are the countries of Europe, the CIS, Turkey, as well as the countries of the Customs Union.
 

Activities under the European REACH Regulations

Gazprom Export and its Special Representative in the EU, GM& T France, continue to work on tracking Gazprom products registered in compliance with the requirements of REACH/CLP Regulations. We perform constant monitoring of the updates in applicable legislation of the EU and other countries, regarding chemical substances. The safety certificates are being updated in line with the new requirements, including classification and labeling; additional research into the component composition and physical-chemical properties in line with the European Chemical Agency (ECHA) standards is performed. New products are being registered reasonably in advance to ensure their reliable exports to the EU.

 

Future Areas of Activity 

Eastern Gas Program, аside from its natural gas part, contains plans to create a number of large-scale processing facilities in Eastern Siberia and the Far East. With this, by 2020 the commercial production of the oil-gas condensate mixture will start on the Chayanda gas condensate field. Gazprom Export will export this product via the East Siberia – Pacific Ocean pipeline to China.

As Eastern Siberia’s fields are being developed, the implementation of large-scale projects involving production of helium and LPG in the Amur region evolves into a special area of activities. This development will make Gazprom Group one of the leading supplier of these products to the Asia-Pacific region markets.

Within Gazprom’s massive strategic project for creation of gas production, transmission and processing capacities for the gas from Eastern Siberia, Gazprom Export is working on the helium and LPG marketing, as well as conclusion of the long-term export contracts. Together with other companies and partners of the Group, Gazprom Export participates in creation of logistics infrastructure that secures stable helium and LPG supplies to international markets.

Within the construction on the Novy Urengoy Gas and Chemical complex (NGCC), Gazprom Export joined Gazprom in developing a strategy for the sale of high-pressure polyethylene abroad. This business area encompasses works on optimizing the brand assortment of NGCC products in view of current and future market conditions, as well as analysis of logistical possibilities to deliver the product to its final customers.