Oil and petrochemicals

Alongside natural gas, Gazprom Export LLC sells abroad crude oil, petroleum products, liquefied petroleum gases (LPG), sulfur and a broad spectrum of gas processing products. 

 

Current Activity 

Gazprom Export’s product portfolio includes gas-derived sulfur, stable gas condensate (SGC), gas condensate distillate, benzene, diesel fuel, fuel oil, liquefied petroleum gases (LPG), helium, carbon black, and other petroleum products and petrochemicals. 


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 2020, Gazprom Export LLC exported 5.42 mln t of liquid hydrocarbon and refined products. These commodities were sold under commission contracts with Gazprom, its subsidiaries, and independent producers of oil and gas chemistry products, on different supply terms including FCA, FOB, CPT.

Petroleum Products and Stable Gas Condensate

In 2020, Gazprom Export exported 2.82 mln t of petroleum products and SGC. The volume of exported products increased by 0.17 mln t, or 6.4%, compared to 2019. The company expanded the geography of supplies of stable gas condensate (SGC) and petroleum products: Turkey, Uzbekistan and Finland recieved first SGC from Astrakhan and Surgut plants. Besides, after a long break gas condensate from Sosnogorsk plant was shipped to Finland.

The company supplied first diesel fuel of Arctic grades to Mongolia. In the periods of seasonal demand, Gazprom Export covers up to 10% of Mongolia's diesel fuel market.

In March 2020, in the framework of the Power of Siberia project, the company exported first gas condensate from Chayandinskoye gas field via sea port Kozmino, which has contributed to Gazprom's positions in the Asian-Pacific market. In future, the production of oil and gas condensate at Chayandinskoye field will increase with the ramp-up of gas offtake within the Power of Siberia project.

Sulfur

In 2020, Gazprom Export exported around 2.59 mln t of gas-derived, technical, and granulated sulfur, which is 20.4% less than in 2019.

Gazprom Group has retained its positions in the key markets of sulfur of Far Abroad countries (Brazil, Israel, the US, China) and Former Soviet Union Countries (Lithuania, Belorussia), and completely restored sales to Morocco, the key contract market for Russian sulfur. At the same time, over the year Gazprom further diversified the geography of exports by selling sulfur to customers in Salvador, Mexico, Benin and Jordan.


Efficiently using the positive market situations, timely concluding the deals together with switching to remote basis contracts, the company managed to increase the revenues to $207 mln despite the generally unfavorable conditions of the global sulfur market. The decline in prices had started in October 2018, and from October 2018 to December 2019, average prices of CFR Northern Africa and CFR Brazil fell almost threefold.

Helium

Gazprom Export LLC sells Gazprom Group’s helium to international markets. The commercial helium is produced at the helium plant of Gazprom Dobycha Orenburg in gaseous and liquid forms in total volume of up to 5 mcm annually as well as at the Amur Gas Processing Plant. It will graduall raise its output to 60 million t per year. In September 2021, the first of three helium production units at the Amur GPP was commissioned. In Vladivostok, the company launched the world's largest Logistics center for the servicing of helium containers (helium hub).

Most of helium produced is consumed in the internal market of Russia and the rest is exported. The traditional export markets of gaseous helium are the Customs Union countries; of liquid helium – the EU, Turkey, and Asian countries.

Liquefied Petroleum Gases

In 2020, Gazprom Export exports 143.54 thousand t of LPG. Poland, Hungary, Bulgaria, Latvia, Serbia, and Estonia remain the traditional and main markets for Gazprom’s LPG.

In 2020, the company expanded its presence on a new LPG market - China. Even though China placed additional requirements to the products, which are not envisaged in international rules of railroad transportation, and though there were certain limitations and bans to LPG shipments in that direction, Gazprom Export exported in total 32 thousand t of butane technical and propane-butane technical, produced by Gazprom PJSC. 

Petrochemical Products

In 2020, Gazprom export increased exports of petrochemical products to 111.82 thousand t, which is by 4.22 thousand t more than in 2019. Major consumer markets for the company’s petrochemical products are the EU, Turkey, India, as well as Northern and Southern American countries.

Activities under the European REACH Regulations

Gazprom Export and its Special Representative in the EU, Gazprom Marketing & Trading France, are continuing to work on tracking Gazprom Group products registered in compliance with the requirements of REACH/CLP Regulations. The companies 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; the company performs additional research into the component composition and physical-chemical properties in line with the European Chemical Agency (ECHA) standards and updates registration dossiers. In particular, in 2021, test for detection of nano particles in technical carbon are performed. New products are being registered reasonably in advance to ensure their reliable exports to the EU.

 

FUTURE AREAS OF ACTIVITY

In the framwork of the Eastern Gas Program, Gazprom develops new gas production centers, transmission and processing facilities that use the natural gas from Eastern Siberian fields. 

In Jun 2021, the company launched the first production train of the Amur Gas Processing Plant, which is one of the largest gas processing enterprises in the world. Design processing capacity is 42 bcma. In September 2021, the second production train and the first of three helium units were launched. At the same time, the world's biggest Logistics Center for the servicing of helium containers (helium hub) came onstream in Vladivostok.

In 2025, the Amur GPP will reach its full design capacity:it will produce 60 mcma of helium; 2.4 million t per annum of ethane; 1 million t per annum of propane; 500 thousand n per annum of butane; about 200 thousand t per annum of pentane-hexane fraction. The Gazprom Group will become one of the largest exporters of helium in the world. Japan, China, Republic of Korea, Taiwan, and other countries in the Asian-Pacific region are expected to be the main customers of the products from this plant.

The project vastly contributes to the social and economic development of the Amur and other Far Eastern regions.